ADT Inc (ADT) 2024 Q2 法說會逐字稿

Thank you for standing by. I'd now like to welcome everyone to the ADT second quarter 2024 earnings conference call. (Operator Instructions)

謝謝你的支持。現在，我歡迎大家參加 ADT 2024 年第二季財報電話會議。（操作員說明）

I would now like to turn the call over to Elizabeth Landers. Please go ahead.

我現在想把電話轉給伊莉莎白·蘭德斯。請繼續。

Thank you, operator, and good morning, everyone. We appreciate you joining today's call to discuss ADT's second quarter 2024 results.

謝謝接線員，大家早安。我們感謝您參加今天的電話會議，討論 ADT 2024 年第二季的業績。

Speaking on today's call will be ADT's Chairman, President and CEO, Jim DeVries; and our Chief Financial Officer, Jeff Likosar; Wayne Thorsen, Chief Business Officer, will also join us following the prepared remarks as we take analysts questions. Earlier this morning, we issued a press release and slide presentation of our financial results. These materials are available on our website at investor.adt.com.

ADT 董事長、總裁兼執行長 Jim DeVries 將在今天的電話會議上發表講話；以及我們的財務長 Jeff Likosar；商務長 Wayne Thorsen 也將在我們準備好發言後回答分析師的問題。今天早些時候，我們發布了財務業績的新聞稿和幻燈片演示。這些資料可在我們的網站 Investor.adt.com 上取得。

Before we begin, I'd like to remind everyone that both the former Commercial and Solar segment are reported as discontinued operations. Financials and metrics for current and historical periods discussed on this call will be for continuing operations, except for cash flows, which include amounts related to the Commercial business through the date of sale and Solar through the second quarter of 2024.

在開始之前，我想提醒大家，前商業和太陽能部門都已報告為已停產業務。本次電話會議討論的當前和歷史時期的財務和指標將針對持續經營業務，但現金流量除外，其中包括截至出售之日與商業業務相關的金額以及截至2024 年第二季度與太陽能業務相關的金額。

Today's remarks also include forward-looking statements that represent our beliefs or expectations about future events. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. Some of the factors that may cause differences are described in our SEC filings. We will also discuss non-GAAP financial measures on the call. The most directly comparable GAAP measures along with a reconciliation to those measures can be found in our earnings presentation on the ADT Investor Relations website.

今天的言論還包括代表我們對未來事件的信念或期望的前瞻性陳述。這些前瞻性陳述存在風險和不確定性，可能導致實際結果有重大差異。我們向 SEC 提交的文件中描述了一些可能導致差異的因素。我們也將在電話會議上討論非公認會計準則財務指標。最直接可比較的 GAAP 指標以及這些指標的調整表可以在 ADT 投資者關係網站上的收益報告中找到。

Good morning, and thank you to everyone for joining us today to discuss ADT's second quarter results. As we've passed the midpoint of the year, ADT is well positioned to deliver the full year financial guidance we outlined in February. I am pleased with our overall performance this quarter and our first half, particularly against the current macroeconomic backdrop, which includes higher interest rates and fewer relocations, a traditional catalyst for new subscribers.

早安，感謝大家今天加入我們討論 ADT 第二季業績。隨著今年年中已過，ADT 已做好充分準備來提供我們在 2 月概述的全年財務指引。我對我們本季和上半年的整體表現感到滿意，特別是在當前的宏觀經濟背景下，其中包括利率上升和搬遷減少，這是新用戶的傳統催化劑。

We continued to grow revenue up 3% versus the prior year while remaining focused on balancing profitability and investments for the future. And importantly, we again delivered very strong adjusted free cash flows at $251 million, up 14% from the prior year. Gross revenue attrition was 12.9% for the quarter with revenue payback at 2.2 years. This performance is a testament to the durability, resilience and flexibility of ADT's business model. Jeff will provide more details about our financials and full year outlook in a few moments, but I first would like to share a few comments about our business and strategic progress.

我們的收入繼續比上一年增長 3%，同時繼續專注於平衡未來的盈利能力和投資。重要的是，我們再次實現了非常強勁的調整後自由現金流，達到 2.51 億美元，比上年增長 14%。本季總營收流失率為 12.9%，營收回收期為 2.2 年。這項業績證明了 ADT 業務模式的耐用性、彈性和靈活性。傑夫將在稍後提供有關我們的財務狀況和全年展望的更多詳細信息，但我首先想分享一些有關我們的業務和戰略進展的評論。

I'd also like to take a moment to highlight a pivotal point in ADT's history. This month, ADT will be celebrating an extraordinary milestone, our 150th year in business. We are among just a few iconic companies to have been founded in the 1800s and still thriving today. The key to ADT's enduring success has been our exceptional ability to adapt and innovate. It goes without saying that our people have driven our business, and I want to thank the dedicated teams of professionals that have built and driven this company over several generations.

我還想花點時間強調 ADT 歷史上的一個關鍵點。本月，ADT 將慶祝一個非凡的里程碑，即我們成立 150 週年。我們是少數幾家成立於 1800 年代且至今仍在蓬勃發展的標誌性公司之一。ADT 持久成功的關鍵在於我們卓越的調適和創新能力。不用說，我們的員工推動了我們的業務，我要感謝幾代人建立和推動這家公司的敬業的專業團隊。

We now stand at a pivotal moment in our company's history, ready to write the next chapters of the ADT story fueled by thoughtful innovation and our current industry-leading team.

我們現在正處於公司歷史上的關鍵時刻，準備在深思熟慮的創新和我們當前行業領先的團隊的推動下，書寫 ADT 故事的下一個篇章。

I could not be more excited about this chapter and remain humbled by the opportunity to lead this great company. Today, as we progress into the chapters to come, we are focused on investing in the next-generation product and experience ecosystem and creating even more reasons for customers to choose ADT and stay with ADT.

我對這一章感到無比興奮，並對有機會領導這家偉大的公司感到謙卑。今天，隨著我們進入接下來的章節，我們將專注於投資下一代產品和體驗生態系統，並為客戶選擇 ADT 並留在 ADT 創造更多理由。

A key component of our future is our new and proprietary ADT+ platform, which I'm pleased to share is now available across the country for a growing portion of our professionally installed residential customers. This follows our rollout for self-setup customers last year.

