VVNT - Earnings call transcript Q4 2021

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Operator

Hello and welcome to the Vivint Smart Home, Inc. Fourth Quarter 2021 Earnings Call. My name is Emily and I will be coordinating the call today. [Operator Instructions] I now have the pleasure of handing the call over to our host, Nate Stubbs, VP of Investor Relations. Please go ahead.

Nate Stubbs

everyone. afternoon, Good joining Smart for year discuss results the December Thank for us the Vivint Home XXXX. fiscal three of XX, you to months ended and

Chief David Joining statements, afternoon Officer. including contain the that I begin to Gerard, Bywater, the Executive to Financial Officer company’s like with and reminding Vivint Vivint’s me regard Chief and are prospects. future forward-looking Smart by this would discussion R. Dale may Home’s performance everyone today

or statements, the and as of we of events remarks, of otherwise. result David. over unreasonable certain or measures website. whether the comparable measures a to new accordance call risks any and in today’s future refer financial or of to to that We Forward-looking presentation, could materially financial our other outcomes section non-GAAP extent publicly information, date statements and undertakes the subject I about and earnings release are the measures. GAAP, Annual The we are from some the In accompanying actual these to uncertainties non-GAAP with update filings this or the results presented revise the Reconciliation in expected most calculated will in turn to section available from cause on Report inherently uncertainties XX-K, effort, will on describe Factors risks our these those forward-looking release in any which of in such Form with obligation to company in Relations is differ Risk Investor to and without now earnings time-to-time. indicated in available statements. which the available make no SEC filed to are be

David Bywater

subscribers, and everyday and a We building good our momentum afternoon excited XXXX, earn strong appreciate We support. to by We at exceeding you, your adjusted hard total work your Vivint. guidance the delivered ongoing here Nate full in I we EBITDA. much and am confidence are interest encouraged ongoing ongoing revenue, year in Vivint. your Thank very on year and everyone.

strong This double growth a results XX-month continue Our customer stronger mission focused as and points. providing rate the segment smart the services deliver to our flow. XX-quarter basis initiative. for once credit revenue on portfolio, rate our the demonstrate along customers. cash positive metrics our basis. by The the well generating offerings, our improvements early smart which home the again product of across quality versus national a improvement XX.X%, improvement improvement prior of cash year, lowest to on as a free growth robust our only not key flow-positive was our XXX is energy and the do-it-for-me business our business peace rate reflects the of we goal year-over-year stated mind the more achieved is within prior in low over We point a to and but demand basis We million XXX products believe in year. with value Notably, $XX of and from the is service attrition also attrition our than we basis, operating last reflecting XXX deliver, the in

our customers. flow company. costs moment we point service earlier And and late becoming we the in a XXXX, out forecasted. efficiently XXXX we that Additionally, than a in take total to laid want years goal subscribers, business were near as positive the become Corporation was of and to that EBITDA an preparing stated effectively we company met ended with cash Mosaic exceeded adjusted has complete with had the are I exceeded that targets merger and the our net revenue, out Acquisition X team our public operating lows, indicator for to or all-time delighting

Given team our an well say the the very ambitious what incredible is goals. to demonstration continue we they past they me years, future Vivint as pursue that headwinds bodes significant believe does for that over to X will this the do. I

we the advantages our our we on a laser-focused in We faster us believe smart customers On value by economic of home the bundle out while peers energy, insurance, our elegant building to for delight integrated to allow solution. are driving single, together lifetime strategic shareholders. distinct have platform home smart intelligent that smart increase and front, growing our smart than and strong will devices value

customer can relationship. a stays As we extend with the our beyond we average believe current well strategy, us duration the X-year execute we

point We also a also compelling, allow cement expect this smart in should the a should of the us that of which platform enhancing further and strategic flow value-accretive the unit strategy in category customers reinvest believe improve, broader view. We further company, initiatives. being Vivint financial economics cash to a X home of will from as generation our of

place focus while preferred our build commitment. do high-energy, their the safe, our in manner. compliant and for to is this will That employees being our We industry-leading, careers also collaborative, a talented and

mentioned home money. experience focused earnings technology, redefining our saving a I and on on our with while greener, the products, home, As create last customers call, are safer smarter, services we that

