ADT Reports Second Quarter 2024 Results

Core Insights - ADT Inc. reported a solid revenue growth of 3% year-over-year, reaching $1.2 billion in the second quarter of 2024, with a focus on consumer and small business markets [2][5] - The company achieved a significant operating cash generation, with net cash provided by operating activities increasing by 14% to $563 million [7][28] - ADT affirmed its full-year 2024 guidance metrics, maintaining expectations for total revenue, adjusted EBITDA, and adjusted free cash flow [10][13] Financial Performance - Total revenue for the second quarter was $1,205 million, up from $1,168 million in the prior year, driven by monitoring and related services [5][21] - GAAP income from continuing operations was $126 million, or $0.13 per diluted share, a decrease of 30% compared to the previous year [6][22] - Adjusted income from continuing operations increased to $156 million, or $0.17 per diluted share, reflecting a $3 million increase year-over-year [6][22] Customer Metrics - End-of-period recurring monthly revenue (RMR) rose by 2% to $355 million, translating to an annualized figure of $4.3 billion [2][5] - The company reported a gross revenue attrition rate of 12.9% and a revenue payback period of 2.2 years [2][5] Operational Highlights - ADT launched the ADT+ platform, enhancing customer experience with next-generation hardware and technology [3] - The company introduced the Trusted Neighbor offering in partnership with Google and Yale, allowing secure access to homes via the ADT+ app [3] - ADT's Alarm Scoring program was rolled out nationwide, improving the efficiency of alarm data for first responders [3] Cash Flow and Debt Management - Adjusted free cash flow increased by 14% to $251 million, benefiting from lower cash interest due to debt reduction [7][8] - The company reduced its debt by over $150 million during the quarter and has no significant debt maturities until 2026 [8][9] Shareholder Returns - ADT returned $50 million to shareholders in dividends, with approximately $257 million remaining for future repurchases under the Share Repurchase Plan [8][9] - A cash dividend of $0.055 per share was declared, payable on October 4, 2024 [11]