Vivint Smart Home, Inc. (VVNT) Reports Q4 Revenues Beat; Offers FY20 Revenue Mid-Point Guidance Below Consensus

Vivint Smart Home, Inc. (NYSE: VVNT) reported Q4 EPS of $, versus ($0.42) reported last year. Revenue for the quarter came in at $307.8 million versus the consensus estimate of $303.6 million.

Fourth Quarter 2019 Highlights

• Total revenues increased 11.3% year over year to $307.8 million
• Net loss of $88.5 million; improved by $31.2 million year over year
• Adjusted EBITDAa increased 40.6% year over year to $125.1 million

“We were excited to complete our merger with Mosaic Acquisition Corp. in mid-January, initiating our next chapter as a leading public smart home company. We are grateful to both pre-existing and new investors in Vivint who share our vision for the smart home,” said Todd Pedersen, CEO of Vivint Smart Home. “In the meantime, we are pleased to report strong fourth quarter and full year results, highlighted by double-digit revenue growth and a sharp increase in profitability. We are excited about our future, particularly given that our successful merger with Mosaic is a major step forward in raising Vivint’s profile in the marketplace as a leading smart home provider and promoting an even stronger platform for future profitable growth.”

GUIDANCE:

Vivint Smart Home, Inc. sees FY2020 revenue of $1.25-1.29 billion, versus the consensus of $1.28 billion.

“We believe that several fundamental characteristics of the Vivint Smart Home financial model are compelling. More than 95% of revenue is recurring, which provides long-term visibility and predictability to our business. The majority of new subscribers enter into five-year contracts and remain on the platform for approximately eight years, driving significant lifetime margin dollars,” said Dale R. Gerard, CFO of Vivint Smart Home. “We expect to end 2020 with approximately 1.62 to 1.66 million subscribers. Our estimate for 2020 revenue is $1.25 to $1.29 billion. Meanwhile, our strong unit economics and scale has contributed to our ability to drive significant adjusted EBITDA margin improvement. We are projecting 2020 adjusted EBITDA of between $525 and $535 million.”

For earnings history and earnings-related data on Vivint Smart Home, Inc. (VVNT) click here.

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