我們未來的關鍵組成部分是我們全新的專有 ADT+ 平台，我很高興與大家分享，該平台現已在全國範圍內為越來越多的專業安裝住宅客戶提供。這是我們去年為自行設定客戶推出的。

Our ADT+ platform includes a new app, refreshed hardware and offers a number of advantages, including enhanced installation flexibility and configurability. Importantly, it also offers additional and stronger integrations with smart home devices such as Google's Nest ecosystem.

我們的 ADT+ 平台包括新的應用程式、更新的硬件，並提供許多優勢，包括增強的安裝靈活性和可配置性。重要的是，它還提供了與智慧家庭設備（例如 Google 的 Nest 生態系統）的額外且更強大的整合。

Our ADT+ platform is the foundation on, which we will innovate to build future unique experiences tailored to our customers' individual needs. The first of these experiences will be what we have branded, Trusted Neighbor, an innovative new feature offering both convenience and security to our customers by leveraging Nest's familiar faces to seamlessly grant trusted individuals secure and temporary access to their homes, either on a defined schedule or for specific events, such as package delivery or water leaks. We anticipate this offering will become available for ADT+ customers during the third quarter.

我們的 ADT+ 平台是基礎，我們將在此基礎上進行創新，打造適合客戶個人化需求的未來獨特體驗。這些體驗中的第一個將是我們的品牌“受信任的鄰居”，這是一項創新的新功能，透過利用Nest 熟悉的面孔，無縫地為受信任的個人提供安全和臨時的訪問權限，為我們的客戶提供便利和安全，無論是按照規定的時間表或針對特定事件，例如包裹遞送或漏水。我們預計該產品將在第三季向 ADT+ 客戶提供。

Facilitating this experience, we're pleased to announce we have recently entered a partnership with Yale Lock to provide our customers this innovative and secure solution, which also builds on our existing Google relationship. We will continue to add more features to the ADT+ platform over time and look forward to the enhanced capabilities and flexibility we will enjoy with our owned and proprietary ecosystem.

為了促進這種體驗，我們很高興地宣布我們最近與Yale Lock 建立了合作夥伴關係，為我們的客戶提供這種創新且安全的解決方案，該解決方案也建立在我們現有的Google 關係的基礎上。隨著時間的推移，我們將繼續為 ADT+ 平台添加更多功能，並期待我們將透過我們擁有的專有生態系統享受增強的功能和靈活性。

I also want to share that concurrent with this rollout, we're offering more flexibility to our customers and their buying choices, including more disaggregated offers, installation options and payment and contracting terms.

我還想分享的是，在此次推出的同時，我們為客戶及其購買選擇提供了更大的靈活性，包括更多分類報價、安裝選項以及付款和合約條款。

Additionally, we continue to make progress in our second to none commitment to safety, again, a hallmark for the past 150 years, with our alarm scoring capabilities, which are now live nationwide. This technology allows us to classify alarms based on predicted severity, which leads to a reduction in false alarms and importantly, enables us to share more precise alarm information for our customers with first responders.

此外，我們繼續在首屈一指的安全承諾方面取得進展，這也是過去 150 年來的標誌，我們的警報評分功能現已在全國範圍內上線。這項技術使我們能夠根據預測的嚴重程度對警報進行分類，從而減少誤報，更重要的是，使我們能夠與急救人員為客戶共享更準確的警報資訊。

Additionally, as I've shared previously, we have expanded our Google relationship to include their cloud artificial intelligence technology platform and are currently exploring several opportunities across our business with early efforts focused on call center operations.

此外，正如我之前分享的那樣，我們已經擴大了與Google的關係，將他們的雲端人工智慧技術平台納入其中，目前正在探索我們業務中的一些機會，早期的工作重點是呼叫中心運營。

We also remain focused on advancing our State Farm partnership, both installation and new customer RMR were up 7% on a unit basis in the second quarter. We're also focused on a self-setup alternative in select states. The first state where we've rolled out this offering just this month has been Georgia, with another state expected in the third quarter. We're obviously, very excited about the overall progress we've made in developing new and innovative products and services for our customers and the foundation this provides for the future.

我們也持續致力於推動與 State Farm 的合作夥伴關係，第二季的安裝量和新客戶 RMR 均以單位計算成長了 7%。我們也專注於在某些州提供自行設定的替代方案。本月我們第一個推出此服務的州是喬治亞州，預計第三季將推出另一個州。顯然，我們對我們在為客戶開發新的創新產品和服務方面取得的整體進展以及這為未來奠定的基礎感到非常興奮。

Supporting this progress, we recently introduced our new brand promise, When Every Second Counts, including the launch of a new advertising campaign, Always There. We've refreshed our media across a variety of outlets, including placements during the Olympics.

為了支持這一進步，我們最近推出了新的品牌承諾“當每一秒都很重要”，包括推出新的廣告活動“Always There”。我們更新了各種管道的媒體，包括奧運期間的投放。

In closing, I want to highlight that the top priority of our team remains to deliver on our commitments for our shareholders, customers and partners. I'm incredibly proud of our ADT team and our recent accomplishments as well as our achievements over the course of our company's 150-year history. I'm even more excited for the opportunities that lie ahead.

最後，我想強調，我們團隊的首要任務仍然是履行對股東、客戶和合作夥伴的承諾。我為我們的 ADT 團隊、我們最近的成就以及我們公司 150 年歷史中所取得的成就感到無比自豪。我對未來的機會更加興奮。

And with that, I'll turn the call over to Jeff.

然後，我會將電話轉給傑夫。

Thanks, Jim, and thank you, everyone, for joining our call. As Jim mentioned, we continued our progress during the second quarter, delivering a very strong first half, consistent with our full year objectives, and we are reaffirming our full year guidance today.

謝謝吉姆，也謝謝大家加入我們的電話會議。正如吉姆所提到的，我們在第二季度繼續取得進展，上半年表現非常強勁，與我們的全年目標一致，我們今天重申了我們的全年指導。

Before summarizing our results, I want to reiterate that, as Elizabeth mentioned, we have substantially wound down our Solar operations. Results were: Solar, along with the Commercial segment we divested last year are reflected in discontinued operations. My comments will therefore focus mainly on our core CSB business.

在總結我們的結果之前，我想重申，正如伊莉莎白所提到的，我們已經大幅縮減了太陽能業務。結果是：太陽能以及我們去年剝離的商業部門都反映在已終止的業務中。因此，我的評論將主要集中在我們的核心 CSB 業務上。

I will start with our cash flow performance, which remains a highlight through the first half. As Jim mentioned, we delivered very strong adjusted free cash flow, including interest rate swaps of $251 million, which was up 14% compared to last year.

