Good day, thank you for standing by. Welcome to the Alarm.com Q4 2022 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, simply press star one one again. Also be advised that today's conference is being recorded. I would now like to hand the conference over to the Vice President of Investor Relations, Matthew Zartman. Please proceed. Good afternoon. Welcome to Alarm.com's Q4 and full year 2022 earnings conference call. This call is being recorded. Joining us today from Alarm.com are Steve Trundle, our CEO, and Steve Valenzuela, our CFO. Before we begin, a quick reminder. Management's discussion during today's call will include forward-looking statements which include, among others, projected financial performance and key assumptions related thereto, including with respect to the Vivint dispute, potential legal spend, and cost rationalization strategies, the impact of emerging market dynamics, trends, and anticipated market demand, the impact of the COVID pandemic, challenging global supply chain dynamics, and adverse macroeconomic conditions, our business strategies, plans and objectives, and the integration of recent acquisitions and anticipated growth prospects of our Noonlight acquisition, continued enhancements to our platform and offerings, opportunities for growth and expansion in our current and new markets. These forward-looking statements are based on our current expectations and beliefs and on information currently available to us. These statements are subject to risks and uncertainties, including those contained in today's earnings press release and in the Risk Factors section of our most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission on November 9th 2022, and in subsequent reports that we file with the SEC from time to time, including our annual report on Form 10-K for the year ended December 31st 2022, that we intend to file with the SEC after this call, that could cause actual results to differ materially from those contained in the forward-looking statements. Please note that the forward-looking statements made during this call speak only as of today's date, and Alarm.com undertakes no obligation to update these statements to reflect subsequent events or circumstances, except to the extent required by law. During this call, management's commentary will include non-GAAP financial measures and provide non-GAAP guidance. Management believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in understanding the company's performance and trends. Non-GAAP financial information is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance to GAAP. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in the financial statement tables of our earnings press release, which we have posted to our investor relations website at investors.alarm.com. This conference call is being webcast and is also available on our investor relations website. The webcast of this call will be archived, and a replay will be available on our website. Let's now turn the call over to Steve Trundle. You may begin. Thank you, Matt. Good afternoon, and welcome to everyone. We're pleased to report Q4 and full year results that exceeded our expectations. Our full year 2022 SaaS and license revenue was $520.4 million, up 13% over the last year. Our adjusted EBITDA for the full year was $146.8 million. During the year, we continued to execute on our long-term growth strategy. We expanded our platform and continued to build diversity into our revenue streams. We ended 2022 with more than 11,000 service provider partners who deliver Alarm.com solutions to more than 9.1 million connected property subscribers in over 60 countries around the globe. We now also have hundreds of thousands of Noonlight personal safety subscribers. I want to thank our service provider partners and our employees for their contributions to our 2022 performance. I will use today's call to discuss our long-term strategy, focusing on four of our key growth areas: the commercial markets, our video software initiatives, our growing international business, and our new venture businesses. These business areas collectively represented nearly 30% of our total SaaS revenue in the Q4. I'll begin with the commercial markets. We have made solid progress in advancing our platform so that we can further target the nearly 6 million properties that make up the commercial market in the U.S. and Canada. The Alarm.com for Business platform addresses small and medium-sized businesses for the SMB commercial segment. Our commercial video subsidiary, OpenEye, is a leading provider of video surveillance as a service for the large scale enterprise segment. In 2022, OpenEye's SaaS revenue more than doubled as compared to 2021. They increased total new video channel activations by over 30% over the same period. Our overall commercial account base has grown to well over 500,000 accounts. Our commercial product