PROVO, Utah — APX Group Holdings, the parent company of Vivint, on Thursday reported a third quarter net loss of $120.2 million, compared to a net loss of $144.4 million in the prior quarter.
The company reported total revenues of $272.3 million for the three-month period ended Sept. 30, compared to $228.7 million the prior year, an increase of $43.6 million or 19.1%. The adoption of Accounting Standards Codification (ASC) Topic 606 — which records certain previously expensed contract costs as capitalized contract costs — accounted for $11.1 million of the year-over-year increase.
Third quarter total recurring and other revenue of $272.3 million increased $53.2 million compared to the same period last year, of which $28.6 million was associated with the adoption of Topic 606.
Vivint reported a 14.1% increase in total subscribers, which accounted for approximately $29.5 million of the increase in total recurring and other revenue. The company added 104,249 new subscribers during the third quarter, a 17.1% increase compared to the 89,019 new subscribers added during the same period in 2017. The company’s direct-to-home and inside sales channels had year-over-year growth of 19.4% and 12.3%, respectively.
“In addition to strong top-line revenue growth of 19% year over year, Vivint continued to drive improvement in key operating initiatives during the third quarter, including a higher mix of third-party funding within our Vivint Flex Pay program, a meaningful reduction in service costs and further progress in reducing net creation costs,” APX Group CFO Mark Davies states in a press release.
Vivint closed an $810 million term loan and used a portion of the proceeds to retire the balance of the company’s 2019 Senior Secured Notes and repurchase a portion of its 2020 Senior Notes, Davies says.
Vivint’s attrition rate at the end of the third quarter stood at 11.8%, a slight increase (0.7%) compared to the previous quarter ended June 30. The company’s net subscriber acquisition costs per new subscriber was $1,308 for the last 12 months ended Sept. 30, compared to $1,560 for the same period the prior year.
Adjusted EBITDA for the third quarter was $141 million and net loss was $120.2 million, compared to $128.5 million and net loss of $107.9 million for the same period in 2017.
