Alarm.com (ALRM) 23 Feb 232022 Q4 Earnings call transcript

Good day, and thank you for standing by, and welcome to the Alarm.com Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions].

I would now like to hand the conference over to the Vice President of Investor Relations, Matthew Zartman. Please proceed.

Good afternoon. Quarter Year Fourth Call. Earnings Alarm.com's to and XXXX Full Conference Welcome call being This recorded. is

from today and our us are Steve CFO. Joining Alarm.com Valenzuela, CEO; Steve Trundle, our

anticipated will Management's begin, projected others, to and thereto, during quick the we related performance statements, reminder. global assumptions with the cost of Before adverse emerging today's chain trends and include, a potential COVID and impact market financial call of impact challenging including include key among the legal market rationalization spend macroeconomic the strategies, supply Vivint and dynamics forward-looking which discussion pandemic, demand, dynamics, respect conditions. dispute,

offerings; strategies, plans expansion in for current business our of prospects growth and the integration our of new recent and acquisitions Noonlight acquisition, Our to opportunities objectives anticipated enhancements growth and and and continued markets. and platform our

forward-looking SEC results beliefs including and cause statements. XX-K Factors press These and that in our with could contained in SEC current time recent and today's materially X, we contained report are and to to forward-looking ended that quarterly Exchange with intend that the November our the after differ section most based are call in actual filed time, file December the on uncertainties, XXXX, we year from file to annual subject the These on for us. our XX-Q report Commission the Risk subsequent available this Form reports from to on Securities risks those and in XX, and Form the XXXX, to those on statements currently expectations with of statements including release on information earnings

provides circumstances, and include use update during non-GAAP for an and statements forward-looking these this subsequent non-GAAP commentary by today's management's as provide speak understanding events use measures the except to reflect obligation these to in company's that to financial trends. the financial of guidance. the or required no investors law. of undertakes the extent call that Management to and Also note during Alarm.com only believes this statements made Please measures additional call, will performance non-GAAP tool date

is prepared comparable not to isolation substitute accordance in considered GAAP. a measures directly financial for information meant to financial in the or non-GAAP However, be as

Relations available investors.alarm.com. and of Reconciliations This Investor to reported archived, the being website our webcast is on financial found website. GAAP conference Relations non-GAAP have metrics this will and and call between can our we earnings be Investor posted our tables on website. our also results release, for webcast statement which at in press be will is replay available call be The our a of

the now Steve call Let's Trundle. turn to over

You may begin.

Good to you, and Thank everyone. welcome Matt. afternoon,

and pleased are fourth expectations. results year We our to that full report quarter exceeded

year the year. XXXX SaaS up $XXX.X full and revenue Our last XX% over was license million,

full year for EBITDA Our $XXX.X the adjusted million. was

have on to XX,XXX During diversity the build streams. growth long-term to hundreds than our continued X.X deliver in our more also more strategy. We countries around subscribers. year, continued of into partners We globe. revenue thousands Noonlight XXXX subscribers provider the we with of We and million XX safety over than connected ended solutions expanded execute service platform our personal who Alarm.com to now property

key focusing I quarter. the our international our discuss thank businesses. our XX% will their SaaS and venture to to of want partners commercial XXXX X initiatives, our today's on our employees of strategy, long-term for provider growing our contributions new These The I service represented to and performance. in call video our fourth use business business revenue our nearly areas collectively areas. growth total our markets, software

I'll begin with the commercial markets.

our medium-sized Business X further in million the commercial make businesses the segment. and for And The so SMB that nearly In increased platform or our target same as commercial and revenue addresses enterprise over can advancing XX% the OpenEye's market a Canada. in surveillance period. over U.S. for service and channel small- up video more leading SaaS Alarm.com progress of solid the the total segment. subsidiary, new made by that have large-scale XXXX, OpenEye commercial compared video properties We we the XXXX, they to activations platform is provider than video a doubled as

Our overall accounts. base well to commercial has over account grown X.X million

will our Increasingly, will suite also Shooter commercial video, full software-based property commercial Our Systems. the Detection to about our to a our our we that develop the by on analytics, active business, offering average of energy security, developed shooter deep subsidiary access Xx strategy typical technology commercial of solutions. solutions generate of customers value is expect the control residential product integration with With we that expanding capabilities are deliver the ARPU through offering, and account. detection unique management

in service people year, analytics monitoring. strategy. video is new day. how we people time connected and walk solution, Activity last customer past my to a systems for their tracking, business Analytics. intelligence our the is traditional average launched Last questions the to occupancy It Innovation business product owner check out? our driving the and keep high the properties video A track of particular upgrade called an many commercial With provides for of a integral break in I in times? answer our cycle enterprise employees how display commercial monitoring wait video counting and market. few percentage manage Or have Business are can analytics Or like, can reporting what solutions

our camera SVR. to also legacy video launched allows and to the commercial a services ripping Alarm.com replacing and which new or their customers all screen The It commercial recording capability, up recorder also tracking upgrade enables We event without XX/X for video of support SVR XX cameras. cameras. third-party to cost new enables video

only meaningful residential a with new accounts residential base video Our higher significantly Alarm.com continues exhibits and attrition profiles user This system. results service. accounts security About video growing platform to drive of also half our include market. the lower engagement that in in account

support video This will completely cannot team version our launching video international where XXXp wiring give capabilities wired regional video a custom some analytics battery don't is standards flagship The and with also providers package a while video high-value XXXp. doorbell. service our installations unusual provide markets optimizing address address a flexibility Our developed to includes also power of a some life. be doorbell wireless battery-powered we that source wired where

Shifting to business. our international

they and our to global million range Our technology. markets operationalize we that markets we XXXX. full-scale will continue worldwide. in surpassed base legacy leverage security XXXX, also a support diverse of address partners fully are accounts can panels range growth can Alarm.com's of in by for they in international significant $X.X a wider to comprehensively international so We of Alarm.com control In international deployment expand believe reach deployed drive supporting

chargers. enable the stress and electricity inverters resources. EnergyHub's businesses, greater of expansion flexibly the of demand as electric industrial element XX. orchestrating EnergyHub, in thermostats, continued utilities PointCentral, vehicle customer-owned Systems they growing utilities final manage development energy solar load and Building resources by resources, investing and We're our include Noonlight, solution of resources. smart the is of provides the The subsidiary Shooter to This grid. on electricity manage enrolled sources such commercial These as energy of and EnergyHub will access enables capacity an distributed to enterprise Detection our strategy that batteries, ecosystem software distributed devices

increased programs more events response strategy number over EnergyHub the far often. of called In Our demand utilities XXXX, working. XXXX. is to turning via Utility by EnergyHub XX% clients are

capabilities Last capabilities. response app-based acquired management easily IoT provides SaaS emergency year, response into integrate to we growing Noonlight, devices of event mobile that context enables and offerings. business services a aware providers emergency Noonlight and their

services use lines a a our Noonlight code makes of developing technology API hypothetical central environment a Alarm.com, few first that and to to station partnerships there responder the accident. bike a that for a incident is capabilities Noonlight call As example, could new extend address to write enable security in response cases. channel a the gives leverage deep when company , monitoring

Business as Strategy; to appointed also our Corporate want Kerzner, moment on my support, Ventures Development core oversee our of an Dan sales as and our oversee Jeff for Platforms as largest our late Dan our all spend January. platforms the marketing Strategy. in Business. commercial Development President and announced well Directors residential Product Corporate will I and With roles Venture market, new North of enthusiastic structure well Board of organizational and Corporate and the filing Bedell, Businesses in our Jeff as we SEC President all the for will a of and America.

Jeff was while expansion and of formalize levers. and diversification pace responsibility Dan has the give and to As structure in more the X business, this strong our these recognizing accelerated right timing

in much the Alarm.com. made even each integral team have our the of and over we from future before quarters, more have of each progress members of I years, last areas our In have about even Jeff joined business move the forward XX decade. important privilege I for and played very roles nearly Dan oversee. the to Jeff They that begin them had with we them working been from occasionally they have bring our key of so goals. quarterly will and investors expect into and our Dan call share can them as firsthand growth I management pursue they

long have to a with team management very are history working We together. a strong fortunate of

changes As the my or not involvement CEO alter do Co-Founder, and of these company. with engagement organizational a level

$X continuing XXXX employees our and revenue. during I'm strategy building are call, since CEO pursue than last quarter's well and when no fewer headed I had revenue. and beyond feel and about been have in Alarm.com billion annual I both I noted good Alarm.com As where about we excited to President XX

was larger thought we vision we as and leadership delegate team. As much it can are the to distribute now a I better faster move time so making and that

to on Steve Before to Valenzuela, I you over things the also update Vivint matter. want I hand

paying with for fees late under us agreement. that know, we the XXXX, royalty we in agreement the that arbitration that you Vivint will stop filed As license notified the reached of patent terms it Vivint associated XXXX. with Alarm.com In

That arbitration to to Subsequent take to including Vivint week. expect District in being $XXX filing closely months. closed, not yet XX the for and arbitration has we Federal verdict XX jury are Vivint NRG. acquired We process monitoring against that million announced announced by Court it last was a events, deal recent our

a XX to against We is subsequent our lawsuit Vivint added infringing patents we also year, of patent alleging that portfolio the infringement to on agreement. January licensing filed in Vivint XXXX this

technology patented license. to without our continue from fully ensure infringement to we that protect use its and We work

To conclude, of our initiatives the pleased meaningful I'm our in performance XXXX. growth with contributions on

continue XXXX executing and beyond. to in strategy Our generate our to focus growth on will be

turn let Valenzuela. And things with over Steve? me to that, Steve

Fourth financial XX.X% begin $XXX.X from XXXX call of I'll for before and the the XXXX and year. our provide results of opening SaaS Steve. grew and quarter questions. million Thanks, then year last full same with license fourth a quarter guidance review for revenue quarter

license and SaaS as million revenue, non-GAAP includes in license license QX the $X.X revenue $X.X for from ago revenue license down quarter. Vivint grew year-over-year. million and approximately quarter, the fourth Excluding of Connect year SaaS software XX.X% revenue expected

SaaS XX% the license license For $XXX.X and of revenue, Non-GAAP XXXX. XXXX, XXXX Vivint over SaaS revenue, revenue million in of excluding grew and full XX.X% license year-over-year. grew year

XX% revenue Hardware Total driven revenue and a mainly license by in with visibility sales from revenue renewal other $XXX.X of $XXX.X grew X.X% XX.X% to high revenue rate million quarter fourth SaaS QX grew Our for cameras. million, fourth and the XXXX. remains quarter. of XXXX the in of

we XXXX XX.X% gross quarter, due XX.X% XX.X% QX forth SaaS of mainly Total the fourth the XXXX, for in was Hardware year the primarily XX.X%. quarter XX.X% due and fourth hardware from for XX.X% for grew in fourth margins. million. at year-over-year $XXX.X to margin XXXX, full the increases up that for to QX improvement for solid the was license price early margin total gross to margin remained put gross quarter to For XXXX. compared revenue

in increase to Turning fourth of to $XX.X related fourth million the expenses were up of employees X,XXX with last $XX.X of XXX and mainly X,XXX of and compensation employees We quarter XXXX. to or $XX.X end for in XXXX. Total or mainly of compared employees of to XX.X% fourth in revenue employees headcount in XXXX. million at to lower XXXX, the to ended increased R&D in XX.X% due Sales an from R&D, the in XXXX costs compared to quarter $XX.X expenses. expenses. due at year, in total million operating expenses the headcount the fourth XXXX were quarter end marketing million compared revenue quarter advertising same the X,XXX quarter the

expenses are million in from $X.X million financial our expense non-GAAP expenses XXXX. Non-ordinary quarter, were course G&A expense fees. litigation and to of our fourth fourth in the million compared course $XX.X excluded costs, Our measurement higher $X.X to quarter quarter measures including part compensation $XX.X the personnel-related performance. million non-ordinary stock are for to includes and of litigation mainly QX of ago year consultant in compared due our adjusted the G&A

the Non-GAAP in QX to million in was adjusted EBITDA compared quarter $XX.X $XX million fourth XXXX.