strategy is to develop software-based capabilities that will deliver unique value to commercial customers through the deep integration of security, video, analytics, access control, and energy management solutions. Increasingly, we are also offering the active shooter detection technology developed by our subsidiary business, Shooter Detection Systems. With our expanding offering, we expect that a commercial property with the full suite of our solutions will generate about 6x the ARPU on average of our typical residential account. Innovation in video is integral to our commercial strategy. A high percentage of commercial properties have traditional video monitoring systems, and our connected solutions are driving an upgrade cycle in the market. Last year, we launched a new video analytics service tier called Business Activity Analytics. It provides enterprise business intelligence reporting for occupancy tracking, people counting, and queue monitoring. With our analytics solution, a business owner can answer questions like, "What is the average wait time for my customer to check out?" "How can I manage employees and keep track of their break times?" "How many people walked past a particular product display in the last day?" We also launched a new Stream Video Recorder, or SVR. It enables 24 by 7 recording and event tracking for up to 16 commercial video cameras. The SVR also enables our new third-party camera support capability, which allows commercial customers to upgrade to Alarm.com services without the cost of ripping and replacing all their legacy video cameras. Our video platform also continues to drive meaningful results in the residential market. About half of our new residential accounts include an Alarm.com video service. This growing account base exhibits higher user engagement and significantly lower attrition profiles than accounts with only a security system. Our video team is also launching a completely wireless battery-powered version of our flagship video doorbell, the VDB780B. This will give our service providers some flexibility to address unusual installations where a wired power source cannot be obtained, and also address some international markets where regional wiring standards don't support a wired video doorbell. The VDB780B includes a custom video analytics package that we developed to provide high-value capabilities while optimizing battery life. Shifting to our international business, our base of global accounts surpassed half a million in 2022. We believe we can continue to drive significant international growth by comprehensively supporting our international partners to fully operationalize Alarm.com and reach full-scale deployment in the diverse range of markets they address worldwide. In 2023, we will also expand support for a wider range of legacy security control panels that are deployed in international markets so they can leverage Alarm.com's technology. The final element of our strategy is the continued development of our subsidiary businesses, EnergyHub, Noonlight, PointCentral, Shooter Detection Systems, and Building 36. EnergyHub provides an enterprise software solution that enables utilities to flexibly manage electricity demand by orchestrating customer-owned and enrolled distributed energy resources. These resources include devices such as smart thermostats, batteries, commercial and industrial resources, solar inverters, and electric vehicle chargers. We're investing in the expansion of EnergyHub's ecosystem of distributed energy resources. This will enable utilities to access greater electricity load capacity as they manage the growing sources of stress on the grid. Our strategy is working. Utility clients are turning to EnergyHub programs far more often. In 2022, the number of demand response events called by utilities via EnergyHub increased 80% over 2021. Last year, we acquired Noonlight, a growing SaaS business that provides context-aware event management and emergency response capabilities. Noonlight enables providers of IoT devices and mobile app-based services to easily integrate emergency response capabilities into their offerings. As a hypothetical example, a company that makes a bike helmet which detects falls could write a few lines of code to call a Noonlight API and enable a first responder incident response when there is a bike accident. Noonlight gives Alarm.com a technology environment for developing capabilities that leverage our deep partnerships in the security channel to extend central station monitoring services to address new use cases. I also want to spend a moment on the new organizational structure and roles we announced in an SEC filing in late January. With my enthusiastic support, our board of directors appointed Jeffrey Bedell, the President of our Ventures Business and Corporate Strategy, and Dan Kerzner, the President of our Platforms Business. Jeff will oversee all of our