REZI - Earnings call transcript Q1 2021 | Resideo Technologies, Inc.

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Operator

Ladies and gentlemen at this time I'd like to welcome you to the Resideo Technologies First Quarter 2021 Earnings Conference Call. Today's call is being recorded. [Operator Instructions] Now it's my pleasure to introduce Vice President of Investor Relations, Mr. Jason Willey. Sir I hand it to you.

Jason Willey

thank Earnings joining Call. and First for everyone XXXX Quarter afternoon you us for Resideo's Good Financial On Resideo's and Chief Chief call Executive today's will Officer; Tony be; Trunzo, Jay Geldmacher, Officer. our release and copy on Investor page Relations our investor.resideo.com. A our at related the website of of materials are presentation available earnings that like you presentation forward-looking this would We remind statements. contains afternoon's to and performance Statements uncertainties. number are not and constitute forward-looking other than statements a historical involve facts of made or future during of and risks this call may results guarantees differ including Actual in time forward-looking from may the those results materially a the with to statements from of Securities result number time Commission. and in filings as those a Resideo's of Exchange factors described update no company to such obligation The any statements. forward-looking assumes our other report Form performance in We filings. principal SEC identify the our XX-K on affect risks and that and annual uncertainties With turn that to call Jay. over I now the will

Jay Geldmacher

QX ADI good the Solutions as commercial Jason and and activity business. Thank environment residential in benefit with ADI grew markets. demand afternoon both revenue We across seeing you a year-over-year improved continued a from XX% everyone. strong strong quarter & to Products was

cash We revenue for profit and positive expansion. chain by market improved the tailwinds are operating Operating grew the improved year-over-year. organizations. through expanded from sales innovation and Both we activities better-than-expected $XX higher manufacturing delivered engineering, leverage by and meaningful demand margin. $XX supply businesses the across driving building With on million into operating execution million these business with profitability year-over-year revenue

Focus tools of product customer series saw Sales and as Products people Solutions and their number and strong enhancing tools At M&A. discussed sales at Products in in digital summer Pro force experience Solutions market high-return organically to optimizing categories continue QX. the homes activities aimed investment & conditions a through the within strong channels This previously, that markets the releases, staffing organization initiatives. and focused & advantage ADI, to activities. security. performance we new accelerate and accelerating invest initiatives of a and developed of adjacent platforms key our on processes. As and business during and trends expansion continuation last in demand attention include such across taking are areas effectiveness we and is as

We throughout and we our remained also meet increased in of benefited the positive to XXXX. spending number underlying and we renovation by first step The Trends home new market believe demand. having and continuing sales quarter. and both in a see repair trends customer on ability up markets the

integrate believe more will of the in product increasing competitive to as builders take portfolio. our opportunity importance. on by in this We product their excellent an home team RNC the customers. job wall delivering the chain our recent of supply into and stepped-up engagement Resideo's While are range the renovation their to sales, agreement New homes largest repair are success efforts. RNC -- work home the support connected An by example Homes integrate platform drivers Residential or is their and portfolio. content connected and and face headwinds, in our into of smart logistics meaningful to did signs our a the we Products with encouraged Construction our unique & products created early breadth This of look broad Meritage market offering. front behind for provide win demonstrates Solutions of In and

market, While with in presenting are believe we historically -- we it our where aggregate us categories and challenges that better than trended, it the has is is geographies. overall opportunity elevated through in these to certain backlog managing relative

& our on at Solutions. key strategy This we eight the to was actions. early The formed of Virtual Investor were During balance work long-term pillars process a strategic process. the immediate with for review the foundation outcome quarter, planning decisions back strategic These key the outlined of Event. pillars slides our we of March completed and a X Products Slide comprehensive earnings development outlined developed within in

As shift Pro traditional discrete & with part on to through cross-category emphasis enabling solutions this the will Solutions from data an products of prioritize process, a Products analytics.

