ADT's business moving away from traditional alarms at a rapid rate.

ADT reports that 80 per cent of new installs are smart home systems and 43 per cent of its residential clients now use its Command and Control or ADT Pulse systems. Sales of the new Amazon Alexa Guard are also growing.

This shift in the nature of ADT’s huge U.S. business shines a pathway on the future of alarms-based business elsewhere in the world, including Australia, where smart home solutions are now increasingly popular.

ADT reported $US1.28 billion in revenue for the quarter, up 13 per cent – RMR was $351 million, up $13 million on the previous quarter.

However, the company says it had a net loss of $104 million for the quarter, up from $67 million last quarter. Adjusted EBITDA is $630 million, compared to $610 million.

“Summarizing our second quarter performance, we’re pleased with our overall progress and driving strong revenue growth, balancing our core operating metrics and delivering healthy levels of adjusted EBITDA and free cash flow while continuing to position and invest in our business for the future,” said James DeVries, president and CEO.

DeVries said he was pleased with the performance of the Command and Control smart home system.

“This is a positive outcome,” he said. “We expect to continue to improve even further given the robust adoption rates today.”