我將從我們的現金流表現開始，這仍然是上半年的亮點。正如吉姆所提到的，我們提供了非常強勁的調整後自由現金流，包括 2.51 億美元的利率掉期，比去年增長了 14%。

On a year-to-date basis, we have generated $362 million, which is more than 50% higher than last year. This growth is driven by our overall profitability and lower cash interest due to our debt reduction. Working capital management, including some timing items also contributed.

今年迄今，我們已創造了 3.62 億美元的收入，比去年成長了 50% 以上。這一增長是由我們的整體盈利能力和債務減少導致的現金利息下降所推動的。營運資金管理，包括一些時間項目也做出了貢獻。

Adjusted net income for the quarter was $156 million or $0.17 per share. On a year-to-date basis, we have generated earnings per share of $0.36, up 38% compared to the first half of last year. Total revenue was $1.2 billion for the quarter, up 3%.

該季度調整後淨利潤為 1.56 億美元，即每股 0.17 美元。今年迄今，我們每股收益為 0.36 美元，比去年上半年成長 38%。該季度總營收為 12 億美元，成長 3%。

Monitoring and services revenue was up 2%, driven by our recurring monthly revenue, or RMR, from our subscriber base. Ending RMR was at a record $355 million, also up 2%, driven by strong customer retention and higher average pricing.

監控和服務收入成長了 2%，這得益於我們訂閱者群的每月經常性收入 (RMR)。由於強勁的客戶保留率和較高的平均定價，最終 RMR 達到創紀錄的 3.55 億美元，也成長了 2%。

We generated 212,000 gross new customer additions, adding $12.5 million of new RMR. This was down somewhat from the prior year as we remain disciplined with SAC expenditures in current environment.

我們新增了 212,000 名新客戶，新 RMR 增加了 1,250 萬美元。這比前一年有所下降，因為我們在當前環境下仍然遵守 SAC 支出。

While fewer relocations generally lead to less consumer demand for new systems, they also provide some tailwind for customer retention. Our overall attrition was 12.9%, approximately flat, reflecting this benefit and our continued commitment to delivering superior service and some offsetting challenges driven by somewhat higher payment delinquencies and related cancellations.

雖然較少的搬遷通常會導致消費者對新系統的需求減少，但它們也為保留客戶提供了一些推動力。我們的整體流失率為 12.9%，大致持平，反映了這一收益以及我們對提供優質服務的持續承諾，以及一些抵消因拖欠付款和相關取消而帶來的挑戰。

Installation revenue increased by 9% in the quarter, driven by higher deferred revenue amortization. As we've described previously, we expect installation revenue to grow as we evolve our model to transfer equipment ownership to our customers.

在遞延收入攤銷增加的推動下，本季安裝收入成長了 9%。正如我們之前所描述的，隨著我們發展模型以將設備所有權轉移給客戶，我們預計安裝收入將會成長。

Adjusted EBITDA for the quarter was $629 million, down 2%. Our results included an unfavorable legal settlement in the current year, while the prior year quarter included a favorable legal settlement. The net effect of these unrelated items is approximately $40 million or 6% year-over-year.

該季度調整後 EBITDA 為 6.29 億美元，下降 2%。我們的業績包括本年度不利的法律和解，而上一季包括有利的法律​​和解。這些不相關項目的淨影響約為 4000 萬美元，年增 6%。

I will note that we are seeking indemnification for this year's settlement. Otherwise, a key driver of our EBITDA performance is the higher revenue I mentioned earlier. Additionally, we remain focused on operating profitability and benefited from strong field and call center cost performance. Offsetting dynamics include credit loss allowances consistent with the payment delinquencies I mentioned, and we also continue with our planned product and technology investments supporting the initiatives Jim described in his remarks.

我要指出的是，我們正在為今年的和解尋求賠償。除此之外，我們 EBITDA 績效的一個關鍵驅動因素是我之前提到的更高的收入。此外，我們仍然專注於營運獲利能力，並受益於強大的現場和呼叫中心性價比。抵銷動態包括與我提到的拖欠付款一致的信用損失準備金，我們還繼續計劃進行產品和技術投資，以支持吉姆在演講中描述的舉措。

During the quarter, we returned $50 million to shareholders via dividends. And year-to-date, we have returned $175 million, including our March share repurchases. We repaid the final $100 million to retire our April 2024 notes and the $50 million drawn on our revolving facility. We also completed the repricing of our Term Loan B, reducing associated borrowing costs by 25 basis points and we upsized our Term Loan B to retire our Term Loan A.

本季度，我們透過股息向股東返還 5,000 萬美元。今年迄今為止，我們已返還 1.75 億美元，其中包括 3 月的股票回購。我們償還了最後 1 億美元以償還 2024 年 4 月的票據，並從我們的循環貸款中提取了 5000 萬美元。我們也完成了定期貸款 B 的重新定價，將相關借貸成本降低了 25 個基點，並擴大了定期貸款 B 的規模以收回定期貸款 A。

Our overall net debt of $7.4 billion is down approximately $2 billion from this time last year. We now have no significant debt maturities until 2026, with a weighted average cost of debt of approximately 4.5%. I'm especially pleased that our net debt-to-adjusted EBITDA ratio is at three times, achieving the milestone we set for this year. We have approximately $257 million in remaining share repurchases authorization and we continue to think our stock is very attractive at recent prices.

我們的總淨債務為 74 億美元，比去年同期減少了約 20 億美元。目前，我們在 2026 年之前沒有重大債務到期，加權平均債務成本約為 4.5%。我特別高興的是，我們的淨債務與調整後 EBITDA 比率達到了三倍，實現了我們今年設定的里程碑。我們還有大約 2.57 億美元的剩餘股票回購授權，我們仍然認為我們的股票以最近的價格非常有吸引力。

We remain very confident in our overall capital structure, liquidity, cash generation capability and the resulting flexibility in capital allocation. As we look to the rest of 2024, we are reiterating the guidance we shared at the beginning of the year. We'll note that we have updated our adjusted EPS guidance to reflect the Solar business presented as a discontinued operation.

