Verizon Communications (VZ) 25 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to the Verizon First Quarter 2023 Earnings Conference Call. [Operator Instructions]. Today's conference is being recorded.

If you have any objections, you may disconnect at this time.

It is now my pleasure to turn the call over to your host, Mr. President, Vice Senior Connor, Investor Relations. Brady

Hans Good quarter earnings Brad. joined Financial our Executive Officer, morning, current and as Connor, designate, everyone, first our by Tony Officer, Chief and Financial to Matt welcome Chairman as conference Chief I'm well our and and Thanks, Vestberg; Chief call. Officer Ellis, Brady I'm Skiadas.

like can to our of statement, which be Before on attention the we safe your presentation. begin, to draw I X found would Slide harbor

of presentation GAAP are about most our uncertainties. subject affect statements SEC, available events factors these website. Verizon's financial this the future are contains measures in website. measures on certain to our and Information filings in may forward-looking posted directly results on presentation materials contains the in to and expected the future measures. is that that Discussion financial comparable contained which are with This results and non-GAAP included risks of Reconciliations non-GAAP financial

Earlier groups: We posted recast to to markets Please Relations reorganized reflect groups and our the review customers, now segment. and business have Investor been this following operating the segment to serve customer report Software revenue morning, the detailed these sector, period business first our within first results. business during that customer better as Prior note we we in website of order public quarter the enterprise and a wholesale. quarter, Service a results within our our changes.

the on earnings our materials Investor You website. will find details Relations in additional

the I'll now turn Hans. that, to With over call

making total grew first flow. we to across operations growth on billion as progress adds the billion, plan grow and forward. XXXX. X% EBITDA an to earnings up momentum $XX.X $X.X our to service strong prior achieved execute on We're going welcome billion of and performance postpaid We year-over-year and expect remain steady of business the as and quarter continue everyone, morning, by free Good We by $X.X and as Brady. the broadband delivered our networks. from solid focused a marked versus you, this private keep call revenue our We mobility, to customers revenue, quarter EBITDA driving and service Thank for flow quarter of well phone cash adjusted delivering year. cash gross wireless increase strong a X% first

every business forward working by the move We're experience the network reliable deliver our for to the America's of power to using customers. day most best

over lead growth quarter, the access experience. we we spectrum During did, more just up million overall since new and source year XXX we our in elevated of first reached revenue the site. the we as as covered quickly customers' and a than enabled With build-out wireless C-band advancing POPs have that to

for premium recognized as root Power quality improvements already XXth consumer well quarter, J.D. benefits performance metrics for notice. the rates. C-band, adds wireless most In leading are the Where access significant offer our awarded we We're seeing in the time first see gross network and take validated in as retention year-to-date us taking by a network testing in we phone customers and fixed as row.

will see in our network. market. traffic XG offload to XG also by benefiting continue We market Ultra performance markets as expands customers some The XG Wideband penetration improvements we as

consumer dividend deployment remaining the lack business both about excited spectrum potential of performance. C-band and We're our and for the

mobility. on Moving to

spending. priority even in conditions mobility the their remains across the current confidence a business by industries in side, peers combined have On different that economic

the spite around technology business the run quarter, adds. restructurings of pressures was During performance, This XXX,XXX net delivering strong within first continued sector. postpaid of in to Verizon phone accomplished some

XX% postpaid phone year-over-year, trends consumers with shopping, increase were up are and at evidenced to leading in levels adds, payment by side, our new are the consumer the pre-COVID Verizon consumer ads the which On way. healthy gross

in with that churn as better second performance as each around market gross surgical where sustained across approach segmented and ago, gross We're we is postpaid entering improved working. a to the quarter. well Our the are momentum performance position is quarter the than adds much a first ad proof a year saw month

most partners more our consumers strategy, easy-to-use is to an great Peloton remain customer deals best offer We but customers this. and compete providing We there the of managed a exciting best who is experience committed come. discount like Netflix our rather and to and example to the satisfaction. on not who can overall can on to subscription listen introduce exclusive the platform, and most, to the +play value

approach segmented out to work And and be targeted one our recognize I've segments. the we have surgical to efforts doesn't the that address with play during continued to all, more plan retention. about market that we Our underperforming and quarter. talked our saw are fit the

working deliver in a flow. the By while to cash to the place churn volumes were finishing free executing driving we real lowering good spending, year-over-year key a in unlimited. capital reducing and on upgrade migrations large and and quarter savings premium able with are benefits cash to Those inefficient improvements

us plans. most You legacy have pricing our taking recently action on unlimited seen of some

we closely prepaid, segment. pricing of proposition. the realize We value look working our continue evaluate On this to across more to opportunities base and to are diligently potential align full to our

the While year, than XXX,XXX net total transitory prior by by down versus adds more was X were factors. this affected

long net year-over-year our more disconnects that important an off as to services from customers here than value the came in and process continue investment confident well. subsidized network segment provides term. will onto our SafeLink within of our on as government programs. our decline We're still will is in pay higher customers strategy our of we're XXX% which part migrating of brand, First, Prepaid

across major from net which Fios. XX We Turning adding consumer is quarter, years, area us the the including and net adds XX,XXX in adds to broadband, adds net XXX,XXX business. achieved for a highest growth over total within

year-over-year. with net performance We are Fios with very pleased up the adds XX%

our quarter seeing the the at of increasingly and revenue performance. we're fixed For with quarter-after-quarter wireless fixed scale subscribers million to of X.X wireless to continues end first quarter, the contribute access, growth

to fixed customers are value source wireless connectivity. the Won overall the the business broadband increasingly over Our their by product. as of primary of reliability access and turning

