Slide 1: Q4 2021 Earnings Presentation
Q4 2021 Earnings Presentation March 1, 2022
Slide 2: Forward Looking Statements and Non-GAAP Measures
Forward Looking Statements and Non-GAAP Measures ADT has made statements in this presentation and in other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties, including under the heading — “2022 Financial Outl
Slide 3: Solid Q4 and Full Year 2021 Results: Good Momentum into 2022
Solid Q4 and Full Year 2021 Results: Good Momentum into 2022 Strong year-end revenue performance, subscriber acquisition, and customer retention accelerate momentum for 2022 growth Investing in foundation for long-term growth – RMR growth, Sunpro acquisition, and development of Google partnership So
Slide 4: 2022 Financial Outlook
2022 Financial Outlook Total Revenue Adjusted EBITDA Adjusted Free Cash Flow $6.2-6.4B $2,335-2,435M $550-625M $5.3B $2,213M $465M 2021 2022 2021 2022 2021 2022 Guidance Guidance Guidance 4
Slide 5: Q4 2021 Highlights
Q4 2021 Highlights
Slide 6: Strength Across Key Financial and Operating Metrics
Strength Across Key Financial and Operating Metrics For the three months ended Dec 31, Dec 31, Key Highlights ($ in Millions) Y/Y Change 2021 2020 M&S Revenue $1,103 $1,054 $49 5% ▪ M&S revenue: Increase in average pricing and net unit additions resulting in higher RMR Total Revenue $1,381 $1,315 $6
Slide 7: Consumer & Small Business Segment Growing Adjusted EBITDA
Consumer & Small Business Segment Growing Adjusted EBITDA Revenue Adjusted EBITDA $ in Millions $ in Millions $1,051 $1,049 $553 $517 $105 $68 $946 $981 Q4'20 Q4'21 Q4'20 Q4'21 Monitoring & Service Installation & Other Higher M&S revenue and Adjusted EBITDA, driven by growth in recurring revenue bas
Slide 8: Commercial Segment Seeing Continued Revenue Growth
Commercial Segment Seeing Continued Revenue Growth Revenue Adjusted EBITDA $ in Millions $ in Millions $284 $263 $162 $155 $15.7 $15.9 $108 $122 Q4'20 Q4'21 Q4'20 Q4'21 Monitoring & Service Installation & Other Continuing revenue growth through footprint expansion and pandemic recovery efforts 8
Slide 9: Continued Growth in Subscriber Base and Total Company RMR
Continued Growth in Subscriber Base and Total Company RMR Gross RMR Additions End of Period RMR $ in Millions $ in Millions $14.9 $359 $13.9 $343 Q4'20 Q4'21 Q4'20 Q4'21 Highly durable and growing RMR base generating over $4B in annual recurring revenue 9
Slide 10: Appendix
Appendix
Slide 11: Strength Across Key Financial and Operating Metrics
Strength Across Key Financial and Operating Metrics For the twelve months ended Dec 31, Dec 31, ($ in Millions) Y/Y Change 2021 2020 M&S Revenue $4,348 $4,187 $161 4% Total Revenue $5,307 $5,315 ($8) (0%) Net Loss ($341) ($632) $291 46% Adjusted EBITDA $2,213 $2,199 $13 1% Adjusted Free Cash Flow $4
Slide 12: Capital Structure Well-Positioned to Support Growth
Capital Structure Well-Positioned to Support Growth Capital Structure(1) Recent Highlights $M 12/31/20 12/31/21 Actual Actual Revolver - 25 ▪ Refinanced $1B of 2022 first lien Notes in June 2021, First Lien Term Loan 2,779 2,758 extending maturity to 2029 First Lien Notes 5,550 5,550 Finance Leases
Slide 13: Snapshot of Business by Customer Type and Unit Count
Snapshot of Business by Customer Type and Unit Count Market Profile (LTM 12/31/21) Consumer and Small Business Unit Count (2) Consumer and Small Commercial Solar Total Units in Millions Q4’21 Q4’20 Y/Y % Q3’21 Q/Q % Business Unit Count ~6,400K ~250K N/A ~6,650K End of Period RMR $328M $31M N/A $359M