我們對我們的整體資本結構、流動性、現金產生能力以及由此帶來的資本配置靈活性仍然充滿信心。展望 2024 年剩餘時間，我們重申年初分享的指引。我們將注意到，我們已經更新了調整後的每股收益指引，以反映作為已終止業務的太陽能業務。

Due mainly to the legal settlement I described, we expect third quarter adjusted EBITDA to look more like the first quarter than the second, and we expect third quarter adjusted free cash flow to be in line with, if not a little lower than the first quarter. This is mainly because our cash interest payments are much lower in the second and fourth quarters than the first and third.

主要由於我所描述的法律和解，我們預計第三季度調整後的EBITDA 看起來更像第一季度，而不是第二季度，並且我們預計第三季度調整後的自由現金流將與第一季保持一致，甚至略低於第一季。這主要是因為我們第二季和第四季的現金利息支付遠低於第一季和第三季。

Additionally, we anticipate some higher SAC spending in the third quarter due to a potential bulk account purchase. We have considered these factors in our full year ranges and we remain focused on disciplined execution to achieve this year's objectives and to position for 2025 and beyond.

此外，由於潛在的大宗帳戶購買，我們預計第三季 SAC 支出將會增加。我們已經在全年範圍內考慮了這些因素，並且仍然專注於嚴格執行，以實現今年的目標並為 2025 年及以後做好準備。

Overall, we are very pleased with our strong first half and excited to be building on our 150-year legacy, writing the new chapters Jim described. I want to thank our teams, including our partners for all their contributions to our success. And thank you again, everyone, for joining the call today.

整體而言，我們對上半年的強勁表現感到非常滿意，並很高興能夠在我們 150 年的傳統基礎上再接再厲，譜寫 Jim 所描述的新篇章。我要感謝我們的團隊，包括我們的合作夥伴為我們的成功所做的所有貢獻。再次感謝大家今天加入電話會議。

Operator, please open the line to questions.

接線員，請打開提問線。

(Operator Instructions) George Tong, Goldman Sachs.

（操作員指令）George Tong，高盛。

Hi. Thanks. Good morning. You mentioned you're taking a disciplined approach with respect to subscriber acquisition cost spend which helps preserve cash flow in the current environment, which is good, but it also -- it does come with the effect of impacting gross adds. How do you balance the investment of SAC versus your priorities to drive growth? And what markers externally would you need to see to be more aggressive with SAC investments?

你好。謝謝。早安.您提到您正在對訂戶獲取成本支出採取嚴格的方法，這有助於在當前環境下保持現金流，這很好，但它確實會產生影響總增加的效果。您如何平衡 SAC 的投資與推動成長的優先事項？您需要看到哪些外部標誌才能更積極地進行 SAC 投資？

Thanks for the question, George. It's Jim. And I'll share some perspective. The -- so we have some pressure in our organic business from fewer housing relocations. We also tightened up credit standards in DIY and marketing costs, frankly, for affiliates and even things like direct mail are a little bit higher. And so we have been very disciplined about our growth. We're not going to chase growth when it doesn't meet our return standards, and something that Jeff mentioned, we're keeping some gunpowder dry for a potential bulk opportunity in Q3.

謝謝你的提問，喬治。是吉姆。我將分享一些觀點。因此，我們的有機業務面臨著一些來自住房搬遷減少的壓力。我們也收緊了DIY和行銷成本的信用標準，坦白說，對於附屬公司甚至直郵之類的東西都有點高。因此，我們對自己的成長非常嚴格。當它不符合我們的回報標準時，我們不會追求成長，傑夫提到，我們正在為第三季潛在的大量機會保留一些火藥。

As you know, there's ample opportunity for us to buy bulk deals. We've done that in most of the last handful of years. We sort of view it as a capital allocation dynamic, bulk versus dealer versus organic. And so we anticipate using some of that SAC, some of that dry gunpowder for a bulk in Q3. It's actually from the same seller that we acquired the bulk from last December. It's got great characteristics out of the gates and returns in the ZIP code of what we have for our dealer business.

如您所知，我們有充足的機會進行大宗交易。我們在過去幾年的大部分時間都這樣做了。我們將其視為一種資本配置動態，散裝與經銷商與有機資本配置。因此，我們預計在第三季大量使用一些 SAC、一些乾火藥。實際上，我們去年 12 月購買的大部分產品都是來自同一個賣家。它在我們經銷商業務的郵政編碼中具有出色的特點和回報。

George, I would add to just -- George, sorry, it's Jeff. Just a reminder that as we're evaluating these, we're always focused on the IRR, which is driven by how much does it cost to acquire the customer? What do we expect to be the profitability of the customer? And how long do we expect that customer to stay with us? So the mix between those factors may vary, but it's always in pursuit of that objective.

喬治，我想補充一點──喬治，抱歉，我是傑夫。只是提醒一下，當我們評估這些時，我們始終專注於 IRR，它是由獲取客戶的成本所驅動的？我們期望客戶的獲利能力是多少？我們預計該客戶會在我們這裡待多久？因此，這些因素之間的組合可能會有所不同，但它始終是為了追求這一目標。

And I also would highlight that in our guidance, we -- at the beginning of the year, said we expected SAC on a full year basis to be approximately flat. Fourth quarter was our largest SAC quarter. Last year, on a year-to-date basis, we're tracking right in that range. So as we work through the second half of the year, you're consistent with Jim's comments, that remains the way we're looking at it.

我還要強調的是，在我們的指導中，我們在今年年初表示，我們預計 SAC 全年將大致持平。第四季是我們最大的 SAC 季度。去年，從年初至今來看，我們一直在這個範圍內追蹤。因此，當我們在下半年開展工作時，您與吉姆的評論一致，這仍然是我們看待問題的方式。

Got it. That's helpful. And then with respect to the State Farm partnership, can you talk a little bit about how that's progressing, milestones and expectations for incremental revenue contributions from joint offerings.

知道了。這很有幫助。然後，關於 State Farm 的合作夥伴關係，您能否談談進度、里程碑以及對聯合產品增量收入貢獻的期望。

Sure. So I'll give you some operating perspective on the State Farm partnership. The vision remains intact. We together, want to essentially transform the homeowners business from purely restoration to include prediction and prevention to avoid losses. We made good progress in the first half. Some areas have been a little slower than we had hoped. We have a great deal of regulatory and compliance work that's accomplished.