In seeing across the we're expand to our broadband new use addition, take customer competitors, from product of to of what also wired leveraging traditional cases flexibility any our all can do. share groups the beyond

team announced and to strong Finally, our deals funnel us. We at in a level. of Deloitte networks, high business have private continues ahead KPMG new with and of business Verizon execute a

as provider also network position have established sector. in leadership a a top We the public

announced we're with billion $X to maintain and in and build contract worth to FAA we a federal This for the infrastructure FAA's platform. critical on over large many communication design, quarter, working products agencies. is XX-year ongoing addition This operate next-generation

In responsibly our XXXX creating networks do. published for governance, Last society. world we how rights the the move ESG customers, and which our that human ethics, business center shareholders, and employees month, are committed at to report, the environmental forward, stewardship our running remain we we of business highlights everything

stakeholders. and are about take issues report utmost we the I and encourage learn how to some to for review opportunities of unlocking surrounding our risk importance time managing the you

with our Our our track of and leaders I weeks leadership units, successful of commitments Financial nearly new teams. A come XXX come ago, Verizon our experiences announced and Chief execution. organization few for Officer. business record the here within leaders These a bring right and years X their from network proven

broadband our to walk Let His enhance and Verizon me through takes technology like and was objectives for knows take Sampath financial our business. are fixed a CEO appointed clear: drive Consumer. to our access reach of Verizon Malady as are and Kyle changes. deepen increasingly Kyle. scale, wireless nobody model discipline. over and consumer moment CIOs these searching technology experience, a solutions, approach, CEO segmentation of operation

growth global is continue on focus enhance vast mobility compute and fiber Technology Russo sustainable wireless within Networks wireless, clear: deliver efforts and private edge to President XG revenue in our the network and a leading His to wireless mobile Joe solidify opportunities fixed nation's and IP takes and of and Global over solutions. network. growth as drive extend, the

years to CFO. Matt us the leaves to the his contributions many the years end Finally, Verizon as Ellis want for XX at on him month, X business. our I thank our at of and

on as we performance assumed Skiadas Chief I X. replacement. title long-term search improve drive the of Officer appreciate Financial May for CFO Tony's Tony and a work operations to

customers chain are the supply and across estate and So employees. now we're optimizing business line better, advanced teams numerous our help and by let's move better footprint including diagnostic AI end-to-end looking on, talking efficiencies. growth, models on the insights, for bottom platform building about real The drive deliver our Spearheaded IT the to Services managing for the and processes will into more Group, our predictive areas Global transformations, Verizon efficient in way that simpler efficiently.

the cost drive to time. billion $XX in growth improvements to last All in over We our $X the our expect all, on to well fund with our is of have billion increases also billion to quarters. by consistent headcount reduced margin our the savings will our capital and profile growth of the our help program support efficiency years, our management longest revenue C-band annual to expand XXXX, consecutive With $X of with growth expenditures. track cost us, target achieve which by as program objective industry. capital behind as over next almost streak over generation This cash currently few achieve helps expenditure dividend we efficiencies XX years all driven

to see in year our in a board on dividend debt As years. the to we following free build generated again flow in to look over closer targets we bring strong ratio improvement the to cash and dividend significant increase us once the growth quarter, putting first the payout expect position the our this

and across We focused the service EBITDA of flow and by cash into I'm the our positions. free expansion. second team energized execution new delivering for leadership the revenue, key on Going and quarter, driving customers our Verizon remain

And it over time. with now Matt that, last I the for to will turn

good Thank morning. you, and Hans,

investments results XX% results to postpaid to are gross customer work quarter phone from positive we wireless losses half with net Hans the among net benefit start up adds and operating period. was XXX,XXX having at second year-over-year, Consumer we the the for have other quarter mentioned, look year. where steps seeing of postpaid of on the and we our a momentum C-band, reflect the a our Taking remains the first losses adds, done. continuing across Our over year And overall around network the fixed consumer first as had improve C-band network for last and performance. more direct taken gross quarter, operate let's prior quarter, phones, the phone be which XXX,XXX to compared strong for experiences. benefit the but a metrics, in are

around our and postpaid of for and efforts been the approach those different behind offerings was quarter churn improved X.XX% our the and segmentation last period phone the up same our groups targeted Our performance. to drivers base customer basis gross go-to-market compared year. X points to have more Consumer key adds

