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ADT, Vivint report big revenue gains for 2019

ADT, Vivint report big revenue gains for 2019

BOCA RATON, Fla. and PROVO, Utah—Both ADT and Vivint reported strong fourth quarter and overall annual revenue gains for 2019, with ADT up 12 percent and Vivint up 10 percent for the year.

Some of the highlights of the ADT report include:
• Total revenue growth of 10 percent for the fourth quarter;
• Total annual revenue of $5.1 billion, up 12 percent;
• Full year commercial organic revenue growth of 16 percent;
• Greater home automation with more than 80 percent interactive take rate;
• Full year financial performance in line with guidance despite sale of ADT Canada; and
• National launch of consumer financing subsequent to quarter end.

"Strong fourth quarter results capped a successful year for ADT in which we demonstrated strong growth in revenue, earnings and cash flow while significantly expanding product offerings, investing in new technologies, and enhancing our customer offerings,” ADT's President and CEO Jim DeVries said in the earnings statement. “We continue to see our residential customer base move to interactive services, with a record 47 percent of customers using them at the end of 2019.”

Full year sales for Red Hawk, combined with double digit organic growth and tuck-in acquisitions helped expand ADT's commercial revenue by $450 million during the year, and now represents more than 20 percent of total revenue.

Entering 2020, DeVries said, "ADT built a strong foundation to efficiently accelerate the growth of residential with the national rollout of consumer financing, the acquisition of Defenders, new partnerships, and the continued development of our DIY platform, Blue by ADT. In addition, customer revenue payback, one of our most important performance indicators, further improved.”

Turning to the Vivint earnings report, some of the highlights include:
• Total fourth quarter revenues increased 11.3 percent year over year to $307.8 million;
• $1.2 billion in total revenues up 10.1 percent;
• 1,552,541 total subscribers at year-end, 7.5 percent increase;
• Implemented second-look financing partner to expand consumer financing offering; and
• Announced merger with Mosaic Acquisition Corp. in 3Q19 — completed January 2020

“We were excited to complete our merger with Mosaic Acquisition Corp. in mid-January, initiating our next chapter as a leading public smart home company. We are grateful to both pre-existing and new investors in Vivint who share our vision for the smart home,” Vivint Smart Home CEO Todd Pedersen said in the earnings statement. “In the meantime, we are pleased to report strong fourth quarter and full year results, highlighted by double-digit revenue growth and a sharp increase in profitability. We are excited about our future, particularly given that our successful merger with Mosaic is a major step forward in raising Vivint's profile in the marketplace as a leading smart home provider and promoting an even stronger platform for future profitable growth.”

In addition to going public, Vivint has announced several key management changes, including the announcement that Alex J. Dunn is stepping down as president of Vivint Smart Home after 14 years at the company and will remain an advisor to the company through March 2021.

Additionally, Vivint has appointed Dale R. Gerard to the role of chief financial officer, Todd M. Santiago as chief revenue officer and JT Hwang as chief technology officer. In connection with these appointments, Matthew J. Eyring, executive vice president and general manager of inside sales, and Jeremy Warren, chief technology officer, are leaving to pursue other opportunities.


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