ADT Inc.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Elizabeth Landers. Please go ahead.

Thank you, Operator, and good morning, everyone. We appreciate you joining today's call to discuss ADT's second quarter 2024 results. Speaking on today's call will be ADT's chairman, president, and CEO, Jim DeVries, and our chief financial officer, Jeff Likasar. Wayne Thorson, chief business officer, will also join us following the prepared remarks as we take analysts' 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 both the former commercial and solar segments are 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 sale and solar through the second quarter of 2024. 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 will also discuss non-GAAP financial measures on the call. The most directly comparable GAAP measures, along with the reconciliation to those measures, can be found in our earnings presentation on the ADT Investor Relations website.

Good morning, and thank you to everyone for joining us today to discuss ADT's second quarter results. As we've passed the midpoint of the year, ADT is well positioned to deliver the full year financial guidance we outlined in February. I am pleased with our overall performance this quarter and our first half, particularly against the current macroeconomic backdrop, which includes higher interest rates and fewer relocations, a traditional catalyst for new subscribers. We continued to grow revenue up 3% versus the prior year while remaining focused on balancing profitability and investments for the future. And importantly, we again delivered very strong adjusted free cash flows at $251 million, up 14% from the prior year. Gross revenue attrition was 12.9% for the quarter with revenue payback at 2.2 years. This performance is a testament to the durability, resilience, and flexibility of ADT's business model. Jeff will provide more details about our financials and full year outlook in a few moments, but I first would like to share a few comments about our business and strategic progress. I'd also like to take a moment to highlight a pivotal point in ADT's history. This month, ADT will be celebrating an extraordinary milestone, our 150th year in business. We are among just a few iconic companies to have been founded in the 1800s and still thriving today. The key to ADT's enduring success has been our exceptional ability to adapt and innovate. It goes without saying that our people have driven our business and I want to thank the dedicated teams of professionals that have built and driven this company over several generations. We now stand at a pivotal moment in our company's history, ready to write the next chapters of the ADT story fueled by thoughtful innovation and our current industry leading team. I could not be more excited about this chapter and remain humbled by the opportunity to lead this great company. Today, as we progress into the chapters to come, we are focused on investing in the next generation product and experience ecosystem and creating even more reasons for customers to choose ADT and stay with ADT. A key component of our future is our new and proprietary ADT Plus platform, which I'm pleased to share is now available across the country for a growing portion of our professionally installed residential customers. This follows our rollout for self-setup customers last year. Our ADT Plus platform includes a new app, refreshed hardware, and offers a number of advantages, including enhanced installation flexibility and configurability. Importantly, It also offers additional and stronger integrations with smart home devices, such as Google's Nest ecosystem. Our ADT Plus platform is the foundation on which we will innovate to build future unique experiences tailored to our customers' individual needs. The first of these experiences will be what we have branded Trusted Neighbor, an innovative new feature offering both convenience and security to our customers by leveraging Nest's familiar faces to seamlessly grant trusted individuals secure and temporary access to their homes, either on a defined schedule or for specific events such as package delivery or water leak. We anticipate this offering will become available for ADT Plus customers during the third quarter. Facilitating this experience, we're pleased to announce we have recently entered a partnership with Yale Lock to provide our customers this innovative and secure solution, which also builds on our existing Google relationship. We will continue to add more features to the ADT Plus platform over time and look forward to the enhanced capabilities and flexibility we will enjoy with our owned and proprietary ecosystem. I also want to share that concurrent with this rollout, we're offering more flexibility to our customers in their buying choices, including more disaggregated offers, installation options, and payment and contracting terms. Additionally, we continue to make progress in our second to none commitment to safety. Again, a hallmark for the past 150 years with our alarm scoring capabilities, which are now live nationwide. This technology allows us to classify alarms based on predicted severity, which leads to a reduction in false alarms and importantly, enables us to share more precise alarm information for our customers with first responders. Additionally, as I've shared previously, we have expanded our Google relationship to include their cloud artificial intelligence technology platform and are currently exploring several opportunities across our business with early efforts focused on call center operations. We also remain focused on advancing our State Farm partnership both installation and new customer RMR were up 7% on a unit basis in the second quarter. We're also focused on a self-setup alternative in select states. The first state where we've rolled out this offering just this month has been Georgia, with another state expected in the third quarter. We're obviously very excited about the overall progress we've made in developing new and innovative products and services for our customers and the foundation this provides for the future. Supporting this progress, we recently introduced our new brand promise, When Every Second Counts, including the launch of a new advertising campaign, Always There. We've refreshed our media across a variety of outlets, including placements during the Olympics. In closing, I want to highlight that the top priority of our team remains to deliver on our commitments for our shareholders, customers, and partners. I'm incredibly proud of our ADT team and our recent accomplishments, as well as our achievements over the course of our company's 150 year history. I'm even more excited for the opportunities that lie ahead. And with that, I'll turn the call over to Jeff.