Good afternoon. Thank you for attending today's Vivint Smart Home Q1 2022 financial results conference call. My name is Nate, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I'd like to pass the conference over to our host, Nate Stubbs with Vivint. Nate, please go ahead. Good afternoon, everyone. Thank you for joining us to discuss the results of Vivint Smart Home for the three months ended March 31st, 2022. Joining me this afternoon are David Bywater, Vivint Smart Home's Chief Executive Officer, and Dale R. Gerard, Vivint's Chief Financial Officer. I would like to begin by reminding everyone that the discussion today may contain forward-looking statements, including with regard to the company's future performance and prospects. Forward-looking statements are inherently subject to risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated in any such statements. We describe some of these risks and uncertainties in the Risk Factors section in our annual report on Form 10-K, which was filed on March 1st, 2022, and in other filings we make with the SEC from time to time. The company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. In today's remarks, we will refer to certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most comparable measures calculated and presented in accordance with GAAP, to the extent available without unreasonable effort, are available in the earnings release and accompanying presentation, which are available in the Investor Relations section of our website. I will now turn the call over to David Bywater. Great. Hey, thank you, Nate, and good afternoon, everyone. We appreciate your ongoing interest in the Vivint story. We continue to work hard every day to earn your confidence and your support. To that end, I am pleased to report that our strong track record of execution as a public company continued through the Q1 of 2022 as we grew total revenue by nearly 15% and adjusted EBITDA by almost 26%. We originated over 66,000 new Smart Home subscribers, which was a record for the Q1 period. Our last twelve-month attrition rate was 11.2%, which was a 15-quarter low and a 60 basis points improvement versus the prior year. We believe our attrition rate is the lowest among national Smart Home companies by a significant margin. Our improving customer retention is a result of years of work and collaboration to improve the overall credit quality of our customers, as well as performance enhancements across our portfolio of products and services. We end in Q1 with net service costs per subscriber near all-time lows, a strong indication that we are operating the business efficiently and effectively while delighting our customers. Our recurring revenue model has proven resilient during challenging economic times, and we believe the peace of mind and security we provide is relevant in any environment. We believe the momentum in the Q1 sets the stage for us to meet our full year targets for total subscribers, revenue, and adjusted EBITDA that we communicated to the market in late February. Given the challenges presented by rising interest rates and supply chain constraints, we are lowering the bottom end of our guidance range for free cash flow while leaving the top end of the range unchanged. Dale will speak to the specifics of this change in his remarks. We are focused on redefining the home experience with technology, products, and services that create a smarter, greener, safer home while saving our customers money every month. Our integrated platform is the core enabler that allows us to deliver on this mission. We process more than 1.1 billion events per day across our subscriber portfolio. Our average customer has about 15 devices in their home and interacts with their system nearly 11x per day and stays with us for approximately nine years. Our proprietary platform allows us to not only protect our customers' homes and families, but to make their homes more enjoyable and intelligent as we integrate solutions with artificial intelligence to make smart decisions on their behalf. As we work to also bundle Smart Energy and Smart Insurance, we will leverage our integrated, easy-to-use operating system to help customers save money on their electric bills and insurance premiums. We believe our strategy provides distinct advantages that will allow us to increase the lifetime value of our customers, which in turn should drive strong economic value for our shareholders. We expect that the unit economics of our customers should also improve, further enhancing the cash flow generation of the company and allowing us to reinvest in compelling value-accretive initiatives. We are confident in our strategy as our data indicates that at scale, a customer who bundles Smart Home with Smart Energy and/or Smart Insurance has a greater lifetime value than a Smart Home customer alone. Moreover, the lifetime value of a Smart Home customer increases by $200-$400 with each additional year they remain on the platform. We believe that customers who bundle services will remain with us longer than the current nine-year average. We believe our broader platform strategy will further cement Vivint as being in a category of one. As we leverage the advantages from our intelligent and integrated platform, we will further extend our leadership in the do-it-for-me Smart Home segment. Of course, executing on our strategy of making smart homes smarter, greener, and safer requires us to focus on operational excellence, continuous product innovation, and a commitment to enhancing the experience of our customers. I am pleased to welcome Rasesh Patel, our new Chief Operating Officer, to the Vivint team. Rasesh will join us in mid-May, and he brings to Vivint 20+ years of experience in building technology service businesses, driving innovation, and improving the customer experience. Most recently, as the Chief Product and Platform Officer of AT&T Business, a segment with $35 billion in annual revenue. He will oversee all of our customer-facing operations as well as our technology and product platform. We look forward to Rasesh helping us refine our approach to expanding the lifetime value of our