NYSE$ADT

ADT Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

ADT reported strong financial and operating results, improving revenue payback and customer retention to record levels, growing RMR additions and increasing subscribers.

ADT Inc. reported third-quarter 2020 results, highlighting record customer retention and revenue payback, growth in U.S. RMR additions and net subscribers, and an accelerating launch of a co-branded offering with Google into 2021.

  • Total revenue was $1,299 million, compared to $1,301 million.
  • Net loss was $113 million, compared to $182 million.
  • Adjusted EBITDA was $564 million, compared to $624 million.
  • Trailing twelve-month gross customer revenue attrition of 12.9%, an improvement of 60 bps.

Headline financials

Total Revenue

$1.3B

Previous: $1.3B-0.1%
EPS (adj)

-$0.08

Previous: -$0.02-300.0%
Capital Expenditures

-$112M

Previous: -$120M+6.5%
Free Cash Flow

-$225M

Previous: -$302M+25.3%
Net Income

-$113M

Previous: -$182M+37.7%
Operating Income

$62.9M

Previous: -$51.2M+222.7%
Cash & Equivalents

$489M

Previous: $156M+214.2%
Total Assets

$16.4B

Previous: $16.9B-3.4%

Revenue & EPS history

ADT · Revenue · Quarterly

$1.3B

Q3 2020-0.1%vs Q3 2019
Beat estimate in 13 of 14 quarters(93%)
ActualEstimate

Forward guidance

Based on the strength of the third quarter results, the Company is updating its financial guidance.

Tailwinds

  • Total Revenue $5,200 - $5,350 million
  • Adjusted EBITDA $2,150 - $2,225 million
  • Adjusted Free Cash Flow $650 - $725 million
  • Partnership with Google is off to a very strong start
  • Consumer financing program has been well received

Headwinds

  • There are many variables involved in 3G and CDMA radio conversion costs, including retention levels, system upgrade rates, revenue opportunities, cost-sharing opportunities, and possible technology solutions.
  • The Company continues to estimate the range of net costs for this replacement program at $200 million to $325 million
  • Lower volume of commercial transactions due to COVID-19
  • Impact from the Defenders acquisition
  • Sale of ADT Canada

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-2.2%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-1.7%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+13.9%

Q3 2024

Best reaction

-25.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.0%-2.2%-6.6%
Q4 2025+2.0%-18.3%-18.3%
Q3 2025-7.9%-5.9%-7.7%
Q1 2025-2.0%+0.9%+3.9%
Q4 2024+7.8%+0.8%+7.6%
Q3 2024+13.9%+6.2%+9.0%
Q2 2024-10.9%-9.1%-6.3%
Q1 2024+0.8%+1.9%+13.2%
Q4 2023+11.2%+12.3%+2.9%
Q3 2023+9.9%+9.1%+10.8%
Q2 2023+5.2%+6.3%-5.5%
Q1 2023-20.7%-13.5%-15.2%
Q4 2022-3.3%-2.4%-8.9%
Q3 2022+2.9%+5.6%+18.2%
Q2 2022+9.7%+7.4%-1.4%
Q1 2022-3.4%-7.0%+2.9%
Q4 2021+7.8%+3.8%+3.8%
Q3 2021-0.6%+1.1%-5.1%
Q2 2021-13.5%-14.0%-17.9%
Q1 2021+3.1%+2.7%+19.6%
Q4 2020-25.8%-30.0%-19.9%
Q3 2020+4.3%+5.9%+22.3%
Q2 2020-5.9%-6.6%-19.4%
Q1 2020+2.2%+4.9%+51.4%
Q4 2019-12.6%-22.6%-38.4%
Q3 2019+8.0%+8.5%+9.1%
Q2 2019-7.1%-11.9%-5.3%
Q1 2019-11.6%-8.9%-13.2%
Q4 2016-11.0%-12.3%-9.6%
Q4 2018-11.0%-12.3%-9.6%
Q3 2017+5.8%+5.8%+0.4%
Q3 2018+10.7%+1.8%+1.8%
Q2 2017-6.1%-6.1%-7.2%
Q2 2018-7.4%+0.0%-3.8%
Q1 2018-7.6%-14.8%-4.1%
Q1 2017-7.6%-14.8%-4.1%
Q4 2017-14.5%-12.2%-11.9%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro