Snap One (SNPO) 7 Nov 232023 Q3 Earnings call transcript

Good afternoon, and welcome to Snap One Holdings Corp.'s Fiscal Third Quarter 2023 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. I would now like to turn the call over to Snap-on's Senior Vice President of Finance, Eric Steele. Sir, please proceed.

you. Thank welcome Third and Conference XXXX Snap Call. to afternoon, Quarter School Earnings Good

this recorded. is a call As reminder, being

Joining us today CEO; and from Snap One Carlett, are CFO. Mike John Hayman,

prepared to Before events make may or expectations, not statements your performance. everyone would limited begin, to forward-looking forward-looking like future response including, we that and financial we additional our future questions remarks in management to, contain statements, of remind but statements

upon reliance do not performance, should guarantee not them. undue placed statements These and be future therefore,

XX-K these occur believe we or no Factors Form those latest including contains call. risks we in of These reasonable, Although expectations to the most company's section in expectations of undertake SEC. GAAP of date identified on that Form our current the materially. events the report XXXX. quarterly with This directly today's report November broadcast, are filed obligation only inherent are accurate and time statements statements management in is any of uncertainties financial information reflect the our Actual on XX-Q annual involve Risk also and to call the and referenced are results measure. earnings differ and to X, release call non-GAAP on after All revise could changes based time-sensitive comparable latest that as measures this this our reconciled and

a webcast at our like would will on investors.snapne.com. and being I to made Finally, recording is available this remind that website a call be everyone Relations Investor replay for conference

turn call John? on I which John CEO, the these a over can be In to our supplemental found the webcast, now our addition earnings results, posted website. have Relations will Investor accompanying to also we Heyman. presentation

strategy will background Mike the everyone, then Eric, our remainder our quickly. on this the for a remarks, very recent quarter. right. for give Mike over and I'll the company some more provide afternoon. to then discuss performance, CFO. depth, To call Thanks, review the I'll open us that then and of financial follow turn begin and share with call and today, closing I'll for up the of welcome, I'll In joining and thanks Carlett, our for more questions. All and year. outlook we'll results our some

Let's get started.

formation technology will allow throughout they the the network with professional reminder, discerning small them believe As integrators distribute successfully living residential We software we a support install, including our to and users construction our develop the propel select, security SNAP solutions growing and Smart serve professional life end and durable and cycle. at our adoption, platforms products large secular continue solutions technology to to integrate work approximately our proprietary customers will smart to workflow seek commercial here partners deliver industry through health One, tailwinds, distribute Living housing and portal project enablement, support the We of and business and empower their is and and software joy,connectivity opportunity to to our integrators with that e-commerce integrator platforms proprietary further do-it-for-me We branches. XX,XXX third-party Many and professional our company require. customers forward. local worldwide. to

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breadth surveillance, and commercial we our solution back overseas Now categories. the living and expo, applications The infrastructure residential audio, and were strength of underpinning software and display connective tissue CDI. solutions power, across as smart the At industry-leading included to our on both lighting, the showcased control portfolio. of range a our of ControlX platforms our networking,

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customer updates. enhancements and allow will of with end improve continuously to to systems ownership. get more are customers new they their systems so the lifetime during features improve of well integration as their consistently functionality experience We These positioning security their out and industry as the

looking forward of investment, the to of next years half we year. After introductions exciting first in some are

