Vivint Smart Home, Inc.

Good evening. Thank you for attending the Vivian Smart Home second quarter 2021 earnings call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to pass the conference over to your host, Nate Starks, VP of Investor Relations with Vivian Smart Home. Thank you. You may proceed, Mr. Starks.

Good afternoon, everyone. Thank you for joining us this afternoon to discuss the results of Vivint Smart Home for the three and six-month periods ended June 30th, 2021. Joining me on the conference call this afternoon are David Bywater, Vivint Smart Home's Chief Executive Officer, and Dale R. Gerard, Vivint's CFO. I would like to begin by reminding everyone that the discussion today may contain forward-looking statements, including with regard to the company's future performance and prospects. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated in any such statements. We describe some of these risks and uncertainties in the risk factors section in our annual report on Form 10-KA for our fiscal year 2020 and in other filings we make with the SEC from time to time. The company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. In today's remarks, we will also refer to certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP, to the extent available without unreasonable effort, are available in the earnings release and accompanying presentation. which are available on the investor relations section of our website. I will now turn the call over to David.

Thank you, Nate, and good afternoon, everyone. I appreciate your interest in our company. Given that this is my first earnings call as the CEO of Vivint, I plan to focus my comments on four topics. First, I'll provide my background and outline my deep relationship with Vivint. I will then outline why I'm so bullish in the company and what I've rediscovered about Vivint after being gone for the last five years. Next, I'll outline my preliminary thoughts on where I believe Vivint needs to focus over the next few years and why I believe that will position us to be an attractive, differentiated investment. Finally, I'll touch upon a few key highlights of the quarter before turning the time over to Dale to take you through the details of the second quarter and our outlook for the full year. I know Vivint very well. I joined the company in the summer of 2013 as the Chief Operating Officer. and spent three years helping the company during those pivotal years of transforming from being a security company to a fully integrated smart home platform company. As a result, I was intimately involved in scaling the company, operationalizing our service and product offerings, scaling and maturing our supply chain capabilities, collaborating closely with our direct-to-home and national inside sales leadership to expand and grow our helping hire many of the leaders that are still with the company and improving our install service and customer care operations. It was an incredible time of innovation and maturation of the company. In May of 2016, I was asked to be the CEO of Vivint Solar, our publicly traded former sister company. During my five years at Vivint Solar, we rebuilt that company across almost every vector. Key achievements included expanding our go-to-market strategy to be omnichannel, revamping our operational model to reduce costs and materially improve quality, establishing a customer-centric focus on delighting our customers, and reigniting growth while ensuring that our growth rate was accretive to shareholders by taking share in the most attractive solar markets. We sold Vivint Solar to Sunrun in October of 2020, making the combined company the clear and dominant leader in the residential solar market. As a result, the market cap of Vivint Solar went from around $300 million in May of 2016 to over $5.4 billion on the last day of trading prior to closing the deal with Sunrun. Following the transaction, I remained on the board at Sunrun and advised the combined companies until rejoining Vivint Smart Home this past June. Prior to my time with Vivint, I spent 10 years running many of the largest service companies within Xerox. which were also tech-enabled and data-driven. Hence, I feel right at home at Vivint and in this role as the new CEO. I pride myself on being a straight shooter, as a person who enables good companies to become great companies. I also pride myself on doing what I say I will do and working to delight our customers, employees, partners, and shareholders. I demand the very best from our employees and will work tirelessly to ensure that they help build a great company the right way and create value while we protect our company, our reputation, our customers, and our shareholders. As I've rejoined Vivint, it has been incredible to rediscover how amazing this company is. I was familiar with some of the advancements during my absence, but upon my return, I've been very pleased at just how much progress has been made and on so many fronts. The transition from being a company that uses cash to one that generates cash through the consumer financing agreements we have with our banking partners is is a game changer. The team has achieved that while simultaneously improving our underwriting requirements and sales processes, all while delivering consistent revenue growth. That's an incredible achievement. The team has streamlined costs and redirected that spend to fund innovation and growth. The technology has gotten so much better as well, and we believe the product and service offerings we provide to the market are incredible. I am more convinced now than ever that that it's illogical for any consumer to trust the protection of their largest financial asset, their home, to inferior products that are often incorrectly scoped, improperly installed, and either incorrectly or not monitored and maintained by DIY or MeToo solutions. Our fully integrated solution is intended to align every person within Vivint to ensure that the solutions meet or exceed customer needs, that they are sold, installed, and serviced correctly, resulting in an average contract term of over eight years, and what we believe to be among the lowest customer attrition rates in the industry. I've also rediscovered the incredible core asset we own. With an average of 15 devices per home, we own a data-rich environment that helps us not only protect our customers, but also improve the efficiency of their homes and elevate their peace of mind. This proprietary solution that we design, engineer, deploy, and manage provides a platform upon which we believe we can continue to integrate and leverage additional solutions that logically link to our smart home platforms. We believe this will lead to new solutions that will create deeper value and savings for our customers. Finally, it has been a delight to reunite with so many employees and leaders that I had previously worked with. They are professionals who share my deep conviction to delight our customers, to bring innovative solutions to the market that create more value for our customers, to work in a respectful and professional environment that celebrates each other and diversity, and to do the right thing in every situation, every time. Vivint isn't a perfect company. Like every company out there, it has room for improvement. but it is a company that learns and improves, one that has an incredible culture and DNA to win and win the right way. We will continue to learn from our mistakes and get better every day. I am so delighted to innovate forward with this company and with this team. Going forward, we will aim to deepen our competitive advantage within our core smart home platform and business. We expect to continue to introduce industry-leading smart home products that our customers trust and value. We believe that these products and solutions will further entrench us in the homes of our customers and allow us to create more value than our peers. We will continue to work to strengthen our balance sheet, deliver smart growth, and invest intelligently to defend and expand our market position. An example of this smart growth is the recent announcement of our strategic partnership with Freedom Forever, one of the nation's largest and fastest growing solar installers. This partnership will expand upon our smart home solution to include clean energy and will allow us to continue our exclusive arrangement with Sunrun for solar PPAs. The partnership will work to bundle a Vivint smart home solution with each new solar cell. We believe this is one of the most desired bundled solutions for solar customers, and it allows a home to truly be smart by producing smart energy and consuming energy more intelligently through our integrated smart home platform. Our goal is to enable consumers to make better decisions regarding their energy consumption as they better understand what is happening in their homes. We are just beginning to introduce a solution into select markets. But given my experience and background in both smart home and solar, I'm confident this will be another game changer. More details will be forthcoming on future calls. Another example of smart growth is our insurance pilot. We are working with a variety of large insurance companies to develop solutions for our customers that will leverage the data we have on their homes. We collect data around occupancy and other usage patterns derived from our smart home devices. That will allow insurance carriers to underwrite home insurance policies more intelligently. We believe a consumer that has our solution, which includes significant home occupancy data and properly working sensors that reduce the risk of fire, flood, or theft catastrophes, should pay less than a consumer without our solution. Our customers should save money on their home insurance because of our solutions. This is another logical growth opportunity for us to leverage our core smart home solutions and expand the value we bring to our customers. More details will follow as we work to bring these solutions to market in a controlled and effective manner. Finally, wrapping up, we delivered a strong second quarter across all key metrics, revenue, adjusted EBITDA, and cash, and we expect to deliver on our full-year guidance. The debt refinancing we recently completed underscores the strength of our business model and the confidence the capital markets have in our team and path forward. I appreciate the incredible teamwork across our company to deliver that result. With that, let me turn the time over to Dale to take you through the details of the second quarter and the guidance for the full year. Dale.