venture businesses as well as corporate development and corporate strategy. Dan will oversee all product development for our core commercial and residential platforms, as well as sales and marketing for our largest market, North America. As the pace of expansion and diversification has accelerated in our business, the timing was right to formalize this structure and give Jeff and Dan more responsibility while recognizing these two strong leaders. Jeff and Dan have been integral members of our management team for nearly 10 years. I have had the privilege of working with them even before they joined Alarm.com. They have each played very important roles in much of the progress we have made over the last decade. I expect even more from each of them as we move forward and pursue our growth goals. In future quarters, I will begin to occasionally bring Jeff and Dan into our quarterly call so that our investors can hear from them firsthand about the key business areas they oversee. We are very fortunate to have a strong management team with a long history of working together. As CEO and a co-founder, these organizational changes do not alter my level of involvement or engagement with the company. As I noted during last quarter's call, I feel good about where we are headed and am excited about continuing to pursue our strategy and building Alarm.com well beyond $1 billion in annual revenue. I have been both President and CEO since 2003 when Alarm.com had fewer than 10 employees and no revenue. As we are now much larger, I thought it was time to better distribute and delegate decision-making and leadership so that we can move faster as a team. Before I hand things over to Steve Valenzuela, I want to also update you on the Vivint matter. As you know, Vivint notified us that it will stop paying Alarm.com the royalty fees associated with the patent license agreement that we reached with Vivint in 2013. In late 2022, we filed for arbitration under the terms of that agreement. We expect the arbitration process to take 12-14 months. Subsequent to our filing for arbitration, Vivint announced that it was being acquired by NRG. That deal has not yet closed, and we are closely monitoring recent events, including a $189 million jury verdict against Vivint in Federal District Court announced last week. We also filed a patent infringement lawsuit against Vivint in January of this year, alleging Vivint is infringing on 15 patents that we added to our portfolio subsequent to the 2013 licensing agreement. We continue to work to ensure that we fully protect our patented technology from infringement and its use without license. To conclude, I'm pleased with our performance and the meaningful contributions of our growth initiatives in 2022. Our focus will continue to be on executing our strategy to generate growth in 2023 and beyond. With that, let me turn things over to Steve Valenzuela. Steve? Thanks, Steve. I'll begin with a review of our Q4 and full year 2022 financial results, then provide guidance for 2023 before opening the call for questions. Q4 SaaS and license revenue of $134.6 million grew 10.5% from the same quarter last year. Excluding Vivint license revenue, Q4 non-GAAP SaaS and license revenue grew 15.6% year-over-year. SaaS and license revenue includes Connect software license revenue of approximately $6.3 million for the Q4, down as expected from $7.4 million in the year-ago quarter. For the full year of 2022, SaaS and license revenue of $520.4 million grew 13% over 2021. Non-GAAP SaaS and license revenue, excluding Vivint license revenue, grew 14.4% in 2022 year-over-year. Our SaaS and license revenue visibility remains high with a revenue renewal rate of 94% in the Q4. Hardware and other revenue grew 11.6% in 2022 to $322.2 million, mainly driven by sales of cameras. Total revenue of $208.1 million for the Q4 grew 6.6% from Q4 2021. For the full year of 2022, total revenue grew 12.5% year-over-year to $842.6 million. SaaS and license growth margin for the Q4 remained solid at 85.2%. Hardware gross margin was 18.9% for the Q4, compared to 11.1% for Q4 2021, due primarily to price increases that we put forth in early 2022. Total gross margin was 61.8% for the Q4, up from 57.8% for Q4 2021, mainly due to the improvement in hardware margins. Turning to operating expenses. R&D expenses in the Q4 were $57.4 million, compared to $47.6 million in the Q4 of 2021, mainly due to an increase in headcount and related compensation expenses. We ended 2022 with 1,004 employees in R&D, up from 837 employees at the end of 2021. Total headcount increased to 1,733 employees for 2022 compared to 1,500 employees at the end of 2021. Sales and marketing expenses in the Q4 were $23.6 million, or 11.3% of total revenue, compared to $24.6 million, or 12.6% of revenue in the same quarter last year, mainly due to lower advertising costs in the Q4 of 2022. Our G&A expenses in the