ADT Increases YOY Total Revenue in First Quarter of Fiscal 2016
The company’s total revenue reached $900 million, up from $877 million in the first quarter of fiscal 2015.
Recurring revenue reached $833 million in the quarter.
BOCA RATON, Fla. — The ADT Corporation reported on Tuesday increased revenue in the first quarter of fiscal 2016. Its total revenue of $900 million is up 1.5%, or 2.7% in constant currency, compared to the first quarter of fiscal 2015.
Recurring revenue, which made up approximately 93% of total revenue in the quarter, was $833 million, up 1% compared to the same period last year and up 2.2% in constant currency. Recurring revenue growth in the quarter was driven by a 2.6% increase in new and resale revenue per user, as a result of strong Pulse take rates and upgrades, growth in ADT Business, and price escalations, according to the company.
Unit attrition for residential and business for the quarter was 12.2%, a year-over-year improvement of 70 basis points. ADT closed the quarter with 6.6 million customer accounts.
“We continue to drive improved financial results and key operating metrics as we begin executing the next phase of our quality growth plan,” said Naren Gursahaney, ADT’s chief executive officer. “The first phase of this approach began last year with tighter credit screening, which contributed to our 100 basis point attrition improvement last year. This year, with new tools and analytics, we’re enhancing our focus on higher quality customers, optimizing offers, increasing customer up-front payment requirements, and improving customer on-boarding and service.”
- Check out the entire earnings report
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