ADT Inc., the most trusted brand in smart home and small business security held an investor day event and outlined its long-term strategy to grow the business and drive long-term shareholder value.
Growth in security
ADT’s President and Chief Executive Officer Jim DeVries said, “It’s a great time for ADT. After several years of progress reshaping our company, we are well-positioned to accelerate our growth. Our customer-focused strategy creates even more reasons for customers to choose ADT, stay with ADT and spend more with ADT, driving double-digit revenue growth and significant long-term shareholder value.”
DeVries continued, “With the right mission and a clear strategy and plan in place, ADT is the only scaled player positioned to capture the next wave of growth in the security, smart home, and residential solar markets. We pledge to be safe, smart, and sustainable, both for our customers and for our investors.”
Mission
ADT revealed its evolved mission which reflects how the company meets consumers’ expanding safety needs.
- Protecting what matters most
- Delivering innovative, customer-focused products, technology, and services
- Making life better for our customers and communities we serve
Long-term strategy
ADT presented its long-term strategy to grow across its consumer and small business, commercial and solar segments. The strategy builds on the growth momentum provided by the company’s Google partnership and its commercial and solar businesses.
- ADT is building ADT+, a next-generation smart home security platform. In addition, ADT expects to offer bundled services that provide greater customer choice and flexibility, bringing together smart home security and energy management as well as mobile and vehicle security and smart aging products.
- ADT is investing in its core monitoring capabilities, designed to improve alarm handling times and reduce false alarms while helping to protect customer data and privacy with encrypted and patented methods.
- ADT is modernising its customer experience with the planned introduction of flexible installation options, like “do-it-with-me,” no-contract options, e-commerce, and retail sales, as well as virtual service, which reduces the need to send a technician into the home.
Long-term financial goals
ADT believes this strategy will create sustainable, long-term revenue and earnings growth and significant free cash flow. As part of today’s investor day event, management provided 2025 financial goals including:
- $10 billion total revenue, representing approximately 15 percent compounded annual growth
- Approximately $3 billion adjusted EBITDA and more than $0.50 earnings per share
- $3 billion cumulative adjusted free cash flow from 2022-2025
- $1 billion debt reduction versus year-end 2021
ESG pillars and report
ADT introduced eight ESG pillars that will guide its commitment to respect the environment, promote social responsibility
ADT introduced eight environmental, social, and governance (ESG) pillars that will guide its commitment to respect the environment, promote social responsibility and lead with responsible governance. These pillars are fundamental to who ADT is and guide the company’s safe, smart and sustainable business practices.
The company plans to publish its first ESG narrative report this spring. ADT’s ESG pillars are data privacy and cyber security, inclusive diversity and belonging, employee well-being and development, customer and community health and safety, environmental management, climate change and risk management, responsible governance, and product safety and quality.
ADT’s 2022 Investor Day
Presentation materials and a replay of the event, which provide additional context to ADT’s 2025 goals and long-term growth strategy, can be found on the ADT investor relations website.
Note regarding 2025 goals
These financial goals are aspirational and do not reflect company guidance or projections of future results. ADT does not guide except concerning its current fiscal year.
ADT is not providing forward-looking goals for any GAAP financial measures other than total revenue, earnings per share, or a quantitative reconciliation to GAAP for the non-GAAP goals for adjusted EBITDA, cumulative adjusted free cash flow, or net debt. Please see “Non-GAAP Financial Measures” for additional information.