當然。因此，我將向您介紹一些關於 State Farm 合作夥伴關係的營運觀點。願景保持良好。我們共同希望從根本上將房主業務從純粹的修復轉變為包括預測和預防以避免損失。上半場我們取得了很好的進展。有些地區的進展比我們預期的要慢一些。我們已經完成了大量的監管和合規工作。

I think I mentioned during the last call, George, we're in 13 states. We had 6,000 sales in 2023. We're at 9,000 sales year-to-date. On a unit basis, both RMR and install revenue per unit are up 7% sequentially. So it's improving in terms of the economics, and about two-thirds of the installs that we have include an upsell. Customer satisfaction is very high as well. So we're tracking, moving along, making progress.

我想我在上次通話中提到過，喬治，我們分佈在 13 個州。2023 年我們的銷量為 6,000 輛。今年迄今為止，我們的銷量為 9,000 輛。以單位計算，每單位的 RMR 和安裝收入均較上季成長 7%。因此，它在經濟方面正在改善，我們大約三分之二的安裝包括追加銷售。客戶滿意度也非常高。所以我們正在追蹤、前進、取得進展。

I'll mention one last thing for you. We're testing DIY currently in Georgia. We anticipate rolling out a DIY alternative in Washington in Q3, and then in addition to that, we're looking at a water-specific test that we hope to launch later this year as well.

我要為你提最後一件事。我們目前正在喬治亞州測試 DIY。我們預計第三季在華盛頓推出 DIY 替代方案，除此之外，我們還在考慮一項針對水的測試，希望在今年稍後推出。

George Tong

喬治唐

That's very helpful. Thank you.

這非常有幫助。謝謝。

Ashish Sabadra, RBC Capital Markets.

Ashish Sabadra，加拿大皇家銀行資本市場。

Hi. Thanks for taking my question. So congrats on the ADT+ launch. I just wanted to follow up there and wanted to see what initial feedback you might have received from ADT+, particularly on the self-install side, but also as you go for the professional install, any feedback in terms of -- from the installers or from customers in terms of experience, but also efficiencies in installation and any color on that front? Thanks.

你好。感謝您提出我的問題。恭喜 ADT+ 發布。我只是想跟進並想看看您可能從 ADT+ 收到了哪些初步反饋，特別是在自助安裝方面，而且當您進行專業安裝時，來自安裝人員或從客戶的經驗來看，還有安裝效率以及這方面的任何顏色？謝謝。

Thanks for the question, Ashish. Wayne, do you want to take this one?

謝謝你的提問，阿什什。韋恩，你想拿這個嗎？

Yes. Thanks, Ashish. Thanks for the question. We just completed the national roll out in June. So it's now available in all regions. So we're incredibly excited about that. The initial -- we're thrilled with what we're seeing initially, we are seeing as an example, one quality score that we use a lot is how often do installers have to go back. And the quality here since around our late spring, as we're rolling it out, has surpassed our other offerings.

是的。謝謝，阿什什。謝謝你的提問。我們剛剛在六月完成了全國推廣。所以現在所有地區都可以使用它。所以我們對此感到非常興奮。最初——我們對最初看到的東西感到非常興奮，作為一個例子，我們經常使用的品質分數是安裝人員必須返回的頻率。自從春末左右推出以來，這裡的品質已經超過了我們的其他產品。

So we're really, really happy about that. We're also seeing month-over-month efficiency gains, which was designed to be efficient because this is both a pro installation methodology as well as the equipment can be installed in a DIY fashion. So we're really pleased with it.

所以我們對此感到非常非常高興。我們也看到了逐月的效率提升，這是為了提高效率而設計的，因為這既是一種專業的安裝方法，又可以以 DIY 的方式安裝設備。所以我們對此非常滿意。

That's very helpful color. Just for the quarter, would it be possible to get what the EBITDA was excluding the legal settlement? And then just for the full year, I just wanted to better understand if there are any other puts and takes that we need to be cognizant of for the rest of the year. Thanks.

這是非常有用的顏色。僅就本季而言，是否有可能獲得不包括法律和解在內的 EBITDA？然後就全年而言，我只是想更好地了解是否還有其他我們需要在今年剩餘時間裡認識到的看跌期權和看跌期權。謝謝。

I'll comment on the lawsuit, Ashish, and then Jeff will have some more color to share for you. As Jeff mentioned, our EBITDA was negatively impacted this quarter by the settlement. It was a patent infringement case.

我將對訴訟發表評論，阿什什，然後傑夫將為您分享更多色彩。正如傑夫所提到的，和解協議對本季我們的 EBITDA 產生了負面影響。這是一起專利侵權案件。

The terms of that settlement are confidential. So it's difficult to comment with detail. I can share that the case is completely resolved. Virtually all of the impacted products were supplied by one of our hardware suppliers. We believe strongly that the supplier is contractually required to indemnify us, that supplier to this point has been unwilling to do so. And so we've filed a lawsuit to essentially enforce our contractual rights.

和解協議的條款是保密的。所以很難詳細評論。我可以分享的是，此案已經徹底解決。幾乎所有受影響的產品都是由我們的硬體供應商提供的。我們堅信，合約規定供應商必須賠償我們，但供應商到目前為止一直不願意這樣做。因此，我們提起訴訟，以實質強制執行我們的合約權利。

And Jeff, did you have some additional comments?

傑夫，您還有其他意見嗎？

Yes. There's no specific thing I would highlight. There's always puts and takes, but we're very happy to be in a position through the first half of the year, even including the legal settlement and everything else we're aware of to affirm the guidance that we put forth earlier, and we're confident that we will manage the second quarter to achieve those objectives -- or the second half, I'm sorry, to achieve those objectives.

是的。我沒有要強調的具體事情。總是會有各種的取捨，但我們很高興能夠在今年上半年處於有利的位置，甚至包括法律和解以及我們所知道的所有其他內容，以確認我們之前提出的指導方針，並且我們有信心在第二季度實現這些目標，或者很抱歉，在下半年實現這些目標。

Toni Kaplan, Morgan Stanley.

東尼卡普蘭，摩根士丹利。

Yes. Thanks so much. You mentioned the sort of AI opportunities with regard to Google and looking at sort of your call center to try to find efficiencies there. I guess, how should we think about the time frame of your development there? Are you sort of far along yet? Or are you still at early stages? How long should we expect it to take? And I guess, any sort of return or margin improvement or anything we could think about in terms of what the implications could be from that initiative?