XXXX, For $XXX.X net for compared or the the EBITDA full GAAP from was net or net of $X.XX was income income $XX.X per income million, XXXX. XXXX XXXX. per non-GAAP net per up year for was adjusted XXXX. fourth million fourth XXXX. $XX.X the all million per of million for adjusted net In of XXXX. XXXX $XXX.X income X.X% $XX.X for $XX.X $XXX.X diluted of share to was EBITDA million or income for income the $XXX.X $X.XX compared of or adjusted million diluted million GAAP to $X.X income GAAP compared million GAAP share to share share million Non-GAAP in Non-GAAP compared for of was quarter, quarter quarter $X.XX with of for $XX.X QX fourth $X.XX million net net adjusted

balance our fourth We to $XXX.X of million $XXX.X XX, Turning cash sheet. equivalents, from December cash down ended at XXXX. quarter million and with the

used XXXX, an at of quarter repurchase $XX price average of common fourth of $XX.XX. the XXX,XXX we stock to shares During our million

million For used of to outstanding our approximately all X.X% $XX.X XXXX, of million shares. X.X shares or we repurchase

million for acquisition Noonlight. During also $XX.X XXXX, cash in used we of

generated the XXXX. operations $XX In we for of million compared quarter, quarter cash fourth fourth flow the from million to $XX.X in

year. the XX investment compared Our ended our down to Through cash This months supply from inventory quarter of was we strengthen generated for million XX, for December chain. is free million cash XXXX, the for flow in quarter $XX.X last the $XX.X million same million to flow from fourth our mainly $XX.X operations, due to XXXX. $XXX.X

of due inventory was million for also near $XX.X in $XX Our and compared land our investment XXXX, Virginia. for million purchase our $XX.X headquarters flow free cash for to XXXX Tysons, million to our in

our Turning outlook. financial to

expect we first revenue quarter $XXX.X the of of For million million. license to $XXX.X XXXX, SaaS and

For the $XXX.X $XXX.X million license SaaS be and million. full expect between year of we XXXX, to revenue to

We estimated and of which includes $XXX million. to are million other revenue XXXX of $XXX.X to projecting total for hardware million $XXX $XXX.X million, revenue

due range a to for revenue factors. We wide are providing a several XXXX hardware guide for

fewer in expect communication We of down the U.S. as XG upgrade cycle Canada. sales the modules winds and

products. higher environment in moderating interest ADT, from and may we some anticipate less our new expect moves for We and that revenue hardware builds the demand result rate fewer construction of

the We adjusted be that will million EBITDA million. costs This and for revenue between $XXX includes estimate $XXX significant XXXX Vivint. with to regarding excludes Vivint license matter legal

in to our weighted adjusted approximately be an XXXX $X.XX annual estimate XXXX at remain outstanding. EPS projected tax to based or rules. for share. under per on million shares diluted of $XX.X XX.X currently XX% $XX.X of XXXX expect We Non-GAAP guidance. EBITDA quarter average We project is first tax diluted current million income rate non-GAAP of our to the is to for XX.X% to XX% to net $X.XX represent million

$XX We compensation year stock-based expense to XXXX million million. full $XX of expect

are and our teams well providers internal how over we have year. performed the pleased summary, past service In

long-term while to focused are and on deliver on our We investing our executing growth. business strategy continuing profitable in

the And operator, with Q&A. please that, for call open

[Operator Instructions]. with from of the comes line Adam it And Raymond Tindle James.