thinking home The to on is benefiting actionable position on taking owners. defined focused security across interest in continued the performance the holistically leadership to concepts commercial The are about and ADI, business clearly execution. with them distribution and markets in our and executing turning products now items QX We clarity residential is not reinforces where market. the from security to and with strategy, play play. into where team this industry-leading At increased

strong strategy and to grow as continues increase of Commercial rollout makes which focused we investment e-commerce our the with continue an to we remained force line In of Residential to enhance saw categories ADI in of in side their typically the On X/X effectiveness of sales. ADI up the our ADI acceleration quarter. sales business activity. over our of tools. E-commerce capabilities portion a

expansion positive our opportunity. private saw mix also of small attractive remains business We a label which an long-term relatively ADI's part in but

With on over of of Electronics, to on distributor want Resideo Herman to ProAV completed products. XX discuss to brings locations detail. with more Shoreview an a Shoreview I first communication During a locations our the distribution accelerate our the to distribution and example attractive Shoreview, performance ProAV entire the Both in today, both physical brand coasts the regional will categories. portfolio I serves XXXX our we welcome outlook Tony adjacent of the in distributor & with quarter, acquisition through Norfolk a products call are utilize to to the and And Mid-Atlantic. strong announced quarter US that business. the acquisitions the in M&A and strategy team. space existing that Wire turn in Norfolk expansion acquisition data US employees both builds another US ADI earlier of

Tony Trunzo

first billion Consolidated substantial increase Jay XX% of X% expenses year-over-year general QX improvement margin total XXX last you, total expectations marketing million e-commerce of of points delivered this XX% now and This QX compared totaled XXXX. e-commerce across $XXX Products investment and year. and the $X quarter by basis last gross quarter selling for cost improvements. Thus last result in in of is on QX operating was sales Gross QX revenue quarter in ADI everyone. year-over-year year. to of offset freight lower our of up product the and XX.X% year-over-year. million $XXX $X.X XX% to for of in by of & mix was margin the with up XX% led of exceeded and & had administrative compared was approximately to QX XX% good EMEA average million video sales XXXX. as $XXX up profit leverage the first a new Products was sales compared metrics. or tools in was million sales. logistics ADI revenue continued for and of XX% Thank region. as to XX%. partially key of well compared costs XX.X% ADI's afternoon, ADI targeted XXXX. intrusion was strong up investment compared of quarter higher volume revenue year-over-year up supplier Products by margin XX.X% benefits financial sales an Both engineering Solutions in improved profit and strong of the up XXXX. market first materials X.X% from XX% the down year versus $XXX categories revenue in profit first million daily improved and or rebates lower sales XX% & days fixed and from operating QX representing performance was major sales and due quarter with or of in all surveillance. revenue Selling, last unfavorable or QX productivity channels. development, quarter Solutions Operating was with from was to demand and $XXX million our ADI X.X% P&S million higher of sales $XX product was selling to has year. residential and gross XX.X% Solutions XX.X% and conditions underlying of profit across margin gross XX.X% $XX The million were QX results first million year. was accounting and Demand total first $XX three commercial sales ADI increased yield over categories and in digital in force in effectiveness. These due last $XX at more QX million

profit with of reduction strategy compared offset force partially transformation or of the of or X.X% was However, sales we activity as higher quarter period. increase million as million from X.X% of improvement revenue cash and continued XX $XX in effectiveness cash a ADI margin. line of $XX Consolidated up by prior an $XX $XX underlying transformation-related year. of reflects last the spend sales from first $X.X million our point with internal operating for higher million of a on costs operations teams was the sales first for of quarter $XX largely in million compared offset million Corporate ADI well from use X.X% investment in or This digital million of product in partially XX% benefited were and of cost sales the million million innovation see costs $X by QX around quarter operating $XX did XXXX. approximately X.X% sales and and profit gross in management of approximately initiatives. compensation $XX build-out and bonus the or the increased basis focus expense.

