ADT Inc. (NYSE:ADT) Q1 2022 Earnings Conference Call May 5, 2022 10:00 AM ET

Company Participants

Jim DeVries – President, Chief Executive Officer

Elizabeth Landers – Investor Relations

Don Young – Chief Operating Officer

Ken Porpora – Executive Vice President of Finance

Jeffrey Likosar – Chief Financial Officer, President of Corporate Development

Conference Call Participants

George Tong – Goldman Sachs

Pete Christiansen – Citi

John Aczone – RBC Capital Markets

Philip Shen – ROTH Capital Partners

Brian Ruttenbur – Imperial Capital

Ronan Kennedy – Barclays

Operator

Greetings. Welcome to the ADT First Quarter 2022 Earnings Coninference Call. At this time, all participants are in a listen-only mode. A Question and Answer session will follow the formal presentation. [Operator Instructions]. Please note this conference is being recorded. I will now turn the conference over to your host, Elizabeth Landers, Senior Director of Investor Relations. You may begin.

Elizabeth Landers

Good morning, everyone. We appreciate you joining ADT's First Quarter 2022 Earnings Call. Speaking on today's call will be ADT's President and CEO, Jim DeVries; and our CFO and President of Corporate Development, Jeff Likosar. Jim will provide an overview of our recent performance and how that links to the mission and long-term strategies we laid out in our Investor Day in March. Jeff will then cover our financial performance. Joining us for Q&A are Don Young, Chief Operating Officer; Ken Porpora, EVP of Finance; 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. And before we start, I do need to tell you that today's remarks include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to materially differ from those forward-looking statements. Some of the factors that may cause differences are described in our SEC filings. We'll also include non-GAAP financial measures on the call. For a complete reconciliation of our non-GAAP financial measures, please refer to our earnings press release. And with that, I'll turn the call over to Jim.

Jim DeVries

Thanks and welcome everyone to our call. ADT released our earnings results this morning, beginning the year with solid first quarter momentum, delivering strong year-over-year improvements in total revenue and adjusted EBITDA, and a $52 million net profit. We continue to see solid demand for ADT products and services helping drive our subscriber growth and producing the highest RMR balance in our history. We are also seeing good traction with SAC efficiency and our consumer and small business segment, with record high installation revenue per unit that was up more than 30% versus prior year, aided by higher attachment rate for our Google Doorbell sales and increased pull-through of additional products. The extraordinary service provided by our employees is reflected in improved customer satisfaction rates and enhanced brand loyalty. Gross customer attrition over the last 12 months was 12.9%, a record low down 20 basis points versus prior year, and sequentially from the fourth quarter. This trend is consistent with expected retention characteristics of our interactive customers with more advanced and larger systems.