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 your conference operator today. At this time, I'd like to welcome everyone to the ADT First Quarter 2023 Earnings Conference Call. Today's conference is being recorded. All lines have been placed mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]

Elizabeth Landers, Senior Director of Investor Relations, you may begin your conference.

Elizabeth Landers

Thanks, operator, and good morning, everyone. We appreciate you joining ADT's first quarter 2023 earnings call. Speaking on today's call will be ADT's President and CEO, Jim DeVries; and our EVP and CFO, Ken Porpora. Following the prepared remarks, we'll take analyst questions. Also joining us for Q&A are Don Young, EVP and Chief Operating Officer; and Jill Greer, SVP of Finance, Investor Relations and Communications.

Earlier this morning we issued a press release and slide presentation of our financial results. These materials are available on our website at investor.adt.com.

Before we start, I do need to mention that today's remarks include forward-looking statements that represent our beliefs or expectations about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of the factors that may cause differences are described in our SEC filings. We will also discuss non-GAAP financial measures on the call. The most directly comparable GAAP measures, along with a reconciliation to those measures are available on the ADT Investor Relations website.

And with that, I'll turn the call over to Jim.

Jim DeVries

Thanks, Elizabeth. Good morning and thank you to everyone for joining us today. This morning, ADT released our first quarter earnings. I am pleased to share that we had a solid start to the year with growth in revenue adjusted EBITDA, adjusted free cash flow and adjusted EPS, each growing nicely year-over-year, while concurrently our net leverage ratio continued to decline.

Our total top line grew 4%, with commercial delivering very strong growth at 15% and we ended the quarter with a record recurring monthly revenue balance of $378 million. Our revenue payback now stands at a record low of two years down from 2.3% a year ago, with gross attrition remaining at a record 12.5%.