deeper I get was and perhaps if breakout on is Steve, really I'm organizational that to start profitability these just capital year. you Steve maybe to it Congrats those a X some this of if trends allocation structure. on an businesses, wanted how enables and what businesses dig a growth maybe ventures from from with an interesting. the new into of a curious, maybe Okay. perspective you accelerate perhaps Trundle, standpoint each even indication strong the a of both It's can this could operational we reporting close the I of or structured was core each that in may previously? versus point. the at curious

-- think be quickly. we'll contain more Sure. Trundle want you be starting. more upgrade, and can first they I where Steve decisions a to This at quickly, level what decision with the to made the is be better try organizational is made And

kind making firmly P&L as marketing. up With make the on efficiency or allocation that they traditionally, And wasn't their R&D in now we're been of ratchet in in to in of of lot North set and own business grown. in involved. that example, core is job charge good the to course, continue in I well capital more we R&D how control in very different that choose people of a reality of versus capital But to charge for in goals. level All, a more can the be the be America difficult capital. and Dan, ways marketing directions. bit and investments investments arbitrage whether a different we for sometimes the to the sales doing as deploy There the side, I'm hopeful and in some So it's of ultimately clever guess it. a are lot a teams old of the guy has different business judicious we

So to . through scope that really one trying or person drive of all narrowing

it own their to more it own nuts the is becoming strategies, and and their of On each in give Jeff side what on each if P&Ls. were. goals it each one for me what of bolts has the the for have They business, business was of an may difficult leader. own while, become of it have the and the progressively exactly to us EnergyHub their those I track whether have own their strategy. And on keep charge be we're quarter, PointCentral a initiatives, been growth of other of or think be. update doing following you I attempted Each or you've whatever businesses

our of lot reflection then we think, in under on make to and to decision we make the had the I decisions what we go an dedicated the we we're of again, M&A thesis acquisition, is gives of make [indiscernible] us a on responsible one have to of a on executive kind doing a we and decision and made of we're a that a strategy follow-through Jeff, all drive when putting execute that So all more when front.

the guess effort. really then And thing it a lastly is I team most is important

between like of these not work of each of it to on I may that of really an period worked structure for if a we long-term at these long a could back that, be able we in of So time, And haven't a X any as think didn't some people areas. if and this you ability more time, may period the had collaborate really and you. give other, for same working areas. for peers that have to together long take but relationship, worked we didn't it's together guys to well be what be time things that the awkward, we kind to the And have responsibility expect

is And Valenzuela. then Adam, this Steve

Your We're reporting. public continue to the question breakout other going and segments. on being of the for of to continue of segment show Alarm.com to breakout time the additional

segment of For and And QX, the this example, Other Other million. is first This interesting. for million SaaS quarter revenue revenue. the was SaaS was $XX.X SaaS $X.X represented the the XX% segment our revenue hardware is for

call in an for that's Bedell. achievement the that's by course, So segment, And the headed core Other Alarm.com. we of up the quite filings and Jeff

$XX.X XX% grew the hardware of Other generated year, X.X% million year-over-year. that revenue, revenue, the and SaaS For segment of

That's helpful, And as Steve. maybe just it. Steve. a follow-up Got for

guidance the the fairly a did was the nice XXXX. for of healthy. guidance did for kind covering hardware I SaaS think You that job rationale

growth adjusted to you're think a XX.X% piece. on year for is XX.X% the numbers, coming up of growth the the dividend I what guiding adjusted On in

despite the looks deceleration in I growth be ADT, SaaS in SaaS what ADT the a of just with the in a minimal would taken has also ADT in So very like to in you on these in the there the not conservative the some implying lot to what's be outlook the out, macro you assumed deceleration numbers, the everything point takes kind I me know that environment. headwind was going of and growth, SaaS dividend tend healthy hardware wondering but piece. puts understand also piece? assumed assume headwind And the and

