Jay Geldmacher: Thank you.
Tony Trunzo: Thanks, Paul.
Operator: Thank you. We take our next question now from Brett Kearney at Gabelli Funds.
Brett Kearney: Hi guys, good afternoon and thanks for taking my question.
Jay Geldmacher: You bet.
Tony Trunzo: Hey, Brett.
Brett Kearney: You talked about some in your prepared remarks but was curious how you I guess point about finding that it sounds like an interesting engineering acquisition and I believe you said New Zealand, obviously it sounds like it fits with the software platforming initiatives you have underway. But just broadly what your vision is, I guess longer term, you talked about the actionable intelligence you might be able to offer to contractors and customers, what you see these capabilities are unlocking for yourselves and customers over medium-term?
Jay Geldmacher: Yes, I would say, Brett, that software for opportunity, but also the hardware, the hardware work that these guys have done up to this point in time, what it provides us now in terms of new products are accelerating new products along with what we have internally before the acquisition that we’re really excited about it and we believe they can really, two plus two equals eight. And the innovative capability of this group is very impressive in terms of — I believe we’re just talking about it in a meeting earlier this morning, where they can provide a lot of additional capabilities to many of our other products too. So I think on hardware, software opportunities, AI, I mentioned in particular that we talk one following up on a question that came up on security, but the video analytics things, some of the video cameras that we have coming out this year, they’re going to do some really cool stuff for us.
So we’re really excited to share a lot more with you guys on that as we move forward, but that deal we got ramped up frankly after around the Christmas timeframe and I spent time with the Founder and CEO of the company out CES with a bunch of our teammates, brainstorming ideas and things together and they’ve integrated very quickly into the company, which is great and it’s a good cultural fit. So, we’re excited about that.
Brett Kearney: Great, thanks so much guys.
Operator: Thank you. We got next now to Brian Ruttenbur of Imperial Capital.
Brian Ruttenbur: Yes, thanks very much. Quick question, first of all, hopefully on finance. Price increases, you talked about potentially in 2023, what were your total price increases on average in 2022 and were there any push back from 2022 and do you anticipate any pushback on price increases, potentially in 2023 given the market?
Tony Trunzo: So the ’22 price number was plus or minus $200 million. I think we’re looking this year at price increases substantially less than that, a fraction of that. I don’t know exactly what number I’d give, but it’s going to be substantially less. The — in large part because of the collaborative way that we tried to do the price increases, they stuck. Nobody, us included, is happy what we see increases in cost, right. But we’ve worked collaboratively with our customers and our channel. And by and large they stuck this year the price changes, like I said, are going to be much, much more modest and they’re going to be targeted to areas where our costs are increasing and where the channel is going to be in a position to support it. So we’ve really tried not to get out over our skis and take advantage of this environment in any way, shape or form.
Jay Geldmacher: And I’d just add that and Tony mentioned it, but then the opportunity for the price to be more sticky, and I think the way that we do, the way that Tony explained, that’s how you do that. Now we months from now, 18 months from now, if everything gets back to more of a normalcy up inflation, that’s all different. We’ll see how that goes, but I think that’s I think Tony spot on for this year in his comments.
Brian Ruttenbur: Is there — just as a follow-up, is there a seasonality to your standard price increases, is it the spring, is that the fall, if you could just remind me of normally when you would impose those price increases potential?
Tony Trunzo: Usually I mean historically we saw we did get some in the spring. Over the last couple of years, it’s been — there hasn’t been that level of seasonality.
Jay Geldmacher: Yes, it’s just tied to some of the dynamic, the unique dynamics that we’ve all gone through together over the last two years. I’d also say the strong brands that allow us to help them also on the price too. So I think that’s been another factor for us.
Brian Ruttenbur: Great, thank you.
Jay Geldmacher: Thanks, Brian.
Tony Trunzo: Thanks, Brian.
Operator: Thank you. And gentlemen, it appears we have no further questions this afternoon. Mr. Willey, I hand things back to you for any closing comments.
Jason Willey: I’d like to thank everyone for their participation today and we look forward to speaking with you over the coming weeks and months. Everyone have a good day. Thank you very much.
Tony Trunzo: Thanks, everybody.
Jay Geldmacher: Thank you.
Operator: Again, ladies, gentlemen, that does conclude today’s Resideo Technologies fourth quarter 2022 earnings conference call. We’d like to thank you all so much for joining us and wish you all a great evening. Good bye.