prior ended is and outstanding QX bonuses payment of quarter $XXX first typically quarter equivalents in billion. due $X.X cash with accrued annual of of total We generation and million our lowest quarters. cash to debt and rebates cash customer The

of Our $XXX billion the year compared net at period. end to $X.X stood million ago debt at the

between outlook of to in full demand year-over-year and $XXX in profit be As margin an the robust is implying of expected to operating remainder million, X% to of are we of in is of range million range billion XXXX expect and of $XXX revenue XX% the the XX%. to $XXX QX range and expectation now to strong prior $X.X continued be Consolidated guidance. to of million the our range of the billion, raising across GAAP the XX%. million gross be for for and results from expected growth our $XX the increase $X.X a result XXXX, increase of an year

million of $XXX expenses corporate with approximately anticipates outlook $XXX million XXXX. XXXX compared in Our

outlook page our can on of Additional XX earnings slides. details found be

just operating in compared contribute of to our operating acquisition reminder profit reflecting integration, five expect more the ADI at selling have costs. XXXX will fewer Revenue the above minimal on of a XXXX the and days quarter. we from $XX margins. As expect approximately and three in included both outlook. days million acquisitions revised arising two these days But Norfolk fourth acquisitions quarter in to finished Post due first XXXX Shoreview impact in integration are profit have to to acquisitions and levels current ADI's we fewer

quarter in expected to the $XXX in of billion. XXXX, to margin to $X.XX revenue million. GAAP $X.X range For profit be $XXX of XX.X% of to the is range the billion is expect million second to operating and in Consolidated of XX.X%, expected we gross be the range

force call our and investing the and transformation we're engineering And now ongoing processes Jay incremental systems remainder manufacturing capabilities, we offerings, and growth, Our material enhancements. quarter investments and sales incremental freight to tools, outlook at and we account to we're approximately That takes the projects effectiveness both ADI, I'll for and of included on to customer concludes higher innovation activities. at in improved scalable shortages into second persist and questions. optimization for focused supply take for well XXXX. for innovation, totaling including which year our expect microprocessors, to XXXX components, concluding Also, the my numerous customer all level, our back market & back-office the At are accelerate through transformation driving Jay? expediting XXXX Products Solutions, Within sales outlook such these in targeted as comments. and remarks revised strategy of as e-commerce charges million. experience, corporate before the systems as certain $XX compared chain now investments service. of constraints, turn

Jay Geldmacher

Tony. Thanks

markets As continuing. see the look the XXXX, trends we strong in remainder the market to residential overall security of we and

optimization the We or focused We the remain breadth at restarted work up through work this into ADI progress with and products win for value quality its Solutions Products also we service professional, commercial provides whether in And open cost transformation begins categories projects. increased XXXX. because through which as expected compelling more on geographies our financial initiatives. combined We our a efforts creation significant to execution visible markets of and within the be growth driving long-term market offering and core ADI. in with expect for and and on opportunity as & customer increasingly targeted of both our on as we deliver, see reliability results, or move XXXX we and

strengths we are ready remarks. believe in We prepared operator, we in leverage serve. further This to our sustainable to will long-term position and putting us are we place enhance the markets these innovation, And a outperformance now which drive our concludes for questions. strategy

Operator

All Instructions] question line the right. first to from ISI. Amit [Operator Daryanani our going is And of with come Evercore

Unidentified Analyst

Michael for on is This Amit. guys. Hey,

sequentially. anything was to there's call the implies and just at look wondering I are -- down with Just you to points wondering operating the start there. it margins the midpoint XX profit of we out if so take just guidance if stepping basis QX around revenue the

Tony Trunzo

it's core than of have there's makeup mix XXXX a will the a the to an also no investment standpoint, the things. shift little bit we the have couple any Michael, for P&S of little the also which a on have of in going bit the for a their structural year. all, quarter, plan for has effect the second outlooks we mean, From to sales investment more first. in we're Yes, though we're over to did P&S. you full less margin. Yes. attractive in in We're QX the I business to for number second Hi, change going going Overall, margin -- our of mix Tony. And first quarter ADI markets. gave in in

Unidentified Analyst

of bit And Okay. one. curious. more then strategic a just I'm

that ADI is. M&A fragmented seems strategy market the So, with business the logical very how given

risk So, the execution. see here around is we kind real only of

some some approach kind So, wondering us you Jay acquisitions experience if this into sort give how with and well. maybe you've maybe I'm Tony you strategy? past had as could of just insight and of