Q4 were $25.4 million compared to $22.6 million in the year ago quarter, mainly due to higher personnel-related costs, including stock compensation and consultant fees. G&A expense in the Q4 includes non-ordinary course litigation expense of $1.9 million compared to $1.8 million for Q4 2021. Non-ordinary course litigation expenses are part of our adjusted measures and are excluded from our measurement of their non-GAAP financial performance. Non-GAAP adjusted EBITDA in the Q4 was $39 million compared to $31.3 million in Q4 2021. For all of 2022, adjusted EBITDA was $146.8 million, up 3.1% from adjusted EBITDA of $142.5 million for 2021. In the Q4, GAAP net income was $18.1 million compared to GAAP net income of $9.1 million for Q4 2021. Non-GAAP adjusted net income was $28.7 million, or $0.53 per diluted share in the Q4 compared to $22.6 million or $0.43 per share for the Q4 of 2021. GAAP net income for the full year of 2022 was $56.3 million compared to GAAP net income of $52.3 million for 2021. Non-GAAP adjusted net income for 2022 was $106.9 million, or $0.95 per diluted share compared to non-GAAP net income of $103.5 million or $0.99 per share for 2021. Turning to our balance sheet. We ended the Q4 with $622.2 million of cash and cash equivalents, down from $710.6 million at December 31st, 2021. During the Q4 of 2022, we used $27 million to repurchase 545,343 shares of our common stock at an average price of $49.47. For all of 2022, we used $78.8 million to repurchase approximately 1.4 million shares, or 2.8% of our outstanding shares. During 2022, we also used $33.4 million in cash for acquisition of Noonlight. In the Q4, we generated $34.4 million in cash flow from operations compared to $20 million for the Q4 of 2021. Our free cash flow for the Q4 was $33.9 million compared to $17.8 million for the same quarter last year. Through the 12 months ended December 31, 2022, we generated $56.9 million of cash flow from operations, down from $103.2 million for 2021. This is mainly due to our investment in inventory to strengthen our supply chain. Our free cash flow for 2022 was $28.3 million compared to $92.1 million for 2021, also due to our investment in inventory and our purchase of land for $22 million near our headquarters in Tysons, Virginia. Turning to our financial outlook. For the Q1 of 2023, we expect SaaS and license revenue of $132.4 million-$132.6 million. For the full year of 2023, we expect SaaS and license revenue to be between $551.5 million-$552.5 million. We are projecting total revenue for 2023 of $851.5 million-$877.5 million, which includes estimated hardware and other revenue of $300 million-$325 million. We are providing a wide range for our hardware revenue guide for 2023 due to several factors. We expect fewer sales of communication modules as the 3G upgrade cycle winds down in the U.S. and Canada. We expect less hardware revenue from ADT, and we anticipate that the higher interest rate environment may result in fewer moves and new construction builds, moderating demand for some of our products. We estimate that adjusted EBITDA for 2023 will be between $115 million-$125 million. This excludes Vivint license revenue and includes significant legal costs regarding the matter with Vivint. We expect adjusted EBITDA in the Q1 of 2023 to represent approximately 21.5%-22% of our annual guide. Non-GAAP net income for 2023 is projected to be $79.7 million-$86.5 million or $1.44-$1.57 per diluted share. EPS is based on an estimate of 55.2 million weighted average diluted shares outstanding. We currently project our non-GAAP tax rate for 2023 to remain at 21% under current tax rules. We expect full year 2023 stock-based compensation expense of $62 million-$64 million. In summary, we are pleased how well our service providers and internal teams have performed over the past year. We are focused on executing on our business and investing in our long-term strategy while continuing to deliver profitable growth. With that, operator, please open the call for Q&A. Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, simply press star one one again. Please stand by while we compile the Q&A roster. One moment for our first question. It comes from the line of Adam Tindle with Raymond James. Please proceed. Okay, thanks. Good afternoon, and congrats on a strong close to the year. Steve Trundle, I wanted to maybe start with you on the new organizational structure. It's really interesting. Was just curious if you could maybe dig deeper into what this perhaps enables from both an operational and maybe even a capital allocation standpoint in each of these two businesses, the core and the ventures, that could perhaps accelerate trends versus how it was structured previously. Curious, Steve, if this is an indication that we may get a breakout of growth or profitability of each of those businesses from a reporting perspective at some