are of involuntary pre-pandemic levels. seeing We return churn now rates to a

churn, voluntary of the was as off we holiday performance early across extend the for the season first normal activity quarter. As parts mixed starting saw into quarter elevated

in last we of improvements in year. the churn performance with with rates But line saw as the quarter quarter in exit voluntary progressed, churn year-over-year terms

second quarter. we adds, we momentum the double-digit level We with end combined the first improve with gross ago. do year the by net of the improvement to percentage While churn a work encouraged in than entered at have consumer significantly improved better more the adds quarter to are

business compared the net Verizon net a of phone quarter XXX,XXX was solid segment. to results to delivered demand large a ago. our year that business customer contributed The our We results. primarily the strong to and due year-over-year for saw couple same groups the again to first adds deals X period year. on last for XXX,XXX had Moving adds across change

an around we saw business to increase more Hans the in churn restructurings Additionally, spending remarks. customers noted cautious and in due being his

in a in we additions the quarter, XXX,XXX decade. consolidated basis, delivered Moving along the net broadband to most first a on

fixed more ads, satisfaction Customer in the we remains of as up saw prior expected, quarter. XXX,XXX well encouraging from as by NPS of scores another growth around as XXX,XXX the customers. quarter evidenced with wireless in cohorts tenured net high churn sequential As trends

and the quarter Internet for XX,XXX was from last the Fios of XX,XXX On quarter the side, net in adds year. first first up

even versus to our volumes in be reflected lower which products, gross the the in year. to adds year-over-year attracted continue environment is prior high-quality with increase Customers an broadband Fios in move

Fios retention years. best to rates strong more our continue in churn be than with performance X

and customers. the and satisfy remain we were the our plans needs our all market of value expectations, of While having of assets the prepaid portfolio benefits first were quarter of confident below the results to opportunities in a

You value. the we create are taking actions to heard Hans of from some long-term

in elevated prepaid having before brand expected, are ads our Together to Hans our the adds. actions disconnects the in later net on these As net increase quarter pressure and SafeLink expect negative referenced, short we a term, impact abate that in on they with the year. the second prepaid

the to X% $XX.X due billion, year-over-year Wireless equipment quarter was Consolidated was X.X% as lower for revenue service on primarily up the by X.X% well continued revenue Moving to wireline as declines business in services. year-over-year. financials. revenue $XX.X billion, being down

was our by shutdown the revenue the the resulted XXX allocation of As into X.X offset beyond. fourth fourth quarter. the the for at results quarter of of connections our network on we revenue. approximately partially with and end recovery This included benefit wireless for the XG benefit of points removal the the impact revenue of call, in million administrative telco and first completed discussed corresponding a shutdown other quarter The fees loss large associated and approximately earnings first service from the quarter basis retail of associated with

see first cost the service of promotions amortization the impact and to from revenue pressure in the continue We on quarter.

we these versus segments. additional help subscribers pressures, as from year. prepaid offset lower prior result consumer our implemented pricing business To Additionally, a across recently and see actions we've pressure of revenue

of segment the as We billing while to ramp expect consumers month. closer actions end this benefits of the see quarter, these the the business earlier the first across second customers to started quarter began

pricing of incremental actions, forward. a anticipate result combined revenue quarterly of $XX we these As approximately million moving

efficiency that make complement a believe the top taking actions the expects in yield run revenue are to teams across expect of consumer credits line, To efficiencies rate grow driving and savings team the we meaningful the end Additionally, team both We flow. is that improve working EBITDA year. initiatives, progress device development and of around benefits implementation this, year. remainder to XXXX of and cost the cash the across promotions will to additional the on the at resulting the the

operating excluding due in depreciation pre-pandemic churn collections down from Similar million. volume approximately amortization, bad During upgrade to X.X% levels. to year-over-year, primarily equipment were to reflects the $XXX lower an the first bad increase reduced quarter, involuntary debt which rates, and expenses, to of offset of of helped cost debt expense return

expense relatively is quarter. with While prior consistent up debt year-over-year, bad the

increase the $X.X and $X.XX $X.X for despite flow from Cash totaled operating quarter the our macroeconomic activities for in billion, inventory of year. quarter upgrades a includes CapEx to modest billion patterns which spending conditions. C-band-related payment at driven first $X.X of the to This fewer billion remaining with coupled customer in improvements working primarily the lower levels, due current prior the was came billion capital in compared most improvement guidance. in by

from down quarter. of to overall and quarter. debt compared in of expect CapEx end the the was lower to the within the $XX.XX X.Xx to versus XXXX expect $X.X unsecured of in debt last capital flow net of of free the to be of This result adjusted for billion, we pacing With an year-over-year. X.Xx a $XXX.X from and of quarter the our of to of XXXX the the XXXX throughout year cash EBITDA the billion. the remainder billion increase to step continue first Total up billion billion for $X.X spending billion guidance $X.X would conclusion quarter quarter the program, spending operations flow of $XX.XX prior compared unsecured and ratio end billion as The net A $X.X is the improvement capital cash year. and of first resulted of flat

