ADT Inc.

Good morning. Thank you for attending the ADT first quarter 2024 earnings conference. Thank you for attending the ADT first quarter 2024 earnings conference call. My name is Victoria and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you'd like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to your host, Elizabeth Landers, Senior Director Investor Relations. Thank you. You may proceed, Elizabeth.

Thanks, Operator, and good morning, everyone. We appreciate you joining today's call to discuss ADT's first quarter 2024 results. Speaking on today's call will be ADT's Chairman, President, and CEO, Jim DeVries, and our Chief Financial Officer, Jeff Lickisar. Following the prepared remarks, we'll take analyst questions. 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. Before we begin, I'd like to remind everyone that beginning in the third quarter of 2023, the commercial business is reported as discontinued operations. Financials and metrics for current and historical periods discussed on this call will be for continuing operations, except for cash flows, which include amounts related to the commercial business through the date of sales. Today's remarks also include forward-looking statements that represent our beliefs or expectations about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of the factors that may cause differences are described in our SEC filings. We also discuss non-GAAP financial measures on the call. The most directly comparable GAAP measures, along with a reconciliation to those measures, can be found in our earnings presentation on the ADT Investor Relations website. And with that, I'm excited to turn the call over to Jim.

Good morning and thank you to everyone for joining us today to discuss ADT's first quarter results released this morning. ADT had a very good start to the year financially with strong CSB performance driving top line growth, improved segment EBITDA, and positive adjusted free cash flow, all of which Jeff will describe shortly. First, I want to share a few comments about why I remain excited about the opportunities that lie ahead, the positioning of our company, and what we believe to be a compelling investment thesis. Our streamlined business model, focusing on our consumer-oriented core security and smart home business, serves a large and growing market, and ADT is the clear industry leader with a unique set of assets, including our trusted brand and national footprint and scale. We have a flywheel-like model where we are increasingly able to use the stable and predictable cash flows from our RMR base to service and reduce our debt obligations and return cash to our shareholders, while also continuing to invest in growing the RMR base. That growth is further enhanced by our extraordinary combination of concierge-like professionals, blue chip partners, and expanded capabilities to further penetrate even more customer segments and U.S. households. And we've never felt more confident about our overall capital structure and the related flexibility to deliver on our commitments for all of our stakeholders. During 2024, our focus remains on methodically rolling out our new ecosystem of customer offerings and experiences, as well as related back office infrastructure. As you know, we launched our new ADT Plus platform for professionally installed customers in select markets last December. following the rollout of our ADT Plus app to self-setup customers earlier last year. We are expanding to more geographies and customers throughout 2024 and are confident in the differentiated capabilities our new platform will enable in future years, especially as we develop additional use cases tailored to our customers' unique needs. We will plan to make the first of these available on our platform later this year. ADT's new platform continues to leverage our Google Nest partnership, which has already enabled us to expand our offerings, particularly around the fast-growing area of camera and video analytics. Our State Farm partnership also remains a catalyst for the business and illustrates our continued evolution and innovation. We continue to see month-on-month growth in our existing 13 states and remain on track to begin new pilots in four more states in the coming months. We remain optimistic in the growth opportunity with State Farm to drive significant benefit to our combined customers' need for proactive risk detection and prevention. We will further unlock the power of our ecosystem with the full scaling of our ADT Plus platform, new hardware, and refreshed IT infrastructure, including advancement on our digital journey to provide more personalized offerings with greater efficiency while providing best-in-class service. In that vein, we have broadened our strong Google relationship beyond Nest Hardware with a sharp focus on efficiency and customer experience, utilizing Google's AI technology platform to explore several opportunities across our business with early efforts focused on call center operations. Our virtual assistance program has already been a key driver of our efficiency, allowing us to better service our subscriber base while simultaneously lowering our costs by utilizing technology and video in place of more traditional in-person service visits. Customers increasingly value the convenience and speed of our virtual capabilities, which also contributes to reducing our carbon footprint. While still early in our implementation, we anticipate significant call deflection using AI-led efficiencies and customer care. And we're looking more broadly across the organization at ways to leverage AI in areas such as churn propensity modeling to help us improve customer retention. Obviously, there is a lot more to come in this area. As we announced in January, we've made the decision to exit our residential solar operations, which is progressing as planned. We've ceased all sales and marketing activities. We're closing branches, selling inventory, and installing what remains of our pipeline. The headcount in solar continues to decline, and we expect to discontinue substantially all field operations as planned by the end of the second quarter. Finally, I have just a few brief comments regarding the secondary offering executed in March. Overall, we were pleased with the completion of Apollo's offering of approximately 75 million shares of common stock, taking their ownership to below 50%. We view this as a positive for liquidity and over a period of time, we expect the larger public float to attract even more high quality investors to ADT. We concurrently repurchased 15 million shares of common stock using $93 million of our $350 million share repurchase authorization to further bolster our value proposition. In closing, ADT's core focus remains on delivering safe, smart, and sustainable solutions to our customers with an emphasis on innovative offerings, unrivaled safety, and a premium service experience. Collectively, we expect these efforts will improve our efficiency and customer experience while also enabling better and faster insight to meet our customers' needs. The immediate priority for our team is to deliver on our commitments as we remain confident in our plan for 2024. I'd now like to turn the call over to Jeff Likasar. Jeff has been serving as our interim CFO since December, and he'll now officially return to the CFO seat. Jeff has been a great partner to me, and as many of you on the call this morning know, he's a tremendous executive leader for ADT. I'm thrilled to be working with Jeff in this capacity again. With that, I'll turn the call over to Jeff.