是的。非常感謝。您提到了與Google相關的人工智慧機會，並查看了您的呼叫中心以試圖提高那裡的效率。我想，我們應該如何考慮你們在那裡發展的時間框架？你還遠嗎？還是你還處於早期階段嗎？我們預計需要多長時間？我想，任何形式的回報或利潤率的提高，或者我們可以考慮的任何形式的舉措可能產生的影響？

Sure, Toni. It's Jim. I'll add a couple of comments on the timing. And then, ask Wayne to share some additional perspective. Our AI opportunities are largely anchored in Google Cloud partnership.

當然，托尼。是吉姆。我將就時間安排添加一些評論。然後，請韋恩分享一些額外的觀點。我們的人工智慧機會很大程度上取決於 Google Cloud 合作夥伴關係。

We expanded that partnership late last year or early this year. As you mentioned, our first opportunity lies in customer care, largely around call deflection. I think we'll begin to see some impact late this year.

我們在去年底或今年年初擴大了這種夥伴關係。正如您所提到的，我們的第一個機會在於客戶服務，主要圍繞呼叫偏轉。我認為我們將在今年晚些時候開始看到一些影響。

And then second, on the docket for us is some propensity modeling, propensity to churn modeling. In terms of financial impact, I think that's more 2025, than it is 2024. But both of them bring what we expect to be a pretty meaningful opportunity for us. Wayne?

其次，我們的待辦事項是一些傾向建模，即流失傾向建模。就財務影響而言，我認為 2025 年會比 2024 年影響更大。但他們都為我們帶來了我們期望的非常有意義的機會。韋恩？

Yeah. And thanks, Toni. We're super excited about the partnership with Google Cloud, and we're now into the execution phase, which is terrific, so great progress there. The early focus is absolutely on the call centers, specifically to bring virtual agents and agent assistant tools.

是的。謝謝，托尼。我們對與 Google Cloud 的合作感到非常興奮，我們現在進入了執行階段，這非常棒，並且取得了巨大的進展。早期的重點絕對是呼叫中心，特別是帶來虛擬座席和座席助理工具。

The great thing about this is these are hardened products like CCAI and using Vertex within that are hardened products versus new technology. So we have really high confidence in the outcomes. And there are numerous examples where people have reached very significant deflections using these same products that we expect to see similar outcomes.

這樣做的好處是，這些是像 CCAI 這樣的硬化產品，並且在其中使用 Vertex，這是硬化產品而不是新技術。所以我們對結果非常有信心。有許多例子表明，人們使用這些相同的產品已經達到了非常顯著的偏差，我們希望看到類似的結果。

Great. And I wanted to just ask a little bit of a broad question about the environment. I guess, what kind of trends have been seeing with regard to health of the consumer through the end of second quarter or through July, just any change there, any change in competitive landscape? Any change in how you're thinking about marketing and stuff like that. Thanks.

偉大的。我想問一些關於環境的廣泛問題。我想，到第二季末或到 7 月份，消費者的健康狀況出現了什麼樣的趨勢，有什麼變化，競爭格局有什麼變化嗎？你對行銷之類的想法的任何改變。謝謝。

Thanks, Toni. It's Jeff. There's no specific change that we'd highlight beyond what we said in our prepared remarks and a couple of the earlier comments. The higher interest rate, the lower moves is the most noteworthy. There's no particular competitive thing we would call out.

謝謝，托尼。是傑夫。除了我們在準備好的評論和之前的一些評論中所說的內容之外，我們沒有要強調的具體變化。利率越高，走勢越低是最值得關注的。我們沒有什麼特別有競爭力的事情。

I would just reiterate the excitement of the new equipment and the offerings and the app and some of the capabilities that we have forthcoming that we think strengthen our position irrespective of what any competitors are doing. And as Wayne described, it's off to a really good start. So that's probably the main point I'd offer in response to your question.

我只想重申我們對新設備、產品、應用程式以及即將推出的一些功能的興奮，我們認為無論任何競爭對手在做什麼，這些功能都會增強我們的地位。正如韋恩所描述的，這是一個非常好的開始。這可能是我回答你的問題時要提出的要點。

Thank you.

謝謝。

Manav Patnaik, Barclays.

馬納夫·帕特奈克，巴克萊銀行。

Hi, good morning. This is Ronan on for Manav. Thank you for taking my question. Just to further expand upon Toni's question, I guess, elements of George's as well, if there were to be a further deterioration in the strength of the consumer or the demand environment.

早安.這是馬納夫的羅南。感謝您回答我的問題。我想，只是為了進一步擴展托尼的問題，以及喬治的問題，如果消費者的實力或需求環境進一步惡化的話。

Can you expand on how we should expect to see the durability, resilience and flexibility that you spoke of in the model to be demonstrated, should there be further weakness?

您能否詳細說明我們應該如何期望看到您提到的要在模型中展示的耐用性、彈性和靈活性，如果還會有進一步的弱點嗎？

Yeah. We think we're very well positioned. I've been at the company for something approaching eight years now. And I remember joining the company, you're seeing -- the company having said that, never having experienced it myself, but having been through a couple of cycles, we generally found that in challenging economic times people often value security more, the peace of mind that comes with it.

是的。我們認為我們處於非常有利的位置。我在這家公司工作已經快八年了。我記得加入這家公司時，你會看到──公司說過，我自己從未經歷過，但經歷了幾個週期後，我們普遍發現，在充滿挑戰的經濟時期，人們往往更重視安全、和平。

Additionally, we've seen and found that customers who do value it if times are tough and they look at the bills that they seek to reduce in their personal budgets, security is not generally among that list. And then on top of that, in challenging times, there tends to be fewer relocations, as we've already mentioned a couple of times. So we think we're well positioned. And then in a couple of down cycles, in the time I've been with the company, that's been proven out. And then maybe one last plug. The same point as before. Plus, we have all this new stuff cutting that we think puts us in an even better position.

此外，我們發現，在經濟困難時確實重視安全的客戶，他們會考慮在個人預算中尋求減少的帳單，但安全性通常不在此列。最重要的是，在充滿挑戰的時期，搬遷的情況往往會減少，正如我們已經提到過幾次的情況。所以我們認為我們處於有利位置。然後在幾個下行週期中，在我在公司工作的時間裡，這一點已經被證明了。然後也許是最後一個插頭。與之前相同的點。另外，我們擁有所有這些新材料，我們認為這使我們處於更好的位置。

Got it. Thank you. And then on the topic of investments, are you seeing the benefits you expected around efficiency, customer experience, better and faster insights to meet customer needs from the recent and -- recently implemented CRM platform that reflects cloud-based ERM? And then how should we think about the current level of spend for the investment for all these innovative solutions and experiences?

