CE Pro May 2021 - 30

INDUSTRY
CE Pro 100

Productivity
Kings
Top 10 Highest
Revenue-Per-Full-Time
Employee
1. Just One Touch/

Video & Audio Center
$1,314,106

2. Abt Electronics
$557,143

3. World Wide Stereo
$547,185

4. TVS Pro$517,768

5. Audio Video Crafts
$460,000

6. JDL (SoundWaves

Custom Home Integration) $433,714

7. Automation Integration $433,333

8. CCS Presentation

Systems $403,712

9. Technology Interiors
$370,036

10. Kraus Hi-Tech Home

Automation $351,376

This chart reflects the
strength of the hybrid retail
business model as the top
companies are one with retail
storefronts. The data can be
somewhat skewed by companies that make liberal use
of part-time employees and
independent contractors.

30 | CE Pro May 2021

C2105 pp26-36 CEP100.indd 30

their income derived from
RMR is 11%. That is up from
9% in 2019. Not surprisingly,
the companies with their
origins in security have the
highest percentage of their
smart home revenues derived
from RMR, with Vivint (92%),
Guardian Protection (84%)
and ADT (79%) pacing the list.
Smart Home Security
Providers ADT, Vivint
Atop Rankings
After several years of not
submitting its information for
the CE Pro 100 while it was
transitioning back to a publicly owned company, ADT
(NYSE: ADT) once-again tops
the list of the CE Pro 100 in
2020. ADT has clearly fully
made the transition from being solely a security company
to a smart home integration
company. And the latest data
from the publicly owned
company support that
conclusion. Over half (51%) of
ADT's residential customer
base of 3 million now uses
some form of the company's
smart home platform, either
the legacy ADT Pulse system
or the new Command and
Control platform. Specifically,
ADT just hit the milestone of
1 million customers purchasing Command and Control,

which not only allows clients
to interact with their security system, but also control
lights, door locks and thermostats. And the momentum
is growing for Command and
Control, with 86% of ADT's
new customers in Q4 signed
on to use it.
In its fiscal year 2020, the
average ADT Command and
Control customer now controls 14 devices in the home.
In total, ADT residential customers used their Command
and Control app more than 3
million times throughout the
year and there were more
than 200 billion recorded interactions. Among those interaction were clients setting
their door locks 500 million
times, arming/disarming their
alarm systems more than 2
billion times, and adjusting
their thermostats more than
1 billion times, according to
the company. Meanwhile,
ADT captured and stored
more than 10.8 billion security video clips during the year,
and its technicians made
more than 2 million in-home
visits during the 12-month
fiscal year.
All that adds up to an RMR
machine with $4.18 billion of
its total $5.315 billion coming
from recurring contracts. For
the year, the company generated an amazing $44 million
in RMR from new residential
installations, along with another $4 million in RMR from
new installations in its burgeoning commercial business.
Its average revenue range
for a residential account is
between $40 and $55 per
month, with Command and
Control clients likely being
at the top end of that range.
Comparatively, ADT Commer-

" We think that
we can not
only compete in
the smart home
space, but really
be - with Google
as a partner -
a tech leader. "
- Jim DeVries,
CEO, ADT
cial earns between $50 and
$65 per month, per account,
according to its latest investor report. In the second half
of the year alone, the Boca
Raton, Fla.-based giant added
$28.4 million in RMR. The
company subsidizes its smart
home installations, similar
to how it runs its security
business. But with the Command and Control platform
comes the ability to charge a
higher monthly fee, and that
has allowed ADT to drop its
breakeven time frame from
2.7 years in 2015 to 2.2 years
in 2020.
Looking ahead, ADT plans
to deploy its new Google
Smart Home solution in the
second half of 2021 and according to CEO Jim DeVries,
the company has high expectations for its success.
" We think we can leverage
Google to not get our foot
in the smart home space but
to grow significantly and be
a major player in the smart
home space, " DeVries recently told investors. " We're
super excited about the
hardware that Google brings,
the ADT plus Google branding is something that our
marketing research reveals
is pretty exciting. But I'm
most excited about what the
partnership does from an AI

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CE Pro May 2021

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