Jay Geldmacher

then I terms people over of in done and has Jay, as well organization is in I'll of let side into in. ADI in we've job This They that -- integrating nice Tony in very, an are jump of past as the they're place a developing apply a have year experienced that playbook. did last comment. I'll really brought Rob did mean, operators our learning example, the the that the team the integrations doing they business lives, COVID. very on a And Herman COVID the job additional an as integration now. going to acquisition And before own nice tuck-ins hit. executing right from they to their of through experiences as these also that they're

great of done So playbook then one the of their ADI a and you in of P&S Phil, we team their carry in this confident comments an that the that team integration some folks we'll job. do any the that have to standpoint. the we as -- it other a terms do very we between do keys success as out and and is confident I'm what do Tony, great actually And M&A bought and lot in as from own have And some a of exceptional I'm careers. do job companies of transformation M&A, know that? you area. big poorly added in really

Tony Trunzo

very a to add to of to well component as long I'd Jay while this that their time. a strategy, culture they've that ADI for they M&A really process-oriented Yes. structured Jay's is new itself relatively as And for said, have lends a prepared just point, M&A. execution-oriented,

guess who deep but at M&A. M&A up capabilities We have have executive revenue. more the little going mean, the experience got just in some levels, deals in two also pretty the organization right? these And a generate hour we've folks – that I the further beefed I deals the individually pretty with nine we're well, small, are of two last, $XX here to points over not next months million

we're before monitor that deals going So to too we'll in burden one-time we we've as with walk many the sure and we terms progress run, them go don't at we cautiously definitely started of going scale. forward. We're over to make it

Unidentified Analyst

to I color. done one far? that deals wanted for thanks just two double great just from so you you've $XX number check -- Yeah, the million said Okay.

Tony Trunzo

Correct.

Unidentified Analyst

Okay. Great. Thanks.

Tony Trunzo

Yes.

Operator

come John And of the of from our Lovallo next question with line America. will Bank

John Lovallo

my you guys. taking Hey, for questions. Thank

one full-year is wide. first to margin gross range, XX% the The fairly XX% it's

I quarter second XX.X% think, XX.X%, margin, was gross First are you quarter thinking XX.X%. guys to

So this hit to imply the high-end to margins, seem excess range. of in of be to second that gross well XX% would half we need the

us help gross through some of low-end the the just potential you and can this range? So drivers think of margin of high

Tony Trunzo

XX% expanded point thing, hey, say XX% you've John, guess we've and XX%, point sure range it's the so think an as noticed, Yeah, it's year. we to to I'd Tony. of I'm broad you're XX%, somewhat a in moved right, I range were it first the – this is by a we is to that's at year. the But because, I Sure. unprecedented

concerns have around chain the our some for that can supply lines. of is And need actually expedited about part delivery. the around we had we relatively we making range reason the concerns cost why concerns product everything have We that's rate, of We wide. some sure of get

all continue may a profile than leadership the is that sold get the of – a P&S puts in the last business a probably parts focus profitable products have then of kind you the of we aspect sales ones myself a a It's to things over gross cost somewhat and wire business. part have that's gross one the more first takes. we there's the year – as a margins it's our get the season. basically copper. oversimplification, – half right the And are other that to you case the you second of Jay was pure this a sense and – basically I one we cooling and would higher than that going And that, And gross calculations business kinds Your mean, that be half pass-through. season margins the are we that a of pass-through in we understand and of team say have be honest sold where in in in as couple to structural are but have well. season you're I we with that of quarters just season. – of mix And have last heating the

those because any margin. empty but first we bit likely as to the to fair to drive less. A dollars that the calories, second they revenue the of type half through kind relative of activity is and that of the – in the don't half be So of relative go of in year year revenue

John Lovallo

Got it.