知道了。謝謝。然後，關於投資主題，您是否看到了最近實施的反映基於雲端的 ERM 的 CRM 平台在效率、客戶體驗、更好更快地滿足客戶需求方面所期望的好處？那麼我們應該如何考慮目前所有這些創新解決方案和體驗的投資支出水準？

Thanks for the question, Ronan, it's Jim. So we're in the relatively early days on the investment in ADT+. We're just now rolling it out in our DIFM, to our DIFM customers. So early results are very positive. We're doing some testing with the Trusted Neighbor app and customer experience that we feel really good about. But it's early. And so it's hard to answer with precision what kind of return we expect.

謝謝你的提問，羅南，我是吉姆。因此，我們對 ADT+ 的投資仍處於相對早期的階段。我們現在剛剛在 DIFM 中向 DIFM 客戶推出它。所以早期的結果是非常正面的。我們正在對 Trusted Neighbor 應用程式和客戶體驗進行一些測試，我們對此感到非常滿意。但現在還早。因此很難準確回答我們期望什麼樣的回報。

I will mention, in terms of investments, that 2024 will be a high watermark for us on the technology front. We've been investing pretty significantly over the course of the last handful of years. And in 2025, we expect that those investments will be pulled back a bit. And so we'll have a little bit of a tailwind from that standpoint. But on ADT+, a little early in the game, early results are positive, both from an efficiency perspective and a customer response perspective, but difficult at this point to quantify.

我要提到的是，就投資而言，2024 年對我們來說將是技術方面的一個高水位線。在過去幾年中，我們進行了大量投資。到 2025 年，我們預計這些投資將有所縮減。因此，從這個角度來看，我們將有一點順風。但在 ADT+ 上，遊戲還處於早期階段，無論是從效率角度還是從客戶回應角度來看，早期結果都是正面的，但目前很難量化。

Got it. Thank you.

知道了。謝謝。

(Operator Instructions) Peter Christiansen, Citi.

（操作指示）Peter Christiansen，花旗銀行。

Thank you. Good morning, Jim and Jeff, nice trends there. I'm curious as it relates to the idea of bulk purchases. Now that you have ADT-plus, all this great new stuff. Does that change your calculus when you're evaluating potential bulk purchases, whether or not, I guess, you can upgrade potential users faster or maybe that helps accelerate rollout? Anything of that nature? Is that a part of your decision-making process?

謝謝。早安，吉姆和傑夫，那裡的趨勢很好。我很好奇，因為這與大量購買的想法有關。現在您已經有了 ADT-plus，所有這些很棒的新東西。當您評估潛在的大量購買時，這是否會改變您的計算，我猜您是否可以更快地升級潛在用戶，或者可能有助於加速推出？有那種性質的東西嗎？這是您決策過程的一部分嗎？

It is. The ADT-plus app, as I was mentioning to Ronan, Pete, it's early in the game but it is increasingly part of our calculus as is the path to upgrade. In terms of just generally speaking, how we look at the adds, it's way more of a capital allocation exercise today than ever before. And we're looking at organic. We're looking at dealer and we're looking at bulk.

這是。ADT-plus 應用程序，正如我向 Ronan、Pete 提到的那樣，它還處於遊戲的早期階段，但它越來越成為我們微積分的一部分，也是升級的途徑。就一般而言，我們如何看待增量，今天比以往任何時候都更像資本配置活動。我們正在尋找有機。我們正在尋找經銷商，我們正在尋找批量。

I'd mentioned that some of our marketing costs are up a bit. And so on a relative basis, it makes bulk more attractive, and we also have -- had a very positive experience with the same seller, selling us a bulk in December. And so when we look at how we allocate our SAC, we're looking at each of those buckets and allocating the dollars for the best return.

我提到我們的一些行銷成本有所上升。因此，相對而言，它使散裝更具吸引力，而且我們也與同一賣家獲得了非常積極的體驗，在 12 月向我們出售了散裝。因此，當我們考慮如何分配 SAC 時，我們會考慮每個桶子並分配資金以獲得最佳回報。

I think that the organic opportunities for us will be more and more attractive over time. Some of these experiences like trusted neighbor are truly differentiated, and we think that there's going to be solid demand for it, and we'll make that organic allocation, a greater percent of our total overall SAC.

我認為隨著時間的推移，我們的有機機會將越來越有吸引力。其中一些體驗（例如值得信賴的鄰居）確實具有差異化，我們認為對此會有穩定的需求，我們將使有機分配占我們整體 SAC 的更大比例。

And Pete, I'd add to that too, just building on the capital allocation point and reiterating how good we feel about the progress we've made. The -- debt down a couple of billion dollars compared to a year ago, down something closer to $3 billion compared to not long ago, we got our leverage to the 3 times milestone that we set out to achieve this year.

皮特，我也想補充一點，只是在資本配置點的基礎上，重申我們對所取得的進展的感覺有多好。與一年前相比，債務減少了數十億美元，與不久前相比減少了近 30 億美元，我們的槓桿率達到了今年計劃實現的 3 倍里程碑。

So, what that flexibility allows us to do is there was a time where we would say the number one priority is debt reduction. We're still focused on that. But always looking to optimize allocation of capital between normal organic growth, bulks, as we're talking about. M&A, the very substantial increases in returning capital to shareholders between the dividend increase and the share repurchases earlier in the year. So, having that flexibility gives us a lot more opportunities to generate returns both for the company and for shareholders.

因此，這種靈活性使我們能夠做的是，曾經有一段時間我們會說第一要務是減少債務。我們仍然專注於此。但正如我們所說，始終尋求優化正常有機成長和大宗資本之間的資本配置。併購，在今年稍早增加股利和回購股票之間，股東資本返還的大幅增加。因此，擁有這種靈活性使我們有更多機會為公司和股東創造回報。

Right. That's super helpful. And you guys have done a good job on capital allocation for sure. Maybe it's too early, but as you think about the upgrade opportunity to your existing user base on the do-it-for-me side, any sense of what kind of uplift in terms of RMR or like on a per unit basis that you have in mind a target wise for that organic kind of upgrade opportunity over the coming years?