point. Hey, Adam. Sure. This is Steve Trundle starting. You know, with the organizational, I would call it an upgrade, I think we'll be better. You know, first, you just want decisions to be made more quickly and, you want to, try to contain the decisions at a level where they can be made more quickly. For example, on the core business side, traditionally it's been difficult sometimes to arbitrage whether we should be investing more capital in marketing versus R&D with different people in charge, ultimately, and they each have their own set of goals. With Dan now kind of firmly in control of the P&L for North America as well as the investments we're making in R&D and the investments we make in sales and marketing, I'm hopeful that we can ratchet up the capital allocation efficiency a bit and be, you know, a level more judicious or more clever in how we choose to, you know, to deploy capital. I'll, of course, continue to be involved, I guess in some ways that's saying that the old guy wasn't doing a very good job of it. The reality is the business has grown. There are a lot of different things pulling in a lot of different directions, really narrowing, you know, or trying to drive all of that scope through one person made sense. On the other side of the business, you know, I think if you've been following us for a while, each quarter I've attempted to give you an update on one of the growth initiatives, whether it be what we're doing with PointCentral or EnergyHub or whatever it may be. Each of those businesses have their own, you know, their own strategies, their own goals, and their own P&Ls. They each have their own leader. It was becoming and has become progressively more difficult for me to keep track of exactly, you know, what the nuts and bolts of each business were. Jeff is in charge of strategy, so a lot of what we're doing in Click-Duff is a reflection of our strategy. We make a decision to go, you know, make an acquisition, and we have to execute on all of the pieces we had when we made that decision. You know, putting all of that under Jeff, I think, again, gives us a more kind of dedicated, responsible executive to drive follow-through on a lot of the decisions we make when we're on, you know, on the M&A front. I guess the most important thing, lastly, is this, it really is a team effort. This may not work well if you had three people that hadn't worked together for a long period of time or that, you know, didn't like each other or any of that. We've worked together really more as peers for a long period of time, and we expect to be able to collaborate on things that may be in between some of these areas. I think if we didn't have that kind of a long-term working relationship, you know, the structure could be awkward. We have an ability to build it back here and at the same time to really let these guys take responsibility for these areas. Adam, it's Steve Valenzuela. Your question on the breakout of segments. We're gonna continue for the time being to continue to show Alarm.com and the other segment of public reporting. For example, for Q4, the SaaS revenue for the other segment was $13.4 million, and hardware revenue was $2.1 million. This is interesting. This is the Q1 the other segment SaaS represented 10% of our SaaS revenue. That's quite of achievement for the other segment, and that's headed up by Jeff Bedell. Of course, the core in the filings we call Alarm.com. For the year, the other segment generated $42.2 million of SaaS revenue, 8.3% of hardware revenue, and that grew 26% year-over-year. Got it. That's helpful, Steve. Maybe just as a follow-up for Steve B. You did a nice job kind of covering the rationale for the hardware guidance for 2023. I did think that the SaaS guidance was fairly healthy, on the adjusted numbers. I think 14.4% growth is what you're guiding to, and you're coming off of a year of 15.6% adjusted growth for the Vivint piece. The point would be, you know, not implying a lot of deceleration in the SaaS growth despite everything going on in the macro environment. I also know that you tend to be conservative with these numbers, but, you know, the minimal deceleration and just has me kind of wondering the puts and takes to what looks like a very healthy outlook in the SaaS growth piece and also what's assumed in ADT. I understand Vivint's taken out. You assume some ADT headwind in the hardware. Was there ADT headwind assumed in the SaaS piece? Thank you. Adam, yes. Again, Steve Valenzuela. Just to clarify the SaaS growth for 2023 that we're projecting, not counting Vivint, is about 9.6% year-over-year growth. What we did achieve for 2022, if you adjust for Vivint, is 14.4% year-over-year growth. Typically when we report the Q1 of the year, we do tend to be, of course, conservative and need to be conservative given that we have, you know, a lot going on in various different segments of the business. If you look at like 