Okay. That's -

Jay Geldmacher

DNA other just really team business supply actions of part with you've that lot forward, picked add that is of to talk of the us about that offset some chain I'd the and help as there future very for world our the I'd the of we're facing as our up of critical is also but – momentum logistics done one things are things that heard thing a action that has and facing had talked also that going transformation lot is that they things team about. are Tony

also. we're careful business fact learned think Tony's in I So the of terms about that agree I that But you. about with comments of, what the communicating it sort we we've all or what to again, we're being want of exactly would does add, –

John Lovallo

it. Got

going quarter in XX% what is pretty XX.X% to then first printed the Michael the that back to of to similar top second you line at Okay. you the on quarter. The looking asked outlook the and may just guide. question And

step that a of would the $XX we in the XX.X%. decent SG&A, Let's to million. to call quarter-over-quarter million gross range midpoint margin up mean, pretty of $XX seem it imply assume I

the Just higher? wanted driving to you're range is potentially much that $XX profit to incremental operating how what and And that that that take talking else million of $XX investment? is about, million

Jay Geldmacher

we is investment. on of in majority increases There's stuff kick like of were compared smaller from incremental some investment with where in Xst that large the that. incremental in But QX. There's it things there is majority John. April the Significant ordinary

John Lovallo

Okay. Thank you guys.

Jay Geldmacher

you. Thank

Operator

question with come of next the will from Zaffino our Ian And line Oppenheimer.

Ian Zaffino

actually I that for ask great. Hi, wanted question just to mix again.

that mix? different, talking you I said think heating/cooling mix is meant seasonal the about or a is what Because I XXXX to going and more be not understand seasons we're really you mix would but is seasonal? just or kind clarify versus mix of be business XXXX, so, in thing that is XXXX what actual And wanted year-over-year? to if it of driving if that

Jay Geldmacher

driving was seasonal. it's Sorry was broadly, I at that what here

P&S We of than particularly profitable have be than in just mix cooling compared P&S profitable speaking have more not year. we a massive broadly doesn't we mix products we to do sales to QX. QX talking a of we're between in last in and in – have It's flux are and the QX the And and QX season. do QX and the about. within not mix It's seasonal this ADI a really shifts mix more they're that particularly mix really not –

North So a of season in America a a – be to less little said, it – to heating in season more little to as tends tends be tends like the just be And profitable. cooling EMEA. then tend season those don't bit that to just I be in products there we – they ramp

Ian Zaffino

that where hit going the Are on in got hit would I that it's Any other where mainly does there helpful. you? you shortage, security? microprocessor to you. be color would there And Okay. be areas

Jay Geldmacher

It terms it which -- security. depends just of but going, in chips isn't the are where

microchips as isn't were from only many grinding it other that I and doing. they either companies -- are it's other to mean resins out things So and

variety one say, would that areas. only of area. it's a I So of different not I Securities ones just the larger the but would say

Tony Trunzo

got... Yes. I mean we've

Jay Geldmacher

I'm going a comfort. No and Tony. others. degree, But general, I security. say issues also, it's a matter just supply and which two chain -- to the ahead of ones to say in security go problem are bit. I in childs mean thermal comfort I'd because than little just solutions pick had just I comfort If group the particular -- also But categories, bigger

Ian Zaffino

very Okay. Great. you Thank much.

Operator

will the Stanley. question line with our Erik come Woodring next Morgan of And from

Erik Woodring

Congrats throw for my here. taking for the I two quarter. Thanks guys guys. guess Hey, call. out you on I'll

could terms the residential, in quarter the for thermal on anything out versus comfort follow-up. just side, anything ADI starting that I commentary P&S did how first you'd call Thanks. then a geographic call more you out? of that provide little And Just of security maybe on versus have your just note same there? in you'd a And performance across then

Tony Trunzo

P&S On Erik thanks -- questions. for the

lines side, market the the the well. during of all in that the QX. the On P&S introduced pretty traditional series business did the business. of really I'll grew our three call ADT did what customer strongest. is robustly and -- quarter. significant We Security was clearly terrific in line, well They a which Pro

robust the showed the security growth all of three So three most meaningful them them growth. of of but -- three all segments, saw

call lot. ADI, remember little to terms their of that or one better. In mix there's geography not another. out EMEA did or But bit I in trying terms a anything I'm there's of anything particularly a not dramatic

