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Why Vivint Smart Home Popped 28.1% Today

By Travis Hoium - May 14, 2021 at 1:39PM

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Earnings were driving this stock today.

What happened 

Shares of home-security company Vivint Smart Home (VVNT -4.09%) jumped as much as 28.1% in trading on Friday after the company reported first-quarter 2021 financial results. At 12:50 p.m. EDT, shares were still up 24.4% for the day. 

So what

Revenue was up 13.2% in the quarter to $343.3 million, and new subscribers added increased 20.1% versus a year ago to 60,127. Net loss improved from $145.1 million a year ago to $87.4 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped by $27.2 million to $162.1 million.

Woman setting a security system.

Image source: Getty Images.

Analysts were only expecting $332.8 million in revenue, so growth is topping what the market might have been expecting. And management said they expect full-year revenue to be between $1.38 billion and $1.42 billion with adjusted EBITDA of $640 million to $655 million.

Now what

This was certainly a solid earnings beat and investors should be happy that Vivint Smart Home is growing double digits. But the fact that the company is still losing nearly $100 million per quarter is not a good sign for operations long term.

Until that bottom-line performance improves, I'll stay out of the stock, despite the market's bullish sentiment today.  

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Vivint Smart Home, Inc. Stock Quote
Vivint Smart Home, Inc.
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