Q2 2024 ADT Inc Earnings Call Transcript
Key Points
- ADT Inc (ADT) reported a 3% revenue growth compared to the prior year, demonstrating resilience in a challenging macroeconomic environment.
- The company delivered strong adjusted free cash flows of $251 million, up 14% from the previous year.
- ADT Inc (ADT) launched the ADT Plus platform nationwide, which includes enhanced installation flexibility and stronger integrations with smart home devices.
- The company has made significant progress in its partnership with State Farm, with installations and new customer RMR up 7% on a unit basis in the second quarter.
- ADT Inc (ADT) has successfully reduced its net debt to $7.4 billion, down approximately $2 billion from the previous year, achieving a net debt to adjusted EBITDA ratio of three times.
- Gross revenue attrition was 12.9% for the quarter, indicating some challenges in retaining customers.
- The company faced higher payment delinquencies, which impacted overall attrition rates.
- Adjusted EBITDA for the quarter was down 2%, partly due to an unfavorable legal settlement.
- Marketing costs have increased, making organic growth more challenging and leading to a more cautious approach in subscriber acquisition cost spending.
- The rollout of new initiatives like the ADT Plus platform and the State Farm partnership has been slower than initially anticipated, affecting immediate revenue contributions.
Please stand by for streaming text.
Thank you for standing by. I'd now like to welcome everyone to ADT's Second Quarter 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the new will be a question-and-answer session. A field like to ask a question during this time, simply press star and the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I'd now like to turn the call over to Elizabeth Landers. Please go ahead.
Thank you, operator, and good morning, everyone. We appreciate you joining today's call to discuss IDT's Second Quarter 2024 results. Speaking on today's call will be 80 T's Chairman, President and CEO, Jim DeVries, and our Chief Financial Officer, Catholic and farm, Wayne Dawson, Chief Business Officer, will also join us following the prepared remarks and we take analyst questions. Earlier this morning, we issued a press release and slide presentation of
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