this maturity my have near-term moment the acknowledge unsecured a being at it XX to thankful quarter. fulfilling due to only has in maturities a Verizon's has very take that years that will approximately and be continue CFO. to low in wanted experience. call and Verizon $XXX a as such rewarding debt We the privilege and with serve earnings second CFO, million everyone I made to a XXXX as remaining It to been last I'm

to talented team executive Verizon company, you. the pleasure is I strive forward forward business have of first entire had the to an from will its to at will finance worked thank you I team the and to customer know say with sidelines drive that since CFO. I've him on day know first. fellow to team as that seeing Verizon my enthusiastic shareholder. all he my From members shareholders I to in the our look Verizon I its achieve puts what hands of a and them as with truly in good getting and always as Tony want he cheer way the closely and

now With that, we to questions. up for Hans to your concluding will turn I comments the open back before call

In Matt. we disciplined progress started. momentum how plans focus and has with keep need key has on pleased strategic and summary, led Thanks, to We're significant our to approach our XXXX the going.

best surgical taking where We industry. experience the pricing market people are our continue reliable the the we is to working, customer In actions possible. the on network and in deliver best by to most the approach and segmented mobility, supported

to strategy fixed and capture by aided shareholder lowered fiber generation access In strong market I execution. confident broadband, profile our on in continue to program and winning our expenditures. remain we is capital combination of returns cost the maximum wireless share. and as our continue and focus cash our grow efficiency We'll

value measure We ways and always revenue, and are In on our do, to we maximizing opportunities. evolve driving execute everything grow stakeholders flow. for service identifying ability focus our new EBITDA to cash success on growth. business across our We in profitable we

the questions. for Brady, over

this ready take Thanks, questions to we're Hans. morning. Brad,

today question first from John Hodulik UBS. comes for The of Instructions] [Operator

Great. help you for a of Matt, luck all of couple and wireless And over could I start just thanks in the the years the with to If future. best questions.

First side, you the obviously, on give terms strength the the gross consumer driving double-digit of improvement. us in other there. detail can or side some Any what's

saw AT&T decline. a think I

of comments up There's making -- some you're And look the changes churn, on just quarter? trends. And any side year? there? the throughout side the bit around promotional you posture sustainability year-over-year, any make sounds change other in you're sort forward in any it of little anything the the like improvements doing pricing Did obviously then ledger, on the first the of as but guys consumer or just we those a

you. Thank

start, me Let and I'll then to Matt. it over hand

that think of what end start the to both be more been seen it converted us. segmented initiatives And through comes have of for many I approach. saw working I well first plan with in we much that We it the of others, have into we we the was quarter the our building the quarter the customers our to third the and very the how to adds part way from the of when the journey when many we gross say, fourth our had would comes welcome all they have momentum. and

been that's partly what we So have doing.

in. think And of to with full And we much alignment focused. more then, the with the and right team here now place it the well, getting when we're as course, comes execution new that Sampath customers in where seeing of I we're course, have

promotions. really we're customers. have We you that Then taking opportunity I as that in the to quarter as are we with helpful opportunity coming have an when in the we well. think out and bring been seen, of see has

Matt also us. have continue. here, are momentum said the you opening for that So that's his momentum we how seen in And as seeing continuing

bit I consumer that the I churn, have Matt. had to well create of the to we we I working beginning a as as improve. continued as to the now in wireless. it right it the we over little higher we Matt? will are for mean, on both and the said, quarter And And hand But momentum with continue

Hans. Thanks,

got saw of momentum to March, lot by had time side, we we churn a level in there. we a as on. from certainly, went the churn improvement the holiday the better on saw So much carryover quarter We January

incremental that's you really from into so jump-off second didn't the to came in the into go get So kind quarter. of that point QX we that of the we the pricing as to will we until the changes of your moving question the business to effect be mentioned rest go year. The results here into QX as

of where So Hans about but showing really taking to year, you see results. as said, it year that of from case up the we rebuilding last year a actions actions, the results wanted a be. and the talked those the At was midpoint not -- of momentum the was we in ago

from is on And there. continuing to so focused build the team

Sachs. The next Feldman Brett Goldman from of question comes

years. also I'd My to over all about like his question thanks my to reiterate for Matt help fixed is the wireless.

at you where of look of I just The your a get which document to it like of up now is looks X/X that population. over formal would still the fraction reason it when the covers can you availability network, that over be have households your remarks out, the bring ultra-wideband XX service. put So I million wireless fixed appear

think network? distribution of wondering, I ultra-broadband the -- wireless fixed So expanded how service Or significantly are there a expanding now? ultra-wideband quarterly going still we to we Is that do fixed And where it's game point of cadence the the do about leveling now you plan getting think access for have here? the wireless a was about tailwind? we the to how be