2022, when we initially guided the year for in this quarter, we guided for 10.5% growth for SaaS, and we came in at 14.4% growth. That being said, there is still a lot going on, you know, in terms of a lot of move, puts and takes. You've also got the whole, you know, interest rate environment, which could result in fewer moves. The good news there is that, there's less attrition when you have fewer moves, but there may be less hardware purchases too, right? There may be fewer installs of new systems. We've kind of factored that into our, into our guide for 2023. Summary there, Adam, I think is if you look back at last year, I think Steve made the point, but I'll reiterate it. We guided 10.5% growth, and we, you know, we usually, at this juncture in the year, wanna make sure we hit and beat what we guide. We can't guarantee that. This year we're less than 100 basis points off of that at 9.6% at this juncture. Hopefully have some upside in that. Got it. Sorry, I missed misread that in the press release here, that makes a lot more sense. The ADT assumption built into that, if you can tell us. Sure. I can give you a little on that. We have modeled in a tapering of new account origination, same as we have, I think probably the same commentary as we've shared in prior quarters. In Q2 of this year and, you know, have accounted for that in the guide that we're providing. We obviously don't know ADT's exact plans. I think they're having a lot of success with command and control, as evidenced by, you know, the phenomenal attrition number they put out last quarter. You know, they're driving down their cost to serve with remote services and things like that. I think things are going relatively well for them, and we're not sure exactly what their deployment plan will be. With Google, but we have to anticipate something for the purposes of our model, and we've tapered that business in Q2 with a note that we, you know, expect to continue to collaborate and partner in certain areas such as commercial, you know, large custom homes, areas where we expect to basically just continue to collaborate on an ongoing basis longer term. Got it. Thanks, and congrats again. Thank you. Thank you. One moment for our next question, please. It comes from the line of Darren Aftahi of Roth. Please go ahead. Hey, guys. Thanks for taking my question. Two, if I may. Follow-up on the commentary about the interest rate environment and, you know, maybe less moves and hence lower hardware. I guess one of the things maybe we didn't hear is just general backdrop year to date in the residential and enterprise segments. I guess on residential, I'm more curious, in the past, you guys have talked about, you know, educating service providers on kind of upgrade cycles. How much of an emphasis are you putting on that? My second question maybe for Steve B. Looks like there's a 340 basis point drop on EBITDA margins from 2022 versus your 2023 guide. I'm more curious, how much of that is fromLess Vivint revenue in the business versus reinvestment for growth. Thanks. I'll start on the general backdrop residentially and then in the enterprise segment. I'd say that the general backdrop right now is residential North America is, you know, not quite as hot as it was during 2021 and 2022. We're seeing some moderation of builder activities, I mean, and just generally consumers being a little more careful with their pocketbook right now. That said, our Q4 results, you know, indicate that that hasn't been a significant or a massive taken off at all. I think historically, we've always indicated and want to remind investors that typically smart home or security businesses actually hold up pretty well, even if the economy or the economic backdrop changes because people become oftentimes even more concerned about their security and safety. When there are fewer moves, there also tends to be less attrition. You get a nice sort of counterbalance there. In terms of our focus right now with service providers on the residential side, I'd say we're still focused on conditioning them and collaborating with them to expand the ecosystem of products that are going into the home. That's been happening, so, you know, continuing to drive video attachment rates, thermostat attachment rates, and the range of things where we can provide value. We launched a product recently called Water Dragon that I spoke about last quarter, which again, is sort of an expansion of the ecosystem. That tends to be the focus there. On the enterprise side, it's probably, the macro trends are a little different in that it's still more early days in terms of the migration from on-premise, video servers to cloud-based video services, from on-premise access control to cloud-based access control, from archaic kind of command centers to command centers that fit in your hand on a mobile app. So there, I think the focus is a bit more on helping the