Resideo Technologies, Inc.

Ladies and gentlemen, at this time, I would like to welcome everyone to the Residio Technologies second quarter 2024 earnings call. Today's call is being recorded, and all participants will be in a listen-only mode until the formal question and answer portion of the call. It is now my pleasure to turn the call over to Mr. Jason Willey, Vice President of Investor Relations. Mr. Willey, please go ahead.

Good afternoon, everyone, and thank you for joining us for Residio's second quarter 2024 earnings call. On today's call will be Jake Elmacher, Residio's chief executive officer, Tony Trumzo, our chief financial officer, Rob Arnes, president of Residio's ADI global distribution business, Tom Saran, president of our products and solutions business, and Mike Carlett, incoming chief financial officer. A copy of our earnings release and related presentation materials are available on the investor relations page of our website at investors.residio.com. we would like to remind you that this afternoon's presentation contains forward-looking statements. Statements other than historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Residio's filings with the Securities and Exchange Commission. The company assumes no obligation to update any such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our annual report on Form 10-K and other SEC filings. With that, I will turn the call over to Jay.

Thank you, Jason, and thanks to everyone for joining us today. We performed very well in the second quarter, with adjusted EBITDA of $175 million, well above the high end of our outlook range. products and solutions adjusted EBITDA margin of 24.8% was 460 basis points better than Q2 last year as gross margin exceeded 41% as we continued to manage operating costs. Our operating improvements translated into another quarter of strong free cash flow, which was 77 million for the period and 325 million for the last 12 months. We accomplished these results in a market that remains constrained by higher interest rates and soft existing home sales, but where we see increasing stability in many of our most important markets. During the quarter, we completed the acquisition of SNAP1, adding to our product breadth and distribution network in the attractive audiovisual and smart living markets. We are excited to welcome the SNAP1 team to ADI and have hit the ground running on bringing the two organizations together. The integration of these two businesses is a top priority for us in the second half of 2024. We continue to target 75 million of annual run rate synergies exiting 2026, of which we expect to achieve 12 million in year in 2024. We're entering a truly exciting period for Resilio with strong operational execution and increasing pipeline of new products, and important value creation opportunities ahead with the SNAP-1 acquisition. I've asked Tom Sarand, president of our products and solutions business, and Rob Arnaz, president of ADI, to join today's call and to provide greater insight into their respective businesses and the opportunities they see. Before I hand the call over, as you may have seen in our press release, I'm pleased to announce Mike Carlett as Resideo's new chief financial officer effective tomorrow. Mike was the chief financial officer of Snap One for the past decade and was instrumental in the growth of the business. He is a talented leader and I look forward to working with him to help drive Resideo into our next phase of growth. Tony Trunzo will be stepping down as CFO but staying on until March 2025 to ensure a successful transition. Tony has been a tremendous leader and partner in reshaping the business with me over the last four years to a more financially stable strategically focused, and profitable organization. I appreciate his continued partnership during the transition period. With that, I will turn the call over to Tom.