Thank Brett. you,

using wireless the the fixed as only access. And fixed consumer side, the with the remember, well is of the great on performance access. cases work. business pleased on side all, business Many we're team doing First really are new not coming up The side. use a wireless it's on it's

and on now. right scale the scaling, are team So we're

first rhythm almost see motions now. on in quarter, the XXX,XXX. And the our see you like right sales I So if

now, markets XXX. will some this get XX out next of to of over later the latter part the know Right year covering that network, you of in C-band. -- December, it our or comes chunk we're When we -- actually

that will we XXX we And So out opening opportunity. pointed the where access We're C-band. fixed-wire get not C-band. clearly here the a markets seeing in only left, opened it's we

they see cycle our also see and C-band. for improvements the because the on step-ups We customers a greater upgrade

So get encouraged markets. clearance right out the even But C-band out. said, year-end the we're more. waiting we coming now, by for the as up I roll open But we're very by as to we

taking And his that operations more remember, locally. now more might locally, that attack so talked is more network Sampath We we in we about execution of markets can both can it And we we access. decentralizing on what sort open do locally. are because working that we're we the we things the seen now wireless same as right team, on we The marketing goes local is you are locally because do so opening and locally. up have fixed also

so to far, We're right way to with this go high. going learnings the rate in just us take And doing is success our do the all the better time.

fixed We have There's to comes our to when wireless there. differentiation peers more lot started be different on offerings. with a it of type also done

course, very I'm maybe are, of the XXX XXX. average, But the in And also XX-somewhat we and XX, urban in we're we areas, C-band, more the the deployed suburban get, far said, majority coming of rural. the and only with as we're as urban and spectrum is spectrum and in suburban I actually more rhythm remember, deploying of megahertz, where taking mainly the pleased so is market share

the good really of we and one have So right use XG cases traction. I seeing this biggest is to now, say we have

going how forward. we're that's So

Brett. Yes. Thanks,

Flannery comes from Simon Morgan question of next Stanley. The

the my to future. Again, best for wishes Matt

Just wireless following Brett's up fixed question. on

continue fixed usage from confidence the scale? increasing looks talked side now. of It You customers continues wireless the is scaling. you're to about almost what's network in capacity to hitting things? subscribers working And X How like handle on your this million going to as it

And was then appointments. if the we X of to new could think March the just announcement, it go back I

really a particularly talked are that so or bit Kyle and big the Sampath. trajectory, over about But Verizon, were weeks the have are of we place if changes consumer. that the past what what X taken little changing You inside

Thank you, Simon.

we capacity, guys the is great. On -- the

said, using, First of used spectrum the all, an as wireless we're initial we trends fixed were on I of on access were ultra-wideband. that

top different much you that We can XG have new we coming. new with of On spectrum. the have capacity more out devices advanced all have features so carrier handle that, coming aggregation,

talked so the will things way are moment with that of will as manage have I comes a if access guys, time, really that there of that many we opportunities levels course, more that. this have lot fixed a et a capacity wireless and any I sales about Then, to we it beyond cetera. feel without community you have we many other of So splitting, confident we of have problems talked over

We even are not today. close to that

So we're on I network C-band the really our are how managing the good guys opportunities here. feel about and the building

that but we XG more. now right is this the We're on not said, full. that they Wideband. on see wireless of opportunistic I we we As Ultra But fixed more access, selling we expansion where capacity, have have not when any sort were and selling XG see that

and change mean one. all, first is comes When Sampath I've are it. into the of team, these it big guys operational Kyle is day both straight changes the seen, big to the I new first that

we and our both customer look really seeing that If private through as work this Sampath, he's taking we're the we were our much see improving momentum offerings on right we off. at the you momentum the focused on But actually that adds very now and and we year. dimension and see on churn have improving on even also the is continue Business networks the continuing locally. Wireless other quarter great Sampath, works of operations, hand, Kyle, with that he stronger gross

think contract see wireline that our else. that, the we're then taking Kyle. decline that working network and than to time, same better with managing the than cost And out one a knows no top there's anybody He on more of I at don't

from of and Sampath. closely Tony working And really is Matt the Kyle all operations, networking leaders So years. fast. simple these into Tony is main because with very running I that's way extremely the worked going transitions have between Joe, then, and focus new been XX they've course, think that's the and the for already the together guys all

So clear good. confident and good that I it's really and it, very there. I the about feel priorities feel

you Tony, your maybe, about So priorities. can say something

as Simon. Sure. and succeed Thanks, Matt to excited the CFO. Hans the opportunity to I'm have

of my them. terms In priorities, X I have of

financial guidance First, And supporting their with our priorities that allocation that we allocation focus very remain strong January shared that capital execute to we narrowing that deliver you the those executing in emphasis laid unchanged. includes our Kyle that and we on capital the out and third, ensuring we ensuring Joe continue a strategy, Sampath, our new with last on operational XXXX performance; leaders, in second, strategies. X year,

as So right are of well. mentioned, the gate. priorities And the X exceptionally gone transition has Hans my out those

Great.