partners market to those commercial customers that are ready and willing to take upgrades and then capturing share as people make this transition. In terms of the impact, in terms of adjusted EBITDA on 2023 compared to 2022, I would say it's about 300 basis points impact from a combination of less Vivint revenue in 2023 and additional legal spend, as we talked about regarding the Vivint matter. Those are really the main drivers of the detail, if you will, or the 300 plus basis point drop in adjusted EBITDA in 2023, Darren. Thanks, guys. Appreciate it. Sure. One moment for our next question, please. It comes from the line of Brian Ruttenbur with Imperial Capital. Please go ahead. Yes, thank you very much. First of all, housekeeping. Interest income was up in the Q4. Can you help us out for what you're looking for for Q1 and then for the full year of 2023? Yeah, Brian, it's Steve Valenzuela. We have been investing, very conservatively, of course, but, luckily, we've been able to take advantage of our strong cash position and invest our money in, you know, 4%+ funds. That's the main reason for the increase in, you know, depending upon what happens with the interest rate environment, we would expect interest income to continue to go up a bit in 2023. Modeling at this 4.7 or higher going forward, seems like the logical move. You also mentioned other housekeeping, apologies, the tax rate on the year was how much? You went over that very quickly. Yeah. We obviously use a fixed tax rate of 21% for non-GAAP. The actual tax rate varies, of course, on a GAAP basis, given the, you know, the give and take with what occurs with stock compensation expense. It's 21% tax rate, the same as 2022 for non-GAAP. Okay. One other macro question on, you know, given that some of the competitors, on the hardware side have reported, like Allegion, Verisure internationally, as an operator, they're all calling for weakness on the residential side. At the same time, they're talking about, real, you know, deep strength in the commercial. Can you talk a little bit about, how much of your business currently is commercial? Are you still seeing strong drivers on the commercial side? Brian, it's Steve Valenzuela. Commercial continues to do really well. Commercial is now about 8% of our SaaS revenue, and it grew over 25% year-over-year in the Q4. We have over 500,000 commercial accounts now. Great. We are seeing good strength there. You're seeing continued growth at that, you know, 20%+ rate? In the commercial side, yes. Yes. That's correct. Okay. We see growth rates out there. I don't think we're quite as bearish on the residential side maybe as We don't, you know, obviously, we have a more mature business there, but we still think we can find attractive health on the residential side. We're seeing growth in international too. International is now 4% of our revenue, and international total revenue is up 27% year-over-year. I think international is really helping us out on the residential side as well. Great. Thank you very much. Yep. Sure. Thank you. One moment for our next question, please. It comes from Jack Vander Aarde with Maxim Group. Please proceed. Yeah. Okay, great. Thanks for taking my questions, guys. A couple housekeeping questions from me as well. Maybe for Steve Valenzuela, what was the former Connect or software license revenue in the Q4? The number was $6.4 million, I believe I mentioned on the call. Let me confirm that. The former was... Sorry. In Q4 2022, Connect software revenue was $6.3 million. The year-ago quarter in 2021, Q4 2021, was $7.4 million. Got you. Okay. Appreciate that. Then just another clarity question. Can you remind me which businesses combined for, I think, in Steve Trundle's prepared remarks, approximately almost 30% of your Q4 SaaS revenue? It sounds like that includes commercial, which Steve, I think you said 8%. What else is included in that nearly 30% of SaaS revenue? Sure. Yeah. I can outline that in terms of what we include in sort of the faster-growing initiatives. They are international, commercial, including small business, and the other segment businesses like EnergyHub. Lastly would be the video business, excluding video to ADT, actually. Gotcha. Okay. I guess, it sounds like commercial is kind of the bulk of that then. Healthy contribution from all those growth drivers. That's great to hear. Just one other, I guess, topic to dive a little bit deeper, and that I thought was encouraging is, Steve Valenzuela, I think you said the other segment SaaS revenue was $13.4 million for the quarter, and that was 10% or more of your overall SaaS for the first time ever. I mean, is this now? Where do you see this trending? Is this acceleration a one-time kind of blip? Do you think this is gonna continue? When do you think we're gonna hit 20%? Anything you could provide there. Just to clarify. It was 10% of total SaaS revenue in the Q4, up 