Exits Residential Solar BusinessIncreases Quarterly Dividend by 57% and Authorizes $350 Million Share Repurchase ProgramContinues to Strengthen Balance SheetSchedules Fourth Quarter and Full Year 2023 Reporting Date BOCA RATON, Fla., Jan. 24, 2024 (GLOBE NEWSWIRE) -- ADT Inc. (NYSE:ADT), the most trusted brand in smart home and small business security, today announced it will be exiting its residential solar business. The Company will remain focused on cash flow generation and capital-efficient growth withi ...

ADT, Inc. (NYSE:ADT) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Elizabeth Landers - IR Officer James DeVries - CEO, President & Director Kenneth Porpora - EVP & CFO Conference Call Participants Peter Christiansen - Citigroup George Tong - Goldman Sachs Group Toni Kaplan - Morgan Stanley Ashish Sabadra - RBC Capital Markets Operator Good morning. thank you for attending today's ADT Third Quarter 2023 Earnings Call. My name is Jennifer, and I'll be your moderator today. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from __________ to __________ Commission File Number: 001-38352 ADT Inc. (Exact name of registrant as specified in its charter) Delaware 47-4116383 (State or o ...

ADT Inc. (NYSE:ADT) Q2 2023 Results Conference Call August 8, 2023 10:00 AM ET Company Participants Elizabeth Landers - Senior Director of Investor Relations Jim DeVries - President and CEO Ken Porpora - EVP and CFO Don Young - EVP and Chief Operating Officer Wayne Thorson - EVP and Chief Business Officer Conference Call Participants George Tong - Goldman Sachs Ronan Kennedy - Barclays Toni Kaplan - Morgan Stanley Operator Greetings, and welcome to today's call [Operator Instructions]. As a reminder, this c ...

[Part I Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) This section presents ADT Inc.'s unaudited condensed consolidated financial statements for Q2 2023, detailing financial position, performance, and cash flows with explanatory notes [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents ADT Inc.'s unaudited condensed consolidated financial statements for Q2 2023, covering key financial positions and performance with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) The balance sheets show total assets decreased to $17.33 billion and total liabilities decreased to $14.02 billion as of June 30, 2023 Condensed Consolidated Balance Sheets (in thousands) | Assets & Liabilities | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $1,554,967 | $1,721,996 | | **Total assets** | **$17,334,379** | **$17,821,236** | | **Total current liabilities** | $2,318,906 | $2,661,103 | | **Total liabilities** | $14,016,367 | $14,428,088 | | **Total stockholders' equity** | $3,318,012 | $3,393,148 | | **Total liabilities and stockholders' equity** | **$17,334,379** | **$17,821,236** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) The statements of operations highlight a slight revenue increase to $3.21 billion for the six months, but a net loss of $26.6 million due to goodwill impairment Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $1,593,128 | $1,601,030 | $3,205,482 | $3,145,777 | | **Operating income (loss)** | $122,574 | $210,577 | $116,366 | $286,557 | | **Goodwill impairment** | $181,179 | $0 | $422,809 | $0 | | **Net income (loss)** | **$92,211** | **$91,517** | **$(26,626)** | **$143,162** | | **Diluted EPS (Common Stock)** | $0.10 | $0.10 | $(0.03) | $0.15 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Comprehensive income for the six months ended June 30, 2023, was a loss of $18.9 million, compared to income of $160.8 million in the prior year Comprehensive Income (Loss) (in thousands) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net income (loss)** | $92,211 | $91,517 | $(26,626) | $143,162 | | **Other comprehensive income (loss)** | $3,588 | $6,556 | $7,695 | $17,639 | | **Comprehensive income (loss)** | **$95,799** | **$98,073** | **$(18,931)** | **$160,801** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Unaudited)) Total stockholders' equity decreased to $3.32 billion by June 30, 2023, primarily due to net loss and dividends - Total stockholders' equity decreased from **$3.39 billion** at the beginning of the year to **$3.32 billion** as of June 30, 2023. The decrease was primarily driven by a net loss of **$26.6 million** and dividends of **$64.4 million**, partially offset by share-based compensation expense and other comprehensive income[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash from operating activities remained strong at $799.4 million, while investing activities used $654.7 million and financing activities used $257.5 million Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | $799,435 | $822,636 | | **Net cash used in investing activities** | $(654,700) | $(807,440) | | **Net cash from (used in) financing activities** | $(257,515) | $7,073 | | **Net increase (decrease) in cash** | $(112,780) | $22,269 | | **Cash and equivalents, ending balance** | $260,800 | $55,546 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail accounting policies, corrections for prior period goodwill impairment errors, and the pending divestiture of the Commercial business - The company identified and