Thanks, Simon.

question is of from Phil JPMorgan. next The Cusick

Two, if I can.

and on how that you mostly was SafeLink report what happening seem postpaid Are First, if the losses then happening? which the the of churn conversion can And be through second, in that the is in you happening and can would and it quarter? if discussion brands how you relates to this to any the quarter? to different upgrades, And debt prepaid. fading expand bad and prepaid talk and this about

basically earlier, level high as one. of the a the in on as here payment lot start are Okay. same we pre-COVID. That I on was patterns will the said -- questions

government-subsidized very healthy expand We high-quality And a when I said then we is, I value here, base. on on customer because to We have yes, looking mean, question which as backwards. from brand. will number in comes see the coming moment, XXX% the all way. that the say, would as an Matt or a it is SafeLink, this a opening I negative ask the to segment, prepaid, at

other takes puts are there and there as well. But

wireless, coming the up that which things doing is piece think well. ramping just an of not it, total having through is the all there. brand We're important I visible

course, then, network of and -- the still So happening. we have migration

So a brands. on combination it's of of things lot the different

Our confidence moving the is things when we year the latter improve that part these that will at out. some of are of

maybe the piece, something. So that's if you on a say churn comment, Matt, general

Phil. Yes. Thanks,

to more the bad your at and churn was and the looking So side. question bad debt the around debt

in impacts still last some but we really importantly, sequentially. And fully So of year-over-year, the some is now certainly up there more COVID-related little out. a what first quarter flat That's seeing bit activities. of year, you're had

rate. I'd we're type to back run say And perpetual

at In upgrades customers new XX% to bad phone accrual Hans know with those than well remarks, prepared which in were adds, gross mentioned debt his there. Verizon terms come that's -- so in customers And plus lower upgrades, is a of a typically the as trade-off Verizon. rate existing of different adds the to in also that lot there, we the new gross the and those

scores across years the base the I look continues on our very to ABS bad for most talked side. you see filings about thing quality other from had debt and of terms the then now We've actually And customers of the our our Verizon FICO actually from One, see this payment strong. in sequentially many The patterns be we base there. better quarter you aging. secondly, at the recent at just postpaid that slightly

now on COVID good that payment customer behavior, from is base, bad activity we're period. fully we're the a basis seeing you the our sequential see So debt good flat through which why

If was from I any to have I prepaid follow up, just missed Or postpaid? it. may there can conversion

but a that's very opportunity of be certainly that's ahead to is contributor the going meaningful team them forward. forward, but obviously in that A material, nothing having something focused still much on got more there, little bit, going

Phil. Thanks, Yes.

America. next Bank question David comes from Barden The of of

and goal? management what end goal wants this that subscribers market about $X the Thanks a Matt, helpful. be call were -- of the there of the that for XXXX. billion of prepared new talk that's share you remarks, another Or kind that of is I think, things coming all, mentioned momentum new if second is in level, the this been flat to That of to, second what you to cost some the one the team kind welcome been been you've I I billion a the years? And be take contributed affordable about the of of be was plan unfolding more wondering then maybe year see that the Matt. you would a think half talk in on kind the guys of maybe I you all kind and the in do into if question going combination year to limited lot have at and benefits would $X goal? doing. you help, talking about has marketing the to of efficiency the Could lot could cadence to the in to of and guess target, that how

will I start, toss toss with and and I then the your question. question start I will to Tony, will second and

that wireless team we question think So just divide have. you -- I the to the need

we're really side, think it's On the I strong. clear, business

taking We where working team the share. The are large our with government SMB, offerings network the is contributor. key enterprises is and through market

and work we that continue drumbeat the will have Kyle there.

side, that in were consumer, and we flow of XXX% really on mostly the is that proposition as expanding will customers That's the service the we Sampath to course, line to going coming I the Sampath think on. our improve But EBITDA. importantly for that we are products. in but also to grow most and and the growing XXX% important now need But we main net to consumer revenue with that continue cash is customers. to that continue I want focus take think are a and service the On evolve And means but our new additions momentum the well. we that I revenue line where are

things seen we and the Sampath so of So and I that for feel but encouraged what the stay have, team to tuned far the new Tony? coming, some I've thinking need

David. Hans. Thanks,

mentioned Services efforts. side, with remarks, as transformation Global we all progress the in cost So the the and we're cost prepared making Verizon on

we're of $X XXXX. themselves out see billion some As by previously, billion take we $X with that, on Within in cost mentioned with in significant those on like models. of and our the IT we'll as 'XX to transformations program track and benefits second and of efficiency transformation, manifest cost well savings as really AI in sourcing, half focused conversions XXXX year other areas this supply chain to

Dave. Thanks, Yes.