make with their this to us their but is families solutions on Our help protect intelligence make allows the integrate homes, homes core smart as enjoyable customers integrated data-infused platform on not The only artificial decisions to deliver behalf. mission. and to we their intelligent to and more is enabler vision that

as platform, the help money to bundled value energy insurance deliver premiums. as our and more value, work and believe perfect customers. intelligent do-it-for-me These lifetime monthly ecosystem of their our save home We bundle segment. in and result, a smart bills we we electric will also solutions we advantages leadership believe our that our we and the extend from utilize insurance, further smart on we will to easy-to-use expand As integrated, will smart the integrated customers

do momentum We sold in expect companies smart homes, into megawatts much are encouraged XX home first to the we of by we seeing. to more energy, XXXX, to bringing smart one in X,XXX roughly XXXX. are expand and over smart energy As the we very

sales force Smart who a an the those Vivint Our are considerably of we only with by than This offering Home strategic incredible higher partners demonstration realizing bring selling solar bundled is power who are sales-to-install solar. bundle ratio solution. a and

intelligently. combine Our controlled vision production by and is data-infused uses innovative consumption that to power energy AI consumption manage platform to an more

that within and Our our and bundle to as to a smart energy, customers. X-X smart smart our we ability a it home grow for home smart that customers retain or game us the and nationwide as prove partner footprint of will believe up grow day for industry the with customers. solution signing install We of two changer for a companies powerful be to with to award-winning home number solar punch

solutions. to We and homes of point. solar adopted than installation continue closely partners to in for solar the have financing U.S. industry growth work Vivint with Sunrun and provide Freedom the Less the in addressable forever, significant. leading opportunity this is our X% Mosaic solar The at market to

believe and million addressable well have remaining Given opportunity the customers that we as existing solar nearly smart base significant our add have smart drive to as across we home North homes. America, bundled solutions customer to energy X.X to we

actively initiative. We not large home pleased insurance who home risk companies nearly have of we smart to a in briefly without smart homeowners and of continue insurance or providers mitigate discuss Vivint’s data-rich few for that inadequately than we monitored. customers products can we an that insurance present better professionally Now, to was help retail their to and to that system risk our insurance customers as believe note installed, lower can and our a are prove inadequately claim let operate price installed professionally a system monitored agency, smart home the XXXX. smart platform a events. the we policies me severity DIY systems We in carriers, insurance home sold X,XXX Currently, with and scoped, believe

We us to specific our a us We for build develop general invest seasoned and this to customers coverages continue customers their enable our which us hiring allow we them will deliberately and an abilities their to initiative to executives demonstrate help or insurance solar Vivint out provide agent, homes, become MGA, can as managing grow insurance plan in and thoughtfully our continue from to savings their in are beyond. accounts. families, and XXXX benefits to protecting to expand that in to and smart

smart growing has expect our market total represents smart begin believe policies expanding to MGA so margins faster of We home profits the on in of improving integrated home. by and each industry ecosystem is than the an to $XXX we operate disrupt and X% We and cash we very while is we security for with continue opportunity Meanwhile, believe rate. the are profile, in the the for Returning do-it-for-me can that smart X% telematics that generation at seeking property end Vivint be do-it-yourself Xx growing is the we of We auto-like been do-it-for-me home, segment bit a billion our will through while offering margin our in The to reports, subscribers or negative that home than few value segment drive according positively years. the per due less can industry growing the in our that majority our and the that is and average, the The to to a industry total low at states a a home year, growth solution where thoughts reside. a and our large and grow year. customer market. approximately casualty faster, segment which year. solution segment

and operate huge believe challenges of have as There grow. to company, unfortunate real Given supply sentiment lot we as well Like to continue to continue we believe navigate. chain pandemic to COVID-XX low battle We labor, we that geopolitical also every to due will inflationary material, in pressures the virtually with related we we to year. these penetration, that are concerns and related continue constraints. a consumer unrest throughout headroom market trends and a

are while grow call expect of to the much for profitability, will to that, our expanding customers. relative the growth flow these DIFM we turn Given tempering lifetime faster further over we With though expectations our I Dale XXXX, cash and XXXX our expanding generation peers, uncertainties, elaborate. our value still than to to