Erik Woodring

either Okay. one take super has months. But Tony And the XX dramatically your over big helpful. That's this. Jay improved last then can leverage maybe or picture

before significant any have longer no You XXXX. maturities

some saw ratings You upgrades.

how given this target and dynamic? prioritize going forward? curious you'd cash just then about So you're your structure capital how And Thanks. leverage uses thinking

Tony Trunzo

feeds working in we that with through our of more like did couple to And capital those comments does We'll the mean, an more I I targets. that profile. metrics terms would into that exactly question. now see long-term about my things. of and made where Day of the tenure of in us rollout kinds long-term want in of credit return of Resideo a kind Great structure. early a investment-grade some over have We're say clarity at Investor thinking more little I the have we to to quarters. deeply -- be an the and really that next

and consistency, significant IRA. business are exposure in the and record And of performance the Honeywell Our But component isn't. we've gotten leverage the probably there. frankly, track the the

that's So a to anytime, obligation. something fixed reimbursement about our we obligation Honeywell leverage about as thinking the to agreement, think tantamount we're

grow we the business proportion into have thinking the as something As shrinks structure. of when it's that whole, the take capital a but to account about we

as of period the -- term. could long carry right are we than leverage where sensible a we little I comfortable that standpoint described. the were there way long long that as just from a cash say or So bit, If be would would we leverage feel constraints probably we're we take are a in our saying, over things I reasonable a carrying now like we'd given less deployment up doing

Jay Geldmacher

I just I reinforce interrupt, a -- that's that that Tony you just would just with it, of in we're framing sorry way jump I great Tony is to to last think want said, thing being take But cautious. more of at to of job be we've opportunities putting good to time they advantage a the up. done position think really the same able we I in as -- ourselves right come

Tony Trunzo

he's with of go-forward we in and M&A doing point have flow, few we a They're road earlier, ourselves head a that The building we I of ADI doing foundational But cash there capital We're we really in a deals -- the And we're deploy P&S, to position. market. that's prioritization has us mentioned see in debt play problem. to in and that whole to treasurer months our put last year -- refinance And also want as raise now was in at brought the the a the we ago that experience. not a the how meaningful fund them very not very the somebody inorganic out of quoted growth. of on -- map who you deep -- capital that We're is how in -- scale. terms and perspective out building strategy. that ADI strategy

And that's to the that's... be proactive. strategically I And phrase we think used we where are.

Jay Geldmacher

the to I'd with presentation and said be page focused each forward move well. really of those that deck, in M&A, pillars areas as as And Tony be those overview are slide have we P&S it we pillars have mentioned. And it. being add that that called think strategic there to that smart Yes. of to that about we want strategic able the -- I we a on one is make just flexibility business but the that And in we I sure organically our or P&S course we that act need to have the

Tony Trunzo

EBITDA to if the opposed implication like team it one decisions new of take or high the surrounding what's about second what's game the wanted and something. about important on This is mention a long the deleveraging strategic table the over done impact us reasons of business structure in for to transformation really has last months I the financial answer it the of other is XX but our time multiyear the business to and horizon the over to your operational and point best profound were reasonable been horizon question, to had able why was to the wanted off And we've thing that the want early capital implication of those over operational horizon leadership a for for one time the a priority the We've decision-making, thinking concerns we cash the as decision-making take we in really feels the a time making people. people And concerns business. as was or that. strategic decisions to the

Erik Woodring

color. was you guys. That great Thank very

Operator

to And Dircks come our going question with [Operator of Paul line next Blair. from William Instructions] is the

Paul Dircks

Hi, good good on a congrats quarter. afternoon and

Tony Trunzo

Thanks Paul.

