ADT Progress With Google And State Farm
ADT established funding/channel sales partnerships with Google and State Farm in 2020 and 2022, respectively, but how have the partnerships evolved, and has ADT benefited from them?
In this report, we examine ADT's most recent earnings call and financials to understand the company's current position, especially its partnerships with Google and State Farm.
Executive *******
*********** *********** **** ***** ******** *****, *** **** ** *** had *,*** ***** **** ***** **** in **** *** ******* *** "**** under *,***" ***** **** ***** ** the ***** ******* ** **** (*.*% among *** ***** ***,*** ******** ********* in *** *******).** $**.** * *****(* ******* **** **** ****-*** **** for ***** **** *********), ******** *** customers ***** ** ***** **** **** State ****, *** ** ******** ** make ** **** ** $*.* ******* in ****** ******* **** ******** ***** Farm ********* ** ****, * ******** of *** ***** ****** *******. **** if *** ***** **** *** ***** Farm ******** ** *** ** *** Q1 ***** ** *** *** ** this ****, ** ***** **** *****, at ****, **** **** * *% direct ******** ** ***** ******* *** the **** *****. *******, *** ********** that "***-****** ** [*** ***** ****] installs ******* ** ******" *** **** "installation ******* *** **** ******** ****** at ****** $*,***." ***** ** ********* for ********** ****** ******** ********.
********* ************** **** ******, *** **** **** *** ************ has "**** ****** ****," *** *** it **** ***** **** ****** ***** and ******** ****** ** *********. *** company ********* ** ****, ****** ** does *** ******** ******* ******* ******** through *** ****** *********** ** *** public. *** **** **** ****** *** earnings **** **** **** ** ***** partnerships *** *****, *** ** **** are ** ** ******** ** ******, it **** ** "**** **** ****" and **** *** "**** ******" **** be ********* **** ****.
**** ****** *** ***** **** *** avenues **** ***** **** *** ******* new ********/********* *** **** ** ** focusing ** *** **** ******** *** Small ******** (***) ****** ************ *** ******************** *** ****-********** ***** ********. ******* *** ****** ** *** above *** ************ *** ********* * "flywheel *****," *** ********* ***** ********** in *** **** ** *********** (**** limited ****** *************), *** ******* ** keep ************ *********** ***** ****, *** a ****** ****** ** ******* ********* in *** **** *******. ********* *** solar ********, *** **** *** ***'* Q1 **** ******* *** ** *%, and ******* ** *** ***** ****, it *** ******** *** ****** ** the **** *******, ** *********** **** a *** **** ** ** ****.
***'* ***** ** **** ** *** original ********** * **%+ ****** * ******* ago**** *** *******'* ***** **** *** cost-cutting *******.
State **** ******** *** ******** ** ***** *****, ******* ******** *********
*** ********** ** *** ******** **** its***** **** *********** **** ** *** ******* ** 2/3 ** *** ***** **** ********:
*** ****** *** ** ***** ** '23. ** *** *,*** ***** ** 2023. ** ** ** '**, **'** just ***** *,*** *****. ******** ************ continues ** ** ********** ****. * think *** *** *******, ** *** 96% ******** ************. ***** ***** ********* to ** ****** **** *** ***** prior. ***-****** ** *** ******** ******* an ******, ***** ** ****** ********** with *** ************.
*** ******* ********* ***** ***** **** accounts * $** ******** ** *** professional ********** ******, **** $**.** ** $19.99. ** *** *** ******** *** other ******* ******* **** ***** **** besides ***$*.* ******* ********** ***** **** **** to ******* **% ** *** ******* in ****. ** **,*** ********, *** ***** Farm *********** *** **** ***** * fraction ** ***'* ***** ******* *** is *** ******** ** **** * material ****** ** *** ***** ***** in *** **** ******. ****, *****$**/***** ** * ******* ******** *** has **** ******* *** **** **** a ****,*** ******* **** **** ** *** "no ***** ** **** ****" ** end *** ********.
"Would **** ** *** ****** ** * ****** *** ******" **** ***** ****
**** ******* ********* *** * ********** small ******** ****, ***'* *** ***** DeVries **** ****** *** *******'* **** recent ******** **** **** *** ******* expects ****** ****** *** ***** **** accounts:
****** *** ***** ****.We ***** ****** **** ** *** ****** ** * ****** *** ******. But we liked our results in Q1. They were consistent with our internal budget. And we'll look forward, to further penetration in the 13 existing states, and watching our DIY pilot closely, at the end of the quarter.
Penetrating *** ** ****** **** ******** ***** **** ********
*** ******* **** **** *** *** prioritizes *********** *** ** ****** **'* already ** **** ********* **** *** states ***** **% ** ***** ****'* customers *** ** ***** ****** ** there's * ***** *****, *********** ***** addressable ******:
**'** ** ** ****** *******. *** in ***** ** ******, **** ********** about **% - * *****, **% of ***** **** ******** ** *****, so **'* * ******* ***. *** rather **** ****** ** ********** ******, what **, ******** **** ***** ****, decided ***, ***** *** **** ** the ***, ***'* *** ****** ** these ** ****** *** ******* ** our *********, ******** ** ****.