Valenzuela. Steve Adam, yes, So, again,

SaaS that Vivint for And So not XXXX, XXXX just is year-over we're XX.X% for is dividend clarify, the what X.X% if counting to growth. achieve about we for growth growth. year-over-year you did projecting, adjust

report And various have to in of quarter tend we the we lot need segments the so when first on we conservative of going be, and year, conservative be business. do of the to that different typically, course, given a

the and at XXXX, quarter, we guided guided when for initially If in guided XX.X% we -- -- this at SaaS, year growth initially we you like for came growth. look XX.X% when for we

a fewer the news and There So a you've lot when be too, said, moves. takes, is good there could that have there less which hardware purchases installs of attrition may may still and move terms rate on that new moves, being in lot be whole result fewer you in puts is fewer also interest systems. going The of less of right? there's environment, but there got

of kind XXXX. our into that we've for So guide factored

Yes.

So what to of you juncture but points at look make at have want guided we're is the hopefully, This you less beat upside that. than juncture. off this And can't I hit this We if guide. XXX we at XX.X% back the year, some sure I'll a We at I we and in year, we think X.X% guarantee usually that there, I growth. year, summary basis that. reiterate Adam, last point, think made you in

Got it.

ADT in miss release out that the sorry, lot I But that, sense. press can into built makes And if more here, -- a that tell you but the assumption missed us? to read

that. can I a give on you Sure. little

we new but this tapering ADTs in in of the I for that guide and shared and have as we've don't plan. we think, have, providing. commentary same QX don't a quarters, as exact them the obviously same probably we're modeled of account accounted -- have origination, year We know We that prior

and control phenomenal serve last the as with to out down a they're and their number having cost they're they and think attrition evidenced with lot command services of like quarter driving things other success put that. by I

think what well relatively and model, So we tapered going deployment will we've the anticipate to are purposes QX. in their something But our and business things not sure have we're that I for exactly for be. of plan them,

With such certain the large and in as collaborate custom just areas partner collaborate to to note basis commercial, homes that term. where continue to longer to expect we areas an expect continue on ongoing we basically

[Operator of Instructions]. It from the Darren comes ROTH. of line Aftahi

follow Two, Residential up the year-to-date interest commentary about hence, just of on if and educating one and you I we residential, about an are providers that? news of the hear the the have curious, of kind emphasis you Like upgrade And things I'm may, backdrop on rate past, putting general lower Enterprise the on segments. cycles. that environment guys on talked and in didn't how I less maybe more guess I is in hardware. service guess much

I'm XXX margins basis my growth? how EBITDA versus curious 'XX for there's much a maybe in that reinvestment from like It 'XX on Steve then is guide. drop revenue the business versus question, point V. second looks from for more your And of

hasn't oftentimes the actually and at all. being residentially I we've a on there also investors And 'XX. been if a is want there I'd think That now. backdrop start QX safety. just backdrop And become 'XX builder off moves, more is moderation segment. as massive then a was activities. well to attrition. businesses smart the that generally, when tends with move I'll and significant We're the always North So right to their that results their about more of during America people and pocketbook the held general security consumers typically there little fewer said, not hot indicate security economy or careful seeing up now because changes some our residential economic or concerned say backdrop the less home then it or remind even as pretty general historically, are be and even indicated And right in quite Enterprise

counterbalance a get there. sort you of So nice

with our happening. are providers the products right we're of of residential with expand going service into In side, terms and ecosystem them the on been them focus I'd now that's that the still on collaborating to conditioning focused home, say

drive ecosystem. thermostat a sort provide the Water where can the to rate, continue quarter, launched an product video We recently So of called value. expansion about is range last rates I we spoke Dragon attachment attachment which of things and that of again

tends to the be there. that focus So

And to probably of the command then macro side, on-premise -- cloud-based from a -- cloud-based of video a the services still on that control in access trends centers different, on-premise more being it's kind control servers on hand early archaic it's are little to days your from to that in from access command app. enterprise on terms video centers fit your mobile

