ADT Inc. (NYSE:ADT) Q1 2024 Earnings Call Transcript

Jeffrey Likosar: Yes. Generally, maybe I’ll step back and just remind, Jim speaks of flywheel model, our overall objective is to deploy capital, generate strong returns. Our single biggest use of capital is subscriber acquisition spending, and we can generate those returns by reducing the amount of SAC required, by increasing the size and really the profitability of the RMR that comes with the customer. So your point about price, and then importantly, extending the duration of the customer life. And we’re always working to optimize all of those things, and your recent cohorts of customers are performing well. I noted, for example, the dynamics of larger system sizes, more upfront investment, having the benefit both of reducing the upfront SAC cost, but also some correlation with the customer retention characteristics.

So, we feel really good about the progress. And then the new platform and ecosystem that we’ve talked about rolling out, we believe we’ll make that continue to be the case. And importantly, with more efficiency upfront to be able to acquire customers with less cash out of pocket. So, we feel really good about our ability to generate returns in this environment assisted, by all the new platform work we have coming.

Peter Christiansen: That’s great. Thanks for answering that. That’s very helpful. Thank you.

Operator: Thank you for your question. There are no additional questions waiting at this time. I would now like to pass the conference back to Jim DeVries, CEO, for closing remarks.

James DeVries: Thank you, Victoria, and thanks, everyone, for taking the time to join us today. As you heard, ADT delivered solid results in our core CSB business, we continue to invest for the future, our capital structure continues to be strengthened, we’ve got good momentum in the business, and we’re looking forward to a strong 2024. I’d like to extend my appreciation to our employees, ADT employees, and dealer partners. Our results are a direct reflection of their efforts. So thanks again, everyone, and have a great day.

Operator: That concludes today’s call. Thank you for your participation and enjoy the rest of your day.