Vivint Reports Record Q4 and 2015 Full-Year Results
Along with positive financials, the smart home technology provider reported its attrition rate improved 30 basis points year over year.
PROVO, Utah – APX Group Holdings, the parent company of Vivint, reported record financial and operational results for the fourth quarter and full year ended Dec. 31 on Wednesday.
Total revenues for the fourth quarter increased 14.8% to $175 million over the same period in 2014. The increase in total revenues was a result of a 16.7% growth in recurring revenue, higher average RMR per subscriber, and a reduction in refunds and credits of $1.9 million. The increase in total revenues was negatively impacted by foreign exchange rates and a decrease in service and other revenues.
The company added 33,162 net new smart home subscribers in the fourth quarter of 2015, a 53.9% increase compared to 21,545 in the fourth quarter of 2014. Inside sales originated an all-time record of 21,965 net new smart home subscribers in the fourth quarter, up 53.1% as compared to the fourth quarter 2014.
Total revenues in 2015 were up 16% to a record $653.7 million. Normalized for an $8.3 million year over year negative foreign exchange impact, total revenues grew 17.4%. The increase in total revenues was primarily driven by a 13.4% increase in total subscribers. Additionally, customer credits decreased by $7.8 million year over year primarily from customer experience improvements which were driven through a new CRM and billing platform, according to the company.
Vivint added a record 236,562 net new smart home subscribers in 2015, including 65,871 from its inside sales channel, up 15.7% and 34.2%, respectively, over 2014. Adoption of advanced smart home services for the year was 78%, producing an average RMR per new subscriber of $61.43.
The company reported its attrition dropped 30 basis points year over year to 12.2%.
“In adding a record 236,562 net new subscribers, we surpassed one million customers and 78% of our new customers chose advanced smart home products and services. Both of our sales channels demonstrated strong growth; in particular, inside sales grew 34.2% for the year and exited fourth quarter with a 53.1% year-over-year growth rate,” Todd Pedersen, CEO of APX Group, stated in a press release.
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