this and partners is think to transition. I bit make the share more there upgrades people then take So helping customers ready as those a on the focus market capturing commercial that are and to willing

basis the legal EBITDA of Those or XXX drivers EBITDA point are 'XX, talked I Darren. you drop compared of we say about as terms of it's adjusted really points additional basis Vivint about matter. spend, impact would regarding XXX-plus and 'XX 'XX, terms the the adjusted the will, in 'XX less revenue decel, in in accommodation if the in impact, In of to Vivint main from

line Brian It comes with from the of Capital. Ruttenbur Imperial

Yes.

of First full looking quarter first in quarter. you're XXXX? housekeeping. and for all, then for, was for help for us Interest out you the of up Can year fourth what income the

Yes, Brian, Valenzuela. it's Steve

and our take money of in So luckily, position been very cash strong course. X% invest we of have advantage But to we've investing our funds. conservatively, able plus been

that's 'XX. so would interest we interest call for in rate main And increase. the expect income the out the debt environment, the to And happens reason continue depending upon what with to

Okay.

forward, So went And you to housekeeping modeling quickly. how then the move. but mentioned tax at apologies, seems that was over logical year very this on you X.X% like or much the higher also going rate other the

use The expense. puts stock obviously with rate tax given GAAP occurs a and fixed for a actual takes varies, the non-GAAP. we what so on rate basis, yes, course, of XX% with So compensation tax of

rate, So it's same tax XXXX non-GAAP. XX% for the as

question. macro other one then And Okay.

some real the at Can about the a the you reported, all much are bit drivers internationally in time, talk you competitors of that deep is operator, residential like seeing commercial? the they're side about weakness Allegion, strong talking as still commercial side, little of for they're And the strength but how Given business an have commercial. Verisure currently calling same hardware on side? on on the your

Valenzuela. Steve Brian, it's

we commercial So now the have revenue fourth really XX% it our of in And XXX,XXX over Commercial is well. about continues do quarter. grew accounts and X% now. to year-over-year commercial SaaS over

growth percent continued XX-plus at rate? seeing that you're So

the side, commercial still as side, maybe have business We the a quite yes. mature there. side. health can I correct. think residential we Obviously, growth don't In attractive on there, bearish rates [indiscernible]. the we but as see residential more we're Yes, we find on that's think And

And international international year-over-year. and in international X% now revenue is of we're our seeing total to was XX% growth revenue, up

think really us international I as is out the on helping residential So well. side

Jack And Maxim Aarde it with Group. from comes

A Yes. couple questions for of well. housekeeping me as

the for what software Just in -- what was quarter? former the license Steve revenue Valenzuela, fourth was Connect or the maybe

mentioned number $X.X So the call. on I I the million, was believe,

million. 'XX, $X.X ago QX confirm sorry, QX in million, -- revenue that. 'XX, 'XX year the $X.X me quarter Let was Yes, in was Connect was in the former software

Got you.

businesses else included SaaS It V, appreciate which commercial, then -- else include SaaS revenue? Trundle's XX% which prepared combined clarity the I question. revenue. your think almost X%. just me you of Steve remind what I that. is think, of I nearly like Steve What said sounds fourth Okay. approximately And Can XX% for, another you increased remarks, quarter in

the small Yes, EnergyHub. businesses Sure. ADT faster include are like what excluding actually. segment the And the And would overall, international, outline other terms we can business They then of lastly in sort video initiatives. including that to in video be of commercial, business. I growing

Got you.

Okay.