corrected errors in previously reported non-cash goodwill impairment losses for its Solar reporting unit for Q3 2022 and Q1 2023, leading to the filing of an Amended 2022 Annual Report and restated quarterly reports[29](index=29&type=chunk) - On August 7, 2023, ADT entered into an agreement to sell its Commercial business to an affiliate of GTCR for **$1.613 billion** in cash. The results of the Commercial Business will be reported as discontinued operations starting in Q3 2023[34](index=34&type=chunk)[35](index=35&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses ADT's financial condition and operational results, highlighting business updates, key performance indicators, segment performance, and liquidity [Business Updates](index=32&type=section&id=Business%20Updates) Key business updates include the launch of the ADT+ app for DIY smart home security and the agreement to sell the Commercial Business for $1.613 billion - The company introduced the ADT+ app for its DIY smart home security products in Q1 2023 and expects to roll it out for professional installations by year-end[177](index=177&type=chunk) - ADT entered into an agreement to sell its Commercial Business for **$1.613 billion** in cash, with net proceeds expected to be used to redeem approximately **$1.5 billion** of debt[179](index=179&type=chunk) [Key Performance Indicators](index=33&type=section&id=Key%20Performance%20Indicators) Key performance indicators show Recurring Monthly Revenue increased by 4% to $382 million, and gross customer revenue attrition improved to 12.5% Key Performance Indicators | Indicator | As of June 30, 2023 | As of June 30, 2022 | | :--- | :--- | :--- | | **RMR (in thousands)** | $382,222 | $368,768 | | **Gross customer revenue attrition** | 12.5% | 12.7% | - Recurring Monthly Revenue (RMR) increased by **4%** year-over-year to **$382 million**, primarily driven by higher average prices for new and existing subscribers[201](index=201&type=chunk) - Gross customer revenue attrition improved to **12.5%** from **12.7%** in the prior year, driven by a decrease in customer relocations, though partially offset by higher non-payment disconnects[201](index=201&type=chunk) [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Results of operations show total revenue increased slightly, driven by CSB and Commercial growth, but offset by a significant decline and goodwill impairment in Solar Revenue by Segment (in thousands) | Segment | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | $ Change | | :--- | :--- | :--- | :--- | | **CSB** | $2,300,552 | $2,151,078 | $149,474 | | **Commercial** | $682,563 | $587,663 | $94,900 | | **Solar** | $222,367 | $407,036 | $(184,669) | | **Total revenue** | **$3,205,482** | **$3,145,777** | **$59,705** | - For the six months ended June 30, 2023, SG&A expenses decreased by **$65.4 million**, primarily due to cost reduction initiatives in the Solar segment, lower radio conversion costs, and reduced advertising spend partially offset by higher selling costs[207](index=207&type=chunk) - The company recorded goodwill impairment charges of **$242 million** in Q1 2023 and **$181 million** in Q2 2023, totaling **$422.8 million** for the six-month period, related to its Solar reporting unit[210](index=210&type=chunk) [Non-GAAP Measures](index=38&type=section&id=Non-GAAP%20Measures) Adjusted EBITDA increased to $1.28 billion for the six months ended June 30, 2023, driven by CSB and Commercial segments, despite a loss in Solar Adjusted EBITDA by Segment (in thousands) | Segment | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | $ Change | | :--- | :--- | :--- | :--- | | **CSB** | $1,238,398 | $1,141,246 | $97,152 | | **Commercial** | $85,758 | $54,993 | $30,765 | | **Solar** | $(47,985) | $2,007 | $(49,992) | | **Total Adjusted EBITDA** | **$1,276,171** | **$1,198,246** | **$77,925** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position includes $146.4 million in cash and $575 million available under its revolving credit facility, with total debt outstanding at $9.67 billion Liquidity Position as of June 30, 2023 (in thousands) | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $146,435 | | Availability under First Lien Revolving Credit Facility | $575,000 | | Uncommitted available borrowing capacity under Receivables Facility | $97,447 | | Carrying amount of total debt outstanding | $9,670,800 | - In March 2023, the company borrowed **$600 million** under a new Term Loan A Facility and an additional **$50 million** in June 2023. Proceeds were used to redeem the **$700 million** ADT Notes due 2023[235](index=235&type=chunk)[236](index=236&type=chunk) - On May 2, 2023, the company redeemed **$150 million** of its outstanding First Lien Notes due 2024 using cash on hand[237](index=237&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates include significant goodwill impairment charges totaling $422.8 million for the Solar reporting unit due to macroeconomic conditions and underperformance - The company performed interim goodwill impairment tests on its Solar reporting unit, resulting in a **$242 million** charge in Q1 2023 and an additional **$181 million** charge in Q2 2023 due to macroeconomic conditions and