WideOpenWest, Inc.

Thank you for standing by and welcome to the Wide Open West Fourth Quarter 2023 Earnings Call. I would now like to welcome Andrew Posen, Vice President, Head of Investor Relations, to begin the call. Andrew, over to you.

Good morning, everyone, and thank you for joining our Fourth Quarter 2023 Earnings Call. With me today is Theresa Elder, WOW's Chief Executive Officer, and John Rego, WOW's Chief Financial Officer. Before we get started, I would like to remind everyone that during our call, we will make some forward-looking statements about our expected operating results, our business strategy, and other matters relating to our business. These forward-looking statements are in reliance on the safe harbor provisions of the federal securities laws and are subject to known and unknown risks, uncertainties, and other factors that may cause our actual operating results, financial position, or performance to be materially different from those expressed or implied in our forward-looking statements. You are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to update such forward-looking statements. For additional information concerning factors that could affect our financial results or cause actual results to differ materially from our forward-looking statements, please refer to our filings with the SEC, including the risk factors section of our Form 10-K filed with the SEC, as well as the forward-looking statement section of our press release. In addition, please note that on today's call and in the press release we issued this morning, we may refer to certain non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Reconciliations between GAAP and non-GAAP metrics for our historical recorded results can be found in our earnings releases and our trending schedules, which can be found on our website. We have also included a presentation this afternoon to complement our prepared remarks. Now, I'll turn the call over to Theresa Elder, WOW's Chief Executive Officer.

Thanks, Andrew. Welcome to WOW's fourth quarter earnings call. We are continuing to build momentum in our market expansion initiative, and we are seeing positive early indicators in our legacy markets in response to the efforts we are taking to stabilize subscriber losses. Our fourth quarter results include high speed data revenue of 108.7 million, up 1.5% year over year, adjusted EBITDA, of 71.2 million, which decreased 4.6% year over year, but increased sequentially for the third consecutive quarter, and a record adjusted EBITDA margin of 42.2%, which increased steadily throughout the year. For the full year, our high-speed data revenue increased 4.4% from the last year. to $430.4 million, while adjusted EBITDA declined by 1.7% to $275.4 million, with an adjusted EBITDA margin of 40.1%. The pace of construction in our greenfield and agile markets accelerated throughout the year, culminating in a total of 48,400 new homes passed. including 30,400 in our greenfield markets and 18,000 new homes passed in edge-outs. In fact, our fourth quarter was the most robust quarterly expansion of our network in our 25-year history. We passed nearly as many homes in the fourth quarter alone as we did throughout the first three quarters of the year. Our momentum has continued through early 2024 as we have added over 10,000 more homes as part of our expansion initiatives so far this year, predominantly in our greenfield markets. I am extremely proud of the effort of our teams that is driving our expansion, which is central to our growth strategy. I'm not the only one who recognizes the quality of WOW. U.S. News & World Report just named WOW a Best Internet Service Provider of 2024. Out of a list of 25 providers offering all types of internet across the U.S., including fiber, cable, digital subscriber line, satellite, fixed wireless, and 5G home internet services, WOW ranked first for fastest cable upload speeds, second for best cable internet service providers, and fourth overall. This is a proud moment for our team and we will continue to prioritize innovation and customer satisfaction in this competitive marketplace. Our HSD subscribers losses during the fourth quarter of 13,300 were in line with the expectations that we set on our last call as the macro environment continued to be challenging. Low move activity, higher churn in lower speed tiers, and Ongoing competitive threats from fixed wireless carried into the fourth quarter but have begun to improve in the first quarter as a result of several steps that we took to address these challenges. Specifically, we increased our minimum speed for existing customers to 300 meg, giving them a surprise boost in their broadband speed at no additional cost. We gave a surprise boost as well to the 500 meg customers. Second, we introduced a simplified pricing option, which includes a price lock, free modem, no data caps, or contracts. This surprise-free approach has been extremely well received. Third, we strategically offered short-term extensions to help create a soft landing for customers rolling off promotions. The early success of these steps has given us additional confidence in the progress we are making to strengthen our subscriber numbers and our legacy footprint. The chart on the lower left quadrant on the slide shows a small increase in the proportion of new customers buying in the lower tiers. This shift during the quarter did not limit the growth in HSD ARPU, as a majority of new customers across our legacy markets, edge outs, and especially in greenfield markets, continue to buy 500 meg and above. The chart on the lower right-hand side of the slide shows our HSD ARPU reaching a new high of $72.90. We expect HSD ARPU will increase further in 2024, although the rate of growth will likely ease as the impact of the steps we're taking to address subscriber churn work their way through our financials. As of the end of the fourth quarter, we now have more than 490,000 HSD subscribers. As expected, our traditional video business declined further during the quarter, which will continue as we transition to YouTube TV. As mentioned, this YouTube TV partnership provides a fantastic opportunity to provide our customers more content at a much better value and to capitalize on the shift to video streaming which we believe will also contribute to great results this year. Our penetration rates remain strong in our greenfield markets, and the early positive reception reinforces our conviction and commitment to our expansion strategy. Our 2023 edge-out vintage has a penetration rate of 24.4%, while the 2021 and 2022 vintages also continue to report strong penetration rates of 47.6% and 31% respectively. Penetration rates in our greenfield markets decreased to just under 10% in the fourth quarter because we significantly increased the number of homes passed late in the quarter. However, the cohorts are demonstrating extremely strong penetration rates averaging more than 20% within the first six months after activation. To conclude, before handing the call to John, I want to reiterate the key points that I made at the outset of this call. First, we continue to make great progress in our expansion markets, passing 48,400 new homes in both Greenfield and Edge Out markets through December 31st. and more than 10,000 homes so far this year. Second, we took steps during the quarter to stabilize the losses in our legacy footprint and improvements are evident in our expectations for the first quarter. And lastly, we continue to see positive reception to our YouTube TV offering. Now I'll turn the call over to John who will go over our financial results in more detail.