customers. Turning to our key strategic adjacencies, as one of the first smart home companies to expand into Smart Energy, we are very encouraged by the momentum we saw in the Q1. Due to the seasonality of our business, we would expect the majority of our sales to come in the back half of the year, and we remain on track to double the 45 MW we sold in 2021. Our Vivint sales force and strategic partners who seamlessly bundle a Vivint Smart Home system with solar are seeing a considerably better sales realization rate than those who are only selling solar. This is an incredible demonstration of the power we bring by offering a bundled solution, and it strikes directly at one of the issues the solar industry struggles with: wasted upfront costs on the sales of a solar system that never get installed. Our long-term vision is to combine energy production and consumption into an integrated platform that uses data-infused AI to manage power consumption more intelligently. Our nationwide footprint and ability to install our award-winning smart home solution within a day or two of customers signing up for solar, we believe is a game changer for the industry and for our customers. We believe that as we grow and solidify our go-to-market partnerships, we will prove to be a powerful and differentiated combination to grow and retain smart home customers. Evan Pack, who I worked with for several years at Vivint Solar, joined the Vivint leadership team a few months back to lead our smart home energy initiative and to manage our relationships with these key partners. I'm confident he is the right person to lead our smart home energy business into this next phase of growth. Surveys show that less than 4% of the addressable homes in the U.S. have adopted solar to this point. With our nearly 1.9 million customers across North America, we believe there is a significant opportunity to provide bundled smart energy to our existing customers, as well as the hundreds of thousands of new subscribers we add to our portfolio every year. Now, to briefly discuss our Smart Insurance initiative, we continue to believe that our data-rich platform can help better price the risk of a customer who has a professionally installed and actively monitored Smart Home system that can potentially mitigate the severity of loss events. We believe Vivint customers present a lower risk than homeowners without a Smart Home system or with an unmonitored DIY system that was inadequately scoped and poorly installed. We continue to invest in this initiative, and in March, we welcomed Ron Davies to a newly created role as the Chief Insurance Officer. In this role, Ron leads all aspects of the Smart Insurance business, including the development of our marketing strategy, as well as the process of becoming a managing general agent, which will allow us to develop specific homeowner coverages and enables us to provide proprietary insurance offerings. Ron is a proven leader that has showcased his ability to transform and build insurance companies over a career spanning more than two decades at universally recognized brands such as Progressive, Allstate, and most recently, SafeAuto, which was recently purchased by Allstate. In closing, we're extremely pleased with our performance in the Q1 of 2022, and we're excited about the future. The markets in which we operate are large, they're growing, and provide significant headroom for growth. Our business model provides a platform for growth in Smart Home as well as adjacencies like Smart Energy, Smart Insurance, and more. We believe that we continue to grow at a much faster rate than our do-it-for-me peers and do so in a profitable way while generating positive free cash flow that we can invest in value-accretive opportunities. With that, I will turn the call over to Dale to further discuss our Q1 results and our outlook for the year. Thank you, David. Good afternoon, everyone. My comments will refer to information in our earnings presentation that was posted to the investor relations section of our website at vivint.com prior to this call. Following my prepared remarks, we will open the call for a Q&A session. Our key subscriber portfolio metrics continued to perform well and showed year-over-year improvement in the quarter. During the Q1 of 2022, we had growth in total subscribers of 9.6% versus the prior year period, increasing from 1.71 to 1.87 million. Our average monthly recurring revenue per user, or AMRRU, in the Q1 increased 3.1% year over year to $67.87. The average in AMRRU was driven by customers purchasing incremental smart home products at the initial point of sale, a trend that we have seen over the past several quarters. The year-over-year growth in total subscribers and AMRRU drove a 12.9% increase in total monthly recurring revenue, or total MRR. For the Q1 of 2022, total MRR was $126.5 million, up from $112 million reported in the prior year period. Moving on to revenue and adjusted EBITDA. Revenue grew by 14.7% to $392.7 million in the Q1 of 2022. The growth in revenue was attributable to the previously mentioned double-digit increase in total subscribers and the increase in AMRRU, as well as a solid contribution from our Smart Energy initiative. We are very pleased with the Q1 's revenue growth, and we remain on track to meet or exceed our revenue guidance for the full year. Like revenue, adjusted EBITDA grew nicely in the Q1 of 2022, finishing at $202.3 million, up 25.9% from the same period in 2021, with a margin of 51.5%. The scaling of service costs and lower G&A expenses were the primary drivers of the 25.9% year-over-year increase. I would note that in the Q1 of 2021, we incurred a one-time legal expense, and this was the primary driver of the decrease in year-over-year G&A costs. We are happy with the growth in adjusted EBITDA and our ability to increase adjusted EBITDA margin in the face of continued economic challenges and supply chain constraints. Next, I will highlight a few metrics on subscriber originations in the Q1 of 2022. Led by 8.9% year-over-year growth in our national inside sales, we installed a Q1 record of 66,734 new subscribers. Additionally, our Smart Energy