Vivint Moving on After $20M FTC Settlement; Stock Up Post-Q1
After agreeing to pay $20 million to settle an FTC complaint it misused credit reports to help unqualified customers obtain financing, Vivint is “pleased to put this matter behind us,” said CEO Todd Pedersen on a Q1 call Thursday: It…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
strengthened compliance policies and will continue to make it a priority. Sales staff stole personal information to approve others for loans, said Daniel Kaufman, FTC Bureau of Consumer Protection acting director. Vivint uses door-to-door sales representatives working on a commission-only basis to sell home security devices and monitoring, said last month's complaint. Vivint added 60,127 subscribers in Q1, a 20% year-on-year increase, and revenue grew 13% to $343.3 million. It had over 1.7 million subscribers, up 10%, said Pedersen. The attrition rate was the lowest in the last nine quarters, he said. The stock closed 20% higher Friday at $14.01. The company maintained its 2021 outlook despite logistics challenges in the supply chain and hiring constraints, said Chief Financial Officer Dale Gerard. The provider is in “good shape” with cameras but higher adoption rates than expected -- or a disruption in chip manufacturing or getting cameras from ports -- could limit Q3 and Q4 selling, Gerard said: It’s also challenged by finding enough installers and service professionals.