正確的。這非常有幫助。你們在資本配置方面肯定做得很好。也許現在還為時過早，但當您考慮現有用戶群在「為我做」方面的升級機會時，您是否知道在 RMR 或每單位基礎上有什麼樣的提升考慮到未來幾年有機升級機會的明智目標嗎？

(multiple speakers) Yes. Thanks, and thanks for the question on that. We -- so one of the things that we're evaluating, and this is one of the benefits that we have from having our own platform is now we can work through both hardware and software that allows us to integrate with equipment that we may even find in the home.

（多個發言者） 是的。謝謝，也謝謝你提出這個問題。我們正在評估的事情之一，這是我們擁有自己的平台的好處之一，現在我們可以透過硬體和軟體工作，使我們能夠與我們甚至可以整合的設備整合在家中找到。

So, it starts to become super capital efficient than to be able to look at things like bulks or look at other ways to upgrade older equipment either from us or from somebody else.

因此，它開始變得超級資本效率，而不是能夠考慮批量或其他方式來升級我們或其他人的舊設備。

And then once we do that, when you start thinking about even in some of the early stages of some of the products that we're rolling out, such as the first product experience we're rolling out on our new platform, which is Trusted Neighbor. You start to -- without being able to provide specific direction, you start to be able to look at some of the handles that you can add in there by making -- having more equipment in there.

一旦我們這樣做了，當你開始考慮我們正在推出的一些產品的早期階段時，例如我們在我們的新平台上推出的第一個產品體驗，這是值得信賴的鄰居。你開始——在無法提供具體方向的情況下，你開始能夠考慮一些你可以透過製作——在那裡擁有更多設備來添加的手柄。

I think we shared a few quarters ago, by having more equipment, and in this case, you would have cameras and locks in addition to the equipment in there, we start to see improved churn characteristics right away. We end up with higher IRPU and higher propensity to take more premium packages when we have things such as cameras involved, which are often not in some of these older homes.

我想我們在幾個季度前就共享了，透過擁有更多的設備，在這種情況下，除了那裡的設備之外，你還會有攝影機和鎖，我們立即開始看到客戶流失特性的改善。當我們涉及到相機等東西時，我們最終會獲得更高的 IRPU 和更高的購買更高級套餐的傾向，而這些東西通常在一些老房子裡是沒有的。

And then also kind of uniquely -- one of the things that we were able to do when you have something like the Trusted Neighbor product that we're going to be rolling out later this quarter, the Trusted Neighbors themselves start to download the ADT-plus app. And so as they assist and help our subscribers when they need it. So that leaves an opportunity for us to be able to earn many new subscribers from these new people, who are actually the Trust Neighbors themselves, but who are not our own customers. And so it creates a unique opportunity for us that we have an opportunity to earn.

然後還有一種獨特的做法——當我們擁有像我們將在本季度晚些時候推出的「受信任的鄰居」產品這樣的產品時，我們能夠做的事情之一就是「受信任的鄰居」自己開始下載ADT——加上應用程式。因此，他們會在我們的訂閱者需要時提供協助。因此，這為我們留下了一個機會，能夠從這些新人那裡贏得許多新訂閱者，他們實際上是信任鄰居本身，但不是我們自己的客戶。因此，它為我們創造了一個獨特的機會，我們有機會贏得。

And I'd add, too early to have firm conclusions, of course, but everything Wayne just said, it just gives us more levers to optimize the returns we generate from our customers, an outcome almost for sure will be a broader mix, just different combinations of attributes. A lot of this is designed to pursue a broader TAM for different kinds of customers who have different needs, maybe different degrees of price sensitivity, and we are and we'll test our way into how to adjust those levers or knobs and dials to seek the optimal overall portfolio economic outcome.

我想補充一點，當然，現在得出明確的結論還為時過早，但韋恩剛才所說的一切，它只是為我們提供了更多槓桿來優化我們從客戶那裡獲得的回報，幾乎可以肯定，結果將是更廣泛的組合，只是屬性的不同組合。其中許多都是為了追求更廣泛的 TAM，以滿足不同類型的客戶的不同需求，可能是不同程度的價格敏感度，我們正在測試如何調整這些槓桿或旋鈕和轉盤來尋求更廣泛的 TAM。的整體投資組合經濟結果。

And I would emphasize or link back to what I was saying earlier is the mix may be different. It might be a different mix of upfront cost compared to attrition characteristics, compared to ongoing profitability, but the foundation with which we make all of those decisions is the return and the lifetime value of all these customers. And again, we're excited to be more attracted to -- or more attractive to a broader TAM.

我想強調或連結回我之前所說的，混合可能會有所不同。與流失特徵、持續獲利能力相比，前期成本可能是不同的組合，但我們做出所有這些決策的基礎是所有這些客戶的回報和終身價值。再次，我們很高興能夠被更廣泛的 TAM 所吸引。

That's great. Yes. I can imagine adding an organic growth -- organic user acquisition on top of a powerful brand name, it would be exciting to watch. Thank you all. That was helpful.

那太棒了。是的。我可以想像在強大的品牌名稱之上添加有機增長——有機用戶獲取，這將是令人興奮的。謝謝你們。這很有幫助。

Thanks, Pete.

謝謝，皮特。

Thank you. Seeing as there are no more questions. I will now turn the call over back to the ADT team for closing remarks.

謝謝。看來沒有更多的問題了。我現在將把電話轉回 ADT 團隊以供結束發言。

Okay. Thank you, operator. Thanks, everyone, for taking the time to join us today. As you heard, we've affirmed our guidance and delivered solid results in our core business. We're looking forward to a continued strong 2024. I'd like to extend my appreciation to our ADT employees and dealer partners. Our results are a reflection of their efforts. So thanks again, everybody, for joining us today, and have a great day.

好的。謝謝你，接線生。謝謝大家今天抽空加入我們。正如您所聽到的，我們確認了我們的指導並在我們的核心業務中取得了紮實的成果。我們期待 2024 年持續強勁。我謹向我們的 ADT 員工和經銷商合作夥伴表示感謝。我們的成果是他們努力的體現。再次感謝大家今天加入我們，祝您有美好的一天。

Ladies and gentlemen, that concludes today's call. Thank you for all joining. Have a pleasant day.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。祝你有愉快的一天。