However, Geltzeiler said that gross customer adds were flat sequentially and remained a challenge during the second quarter. He also said that gross adds in the company’s direct channel were down slightly due to an expanded rollout of their enhanced customer screening process, which is intended to improve the quality of new customers ADT brings into the fold. Additionally, gross adds in their dealer channel, excluding bulk purchases of customer accounts, were also down compared to last year due to a lower number of dealers.
Excluding any revenue impact from the acquisition of Protectron, Gursahaney admitted to investors that they do not expect to reach revenue target for the year. Shares of ADT plunged in January after the company’s first quarter profits for 2014 failed to meet analysts’ expectations. At the time, the company blamed its lackluster performance on the fact that they added fewer customers to their roles than expected, as well as a year-over-year increase in its customer attrition rate.
Gursahaney believes, however, that some of the changes they’ve made will help right the ship moving forward.
“We’ve made organizational and process changes to help address the two biggest drivers of attrition – relocations and non-pay customers. In addition, my entire executive leadership team is reviewing our customer disconnect performance and our attrition initiatives on a weekly basis to make sure our efforts get the resources and support they need,” he said. “Our balanced approach to growth is the right path as we are increasing our focus on adding high-quality subscribers and reducing attrition and not just growing solely for the sake of growth.”