31% year-over-year. For the year, the other segment SaaS was 8% of total SaaS. Typically, in the Q4, we do get a benefit from EnergyHub from the energy savings in the summer programs. We'll probably see, you know, in the near future between 8%-10% for the other segment. Over a period of, you know, time, we do expect to see continued growth from the other segment as we see EnergyHub and PointCentral, Building 36, contribute going forward. I don't think I would wanna project when we would hit 20%. I think it's great to see for the first time to hit double digits. That's a good achievement by the team. There was a little outperformance there in the Q4 because Nest implemented their Thermostat Renew program, which is being powered by EnergyHub, and there were a lot of folks signed up for that. We got a little better performance there in Q4 than even we expected. Got you. Just one more from me. It's good to see the connected property total. I think it's the first time we reported it since last year, $9.1 million or so. I think there was like 700,000 new properties net since last year. Do you think going forward now, are we gonna see a pickup in international contribute to that number? I guess, what drove that 700,000 incremental homes or connected properties? Are those drivers changing now going forward? Sounds like it could be more commercial and international loaded maybe. Just hearing your thoughts would be helpful. Yeah. I think there will be some changes, I mean, starting with, I think on one of the prior questions I indicated we're modeling in a taper from ADT in the Q2. You know, that will be meaningful in terms of numbers. Those accounts typically are at the lowest end of the ARPU range. What you'll probably see is a higher mix of commercial accounts, international accounts, and I would think, I mean, I think somewhere else we've indicated that ARPU on the commercial side, you know, is at least 2x, we hope to grow to sort of a 6x level versus residential. You may see a slight, you know, a bit of a decline in the overall net subscriber growth year-over-year unless we start cooking other things into that number. But hopefully, we will see some offsetting growth in the ARPU level as the business transitions to, you know, continues to sort of be getting more impact from what we're doing on the commercial side. Okay, great. That's helpful color. Great quarter, guys. I appreciate the added commentary. Thanks. Thanks, Jack. Thank you. One moment for our next question. Oh, I don't see any further questions in the queue. With this, Oh, I'm sorry, ladies and gentlemen, one moment for our next question. It comes from the line of Mike Latimore with Northland Capital. Please proceed. Hi, this is Aditya on behalf of Mike Latimore. Could you give some color on if you're seeing any effects of inflation on your business? Like you're seeing any demand dampening among customers, or are you seeing longer sales cycles with your service providers? I'd say we're seeing a little bit, you know, a little bit of impact. I think we've mentioned that there are two places we would look for impact. One is on the pace of new build activity, being new home construction. The other is on the pace of sort of existing home sales, which is a proxy for moves. As moves decline, we tend to get a favorable tailwind on attrition. As new builds decline, then there can be some impact, particularly on the hardware number, if we're not being installed in as many new places. Those are the things we're beginning to see some evidence of. We also, you know, credit is tighter, so the consumer's willingness to, you know, make hypothetically a $3,000 purchase is not as high today. They may be more comfortable with a $2,000 purchase if credit is tighter. You see a little bit of that. I think we are seeing some early indications that that is occurring. You see all these layoffs that are occurring. How meaningful they are, we don't know. Obviously, when someone is unemployed, that tends to be a time that they're not looking to make material new purchases. I'm not sure we have evidence that that's causing any impact today. There are some modest indications that inflation is impacting. All right. What% of new subscribers are taking video, and what% of those are analytics? Yeah, the video attachment rate in the Q4 continued to be strong at around 47%. You know, upper 40% is typically what we've seen. Then those eligible cameras that can take analytics, over 95% of those subscribers are taking video analytics. It really goes together really well with the, with the advanced video capabilities we have. Combining that with video analytics gives the subscribers the best, the best experience. All right. Thank you. Sure. Thank you. Thanks. Thank you. Ladies and gentlemen, with that, I will close Q&A and concludes today's program. Thank you for your participation, and you may now disconnect. Good day. Thank you.