Dale Gerard

Thank you, afternoon good everyone. David and

fourth that Vivint.com. would posted our quarter through have Relations on go be XXXX, our to earnings fiscal that section prepared remarks the for I at I note the Before and from referencing results Investor slides I year we will my presentation

board. Following X.X% up a from my key Starting will full a I December year-over-year subscribers, that remarks, few for highlight will X, finished improvements the XXXX across with the we subscriber on call XX, show Slide open We Q&A metrics million portfolio X.XX session. XXXX.

prior the driver products Our average in per at year-over-year a AMRRU period. of AMRRU, in increase revenue was sale. MRR drove or and A increase purchasing of the user, home XXXX. fourth versus revenue. fourth key recurring total the quarter growth monthly total initial recurring in Total The customers quarter in increased was more million point $XXX.X the X.X% year the smart monthly by during of subscribers AMRRU XX%

year-over-year fourth very pleased are for We and year. the growth quarter the in full revenue with

quarter. company $XXX.X Slide shown As XX, million recorded revenues on of fourth the during the

had revenue XXXX. quarter, During increase period from in a we total energy in initiative, in from year-over-year our contribution the solid as and as subscribers same which strong well AMRRU, drove smart the a growth XX.X%

by subscribers XX.X% total a For total quarter, new a Similar the contribution smart grew fourth full to $X.XX the driven the year, along record billion, with solid from high. energy. AMRRU, increase full-year – in higher to was revenue

by with XX, fourth from margin Moving full the same and EBITDA to was EBITDA $XXX.X the Slide with XX.X%, full fourth XXXX. XX.X%. quarter and Similar the and was of the in for a respectively, quarter for grew XX%. we XX.X% XXXX. of adjusted full EBITDA periods million, adjusted revenue, year to for year cover million, fourth margin EBITDA a quarter Adjusted for Adjusted $XXX.X year the

subscriber components, the now and We range, that to margins will around associated inflationary the year few that the despite growth throughout subscribers fourth new metrics to experienced mid-XX% by maintain XX,XXX. XXXX adjusted XX, the pressures with for EBITDA our XX% and a supply are of the year. of I fourth originations on labor, quarter and increased chain happy in the the cover disruptions quarter we versus ability in full with quarter we product period in originated during new the prior fourth year the XXXX Slide

the new that growth solid up sales X,XXX note subscribers fourth I started which see from smart subscribers. channel, partnerships continue benefits produced XX,XXX fourth versus ramp Smart of quarter We to the Home solar national offerings with our up inside new quarter, the to that Vivint during prior-year solar our XX.X% would their in originated strategic the period. also home and

originated XXX,XXX year. full up the versus X% year, subscribers, For prior we the new

to continue underwriting on We profitable customers. focus high-quality,

of customers in sale financed all in fees through X,XXX financing before financing nearly year, equipment point of paid from either partners, the to XXXX. our our our proceeds of purchase partners average For while increased the the XXXX to or in their of payment full collected $X,XXX the at

Now update on subscriber XXXX at lows. provide I will full net cost XXXX. acquisition all-time our subscriber an service moving XX, the costs near per to service Slide for remaining year for net Net was $XX.XX, and

year to per subscriber XXXX, for net compared As XX.X%. Net margin robust has cost $X.XX. service the service decreased remained at

been customers from of a in us. Vivint while new the height in costs Flex to allowed rebound we’ve pandemic in customer from While significant levels seen XXXX, effectively the of the to interactions introductions of reduction we the acquisition come The we level subscriber to continuing Pay high XXXX, low expect have to the able service in cost abnormally model our provide that per control during saw subscriber. has COVID-XX net have a achieve

XXXX. to of As subscriber subscriber less from I presented XXXX of per in acquisition to partners. prior costs subscriber under year a for full $X,XXX financing That at than result, payment cost decreased to year $XX would by the reduction the net just new that $XX acquisition note XX.X% the is per new XXXX. is our fees before an subscriber compared

report to metric that Slide happy rate, XX. very last our attrition XX-month are on is shown we Another

interactions attrition low December XX, increase platform. a points XX-quarter related basis our to of of service in had our the is was year. As XXX last underwriting than rate we We believe XX.X%, customer attrition XXXX, continued performance, improved and which enhanced product lower in the standards, and with improvement

payments cash we our free flow, of and $XX timing for initiatives. and investments in insurance over partners, financing energy of inflationary despite generated to year, change pressures the full the terms of a In across the million, organization, smart in one smart