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finish product to extended elevated in to product in adoption new programs gains our and our platform service From of sales long channels. our during two, a converge marketing platform the targeted unified portals our adoption. we year, continue driving with enhance end our adoption in delivering drive our our launches perspective, delivering partner an to end strong and a the experience share third products, quarter's operating ecosystem unprecedented SNAP role partners and continued One. customer several a to launching and initiatives drive innovation has solutions XXXX, We our our effort already This market margins partners, to strategy models, experience. several and provide go-to-market have and First, for a portfolio, and number driving including enhance towards relationships a better in our in by leadership product experience; key completing expanding took turn, higher positive far quarter important industry. yielded our Complementing through U.S. and better e-commerce steps several position consumer results. which

install of these North channel X by branches a we through to number while an reliability. at profitable line branches, brand fourth market adopt the prefer. remain American easier local the as integrators to week they end quarter, for additional earlier. open our it for for expect brings the whichever quarter. and our XX finally, the discussed ControlX I local our Strategically, to deliver through more week extending in integrators branches to That to the it buy product opening presence our few us system residential solutions, oversea unparalleled and expanding making and finally, and of tighter And total And we local integration from making commercial providing after easier to committed

drive we strategic initiative is second growth, continue achieving to margin expansion. operating While our

the availability. on COVID partners and inefficiencies This in us, near-term chain including based prioritized securing R&D During our created crisis, efforts expediting abrupt and business. changes componentry, pivoting for product and chipset supply we keeping

has normalized this the and team inefficiencies, point, extracted margin supply chain year. these successfully this At expansion our cost largely driving contribution sustained has

continued and investments our have technology back they operating get we our to Integration These have products. has third I'll previously scale results. our model. discuss. investments completed evident which do results, recovery are driving operating infrastructure forward will teams support yield this our new within best, We're going acquisitions quarter's Importantly, making to been also within growth product now related what allowed expectations to activity our building to as do as in margin well

expectations. delivered generally performance results generated $XX Our third another which in million represents million $XXX.X in EBITDA, of adjusted We net and was quarter. that in with solid line the our quarter team sales in

XXXX, will the believe quarters, few inventory last the this by level continue but and have impacted to by we normalized reach since a over sales inventory discussed of destocking year. industry the channel of been the channel end As of our ongoing middle that

efficiency We're margins XX% having operating to success the disciplined to to efforts, in in which, us focus and ongoing chain has efficiency supply initiatives our quarter. spending our with addition on expand driving allowed over

backlogs I'll with a We near-term environment. have channel We expect destocking about to modest on headwinds the ongoing new upgrading demand heading healthy they're balance optimistic operating pursuing can quickly The and to market pressure and future include speaking, into the this the year. talk variety Generally ability uncertainty our to base have And pragmatic macroeconomic of projects next excitement to momentum factors. products, now conditions. commercial build of our partners on demand. for or current successful report projects. inventory view They're a put about adaptable and with an highly pivot to in integrator changing continue installed future. These their proven remain

diversified a product and to support partners end this of markets. serve and business integrator allow us variety with unique ability flexibility a have across We our model portfolio, price which to points

budget-conscious some for more believe seeing While are residential growing softness from high-end and entry-level markets commercial that resilient. we we projects, the consumers remain end

demand going call as turn results that, some stronger to Mike discuss will detail. the operating see environment and the XXXX to financial into quarter XXXX, headwinds our an third expect Mike? in I'm back. that company we to as we're While confident greater over With Corlett share even and we're emerge bounces winning to outlook continue

to third on fiscal results which John. discuss September I'll now for the our financial turn quarter, Thanks, XX, XXXX. ended

from down the year million, ago to $XXX.X Our quarter period. X.X% million fiscal net in $XXX.X comparable sales the in decreased third

As their inventory show been levels the around John levels data to to the continues peaked that integrators mid-XXXX. since working have alluded earlier, our elevated through

data our In inventory we partners in million at QX, which stop anticipated, quarter. that the estimate $XX indicates was we that approximately than channel to rate be bit higher a our a

increased the by pace the an lower a driven our to the Contribution openings, year-over-year continued its though and execution margin, was of period. of arrive as supports in year. to quickly performance and local inventory sales improvement promotions. normal a sales sales, channel data the order of from management quarter recent non-GAAP certain manufacturer level by environment of as branch period. initiatives, due that fulfillment channel or destocking suggests inventory was of comparable chain which at efficiencies the change our expectation assortment, due year decelerate growth sales or ago mix brand incremental will in Our $XXX.X the end that in to continues measurement fiscal by as third third-party Contribution cost destocking $XXX.X largely the industry of well X.X% this in of decreased in cost million net offset percentage to the operating back XX% product XX.X% proprietary inventory and net of which input product net in supply new This margin partially drove new million net