underperformance[249](index=249&type=chunk)[250](index=250&type=chunk)[252](index=252&type=chunk) - Following the impairment charges, the Solar reporting unit's carrying value approximates its fair value, and it remains at risk of future impairment. A **16.7%** decrease in 2024 projected revenues could result in an additional impairment of approximately **$40 million**[253](index=253&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure from its debt, which is partially mitigated by interest rate swaps - The company's operations are exposed to market risks from changes in interest rates on its variable-rate debt[259](index=259&type=chunk) - In H1 2023, the company borrowed **$650 million** under a variable-rate Term Loan A Facility and redeemed **$650 million** of fixed-rate notes. To partially hedge this, it entered into interest rate swaps with a total notional amount of **$300 million**[260](index=260&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were ineffective as of June 30, 2023, due to a material weakness in internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2023, the company's disclosure controls and procedures were not effective at a reasonable assurance level[263](index=263&type=chunk) - This ineffectiveness is due to a previously disclosed material weakness in ICFR concerning the recognition of tax impacts related to goodwill impairments[263](index=263&type=chunk)[264](index=264&type=chunk) - A remediation plan has been developed, which includes updating procedures for recognizing tax impacts of goodwill impairments, but the material weakness will not be considered remediated until controls are tested and proven effective over time[264](index=264&type=chunk) [Part II Other Information](index=47&type=section&id=Part%20II%20Other%20Information) This section provides additional information on legal proceedings, risk factors, equity sales, defaults, mine safety, and other disclosures [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various claims and lawsuits in the ordinary course of business. For details on these legal proceedings and related matters, the report refers to Note 13, "Commitments and Contingencies," in the financial statements - The company is subject to various legal proceedings in the ordinary course of business. Further details are provided in Note 13 of the financial statements[267](index=267&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new material risks related to the pending divestiture of the company's Commercial Business. Key risks include the uncertainty of the transaction's completion, potential diversion of management's attention, failure to realize expected benefits, damage to the ADT brand, and increased vulnerability due to being a less diversified company post-divestiture - The pending divestiture of the Commercial Business is subject to risks and may not be completed on the expected timeline, if at all[268](index=268&type=chunk) - Risks during the pre-closing period include diversion of management attention, disruption to business relationships, and potential loss of key employees[270](index=270&type=chunk) - Following the divestiture, ADT will be a smaller, less diversified company, making it more vulnerable to market conditions affecting consumers and small businesses[275](index=275&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports that there were no sales of unregistered equity securities during the six months ended June 30, 2023. Additionally, there were no proceeds from sales of registered equity securities and no repurchases of its common stock during the three months ended June 30, 2023 - There were no sales of unregistered equity securities during the six months ended June 30, 2023[276](index=276&type=chunk) - No repurchases of the company's common stock were made during the three months ended June 30, 2023[276](index=276&type=chunk) [Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[276](index=276&type=chunk) [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reported no mine safety disclosures - None[276](index=276&type=chunk) [Other Information](index=49&type=section&id=Item%205.%20Other%20Information) During the fiscal quarter ended June 30, 2023, no directors or executive officers of the company adopted or terminated any Rule 10b5-1 trading plans or any non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter ended June 30, 2023[278](index=278&type=chunk) [Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished as part of the Quarterly Report on Form 10-Q, including corporate governance documents, material agreements, and certifications by the CEO and CFO - This section provides an index of all exhibits filed with the Form 10-Q[279](index=279&type=chunk)

ADT Inc. (NYSE:ADT) Q1 2023 Earnings Conference Call May 2, 2023 10:00 AM ET Company Participants Elizabeth Landers - Senior Director of Investor Relations Jim DeVries - President & Chief Executive Officer Ken Porpora - Executive Vice President & Chief Financial Officer Conference Call Participants Peter Christiansen - Citigroup George Tong - Goldman Sachs Toni Kaplan - Morgan Stanley Brian Ruttenbur - Imperial Capital Ashish Sabadra - RBC Capital Markets Operator Good morning. My name is David and I'll be ...

