ADT Posts Net Q4 Loss, Increases RMR 15 Per Cent
Jim Devries, ADT.
ADT has reported a net loss of $US112 million in its 4th quarter, compared to $72 million during the same period the prior year.
The company posted full-year total revenues of $5.3 billion, compared to $5.1 billion during the prior-year period and is positive about key business segments, including commercial and home automation.
In 2020 ADT reported a net loss of $632 million, compared to prior year’s net loss of $424 million. Net loss increased primarily because of an increase in operating expenses associated with the ownership of Defenders and an increase in net interest expense. The increase in net loss was partially offset by higher total revenue, net of the associated costs of revenue, and the aggregate impact due to the sale of ADT Canada in 2019.
“Our early optimism is heightened because of the backlog of commercial customers was actually higher at the end of 2020 than the prior year and the pipeline for new business is healthy,” said ADT President and CEO, Jim Devries. “We have an outstanding leadership team in commercial and we’re very excited about this part of our business.”
Devries said ADT increased its net subscribers in 2020.
“Our new U.S. RMR additions started off solid in Q1 at plus 7 per cent, but then in Q2 were down 11 per cent as most of the country began shutting down,” he said. “However, we continue to drive sustainable internal improvements to our subscriber acquisition engine.”
According to Devries, this efficiency contributed to favourable results with positive momentum for the business, especially when combined with consumer trends, such as the desire for increased home security, the acceleration of smart home adaption, and growing consumer spending on home improvement.
U.S. RMR additions increased year-over-year 10 per cent in the third quarter and 15 per cent in the fourth quarter. ADT’s interactive take rate increased to 86 per cent and reached the milestone of 3 million residential interactive customers. And this month, ADT added its one-millionth customer on the Command platform.
ADT expects full-year revenue in the range of $US5.05 billion to $5.25 billion.