reminder, changed the related customers as X-year financing part from loan with new the of a being one early we paid at financing of the a our fees to As the partners, over being of to timing the XXXX of of of term extension signed point pay sale. paid

upfront customers sale, the In the fees and by of we over paid financed of installation. fees customers’ we XX% will fees of this point financed sale, and a partner, loan. will of XXX% the remaining pay in term XXXX, customers financing new to leading the at the collected XXXX, the from the paid at the the for of For in of the reduction new be the proceeds equipment point

over show for I X will XX, I Before provide results to thoughts XXXX, refer our we where guidance you Slide our key the on past years.

a total the period. when forecast EBITDA for merger revenue for nearly subscribers, forecast, achieving little we of we Acquisition cash XXXX to XXXX with our a public we David our full met company, and XXXX. in years On A Mosaic adjusted our we that through flow over As years guidance time. and year the mentioned remarks, the his ahead were being goal along have Corp. X pandemic becoming a lay complete provided preparing for XX, and of later, Slide with exceeded positive X.X out or global

$X.X our million million and rate lifetime be profitability, X.XX EBITDA the $XXX peers, cash the please and grow flow and Emily, prepared and end cash subscribers And have revenue DI billion; $XX X customers. much our remarks. open value to to year between to between lines free expect billion our finally, – while total do-it-for-me This have between concludes total expect $XXX We generation $XX reiterate, adjusted we a between at To to million. million. million flow million of and of than the expanding we faster expect Q&A. $X.XX

Operator

is Rod, open. much. Our very you your Thank from question line comes Goldman Instructions] Sachs. from Hall [Operator Rod first

Unidentified Analyst

for question. pretty just in some your have year my question Hi, there. I into Rod. This national like summer, traction inside taking shortages year just in [indiscernible] have channel, channel, environment you you are but solid on one subscriber seems is sales It going your XXXX. for growth Nash on labor Thank you the for sales viewing the Thank your channel? your outlook wondering direct-to-home direct-to-home we with how wondering you. the for are macro the fiscal potential

David Bywater

Yes, great question.

I think That’s of bit. come down – at look this direct-to-home well, you that things. see function past a trends few a first you of off, year, it’s if kind the a over

some think, I some with compliance got and them. teams, in dealt we we first foremost, as with issues certain

thing, a And organization. as a to we was across good compliance appropriate drive thing. the so, It thing, that was good continue strong

we contracts I or of above as rationalize that secondly, we we and on our also much that. looked at think threshold, also profit making some our weren’t were

of and or as is of think ongoing there And reset. been driving of I other is strong direct-to-home things. intelligent then get-healthy So for the competition to there campaign also just just part economics kind solar unit a sell a growth, bit

about smart the seeing I hone. really so, smart without we’re higher sales-to-install bundling value And think our significantly solution, and where ratio than we’re excited you especially proposition, a energy see

proposition for now solutions offensive are both for those a see to and our themselves. the to I to great smart defensive. solar, home And think force sales the sell and we both customers So and and benefits have

the pleased within growth, given through. been specifically macroeconomic made people And labor that has are challenges. that out So market. factors direct-to-home, the but a we’re opting it’s as managing and through some lot then decisions And there of challenges navigating we’re just just result, overall and market, a of with we labor of a being both. mix Those the of the lot are general in a

Unidentified Analyst

here. maybe if – could have very I follow-up one just more That’s it. Got ask And maybe helpful.

you you in a energy – your of some you your how you’re Wondering new mentioned energy install lot on current have solution, For new with have Thank solution? doing you. price this smart subscribers. traction penetrating

David Bywater

great. been it’s Yes,

we million we almost X have mentioned, As customers.

We’re helping helping and them going understand map the back to definitely integration. around our road solar value and them customers those understand of the

are it’s – great customers. they So

we mentioned, we and they have us, our to we’re I a going As of respect They relationship an do. what ability They X-year know what trust deliver us. average them. to with say

viable by help the to see they doing. customers, So far, them our most easiest value we’re are, customers

go that call well that us folks So both we’re as progress, on through through folks making their of lot into well a NIS, approached that folks as as own direct-to-home, that’s and back that are initiative. as

continue campaigns our marketing them with So, as what understand we we’re the been progress very outbound far. to expand help to thus to knowledge and pleased campaign doing, them we’ve

Unidentified Analyst

much. very you thank Alright,

David Bywater

Thank you, Max.

