ADT Inc. (NYSE:ADT) Q3 2022 Earnings Conference Call November 3, 2022 10:00 AM ET

Company Participants

Elizabeth Landers - Senior Director of IR

James DeVries - President and CEO

Kenneth Porpora - EVP and CFO

Conference Call Participants

George Tong - Goldman Sachs

Toni Kaplan - Morgan Stanley

Brian Ruttenbur - Imperial Capital

Ashish Sabadra - RBC Capital Markets

Philip Shen - ROTH Capital Partners

Operator

Greetings, and welcome to the ADT Third Quarter 2022 Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce your host, Elizabeth Landers, Senior Director of Investor Relations. Thank you. You may begin.

Elizabeth Landers

Thanks, operator, and good morning, everyone. We appreciate you joining ADT's third quarter 2022 earnings call. Speaking on today's call will be ADT's President and CEO, Jim DeVries; and our EVP and CFO, Ken Porpora. Jim will provide an overview of our recent performance and how this links to the mission and long-term strategy we laid out at our Investor Day in March. Ken will then cover our financial performance. [Operator Instructions].

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

James DeVries

Thanks, Elizabeth. Good morning, and thank you to everyone for joining us on our earnings call today. ADT released our strong third quarter results this morning, driving top line growth 22% to $1.6 billion, and generating adjusted net income of $83 million or $0.10 per share. Our quarter also resulted in improved adjusted EBITDA, up 12% year-over-year and strong adjusted free cash flow. For another consecutive quarter, our recurring monthly revenue balance, or RMR, is at record levels, and we lowered our revenue payback to a best-ever 2.1 years.

Customer retention also continues to improve with gross attrition at a record low of 12.6%. As our results demonstrate, consumer demand for ADT's products and services remain strong. We are effectively growing our business, driving innovation, building brand loyalty and improving capital efficiency.

A highlight for the quarter was the announcement of ADT's new partnership with State Farm. Together, we are committed to revolutionizing the value proposition for home insurance policyholders by leveraging smart home technology to detect and mitigate losses related to water, fire, intrusion and other home ownership risks.

The combination of ADT and State Farm creates a one-of-a-kind partnership, two legacy brands, each possessing over 100 years of trust and experience with a common mission and vision centered on protecting our respective customers.