XX% Steve segment little like other, So kind time I guess bit was as Valenzuela, deeper more quarter, for that revenue was overall you Other first ever. was encouraging the that million that, in it sounds SaaS the the those just in and contribution $XX.X or then, that of the of the bulk from said to topic commercial is hear. of healthy dive all That's I drivers. then to great guess, growth a And but one

acceleration see So do to -- where is going is continue? now there? could that you think this kind hit Do XX%? blip? think mean, of this trending? When Anything you you this this provide do onetime you going I is a you're Is --

Well, total fourth it in was quarter, just the SaaS to up of year-over-year. revenue XX% so XX% clarify,

For was the segment SaaS. the SaaS year, total Other X% of

in from the typically, out energy quarter, do So the energy fourth the get savings programs. benefit a summer in from we

growth project the the Other future So X% Other Building to the expect forward. hit XX% we'll But think energy see But in would see over probably continued contribute when between time, segment we period to PointCentral, see a don't as we would XX in I of of segment. want to out we from XX%. do I near going for

digits. I think to the time for hit it's first great double to see

So good by that's team. a achievement the

up was a that. to the net powered there is EnergyHub And which lot little and were being of [indiscernible] in fourth program, by outperformance quarter signed because there folks a there renewed supplemented

performance there better little So we've [indiscernible] a than we got expected.

just more one Got then to property the for good connected see total. It's And me. it.

think I so. time it the last year, reported first we or since it's

number? going was last that properties international that a since in to we now, contribute I you Do new year. net it's think international but connected loaded going see forward drove XXX,XXX changing that what XXX,XXX It pickup be then to like going be and your I commercial are guess would maybe, just think more going properties? those are to And incremental sharing homes sounds drivers thoughts helpful. or now forward? like

Yes.

starting I I typically in modeling range. at Those terms are accounts quarter. the some -- be end of questions, in in a one changes. be ADT prior lowest there will second the of from I the think the numbers. think we're indicated of And ARPU will that taper with mean, meaningful I on

Xx So probably I the mean to level what you'll we've at of higher commercial residential. that grow indicated international see I accounts. is we somewhere Xx, versus accounts, think mix sort a ARPU else, think -- side I to would of a but hope least is on And commercial

what see slight to to hopefully, we side. continue that other decline the going year-over-year you growth was will may commercial some from ARPU start So impact in overall offsetting in unless sort the net as of a And level of business growth a things getting number. subscriber -- into bit see we transitions the -- be more cooking a but on

appreciate Okay. Great. commentary. guys. the That's quarter, helpful added color. Great I

I'm question. moment queue. questions in next further the it any one see Latimore ladies I comes don't I With gentlemen, And -- our Mike of this, and Well, sorry, line will for from Northland the with Capital.

Mike seeing effects seeing providers? customers? demand business? color you longer if on any Aditya among Like dampening cycle of is of service you're seeing on Or your sales the on inflation your any give are you with behalf some Could you're This Latimore.

bit seeing little of we're I'd impact. say a

impact. mentioned I new would for home X are One pace look new we there build construction. think activity on of being is the that we've places

which be is as The for decline, the moves we some existing to not impact, new tend being many sort is tailwind on particularly get then proxy decline, if the of new as a a there sales, on other But we're favorable as attrition. moves, home pace of builds hardware places. can in number, on installed

some things the to see we're beginning are those evidence. So

We tighter, hypothetically also -- make comfortable purchase They a is the credit a may not $X,XXX is be tighter. credit high today. if purchase is willingness to more $X,XXX with as so consumer's

early Do that indications are that? And seeing of that, you see occurring. little we think I a is bit some

modest sure meaningfully have new be when someone You don't see But is these obviously, that today. know, any not we not are to all impact are inflation make that some occurring, that that tends looking material I'm indications there purchases. causing to how time that that's they're layoffs unemployed, we evidence but impacted. a

percentage of are taking those right. percentage what video new analytics? and subscribers All And are of what

the what quarter analytics. XX% combining have, those XX%. video the eligible video subscribers It can video the every are is take gives typically at attachment really to around subscribers taking video XX% best And rate we really the experience. we've analytics, the fourth advanced in seen. continued over with be of goes cameras together capabilities well analytics So Upper then those yes, that strong

I close participation, and Q&A day. gentlemen, will ladies today's may your you conclude and disconnect. now that, with and And program. Good Thank you for

you. Thank