a in contingent controls continued focus value in decrease or comparable fiscal efficiency expenses to value as cost XX.X% SG&A to and X% expenses million period. decreased quarter adjustments $XX.X decrease The a selling, ago and $X.X operational well Our XX.X% net was administrative initiatives on of rights. sales to our and primarily year in compensation as leverage or of our million $XX net third from million variable general sales the attributable fair in

$XX.X expenses, XX.X% X.X% period. year million compared SG&A or to the year million year were discussed, attributable or or rate period. comparable of sales $X.X non-GAAP to from in loss primarily of of $XX.X decreased sales changes to net as comparable in sales sales to and measurement the margin million XX% the operating by contribution million decline. net net totaled the third quarter net of net sales expansion ago in loss These in $XX totaled the Adjusted of $X net performance of reduction income, period. partially in previously the in net we EBITDA, a a Our a XX.X% X.X% or quarter $XX.X net operating the offset comparable performance XXXX ago measurement compared of million non-GAAP million Adjusted Xrd ago

and flow, comparable capital year be and very happy increase target performance had levels. were revolver ended in X-month of the achieving quarter. September non-GAAP free $XXX At liquidity, benefit the million to $XXX close the inventory primarily communicated million inventory undrawn of XX, of Our came flow approximately negative million. $XX.X compared $XX period fiscal totaled equivalents to $XXX a to we cash million in the cash associated compared approximately measurement last reduction end approximately XXXX, carrying operating $XX.X third in working we our ago cash in million of that free including We're to $XX the period. the cash previously we of quarter, very The was end total with level the report million capacity at in to million attributable of

Board with to December extended pleased In repurchase by company of policy, capital the are XXXX. current context it year our the allocation has our liquidity We share XX, flexibility position current the the X provides. operational program of and the

$XX the this of line continue and approximately million share company previously a stated $X to With As our capital strategy. to extension, evaluate will the allocation to reminder, date. we Board share executed up authorized with has of repurchases million which in repurchases,

fiscal outlook to XXXX. Now provide financial of just rest I'll a the take year few minutes our for

annual provides as believe as key sales be indicators Snap-On metrics we for as net of As performance the well for to a overall EBITDA guidance adjusted reminder, business. these our

intact. Our XXXX outlook full year remains largely

for with requires In resources allocating a our to We we're strategic growth. prioritization, are X% prudently streamline investing of our company profitability this maintaining modest the in focus conjunction prioritization This our growth in our executed on to XXXX. continuous We cost success for we long-term business. an structure increasing reduction ensure while this initiatives and week, our a about workforce was last of action believe step to important position appropriately.

fiscal on XXXX, an X.X% visibility narrowing EBITDA to in and net enhanced $X.XX sales into outlook expect range prior and for XXXX. X.X% sales $X.XX billion, our represent between We the fiscal decrease Given year net to which performance, full are billion for adjusted compared ending basis. the now XX, we to our of both would year a December year as-reported

year representing adjusted to expect $XXX a of range increase and We between million to to decrease an an $XXX X.X% X.X% million EBITDA of on basis. compared the prior fiscal as-reported

we and continue innovations differentiation, growth dynamic look of environments with will our the adoption, role central to service So as believe providing integrator the us our mission-critical we our said, to in in and the that coming long-term macro living to the competitive solutions, will prosper smart propel that success. enable future, in

you for John, summary. my over completes few to comments. more back that turn So just I'll now it a

