Vivint Smart Home, Inc. (VVNT) Reports Q2 Revenues In-Line; Raises FY20 Revenue & Subscriber Outlook

Vivint Smart Home, Inc. (NYSE: VVNT) reported Q2 EPS of $, versus ($0.56) reported last year. Revenue for the quarter came in at $306 million versus the consensus estimate of $306.9 million.

Key Highlights

• Total revenues increased 8.9% year over year to $306.0 million
• Net loss improved by $28.9 million year over year (loss of $87.0 million compared to $115.9 million in the prior year period)
• Adjusted EBITDAa increased by $64.4 million year over year ($152.7 million compared to $88.3 million in the prior year period)
• Attrition rate improved by 40 basis points sequentially to 13.7%

“Vivint Smart Home now delivers smart home and security services to more than 1.6 million customers across North America,” said CEO, Todd Pedersen. “Our strong results demonstrate that our customers value the peace of mind and security that we provide, particularly during extremely challenging times like those we find ourselves in today. Our high-margin, recurring revenue model is built to not only be resilient, but also to thrive in the current environment where people are spending much more time in their homes. During this time, when people are reconnecting with their homes, we believe that Vivint is perfectly positioned for what could be a lasting change.”

“As an organization, we have worked to navigate the challenges and uncertainties encountered during the first half of 2020, and we are pleased with the significant improvements across all of our key metrics in Q2,” continued Pedersen. “Revenue and total subscribers continue to grow at a steady pace, reflecting healthy demand for our smart home products and services, while Adjusted EBITDA margins continue to expand meaningfully. Because of the actions we’ve taken during the first half of the year, I’m pleased to note that we now expect to be cash flow positive in 2020.”

GUIDANCE:

Vivint Smart Home, Inc. sees FY2020 revenue of $1.23-1.28 billion, versus the consensus of $1.25 billion.

“We believe that the fundamental characteristics of Vivint’s high-margin, recurring service revenue model are compelling. More than 95% of our revenue is recurring, which provides long-term visibility and predictability to our business. Most of our new subscribers enter into five-year contracts and continue on the platform for approximately eight years, driving significant lifetime margin dollars,” said CFO, Dale R. Gerard. “Despite the many uncertainties pertaining to the COVID-19 pandemic, our recurring model has proven to be resilient, and we are comfortable with upgrading our guidance for subscribers and revenue. Meanwhile, our strong unit economics and scale have contributed to our ability to drive meaningful Adjusted EBITDA improvement, and that is reflected in our significantly upgraded guidance range. We are updating our full year outlook as follows: We now expect to end 2020 with approximately 1.62 to 1.68 million subscribers vs. previous guidance of 1.55 to 1.62 million. Our estimate for 2020 revenue is $1.23 to $1.28 billion vs. previous guidance of $1.20 to $1.25 billion. Finally, we expect our 2020 Adjusted EBITDA to be between $555 and $565 million vs. previous guidance of between $525 and $535 million.”

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Newton Golf Company (NWTG) Reports Q2 Loss of $0.49
• HeartCore Enterprises, Inc. (HTCR) Misses Q2 EPS by 185c