ADT Inc.

Greetings. Welcome to the ADT first quarter 2022 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Elizabeth Landers, Senior Director of Investor Relations. You may begin.

Thanks, Operator, and good morning, everyone. We appreciate you joining ADT's first quarter 2022 earnings call. Speaking on today's call will be ADT's President and CEO, Jim DeVries, and our CFO and President of Corporate Development, Jeff Likasar. Jim will provide an overview of our recent performance and how that links to the mission and long-term strategy we laid out in our investor day in March. Jeff will then cover our financial performance. Joining us for Q&A are Don Young, Chief Operating Officer, Ken Papora, EDP of Finance, and Joe Greer, SDP of Finance, Investor Relations, and Communications. Earlier this morning, we issued a press release and slide presentation of our financial results. These materials are available on our website at investor.adt.com. And before we start, I do need to tell you that today's remarks include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to materially differ from those forward-looking statements. Some of the factors that may cause differences are described in our SEC filings. We'll also include non-GAAP financial measures on the call. For a complete reconciliation of our non-GAAP financial measures, please refer to our earnings press release. And with that, I'll turn the call over to Jim.

Thanks, and welcome everyone to our call. ADT released our earnings results this morning, beginning the year with solid first quarter momentum. delivering strong year-over-year improvements in total revenue and adjusted EBITDA and a $52 million net profit. We continue to see solid demand for ADT products and services, helping drive our subscriber growth and producing the highest RMR balance in our history. We're also seeing good traction with SAC efficiency in our consumer and small business segments, with record high installation revenue per unit that was up more than 30% versus prior year, aided by a higher attachment rate for our Google doorbell sales and increased pull-through of additional products. The extraordinary service provided by our employees is reflected in improved customer satisfaction rates and enhanced brand loyalty. Gross customer attrition over the last 12 months was 12.9%, a record low, down 20 basis points versus prior year and sequentially from the fourth quarter. This trend is consistent with expected retention characteristics of our interactive customers with more advanced and larger systems. I want to express my gratitude to our employees, and dealer partners for a tremendous start to the year. Our people are ADT's greatest asset, and our results are evidence of what can be achieved when 25,000 of the best professionals in the industry focus on taking great care of our customers. At our investor day in March, we presented our mission and laid out our long-term strategy. ADT is a trusted brand and synonymous with safety and peace of mind. We are positioned to drive growth across all our business segments by leveraging our unique strategic advantages, our innovative offerings, unrivaled safety, and premium customer experience. The strategy we outlined at Investor Day focused strongly on our customer experience. growing our subscriber base, expanding the share of Wallet from each customer, and strengthening our brand loyalty and customer retention. Simply stated, we are giving customers even more reasons to choose ADT, stay with ADT, and spend more with ADT. We are already demonstrating progress against our plan with several achievements in the first quarter that I'd like to highlight. our Google partnership remains positioned to help accelerate the transformation of our business. We launched the Google Nest Doorbell in early January and have seen great success with over 60,000 Nest Doorbell sales as of the end of the first quarter. Additionally, offering the branded Google product is driving higher attachment rates, higher pull-through of other devices, and higher installation revenue, than we were seeing with our previous white-label doorbell. Moving quickly to maintain our momentum, we rolled out Mesh Wi-Fi a few weeks ago, and we're targeting the launch to Google indoor and outdoor cameras by the end of Q3. In our dealer channel, we're expanding distribution and also beginning to introduce Google products throughout the network. So while we're still in the early innings, of our full Google product rollout were very encouraged by our early successes. Based on favorable customer feedback, we are also expanding our ADT virtual service platform. Today, almost half of our service visits are now being successfully conducted virtually. Virtual visits are delivering high customer satisfaction, and in the first quarter alone, we eliminated over 165,000 truck rolls, reducing not only our expenses but also our carbon footprint. We are continuing to evaluate and expand this program with additional ADP services. We are also continuing the rollout of our next-generation monitoring technology. Our patented technology delivers unrivaled safety by helping to prioritize response events and sending data directly to emergency response centers. Obviously, this is critically important in situations where every second matters. We are also expanding this capability for our commercial customers. Today, our technology is in approximately 70 emergency response centers, and our goal is to be in 1,000 centers by the end of the year. ADP Commercial showcased several innovations at the recent ISC West Conference. We specifically showcased the capabilities and uses of robots and indoor drones. Innovations we believe provide opportunities for disrupting the traditional manned guard industry. Commercial also received three SAMI awards recognizing our best-in-class marketing and advertising efforts. I would like to take a moment to comment on ADT Solar, our newest business segment. Following ADT's acquisition of SunPro in December, we have now completed our first quarter with ADT Solar reporting as part of our business, and we are very pleased with our performance. The cutover to the ADT Solar brand is now complete, and you will begin seeing branded vehicles and uniforms out in the market soon. ADT Solar installed 5,500 systems in the quarter, an increase of approximately 80% versus legacy SunPro in the first quarter of last year. We have begun to launch our solar dealer program to existing ADT dealers, and we're seeing the early benefits. Between our dealer launch and other cross-sell initiatives, we're already seeing about 20% of solar sales generating from the ADT ecosystem. As I discussed at Investor Day, we are integrating ESG into our business operations. Just this week, we published our first corporate ESG report, which outlines all that ADT is doing to embed ESG into our business. We truly believe that our ESG principles underpin our core mission, empowering people to protect, and connect what matters most. In closing, I am encouraged by our performance this quarter. We are delivering on the plan we laid out at our investor day a few months ago, and I'm increasingly excited about the opportunities ahead. And now I'll turn the call over to Jeff to cover our financial performance and the quarter in more detail.