hit few leave a we let thoughts Q&A. me everyone before Mike, with

in really consistent our we're compared margins long-term X our quarters, period that our Through confident same in we've operating we contribution And grow last expand gains the we to made margin, those the notwithstanding year proud all, incredibly plan face. to EBITDA expanding and expectations strong remain of headwinds continue to and growth, First we of for despite our operating team's margins. our headwinds. ability

via versus launches as new openings. such market-leading branch to additional committed includes growth and and in service, markets our proprietary remain overarching This growth we local strategy. Second, product commercial

new we'll also year. software next As an service we announcing mentioned be offering And a investments. I have focused on we're previously, very that as result, transformational exciting early

operating the an be continue to smarter to our can lives easier making these businesses. to company decade. course, all and one they that that types homes Of and partners' become growth and over and those the drive we businesses and operator time. turn their trust uncertain operating support the future. more for that, capacity and grow invested the customer, continue the a that scale we in end with it experiences And all third over we in believe We've and distribution next company offer to for platforms solutions imagine questions. demand for will of only we'll and revolve platforms for we integrator strive in today increases better software over around in the that partner to strategy margin can environment, even Driving the our our way And back finally, for workflow of will aspects

Woodring question first line Thank Morgan the from [Operator from of comment Stanley or Instructions] you. Erik iOur comes

I if have get a on of that integrators this inventory that set believe rationalizing I'd how and your channel to and or of the organic their of -- whether if volumes believe your seeing X. the you pressures they and kind kind from a the changes boom this seeing behavior of really cyclical customers also just this John, kind behavior from kind pricing there's of aside Or headwinds, you love following you're on the we of is focus of openings, take branch really just spend that customers, is of are product of function parts reflection COVID. a the macro?

what have this therefore, mean the follow-up. reversion a and your almost about your love telling And just pipeline different then having behavior. you kind you I impact it's trends what bit are your And parse I'd data, if and on is maybe integrators a those could your volumes? what X of out like

you like X questions just feel Eric. one, asked I in

to answer them. attempt me Let

I low in down mid-single down measure I you I terms slightly. hard and of say have the digits. when I'm of to call we all separate integrators, to talking to feels the surveys are that conduct mentioned industry some what average, we So if look And what it that at slightly, the access or data like on it's all, of first pipelines, would I stats our think capacity -- because

So that's number one.

So can was demand and that basically case that they to that industry capacity. belief the continues more our affirms serve, case. continues peak, at the the have that operate and the than to They be during

then and is you'll happening, around the of this probably That automation. in it own additional may see And I only serve being There's very plenty very access I the means that projects we a do they room of integrators, look plenty may certain pretty we what is well-heeled commercial -- cheaper of X. speakers and see with They've content feel clear being data. not balancing descope. line means remodels the also to at in our There's new like an that share come built. more keeps as virtually why I there's at our our I cheaper when in And what's to And we in performing and versus still a it ceiling. think X it's why do means out speak put all channel and destocking, is would the even lots call the of people see integrators look maybe -- homes then busy. revenues we do start of And have data. our the not plenty And money. in back room of is done, categories gaining That product -- ask, we're proposals. okay, but that of I in we expectations. with speakers customer. you -- to proposal what answer not there, in our they I some with That ceiling, got descoping. is when just happening And

And better, product we have a line. best good,

data, prudently industry a trade the view in third-party bit to given conversations going a or trying the there products. we've as interest a all think in either keep And customer sell descoping And project is builder the where business. seen also costs rates. in end the little and We slight down I by what's is of what with happened happen we my see that of the down inside on a

base we is that they're and anchor under-housed a is is this running we investments that boom better significantly we continue installed to that sizable experience know to but what There's experience, is frankly, back coming. know the customers United with construction make of may so that a as a products, providing has We available. industry be good And States outdated.