F i rst Quarter 2023 Earni ng s Pres entat io n Overview 1Q 2023 Additional Financial Information Non-GAAP Reconciliations Forward Looking Statements and Non-GAAP Measures ADThasmadestatementsinthispresentationandinotherreports,filings,andotherpublicwrittenandverbalannouncementsthatareforward-lookingandthereforesubjecttorisksanduncertaintiesherein.Allstatements,otherthan statementsofhistoricalfact,includedinthisdocumentare,orcouldbe,“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigation ...

Financial Performance - Total revenue for the three months ended March 31, 2023, was $1,612,354, an increase of $67,607 compared to $1,544,747 in the same period of 2022[171]. - Recurring monthly revenue (RMR) reached $378,198, up $13,262 from $364,936 year-over-year[171]. - Net loss for the quarter was $89,698, a decrease of $141,343 compared to a net income of $51,645 in the same period last year[171]. - Adjusted EBITDA for the quarter was $624,916, an increase of $23,919 from $600,997 year-over-year[171]. - Total revenue for the three months ended March 31, 2023, was $1,612,354, an increase of $67,607 compared to $1,544,747 in the same period of 2022, representing a growth of approximately 4.4%[173]. - Monitoring and related services revenue increased by $35 million, driven by higher recurring revenue and an increase in subscribers, partially offset by a $4 million decrease in other revenue[174]. - Security installation, product, and other revenue rose by $34,281, attributed to higher installation revenue and increased amortization of deferred subscriber acquisition revenue[174]. - Net income for the three months ended March 31, 2023, was $(89,698) thousand, a decrease of $(141,343) thousand compared to the same period in 2022[197]. - Adjusted EBITDA for the same period was $624,916 thousand, an increase of $23,919 thousand from $600,997 thousand in the prior year[197]. Customer Metrics - The company served approximately 6.7 million security monitoring service subscribers as of March 31, 2023[152]. - Gross customer revenue attrition improved to 12.5%, down from 12.9% in the previous year[171]. - The ending RMR balance as of March 31, 2023, was $378 million, up $13 million or 4% compared to the prior period, primarily due to an increase in average prices[177]. - Gross customer revenue attrition improved to 12.5% as of March 31, 2023, down from 12.9% in the prior year, driven by a decrease in relocations[177]. Expenses and Costs - Total cost of revenue for the three months ended March 31, 2023, was $514,001, an increase of $4,233 compared to $509,768 in the same period of 2022[178]. - Selling, general, and administrative expenses decreased by $18 million in Solar SG&A due to cost reduction initiatives, including lower selling and advertising costs[183]. - The company experienced a significant increase in interest expense, netting $(171,626) compared to $(6,307) in the prior year[171]. Impairment and Tax - A goodwill impairment charge of $193 million was recorded for the three months ended March 31, 2023, related to the Solar reporting unit[186]. - The effective tax rate for the period was 33.1%, compared to 27.4% in the prior year, influenced by various factors including non-deductible executive compensation and Solar goodwill impairment[188]. - The company recorded a non-cash goodwill impairment charge of $192,700 thousand related to its Solar reporting unit during the first quarter of 2023[197]. Cash and Liquidity - Cash and cash equivalents as of March 31, 2023, totaled $186,316 thousand, with total debt outstanding at $9,840,134 thousand[204]. - Cash provided by operating activities was $306,640 thousand, a slight decrease of $1,432 thousand compared to $308,072 thousand in the prior year[220]. - The company is closely monitoring the impact of financial market developments and inflationary pressures on its cash position and believes it has adequate liquidity for operational needs[209]. - The company expects to borrow an additional $50 million under the Term Loan A Facility to redeem at least $50 million of the ADT Notes due 2023[214]. - The Receivables Facility's borrowing capacity was increased from $400 million to $500 million, with an outstanding balance of $374 million as of March 31, 2023[215]. Strategic Partnerships and Initiatives - The first tranche of the Google Success Funds approved for reimbursement was approximately $12.5 million for joint marketing expenses[156]. - State Farm committed up to $300 million to an Opportunity Fund, with $100 million received upon closing[157]. - The company has entered a strategic partnership with State Farm, which is expected to enhance financial performance and product commercialization[231]. - The acquisition of ADT Solar is anticipated to positively impact the company's business and financial condition[231]. - The company is focused on developing its next-generation platform and innovative offerings, with ongoing partnerships with Google and Ford for product commercialization[231]. Market Risks and Challenges - The company continues to face inflationary pressures and supply chain disruptions impacting costs and operational results[161]. - The company faces risks from supply chain disruptions, competition in the home security and solar markets, and the impact of the COVID-19 pandemic on operations[233]. - The company has policies in place to manage market risks, including interest rate changes, as part of its overall risk management program[235]. - There were no material changes in interest rate risk exposure compared to the previous year, except for the recent borrowing and hedging activities[235]. - The Solar reporting unit is at risk of future impairment, with a potential additional impairment charge of approximately $40 million if projected revenues decrease by 8% in 2024, Adjusted EBITDA margin decreases by 0.5%, or the weighted average cost of capital increases by 0.8%[230].