The of question Rollins comes from Citi. next Michael

best on If leave I express X I focus and my Verizon. Matt, you topics. want to also wishes thanks could as

seeing the ARPU of premium unpack what and those in terms if can side, the seeing you're terms unlimited continuing you and on of the on network First, time go take a where little monetize then for can over to are change offer? that and and in bit rates you the devices the size forward? bundles going does a switcher mean the the for fundamental pool on customer holding rate, industry you upgrade lower that the in of unlimited periods And more in what

or doing high it customer -- and the is I mean, we're postpaid still to I doing going And we then portion start. to our can meter continues, go have premium. customer see to a continue unlimited That can work from premium. still can go great that have to unlimited to we I plans. trend have level, transition. unlimited a that but we limited, on one team on see the still say -- We opportunities. We

bringing that we're our actually should more with we That and that and the pool. going So upgrades, have doesn't a forward. important for that customers And that on we see bit we're We feel then talked I mean expanding continue we mean share. I do customers. going we see trajectory before, to them, taking switcher about we is indication smaller have, definitely our be to market new fair still ARPU as the an growth that shouldn't mean, that then little be it's that

my new well. think come I out we offerings momentum have So all what -- now. with right offerings have. again, team as the But good we see that's with consumer we I expect

and -- drumbeat, So continue that Matt?

of so find about always to that. done X Hans. up stack over the us the exactly, and ways move should have see Mike, you customers the to ways and do customer continue to Yes. then you opportunity years, strategy you it, No, the number in, to the we've think that get different as expect is And to

opportunity allows increase ARPU so devices also, add the things other us to other the the fixed wireless access accounts, to too. to adding account, we get And and then to

grow So for we still continue the and expect that with to and share consumer front forward. opportunities as go over offerings significant right will continue us up. make to we constantly having to can there's those they of that evolve of wallet will constructs would in that so are customers, time team the pricing customer sure there And grow the I

just if throw one could And out other there. I

how Just can ACP? Verizon participates from a thoughts government the any new potentially you in BEAT in program? on program participating perspective, And share

Yes.

an the ACP I'll shot. Look, take So program. important first is

customer segments. the side wireless of years, side. As want you've we've participate be whether the the the past plans introduction the taken fixed That the ACP, or actions acquisition Welcome. includes like it's over whether all Tracfone, seen, few on to We of that in

it programs So We've we programs. participate -- look then makes a doing participate for where B we've we come programs. in in time. sense long do as And will the most for been out homes our building those to out, to the those fiber for us been

to so. do continue We

again rate. Over future year something and last that OFS run foreseeable of XXX,XXX at new region do that we year, this same we'd said type the in into

makes those the where do new that to opportunities sense. at continue in to certainly So be using them very programs us as it that will looking interested help

Yes. Great. Thanks, Mike.

next of The question comes from Craig Moffett MoffettNathanson.

same mean more way and your back could. years, the and if came sort of Network. And therefore, business a based model I I the low -- sort growth. strategy, didn't arguably, about to you of wireless sustain was want on a business, I value number market based it churn to Best of very very question the a adds strategic need on gross for to step to your was of proposition you clear

are all quite for kind battle retention. bit of despite seems quite win base what is how customers prospects particularly like of It segment those network about said consumer with do yours minds, and for churn, by that you sort win of sort different to the best you in the value and convincing higher And churn a you of do of the the now. for pieces How is returning really proposition? the hearts the the

I will start here.

now a see have we the proposition roll of clear all, right value C-band. out is we what we First when

about much it. with good why that's the uptake, I anybody momentum, customers see little so you get from that, spectrum of very else than great now, this we all they better have step-ups when We which C-band. know that our right feel is how we a have bit. And And

And but improving Matt in bit our quarter. said, also churn little it's then as elevated, a the

we momentum in So the you tells we're And right have time. that gross Sampath operational something the -- no That adds then at now about having the we're working on that. role And a gross going same execution. heading. where really

the that we just clearly, are better. clearly mean with So we I we and out to come going have all network and right best as do now, #X. I think get measurement we have it's every

roll I for leadership to out. thing know continue extend to C-band We're only with the the going sure. And that

+play. their why clear, very And listening for changing group easier to came new our it because proposition to customers is and to proposition continue you to that. offerings it, the to We're our make network, the behaviors So need we well. consumer from have as loss us. haven't of do with best good to That's customer because continue have are the you all seen a

I that even stronger. getting strength the building all those are on we're So we think have and strengths

Thanks, Craig.

question next Tim of Horan The Oppenheimer. comes from

to you're and when have of like million passed like or million more ability little more XXX for capacity? year-end. XX the that homes it you fixed get network wireless? in does on think, upgrades do amount And a will we spectrum million the to the doubling clearer XX be by Can coverage, you -- mean than looks that What get

So on you're the network, absolutely right.