** ******** ** *** *****-**-***** ****** in *** ******** ** ****** *** remain ** ***** ** ***** *** pilots ** **** **** ****** ** the ****** ******. ** ****** ********** in *** ****** *********** **** ***** Farm, ** ***** *********** ******* ** our ******** *********' ****, *** ********* risk ********* *** **********.
DIY *** ***** ********* ** ******* *** **********
** *** ** *** ***** *********** plans, *** ******* ******* *** *** DIY *** ***** ********* ****** *** State **** ********, ************ ** ******* and **********:
*** **** ** ***** ** ******** things ** *** ***** ******, **'** going ** ** ******* * *** offering ** *** ******, *** **** will ** ** ****. *** **** we're ********* * ***** *********-*** *****, essentially ******** ** ***** **** *********, who **** *** ***** ****** ** the ****. ** ***, ********* ******** to ** ******* ** *** ******.
** ** ****-**** *** **-**-******, ** will ***** ********* ** ****** ****** the **. *** ****** ********* ** that *** ** ******* *** **********, where **'** ***** ** ** ******* DIY ** *** **** **** *****.
Expanding ****** **** **** ******
*** **** ** *** *** **** sells ****** **** ******** *** **** resells ****** *****:
** **** ****, ** **** ********* our ****** ****** ************ ****** **** hardware, **** * ***** ***** ** efficiency *** ******** **********, ********* ******'* AI ********** ******** ** ******* ******* opportunities ****** *** ********, **** ***** efforts ******* ** **** ****** **********.
**'** *********** ******** *** *********** **** Google ****** *** **** ********, *** into ******* **** ****** ***** *** couldn't ** ******* - ******'* ** more ******* ***** **. *** ***** two *****, ** *** *********, **** be ** ******** ****, ********* ** to ***** **** **********.
"May *** **** ******" **** ****** *********** "**** **** ****"
*** ******* **** **** **** ** "may *** **** ******" *** ****** sales "**** **** ****" *** **** it **** "****** * ******* ** 2025," ******** **** *** ****** *********** has *** *** ******* *** ******** impact ** ***'* ******* *****. **** IPVM's ******* ** *** ****** ** accounts *** ******** ******* *** ****** partnership, *** ******* ****:
** ***’* ****** **** *********** **** Google ** *** ***** ********* ********.
*** ******* ********** **** **** *********** has ****** ****** *** ****** *** video ********* ********:
***'* *** ********, ********* ** ******** our ****** **** ***********, ***** *** already ******* ** ** ****** *** offerings ************ ****** *** ****-******* **** of ****** *** ***** *********.
"In *** ***** **** ** ******* [*** ************] ********"
*** ******* ***** **** ** *** is "** *** ***** ****" ** doing ****** *** ****** ** *** State **** *****, ** ******* ** see "*** **** ******" ********* ***** two ************ ** ********* **** **** (2025):
*** ** ********** ********, ***** ********, I'd ********* *** *** **** *****. We're ** *** ***** **** ** putting *** **** ********. **** ** them, * *****, **** ********** ****** for **. *** ** *****'* ** impact, *****, ** **** ** **** this **** **** *** **** ****** delivered **** ****.
Subscription *********** **** **********
** ** ****, *** **** ** generated ***** ******** ********* ** ***,*** and $**.* ******* ** *** *** additions. *** ***** ********* **** ***, attrition *** ************ *********** ***** *** be * *** ********* ** ********* costs ** *** *********** ******** ****** are ***, *** *********** ********* **** to ** **** *****-********* **** ********** customers,*** **** *** ** ****** ******** in. ***'* *** ******* ******* ******** on *** *******'* ******* ** ******** the ************ *********** ***** (***) ** it ******* ***"******** *****," * ********* ******** **** transitioned ********* ********* **** "*********" ** advocates:
**** ***** *** ********* ********** **** our ************* **** ***. ***********, **'** remain *********** ** ********** *********** ********, especially ** * *********** ***** ***********, including ***** ***********.
** **** * ********-**** *****, ***** we *** ************ **** ** ***, the ****** *** *********** **** *****, from *** *** **** ** ******* and ****** *** **** ***********, *** return **** ** *** ************, ***** also ********** ** ****** ** ******* the *** ****.
******** ** ******** *****, *** ******* objective ** ** ****** *******, ******** strong *******. *** ****** ******* *** of ******* ** ********** *********** ********, and ** *** ******** ***** ******* by ******** *** ****** ** *** required, ** ********** *** **** *** really *** ************* ** *** *** that ***** **** *** ********.