Operator

question Woodring Stanley. is from next from Our your Morgan line comes Erik Erik, open.

Erik Woodring

XQ on to wanted earlier. that dig comment you Hi, made I to guys. Congrats the the results. in, David,

challenges a XXXX mentioned of ahead just You growth. somewhat that handful expectations your for in tempered

to if and the maybe could is growth you which have why, deceleration. elaborate is, significant expect So guess and a you on I’m getting what for forecast most I just at subscriber impact obviously your

factors to Thanks. so, of – and your impact those really why? going growth, which impact And subscriber are

David Bywater

– mean I the the appreciate I question. Well, call

that feel bit impact continue to a good the mean, there, through just XXXX. think concern. And some like which through I supply it and of – work try customers. has as we to I XXXX. gets a We little then but ongoing that macro there relatively doing or to to factory delays, we it here in is working concern we manage a a So will that’s on macro if price just and it, COVID you a worked it hit right? the effectively and about challenge, real cost, believe the with have I have that I a in been But chain, cost we offset that mentioned, the is effectively that’s we’ve

So be try and to realist much There There has that’s seemed potential been I the a available that a also customers, that to of so real general last so government year to around that customers concern thoughtful was be just is pulled be back. concern of and and aid our about. a many economy.

a consumer and for confidence you just plan moved, fool at indices, have look the they that not so so, recognize you’d and to that. be And

around and homes. So the spending funds thing that’s in have that the another large on market the their just in customers confidence

concern So – concern real just things. and obviously, other that’s and interest a around rates

degradation we growth we So just prospects. thoughtful. our that to think that costs that going is But we trying as that. some we’re will we off plan there. just, us market we it. bit, I plan you say from see to much exceed prudent really always theme wrong. year, We’ve to it’s as budget we’re But you’ll will for haven’t get what for and we’re shaved we Hopefully, do much. to have me question little shaved the the a hopefully, a our And be do capital and think don’t Hopefully, I

thought a throughout and was we So, the how will slight unfolds, see prudent, year. year the and sure reduction will we update we there them

Erik Woodring

Okay.

David Bywater

capital with or thinking. deployment But planning what perspective, we’re that’s

Erik Woodring

Okay, cash on flow And maybe the thank you. guide. free then, just

range and a did than EBITDA. for both adjusted cash gave You for narrower free flow you revenue

kind of XXXX narrow window? XXXX? Thank what commentary you the a and about should be So confidence have any puts may takes on And think you. in we that to such to relative just curious, gives

David Bywater

I’ll one. let Dale that handle

Dale Gerard

and of I again, of think Thanks, our – we XX% the Yes. reoccurring model back question. flow, this if you cash our go free Erik is – kind is for mean, revenue. revenues

kind and from kind – as David can we this into some were of we we know this seeing flow year so basis, go the up, going that’s pressures how along kind in that, on anticipate factor inflationary so we’re revenue of forth. with, and we what of a is build we So of these said, cash

out think in is – second point our in – I prepared in phasing of partners. the that’s thing the payment I one financing my our of year upfront this the would other to – main out remarks is XXXX I called

the we that know what is. that so – And We that of know what impact is.

in [indiscernible] part that – we the part XXXX. see where That And of in second the kind was so cash of of of XXXX. to And XXXX. that our impacted final kind that’s then in

all that’s those – take how it we we we kind build things, So together. of

We’re number. are that pretty confident where we cash around

like goal feel is As we’ve David subscribers, good that pretty to that said, that, our but provided. exceed we just to range about try

Erik Woodring

Thanks, guys. Great.

Dale Gerard

Erik. a Have Thanks, good weekend.