Customer Base and Revenue - ADT has approximately 6.7 million recurring revenue customers as of December 31, 2022[18]. - ADT's business model relies on long-term customer retention, which is essential for sustaining revenue growth[10]. - The residential and small business security market is characterized by a large customer base, with many customers driven to purchase services due to life events or perceived safety concerns[64]. - The company aims to maximize customer lifetime value by evaluating pricing, managing costs, and offering cross-selling initiatives[61]. Acquisitions and Partnerships - The company completed the acquisition of ADT Solar in December 2021, expanding its offerings to residential solar and energy storage solutions[17]. - The company acquired Defender Holdings, Inc. in January 2020, which represented approximately 55% of its indirect channel at the time[25]. - ADT's strategic partnership with Google includes a previous investment of $450 million for 54,744,525 shares of Class B common stock[22]. - The Google Commercial Agreement has an initial term of seven years, with Google supplying devices and services for sale to customers[29]. - The partnership with Google includes a commitment of $150 million from each company upon achieving certain milestones for joint marketing and technology updates[31]. Financial Performance and Debt - As of December 31, 2022, the carrying amount of long-term debt (excluding finance leases) was $9.7 billion, with a fair value of $9.3 billion[453]. - Approximately 30% of the total carrying amount of debt was subject to variable rates, while 3% was impacted by interest rate swaps[450]. - The fair value impact of a hypothetical 10% change in interest rates on long-term debt was estimated at $241 million for 2022[453]. - The notional value of interest rate swap contracts was $2.8 billion as of December 31, 2022, with a fair value of $184 million[453]. - The company has substantial indebtedness that may limit its financial and operational flexibility[12]. Market Conditions and Risks - The company faces risks related to technological changes and competition in the home security and automation markets[9]. - ADT's operations may be impacted by supply chain disruptions and the ongoing effects of the COVID-19 pandemic[10]. - The solar market is highly fragmented and under-penetrated, with growth expected due to consumer preference for clean energy and tax incentives from the Inflation Reduction Act of 2022[66]. - The Commercial segment may experience fewer installations during the first calendar quarter due to inclement weather, while productivity tends to increase in the second and third quarters[84]. - In the Solar segment, sales may rise in the last quarter of the year due to tax credit incentives, but installations may be affected by backlog and weather patterns[85]. Employee and Labor Relations - As of December 31, 2022, the company employed approximately 22,000 people, including 3,300 direct field sales consultants and 6,200 installation and service technicians[95]. - Approximately 5% of employees are covered by collective bargaining agreements, and relations with employees and labor unions are generally positive[95]. Corporate Social Responsibility and ESG Initiatives - The company is committed to social responsibility and environmental sustainability as part of its ESG initiatives[110]. - The company has established an ESG working group to provide updates on its ESG strategy and public disclosures[109]. - The company has committed to reducing its greenhouse gas emissions and has focused on efficiency improvements in lighting, air handling, and data operations[105]. - In 2022, the company supported various nonprofits through volunteerism and corporate philanthropy, including partnerships to renovate vacant row houses and build homes for families[108]. Technology and Innovation - The company launched the ADT+ app in February 2023 for DIY smart home security products, including Google Nest offerings[28]. - The company emphasizes data privacy and cybersecurity as key components of its services, implementing "privacy by design" in product development[112]. - The company holds a portfolio of patents related to security and automation technologies, continuously refining its intellectual property strategy to maintain a competitive edge[78]. Brand and Marketing Strategy - The company emphasizes the importance of maintaining a strong brand reputation, which is crucial for customer trust and competitive advantage[18]. - The company focuses on driving revenue by increasing consumer awareness and optimizing its marketing strategy, utilizing national television, radio, direct mail, and digital advertising[60]. - The company emphasizes the quality and reputation of its offerings, superior customer service, and a nationwide team of sales consultants to compete effectively in the market[67].