to an even now, started -- XX megahertz. just roll the out rolling of have know and have we're to places, markets We have on we're using you we majority many megahertz. XX, And the we megahertz out the average up XX just XXX C band in it right XXX in

and So in carrier better devices. adding new aggregation, size are comes the of handset and megahertz, is ship of is getting XXX devices, we wireless XX features course, access it's an much on more enormous software capacity the difference fixed top to there that, of like type when the from both it how

to very business cases and as private focused going compute wireless access to materialize edge way and that's capacity for So wire mobile the the C-band, were we consumer and our us. said, business that fixed for enhance from the see And we to networks. I all

with when wireless get going we're revenue on and it's continue a households and step-up to by to markets going focus But much covered fixed homes be So we'll open do generation so. C-band. the going And the more clearly, it, more we the access, we're we to of to for have tranche. penetrated next

can. just going fast continue that we as to we're So as journey

have the help still But Or section build those does out do you in coverage? increase areas? to the

the we I don't is which beginning, the existing doubted -- we we XG for There as from would grid say, can C-band. any many said our people use need new.

constrained. However, where sites. there we find new new always areas have some capacity been We build

little more now. C-band be and and et covering where than coverage to continue AWS see do to the bit order in we using grid to day. large But We'll -- that's that cetera, is coming And that a our we've build sites we're year, as and our going done the million a the well. out mainly is XG C-band there. right XG normally And spectrum this is XXX POPs

Tim. Great, Yes.

question Kannan Barclays. from next The Venkateshwar comes of

margin Thank you. but is in some growing think adds, way, there is grow offset And revenues, that comes this an face to comes to SG&A on we cash gross it impact, are few are to a choices, so trade-offs. faster but And and trade-offs. margins. puts trying pressure I flow obviously, and with also increase churn price Hans, contradictory which attempt that strategically, you with than

you comes are margins or growth it that think willing So ultimately, point. to to metric wondering is your of I'm cash most because turnaround at on? it made algorithms be focused what's you're Or model some unit margins? that Even the sacrifice that you unit it is Is growth the point? choice And flow just is star? And about when the if north get to and a has the growth? what like there at does it expense growth feel to

it's crystal think I clear.

cash and flow we're is revenue metrics service on and that Our the measured the EBITDA expansion.

right have that's that's grow You measure that, you us you ultimately, to see what you now. still we and seen to see cash quarter. And in that. that. the grow need ourselves we flow on the that can what And have customers from for need to But

focused the for all very very We are on that. We important stakeholders. that's think

more of here. maybe metrics have growth And right the it's Tony to important course, that we it to to are But but finance. company's even add so comes when important, units wants then, something see the

just To we how what to segmented on in have be add mean the disciplined and to market. I Hans mentioned. approach we

on that growth. is drive revenue profitable Our volumes focus

the on So is focused team that. laser

Good. Thanks, Kannan.

next of Research. Peter The Wolfe is from question Supino

and Question fixed going more C-band the back your FWA suburban support that there as to to is than in XXXX. about well? any up wireless. adds approval markets markets rural to net depth double marketing drive expansion shouldn't back in in urban your inbounds big so reason accelerated Obviously, a is where the those opportunity would that you Is areas of and expansion

regional on that's and the both of our network and mean, right our now I the doing and sort when side and access business the because clear. we're have customers deployment organization, fixed the and marketing side, the consumer more on up. want following it network wireless of we That's our open it's why to outreach side to really that

you're we where is and more and clearly, opportunity or coverage the places get right, suburban capacity more for as goes in there So also the urban rural. the it

more Great. Thanks, question. we Brad, one time for have Peter.

will come Your Raymond from Louthan of last question James. Frank

this type their that characteristics be there? characteristics years line? to Can adds customer can see is adds long-term business in then -- there What the SaaS might now SaaS you're through growth And about with revenue of the back are sort of phone the ago gross the of and you where with tracking on and different any say, walk you total what new you churn us might changes, can level be? than, X you're getting,

So you need to repeat the first question.

revenues. SaaS about talking You're

with the business -- new the line on breakout breakout Well, item.

SaaS Just line curious is SaaS. growing? what that how includes that much Is of that and revenue

disclose SaaS revenue don't so. specifically, Yes. the We

Yes. it's you that a of should assumption be customer But fair group, not part from. overall, mean, the I largest

the part question, of Okay. what And the Frank? was second then

promotional X adds the you've you historically? curious today that you're are different today, the characteristics what what done tracking activity versus ago. are there say, So churn what customers did were, of with gross you're particularly long-term given heavier characteristics that about maybe think from about about years that you're these any And tracking getting, they you I'm customers the

we're in of the new I I characteristics, come offerings. they than upgrade type coming all before and In opportunities to even new we think Matt you churn adds little and the of think customers many for for then opportunities a is in. have bit Verizon, on course, the having the gross our And And reasons, better getting yourself. where to up customers, them general, of also talked is customers as said type converged step

really customers So good quality coming Matt as of the in, as said well.

getting. have So really we customers the feel good momentum we growth and about we are the

Brad, Frank. all the that's today. Thanks, we time have Yes.

gentlemen, you participation does conclude Conference for Services. the for conference and call and Thank Ladies using today. for Verizon your this

may now disconnect. You