the boom with lines. to your trying see our that we're that that trying company hope I we're for questions. so to thrive position good, and position integrators market all in product to And answered our better, this we best

did. You

underlying single a for follow-up, multipart -- every my answered quick ask You question just Mike, so question. to that wanted I question, clarification

how kind a In it I quarter. guess. be what the slides, I $X shows ultimately, you the work headwind one, your of $XX if much that at easy was million inventory in just wondering we down headwind a quarter. that channel, believe, you the channel this look talked the in get exactly channel the what XQ? million If unpackage XQ. the remarks, channel was then prepared in could You about I was headwind Because would dictates about,

a just So quick clarification there.

this, Yes. this for No at and year, thanks and X In only do way million. and taking inventory extrapolation bunch install of time we're problem, channel a the about data we work. to question. looking Remember, QX And operational some doing Eric. destocking asking the $XX was

better at think be it, we've been got directional not these are look a we So but every numbers. little we've bit quarter. to exact to we time it refining it numbers. every And going always get better They're

pretty feel about good the we So number.

compared $XX about year, million came out $XX last million out. came But around to

came So $XX the year, year. last million this was $XX out year-over-year impact million out came

next years. our QX year the we'll previous million and impact to be as end, we whatever go X, as get sort about feel net-net, be quarterly of close million X and sorry, feel still difference it's year. we the the confident in to to a between feel be going like just I'm it highly $X will million the still we $X to lapping -- reaches $XX impact into we still we guidance, QX, So that in happened

comes comment of from Snyder from the Instructions] question UBS. Our next or line [Operator Chris

to And the to way this those you it get you that Can the ultimately Is homeowner dynamics? of how maybe the about has you John, maybe think, integrator looking the I what's the for the talk process, just previous in phrased size because I descoping. descoping driver kind of maybe on trended margin Can wanted lessen that ask their cycles? end? about a talk dynamic it. more project? Is about just to descoping

don't Thanks, destocking. integrator it's the think Chris. I

In fact, would you proposals look are data, proposal if proposal at most see closed actually are but up, you down. sizes dollar

the bells tougher as imagine, in So integrators being a typically their and are and more be. have to things might budget marketing customer, with high-end it pressures and equal, recognize then whistles they go budgets used And to -- today meet you budgets. than all to

I think an spec or builder. whether end to home that holds a you're customer selling

I one. think so number -- that that's

has price, not from reason was to build the ultra there cycles, in those previous times products, in down And higher-end of 'XX in at the quite both Snap experienced a end. you of and terms the typically more cycle we've premium. times, trade which were the in history. about That's One drastic competed separate two, were in great the think was what with I'll call some systems. a country's systems but -- was we never obviously, frankly, played that budget-oriented companies, and Snap when highest 'XX which housing, ControlX, for the during XXXX, growth Number most worst

there categories, our us positions that think say are are at expensive as also I so But than to win products share. own. that our is, in what less generally certain will I I And data look

better, good, have best. We

expensively. products. are We sell we've typically definitely are those products And less there growth so priced that to. some categories. third-party seen in those products And They're

But some best or some balance from categories, products, to we power we gaining own whether in the or trading day. price that. most all software that, good, share, or from good down feel because integration we and have So with in better, our world a and of it's XP we our of to the our the either see XP -- systems wins like definitely we're, advantage that's again, we are from best of

up just that. maybe I on appreciate that. following And then

If just you almost understand right quarter, the long product more I maybe down better the versus term, disconnect XP this big look that's kind a at XP of delta channel are dynamics at third-party space, products the is pretty seeing third-party the one. proprietary proprietary you're X. the white over the -- that But now just in most the reflective last and significant that's grower. rate seeing the of destock of

I'm to will Mike turn to around -- our remind going headwinds is are that I see I'm inventory But question. that that products. what going let unbundle all us. for Let we everybody the proprietary me destocking

quarter, in in that, fighting So products. we Mike, third proprietary the our generally compares fighting that products, in not do we're still as Chris? that you third-party speaking, deconstruct we're to for But do want