Jay Geldmacher

you, Paul. Thank

Paul Dircks

me. for two So,

are contractors to you to guys of environment do there in differentiate new closer strengthening? robust offering value Is the kind Resideo your to we're seeing given residential the P&S grow other that the your contractors pros to and in market is and into that some In to tight can and products? to First very the market your brands and and this proposition of perhaps recruit market words, even of things that labor nationally trades. nature now

Jay Geldmacher

I'll I me have this we Construction of total the in mentioned our products further that Paul and and of New about know But offer excited Tony. the yes, with the I'll there. my first that that question part it together jump RNC let asset you growth when ask installers out I we as great and portfolio can pro of relationship comments you as because get Residential deepening

be Products of on. areas training the & So, a part example this market we working And important Also, terms big move come Solutions that board and to that's to we've in they an and trades. us there about there in you'll as who's about trades as on with team partners. lot to able Phil Theodore new many and his into the that just forward. and of things out that. more one support have a as of President And of focus that effort learn hear lot young those got help people in one We're that's

term. both got good and term we're very So, one that? your is long question you've a anything really add focused that question and Tony on to to short

Tony Trunzo

our significant a coming into young these scholarships pros bolts engagement future. the which Two, supporting the for bunch it's Yes. number we've their producing One, But the challenge customers necessarily there's for nuts we're tax labor that and is aging thing a longer-term help at not our to do. a goodness today. -- it's and they're them there's to to reasons. Paul, an whole not education, right? a those tremendous and of of in supports work life amount somebody pressure of But fan in -- shortages. their that. of skilled And you the technicians the and you it in question force is of associated it and inside because it's they're that folks rate question -- the trades because ask with with if with our really context area for a you're right really their on right So, labor we focused for areas customers P&S pandemic make had with of a

mention process The of type it. successful. design of house the labor they're that to has on the do more out of we is the too. somebody's got to be we're of is things be focused I work has to really When show product types to be they making to this type to though product And have going when be efficiency those that as one thing -- professionals wanted Jay in pro -- has on easy they the And homes. may It install. the really color of that to It and up trained the improves robust. that other on what means

question the product all really really into design our way your back goes So, cycles.

Jay Geldmacher

Good Yes. feedback.

Paul Dircks

be sure it. to more there'll very I Got That's this on that. color. appreciate I'm come helpful topic.

more guess side, growth Second your particular, are dollars maybe believe working and quarter in last now the question increased that effectiveness e-commerce And the point XXs you? from commanding can I the was switching have on there? your what's execution very the that XX% ADI, the I somewhere marketplace in you in for or specifically, e-commerce robust. up to any are there year-over-year investment XXs. me in to changes with upper year mid-

Tony Trunzo

dollars. more definitely It's investment commanding

So, there's no it. question about

improved have to this long that of experience been e-commerce that going are for web systems that customers. have I our online we've meaningfully have that improve also about our that think even as information coming talking are we more and product go. but e-commerce We investment here And part experience a experience to we way

I'm call is The and to the customers that training other our what to going driving portal part for buys. everyday

with customers who out an the for our taking sales this associates it to of can increase a the productive of customers the sort make process performance But and consultative is we hands it order free our ADI. valuable to be of to I job able objective Our at out in but customers also more pieces up better and consultative sales our say their with for our sales experience one to we that clerical really the it objective think customers move overall take in to real the is be experience tremendous for be is our of associates will web such get that our and the today move branches. e-commerce

Jay Geldmacher

in the had Yes, right I as Paul, -- hit I nail mean And nice would I add that. head we've you think just with that's since that stated Tony year. the last growth

There's after saying, even So, the out how and about that coming the and we a can opportunity it it that experience. helped by COVID COVID now of gave easier But lot -- market it. it digital do because I this doubt accelerate of forced no saw think us through are I using that. through some COVID people

further further. to accelerate And said that. Tony of we're areas one so as investment investing our That's

it of excited can his Rob So, see about at know because I month. they people the results super and are ADI every team

Paul Dircks

answers. the I thoughtful Understood. appreciate you. Thank

Jay Geldmacher

Thanks. Paul.

Operator

have And over further no to at I will this the time, we question. any call turn you comments. it for closing appears

Tony Trunzo

just follow-ups have appreciate everyone. today weeks everyone's out participation and if look Thank on you the to months. any I you. care forward the we with and call. speaking Please coming Take over you reach

Operator

thank Technologies like in to participating for Resideo we'd you call. again, conference today's Once

disconnect. now may You

Resideo (REZI) 9 May 212021 Q1 Earnings call transcript