Slide 14: Adjusted Free Cash Flow
Adjusted Free Cash Flow For the three months ended For the twelve months ended ($ in Millions) Dec 31, 2021 Dec 31, 2020 Y/Y Change Dec 31, 2021 Dec 31, 2020 Y/Y Change Adjusted EBITDA $574 $533 $42 $2,213 $2,199 $13 Net Expensed SAC 80 101 (21) 411 359 52 Net SAC (402) (365) (37) (1,697) (1,374) (3
Slide 15: U.S. Gross RMR Additions by Quarter
U.S. Gross RMR Additions by Quarter $ in Millions $16.0 $15.5 $14.5 $14.5 $14.9 $13.9 $12.9 $12.8 $13.2 $12.1 $12.1 $11.4 Q1’19 Q1’20 Q1’21 Q2’19 Q2’20 Q2’21 Q3’19 Q3’20 Q3’21 Q4’19 Q4’20 Q4’21 YoY % Change: 7% 25% (11%) 28% 10% 7% 15% 7% 15
Slide 16: Installation and Other Revenue
Installation and Other Revenue Installation & Other Revenue ($M) Consumer Y/Y Y/Y Y/Y Y/Y Period and Small Commercial Solar Total Change Change Change Change Business Q4'21 $68 ($37) $162 $7 $47 $47 $278 $17 Q3'21 60 (60) 159 25 219 (35) Q2'21 57 (109) 163 40 221 (69) Q1’21 87 (86) 155 4 242 (82) Q4
Slide 17: Additional Historical Quarterly Data
Additional Historical Quarterly Data For the Three Months Ended (in millions) December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 Operating and Financial Measures Monitoring and Service Revenue $1,103 $1,098 $1,084 $1,063 $1,054 Total Revenue $1,381 $1,317 $1,304 $1,3
Slide 18: Selected Statement of Operations Components
Selected Statement of Operations Components GAAP Line Items GAAP Line Items For the three months ended December 31, 2021 For the three months ended December 31, 2020 Total Cost of Total Cost of ($ in millions) Revenue Revenue SG&A D&A Total Revenue Revenue SG&A D&A Total Monitoring & Service Revenue
Slide 19: Statements of Operations
Statements of Operations (in millions, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2021 2020 2021 2020 Monitoring and related services $ 1,103 $ 1,054 $ 4,348 $ 4,187 Installation and other 278 261 959 1,128 Total revenue 1,381 1,315 5,307 5,315 Cost of re
Slide 20: Non-GAAP Measures
Non-GAAP Measures We sometimes use information (“non-GAAP financial measures”) that is derived from the condensed consolidated financial statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under SEC rules, non-GAAP financial measure
Slide 21: Segment Information
Segment Information (in millions) Three Months Ended Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, Total revenue 2021 2021 2021 2021 2020 2021 2020 Monitoring and related services $ 1,103 $ 1,098 $ 1,084 $ 1,063 $ 1,054 $ 4,348 $ 4,187 Insta
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Adjusted EBITDA and Adjusted EBITDA Margin: (in millions) Three Months Ended Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2021 2021 2021 2021 2020 2021 2020 Net loss $ (58) $ (109) $ (126) $ (48) $ (112) $ (
Slide 23: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Free Cash Flow and Adjusted Free Cash Flow: (in millions) Three Months Ended Twelve Months Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31, 2021 2021 2021 2021 2020 2021 2020 Net cash (used in) provided by operating activitie
Slide 24: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Debt to Net Income Ratio: (in millions) December 31, December 31, 2021 2020 Total debt (book value) $ 9,693 $ 9,493 LTM net loss $ (341) $ (632) Debt to net loss ratio (28.4x) (15.0x) Net Leverage Ratio: (in millions) December 31, December 31, 2021 2020 Revolver $ 25