Operator

question Brian, ahead. Capital. from Imperial Brian please comes next Ruttenbur Our go from

Brian Ruttenbur

Thank Yes. you much. very

much in increased XXXX what along increases. terms question a moving passing costs How your pass in of these Just plans prices you and are you’ve how or Can you price about the much talk plan consumer? to along are of forward? higher to

Dale Gerard

Hi, Dale. the Brain. Thanks question. This is for

in products of service we’re it I we for And products when So, our really think different selling, those higher-cost to proactively but revenue, we’re our – and service terms the to then, monthly increase somewhere we’re piece. different between trying to comes $X channels, the is component $X push costs. monthly see it channel, looking on at the through in it that depends that

devices. or goes we if our buy hub to a component our market sport camera or the whether to – example, it’s that into to the have go of one For and in other spot a or go chip home

along So we’re out across costs costs different evaluating that the shipping that, higher products. that we’re pushing forth, there, then seeing those the with we’re and and so

said on a So wholesale. to It’s is, not are those. margin David the our The at, products we let’s what will how we what But much customer more grow probably do is also, we which done of can is know we and we looking charge, – to and what there at around into more want I like, this would look have of growth. bit done maintain willing affect hey, impacted and a what it pay. a we’ve to that goes say little not –

great customers hey, And we’re as in think look value great discretionary at it’s and customers becomes also. pay? think as spend reality, do a mindful product. that so, more say, a we’re balancing we But that We – what to and will that more,

just, product, trying David, else. anything it don’t margins say across again, on around thoughtful our you’d know those products. and the maintain be to So I it to to we’re if depends try

David Bywater

it trying and there. we’re not is just prudent goal at to to but increase thoughtful all, be My No. be

Dale Gerard

that’s driving – that if The if one say, can for offset higher actually, this smart thing is we we’re and they even we that we concept value any that’s with why energy can think where them I’d charge see Brian, each really other a month. with from why with our of will eventually of Because that eventually, to important. smart little insurance, have or we bundling save help that to them, bundle money can a and – full savings product bring the service, – provide we will services so some

Brian Ruttenbur

Okay.

as that, has at service the average, get to of ballpark, so, while a exact products, seems didn’t it to gone have in And just an so your like monthly down, XX% numbers least on your that up, follow-up the I kind number. X% you

good to trying You’re lot of along cost kind products. just pass the a a a summary, summary? increased of for those Is that

David Bywater

summary. That’s a good

Brian Ruttenbur

you. thank Okay,

David Bywater

Brian. thanks, Okay,

Operator

Sabadra Capital Ashish [Operator Markets. next comes RBC Our from from question Instructions]

ahead. Ashish, please go

Ashish Sabadra

taking contract how the percentage we how in question low. at about very mid-term? you about on attrition, again, A comment subscriber my into I and of was ‘XX, results just we question the end think solid favorable terms and and trends could think Thanks for XX-quarter over on here. wondering initial on Thanks. congrats do should going ‘XX of attrition if there,

Dale Gerard

Sure. This is Dale.

at end again, the in into that, So, their terms we subscribers of contracts, up will middle go teens. the of initial see

of around end initial our are So, quarters, look hovered we’ve their term. customers you few at XX% of of last if kind at who the

see mid-teens up You’ll the so. or go into that

the not historically higher it’s attrition up. at well, portfolio It’s seen has hydraulics performing of that the It’s attrition, that term, when our are And or mathematics, so, attrition that a our the will the again, end just of hydraulics attrition, which right? worse; it, overall have really you attrition that. their portfolio of is that, indication cohort hydraulics of a right? is It’s pull cohorts cohort an that with higher percentage

go will see Flex recall, we put would from And is thing Vivint seeing attrition subscription where that separate from think high range The the impact think sold will we up so, that amount. that low XXs that be we’re XXs, up. we percent And you’ll Flex our what note year pulling into them is I the start this is initial is that one – hardware if Vivint I first what Pay we Pay. service you broke under monthly the the out, impact cohort

give will year do their if is financing refresh an of so this they end to coming term their to this happened. are them hardware our opportunity to customers hardware, to because What is refresh the and that’s partners first flexibility of or those which so, to to to our new had hardware up and go we a thus, desire, And year, them the that there, getting the opportunity or months, maybe us save – are all they XX another They whether us smart put and hub. or home, XX, which will need the on cameras XX refreshed, that’s in their hardware. because their allow sign still them just monthly don’t allow them for to

So in that’s that don’t piece one the how know attrition bit. a that factor will we little

