Crime spike ‘demand catalyst’ for security systems: ADT CEO
Jim DeVries provides insight into his company in exclusive interview with 'Mornings with Maria'
ADT President and CEO Jim DeVries speaks with 'Mornings with Maria' during an exclusive interview shortly after the company revealed its first quarter earnings.
ADT President and CEO Jim DeVries argued on Thursday that the increase in crime in cities across the country is a "demand catalyst" for security systems as it impacts the "desire for peace of mind."
DeVries provided the insight during an exclusive interview on "Mornings with Maria" the day his company reported first quarter 2022 results.
DeVries told host Maria Bartiromo that "de-urbanization", where city renters move to become suburban homeowners due to a "concern about crime" has impacted his business.
ADT President and CEO Jim DeVries argues the increase in crime in cities across the country is a "demand catalyst" for security systems. (iStock / iStock)
The homicide rate shot up by 30% in 2020 compared to 2019 — the sharpest one-year increase in the nation’s history — and the upward trend has continued into 2021, according to FBI and other data.
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About 4,000 more Americans were murdered in 2020 compared to the prior year, Amy Swearer, a legal fellow at the Heritage Foundation, a conservative think tank, noted.
CEO of Manhattan grocery chain Gristedes John Catsimatidis argues soft-on-crime policies attack the way New York City does business.
Widespread rioting and social unrest over racial injustice in addition to COVID-19 shutdowns destabilized communities, Swearer told Fox News in February, adding that gang violence intervention programs, schools and other vital community services were shuttered, which contributed to the rise in crime.
In New York City, total crime year-to-date as of May 1 remained high compared to the same time in 2021, with a 41.6% increase, the NYPD’s latest crime statistics show. Shootings and murders were down year-to-date and for last month, compared to April 2021, the department said.
A new Quinnipiac University poll released Wednesday showed that voters consider crime to be the most pressing matter facing the city, with 49% deeming it the "most urgent issue."
DeVries also revealed the "biggest single demand catalyst" for his products on Thursday, noting that it is "really around home automation" and "smart home adoption."
"We now have really shifted from a pure security-centric company and transformed into a smart home company," he told Bartiromo.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ADT | ADT INC. | 7.54 | 0.00 | 0.00% |
"When we install systems now, the average number of devices, the average number of pieces of hardware, thermostats, cameras, video doorbells etc. is 20 for our average customer," DeVries explained. "So it’s much more of a smart home installation today than a pure security play."
On Thursday morning, ADT reported record-high customer retention and the highest-ever recurring monthly revenue balance. The company’s earnings report for the first quarter also noted 18% revenue growth compared to the prior year with continued growth in subscribers.
"We had a terrific quarter," DeVries told Bartiromo shortly after the company reported its first-quarter earnings, noting that its "demand for our product continues to be strong" in its residential segment.
ADT President and CEO Jim DeVries outlines demand catalysts for his products, noting that city renters are moving to become suburban homeowners amid an increase in crime.
"We have record customer retention and the investment that customers are making when they buy a system has never been higher," he noted.
He also pointed out that his commercial business "had a nice snapback post-COVID."
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"And our solar business that we acquired in December of last year is really hitting on all cylinders," DeVries continued.
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Fox News’ Stephanie Pagones and Rebecca Rosenberg contributed to this report.