No, factors. that's John. certainly think I Yes, of the one

X.X% you're driving year-over-year I being factors third-party XP our X.X%. being difference right, that down are products that think at but numbers, we when in look up Chris, there's in X look the performance you just at with raw the

said, more. while exactly a impacts significantly it's [indiscernible] piece impact our XP, both what it data is inventory on would say does and it channel XP John

new second disproportionately product local The stores thing up, it that the sales. is to open ramp we and grows X as continue

same-store a out see you'd not same-store analysis a bit different. impact it's the new a It took basis, stores. So on of

wanted gets is clearing because times. there of a we're and supply little and less the year but back think different you orders The of back this to said, But timing both at if of year, that XP when third on chain were product year this sort there's thing XP last less orders, normal. impact you this look,

things of audio big that or receiver or an like a projectors cleared had out then happened. that while was that out was whether video So and stock other of stock

of all timing Texas. the backwards on So

effort an actually And which making the We've last third-party added over noncompetitive product this new year. launches. been thing is in. new launch to some we've products

the So but disaggregate them, and one it, want if same. normalize of XP for at what down we if internally, to to almost internally, if do the I looking and growth of the we those all out numbers X you note would rates the don't were all and specifics things just took are you that get you

basis, that to fact, then standpoint. a X get rate bad are channel In inventory, same-store, product same slightly orders, piece growth same you excluding on almost the numbers But ahead. excluding a from

next Our James. Tindle comment Raymond of line or the comes from Adam question from

Okay. up because this the on prior resources I think hearing they're the there's story seeing. piece. I the the just demand start wanted we've was was to at backlog that for growing integrator keep channel to not even And inventory enough to been -- with context,

you go would on the we're the demand. is things that, what supply cycles. of some I this There's you saying if like Now pipeline, you too. be but part I'm demand -- -- know sorry, at, and guess in then cetera, side will on backlog it because normalizing, of metrics kind you, that But of I whether a aspect of first, look and bidded getting that's John, multiparter, question other these between breaking is up it could for about any be comment and but the said, Mike curious et

bottom at than what confidence was calling from forecasted. confidence a perspective. the sure you in you QX, you're given For QX you bottom. get that Mike, in asked we'll the the had like little the gives tomorrow, QX to I'm call it worse sounds the gives destocking What

Okay.

of your to Let tackle the me part question, try first Adam.

the market pretty a of lot headlines we But good We luxury about at still the say I statistics. housing. statistics shape. would in macro read all the look think macro is

new homes, listings listings last the think XX,XXX up are this XX,XXX year, new year somewhat. if versus you I of roughly look it's at

We confidence is with also interest down rates. know homebuilder

is. have capacity are get of to stats, when have. of focus amount demand we which sell of a speed front many that are we homes their again, And their we capacity. doing that's industry, new back the the macro the to how upgrade their But our integrators start integrator and is to on being to and in the that the to significant negligible they days. clients. their they capacity continuing activity they've fantastically sign back -- installed shrinkage surveillance base The them. or up the or upgrade they labor index, them new use remotes, There pipeline the to is up. they're seen -- built projects, that there's no a to in like and actually commercial couple They being their is sensing. of slowdown market those are highest They down system are Proposal business And as utilize go or pivot because go There their whatever halo plenty networks. them of have or still sold of best

so of keep things all those busy. industry very the And

integrator the ago I think was that budget-oriented has may it The cheap. really than tough. people little got is be demand very to it. feeling So The manner. the serving serve. freely. spoken think fact projects. hands years it is still could significant super to expensive look I've company were headwinds in money their face the more and They that XX now. the in -- back to I right where And That's anything different get sell would a of could on, Mortgages gosh, be our a is feeling has one macro But fact we we flowing at including say, they industry the bit. already are the company

we're bit just think I right so a back to of kind now. normal a little And

positioning I'll And software to the we're through through to destocking turn behind have company us. the to all happy, our it over channel now have so this initiatives the as grow integrator through product very introductions we're acquisitions to Mike And see we quickly -- we getting that. the