I monthly That off savings financing which of so back a $XX $XX I months, a their the other lower $XX would subscription us. piece the amount financing have consumer now month you This paid they they seems say because so to of XX year. for up second The financing every find and their were in paying hardware, $XX their – they any they the anywhere. of have were this out-of-pocket. if $XX to away, they a get have subscription partner got their and to don’t their budget, end go mean, us, to model partner that month goes that every to piece is, out-of-pocket automatically paying in that

positive will attrition So we also. that impact think on have a

new ourselves. some which we our have first the we of longer people’s terms continue that will have in average for we proactively customers that of to extend with thinking we’re options we sure how large see life to we out, player life their us. can think of play how at they is that at the with these like an a we the mean, part – years, initial financing actually year home. here that’s is their focus I and extend looking of around already national leading and this again, hardware term But we in about upgrading think that So of of industry we’re really are make end and X start

David Bywater

is thing. this one add I’ll Ashish, David.

to chief this I from what customers our X attrition. a technology was the operating XXXX attrition, causing XXXX, focused how servicing and to and used be of As and ago, the I we worked you were how officer on and years well obviously, know, company lot

think teams, good renewal insightful, in I and how I find low, intriguing PhD since I’ve is think that last fortify they I they tech communicate attrition lost So I what had But less a bit it had a And years have think customers, the they had really service we I really what the ecosystem mesh in done at the this right? to customers a So around with time customers the over job. window. the have little then. that’s time. done we XX% the really and

speaks a XX-year so, better. have when think at to larger the a our quarter attrition renewal to I And customers – month, progress to XX-quarter that a to well are of make customers led our percentage in every week, we low, window, trying substantially on be

things you’re of some about So it. I the in play talking think

our think technology much better. has I gotten

our servicing better. think a has technics I lot gotten

back really that So company. I to the those I’ve are as all come things positive discovered

Ashish Sabadra

revenue Thanks and a maybe color. that question David Dale. for great, the just And user. That’s AMRRU, per the average monthly on quick recurring

attach tailwind, we in products Thanks. also forward growth well existing that more ‘XX, customers, mid-term? the going improving the should to As the but into about think ability pricing over as your about we think as profile

David Bywater

attach we more provide Yes, products, think more them, see continue have services customers more products as to as take we’d to home. them go – offer like we their I up that to to in

Just pushing amount, on over – as these talked increase time will we the subscription that. pricing through some about on that of

some So improvement would or expect there time. over definitely, we increase there to see

Ashish Sabadra

once That’s you. very helpful. congrats Thank And again.

David Bywater

Thank you, Ashish.

Operator

open. from from [Operator line is Chung Instructions] Paul, We have Paul a JPMorgan. your question

Unidentified Analyst

for A seasonality. Paul question quick on Prina Chung. on is This

are So, cash-use seen we’ve quarters. XQ that XQ and typically

to or that? deviations expect to any something wanted in we ask can from Just if that that’s continue XQ

David Bywater

Yes. and cash-source the in right. of be you’re That are QX, ‘XX. quarters. same No, quarters; cash seasonality usually mean, I three cash-use two mean, will I seasonality the are QX

Unidentified Analyst

for me. That’s’ it. Got it

David Bywater

you. thank Okay,

Operator

to today’s currently We David questions. hand no have conclude call. Bywater I’ll back to further now

David Bywater

Thank you, appreciate that.

great had QX. I think we a year, a great

We’re to looking forward XXXX.

confidence to support. and work you to guys’ gain continue will We

have all we a think the are They great opportunities. team. managing and of through challenges I the

both I smart this think solar seen we’ve the integrated making this I’ve for is shift a it’s I’ve towards this and It bring years, to got we’re compelling. that more value phenomenal. incredible opportunities, X significant industry in of and the and home platform been the sides customers, now play to our never and on it’s team material.

company, for faster a more to have I things my do here. because our scale it’s really greater and and enthusiasm very costs, go as for special hard refine positive than we, our us Just to really to are the deliver cash, our perfect way and and it, really to peers, we to shareholders. something the a scale our a for think generate good And express disrupt company it, excited me opportunities in customers, it, to lifetime grow value for

are interest. we and on, appreciate guys’ path So about we’re you excited we the

So we later on. calls in you will guys. catch Thanks,

Operator

everyone you lines. us for disconnect Please our now concludes your joining This call. Thank today.

Vivint Smart Home (VVNT) 26 Feb 222021 Q4 Earnings call transcript