ADT Inc

Latest Results (25.12.2024):

Revenue Growth

ADT Inc. reported a 5% increase in total revenue for the third quarter of 2024, reaching $1.2 billion. This growth was primarily driven by an increase in average prices for monitoring and related services, as well as higher volumes of outright sales to new customers. The company's end-of-period recurring monthly revenue also saw a 2% increase, amounting to $359 million on a monthly basis, or $4.3 billion annually.

Income and Earnings

For the third quarter of 2024, ADT Inc. achieved a GAAP income from continuing operations of $132 million, or $0.14 per diluted share, marking a $9 million increase from the previous year. Adjusted income from continuing operations was reported at $183 million, or $0.20 per diluted share, reflecting a $39 million increase. These improvements were largely due to revenue growth and cost efficiencies, despite higher net interest expenses and technology investments.

Adjusted EBITDA

ADT Inc.'s adjusted EBITDA from continuing operations for the third quarter of 2024 was $659 million, representing a $35 million increase. This growth was primarily attributed to the continued expansion of monitoring and related services revenues and associated margins, alongside cost efficiencies. However, these gains were partially offset by investments in technology.

Cash Flow and Dividends

During the third quarter of 2024, ADT Inc. reported net cash provided by operating activities of $498 million, a 12% increase from the previous year. The company also returned $50 million to shareholders through dividends. Despite a strategic bulk account purchase of $81 million, adjusted free cash flow decreased by $13 million. At the end of the quarter, ADT had $95 million in cash and cash equivalents, with no outstanding amounts under its First Lien Revolving Credit Facility.

Financial Outlook

Based on its performance through the third quarter of 2024, ADT Inc. has tightened its financial guidance for the year. The company now expects total revenue to be between $4.85 billion and $4.95 billion, with adjusted EBITDA ranging from $2.55 billion to $2.6 billion. Adjusted earnings per share are projected to be between $0.70 and $0.75, while adjusted free cash flow is anticipated to be between $725 million and $775 million.