it Mike, to over So you. let me turn

all when install. actually when Yes, see to said warehouse I get IP enabled installed. be connected of as or track John. clear What systems and we inventory. oversea able so to for control Adam, leave we don't track products, do just they before, What Thanks, we our is they time do they're were our is Yes. our whether to

say, at of and look try do imply and factors take and a other what inventory. some we so extrapolation that time cost we bunch we to and that okay, for And does

so And really bell curve. it been has a

the to pretty up make install. up data, watching days. it been then time call XX it And line, financials. 'XX, increase at back to but go the much not so never now much It's and number, look of of XXX an to a straight tie And we've had a and that was you we have just here pretty to but And it XX was to so we it. line our a to tried say -- been much would it a back real used that come straight it almost We straight never line if to mid days. just days, early really I'll number down.

where been know few it as to to we've days? exactly going Is think of thought to before seen going point. was at it the think guest start it work see a that's in anticipated, as XX we reached today, definitely is days? to the closer XX originally XX-day so curve, the where still it days? that XX way coming seeing than definitely we're back the We've inflection frame. seen to at but bottom still stop doing, originally, And was time we've last probably And We don't here probably to we back the it's where have going all the case, it still curve tail. before it the above here. it going was below of somewhere Is that end. but we point that we bell inflection months. end the it's going where I sitting going to we we're We that definitely

be small again, the high down -- that be and a by slowing the that variations. It's won't of level of end to we'll Not definitely we, year. confidence say there have there

be I always there'll think small fluctuations.

But they I be de looking think be future. the tracking minimis. absolutely and will at We will

crash a not forward a we're but I things will different of or going outside seeing it reason, of won't in that be sales be something down, think causing for to up significant the else spike factor there it data. our

from When you about like that follow-up going Super be transformational services about sounds strategic offering a it John, a level, is software, standpoint. a Great. Maybe next the just embarking if helpful. to you early quick new a also talk correctly. at heard I year, word talk higher got that you've

can topic how they about as learning comments optionality you would services think important together for investors the and helpful. additional Maybe you on you're end topic could or monetize? integrators And on time. different these what software to customers you speak what because over of asks of pay any be they'll What lumping this around areas. So think around of key and kind from the company either look could for

Thanks, Adam. Yes.

day, our foundation over have a subscription when service homeowners I think Parasol it, days XX we've can XXX,XXX well thousands great homeowners they so need got offering, we've get meaning if they're the homeowners And a hours their sometimes that offering of And you're when foresight their working. with when available, those a serves got watch that subscribe service listen of that. that directly X even a to the which we just or TV if or is not even systems trying cord, week systems using and cable are painful that's us aren't Internet or integrators for cut we've regular music. have who very to using to

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[Operator or Instructions] from from you. Truist. Hughes of the line comes Thank next Keith Our comment question

versus of markets Could how the give markets you kind look least different the at move commercial residential rate a indication directional any at

Yes.

all commercial might but not the short the the is to is Keith, we residential, commercial aware the office slightly I'm because versus residential think, channel And do market we're what's places, also, you, make suffered going of which integrator about speaking on some answer commercial when commercial buildings sense the in with that versus I really the has market say of. outperforming think like I residential market, integrator.

almost businesses, of than, ago. of is the more a the market. integrators years capacity directed market commercial so their couple And that know pace residential commercial with say, inside market keeping But we some our to being the is

his this Q&A the Hayman Mr. to closing to over this back now our like At I'd concludes for session. time, turn remarks. call

analysts, you Thank great early One, at a meet constituencies and holiday all thanks you of expectations. phone the are to to that all the are to the forward our Snap with us our to thanks investors speaking working special Have for who to Look year. season. and spending time team integrators today on next with our hard

Earnings Third Ladies and XXXX you thank Call. for Quarter gentlemen, us joining Conference for today Fiscal Snap-One's

now You may disconnect.