*** ******* ***** *** *** **** endeavored ** ****** ******** ********* *** its ********** ** ********** ******* **** its"*** ********" ** ** ************ **** Alarm.com's ******** ** ******'*:
***** *****, *** **** ***********, ********* the ******** ** *** ******** ****. And **'** ****** ******* ** ******** all ** ***** ******, *** *** recent ******* ** ********* *** ********** well. * *****, *** *******, *** dynamics ** ****** ****** *****, **** upfront **********, ****** *** ******* **** of ******** *** ******* *** ****, but **** **** *********** **** *** customer ********* ***************.
**, ** **** ****** **** ***** the ********. *** **** *** *** platform *** ********* **** **'** ****** about ******* ***, ** ******* **'** make **** ******** ** ** *** case. *** ***********, **** **** ********** upfront ** ** **** ** ******* customers **** **** **** *** ** pocket. **, ** **** ****** **** about *** ******* ** ******** ******* in **** *********** ********, ** *** the *** ******** **** ** **** coming.
Attrition **
******* *********** *** ******* ************ *********** costs *** *** ****** ** ********* retention, ***'* ********* **** *** ***** slightly ** ** ** ****, *** it *** ***** ***-*** ******* ** April ****, ** *** ******* ********* during *** ******** ****:
********* *******.We ****** ** **** **.*% ** ****-*** ** **.*%, ***** ******* ***. We expect April will end at 13%. So coming down just a bit. Year-over-year, we're a little worse for non-pay in April, essentially flat for relocation and much, much better on voluntary and lost competition. So from a non-pay perspective and from a past due perspective, we're roughly flat to where we've been. [Emphasis added]
Difficulties **** * **** ********** ******
** ** ***** ** ******* ********* rate *** ***** ************ *********** *****, ADT **** ** ** ****** "*********" in ********** ********** **** * **** residential **** ****** ******, ***** ** addressed ** * "***** ******":
*** **** **** ******** **** ********** for **, ****headwinds, **** * ***** **** ***********, ** ***** ***********. And that's very real and puts pressure on gross adds. Of course, that's a positive on the retention front. But I think relocation is probably the most pronounced, at least from my perspective, in terms of macro impact on the business. [Emphasis added]
Installation ******* **
***** ****** ********* ** ******** **** and *********, *** **** ** *** able ** ******** *** ***** ** revenue ** ********* *** ********, ** its ****** *** ***** **** ************ helped **** **** ****** ** ****:
************ ******* ********* ** **%, ****** by ****** ******** ******* ************ *** higher ******** *****. ** **'** ********* previously, ** ****** ********* ******** ***** growth ** ** **** ***** ******** equipment ********* ** *** *********.
************ ******* *** **** ******** ****** at ****** $*,***. *** ***** ******* larger ****** ***** *** *********** ** our ********* ******* ******* ** *.* years.
Bulk ************: ****** ******* **** ****** ********** *******
************ *** ********** ** *** **** debt**************** *** ***** ********** **** **** *** ******** ** the ********* *** *******, *** *** DeVries **** ****** *** ******** **** that *** **** ****** ** **** acquisitions "**** ****** ****** ********** *******," reflecting *** *******'* ******** ****** ********** pressure **** *** *********:
*** ** *&* ***********, **'** ******** to **** ** **** *********** *************. They're ****** ********* *** **. *** those *** - * ***'* **** if **'* ********** **** **** *&*, butit'd ** ** **** ***** ** **** ** *********** ** ****** ******* **** ******, ****** ********** *******. [Emphasis added]
"More ***********" ** ************ ******* ** ***'* **** *** ********
********'* ********* **** **** "*********" *** the ******* ** ****** ******** *** ****-******** **** ***** ***********, which *********** ** **** *** ********** *********** business, *** *******'* *** ******* ********* on *** *** ***** **** ******* gives *** **** *********** ** ******* deployment, *** ***** ** **** *** have ******** *********** ******* ***, ** will ***** ** ********* ******* ******, making ****-**** ***********, *** ********** *******/*******:
** **** ** **** ***** *** the ******** ** **** ** *** capital ********* ****** ******* **** **** the **** **** ** **, ******* our ******** **** ** ***** ** rounds ** ***** ******* ** ******** to ****, ******** **** *** **** generation. *** *** **** ******* ** just **** *********** *** **.
**, **'** ********* **** ** ****** opportunistically. ** ******** ***** ** **** about *****, *** ********* ******* ******, longer-term *********** ** *** *******, ****** of ******* ** ************, *** **'** make *********** ** ** **, *** as ** **** ****** *************. *** I **** ***** ********* *** *********** we *** ****.
*** ******* ***** **** *** ***** consider ************ **** *** ******* ** its **** *** ******** *** **** the ******* **** *** **** ** make *** ******* ************:
** ** ** *** **** *&*, it ***** **in *** **** ********. And in terms of any future divestiture, with ********** **** *** ***** ** ****-**** ****, * ***'* *** ******** ******** *** ** ****, ** ***** ** ********* ***** *******. [Emphasis added]