partnership continued to show the benefits of bundling Smart Home with solar, adding 2,940 new Vivint Smart Home subscribers in the quarter. Nearly all of the customers originated in the quarter either paid in full or financed the purchase of their equipment through one of our financing partners. As we have discussed on prior earnings calls, the timing of the payment of fees to our primary financing partner has changed from over the term of the loan to upfront and netted from the gross proceeds received from that partner. Due to this change, we are updating how we report average proceeds collected at point of sale and net subscriber acquisition costs for a new subscriber. These metrics will now include the fees paid to our financing partners for all periods shown, whether the fees are paid over the term of the loan or upfront at the point of sale. Net of fees paid to our financing partners, average proceeds collected grew by $93 from $1,556 in the last twelve-month period, ended March 31st, 2021, to $1,649 in the same period in 2022. Average proceeds collected at point of sale, excluding finance fees, increased from $2,067 in 2021 to $2,185 in 2022. I will next cover our net service cost per subscriber and net subscriber acquisition cost per new subscriber for the quarter. We continued our trend of year-over-year improvement in net service cost per subscriber, dropping from $10.77 in the Q1 of 2021 to $10.18 in the Q1 of 2022. Our net service cost per subscriber for the Q1 remained near an all-time low. Our net service margin remains strong at 78.2%. These results reinforce the advantage of Vivint's fully integrated platform, which encompasses the entire customer journey, as well as the constant feedback loop that enables us to continuously improve the performance of our products and platform. Before I discuss net subscriber acquisition cost per new subscriber, as mentioned earlier, we are now including the fees paid to our financing partners in the reporting of this metric, whether those fees are paid over the term of the loan or upfront at the point of sale. Including financing fees, net subscriber acquisition cost per new subscriber for the last 12 months ended March 31st, 2022 was $618, up slightly from $577 in the prior year period, but down $635 or approximately 50% from the same period in 2019. The marginal year-over-year increase was primarily driven by higher equipment and housing related expenses. Net subscriber acquisition cost per new subscriber, excluding financing fees, was $82, up slightly from $66 in the prior period, but down $878 from the same period in 2019. Our customer financing model, Vivint Flex Pay, has been instrumental in our transition from using cash and taking on debt to grow the business to producing cash, reducing debt, and having the flexibility to invest in new initiatives that we believe will be value accretive to our shareholders. Another metric we are happy to report is our last 12 month attrition rate. For the period ended March 31st, 2022, our attrition rate improved for the eighth consecutive quarter to 11.2%, a 15-quarter low. Our enhanced underwriting standards, improved product and service performance, and the high level of customer engagement with our platform continue to drive what we believe is the lowest attrition rate among national smart home companies. In terms of net cash used in operating activities, we used $36.1 million during the Q1 of 2022, up $21.9 million from the Q1 of 2021, which was primarily driven by a change in the timing of interest payments due to the refinancing of our debt last year and a change in the timing of finance fees paid to our lead financing partner. We finished the quarter with $153.2 million of cash on hand and a very strong liquidity position of approximately $510 million. In conclusion, we are proud of our consistent execution across our key financial and operational metrics, particularly since becoming a public company in January of 2020. The fundamentals of the business remain strong. We are pleased with our momentum going into the Q2, and we are bullish about the opportunities that lie ahead of us. We are also aware of the continuing supply chain disruptions, inflationary pressures, rising interest rates, and challenging labor dynamics. Taking all of these into consideration, we are reaffirming our original guidance issued during our Q4 of 2021 earnings call for total subscribers, revenue, and adjusted EBITDA. We are lowering the bottom end of our guidance range for free cash flow by $17 million to $50 million while leaving the top end of the range unchanged at $77 million. We expect to end the year with total subscribers within the range of 1.95-2 million, total revenue within the range of $1.6-$1.63 billion, adjusted EBITDA within the range of $725-$745 million, and free cash flow within the range of $50-$77 million. This concludes our prepared remarks for the Q1. Operator, please open the call for Q&A. Absolutely. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you're using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly as questions are registered. Our first question goes to Rod Hall with Goldman Sachs. Rod, your line is open. Please go ahead. Hi. Thank you for taking my question. This is Maxime Boucher on for Rod. First question would be on just if you could just elaborate on the attrition trends in the quarter and kind of how that compares to your expectations heading into the quarter. From a longer-term perspective, where we should expect attrition to go from here for the rest of the year and maybe even beyond as some of the older cohorts come to an end. Thank you. Yeah. I'll start with that. This is Dale, and then David, you can jump in here and add anything. I think, you know, we continue to see retention of our customers perform really well. They're probably ahead of our expectation again in the Q1. But again, we think when you have the interaction, you know, 11 times a day that individuals are interacting with our system, they're using the system, they're finding value in it, they're more likely to keep staying with the system and paying for it, and I think that's what we're seeing. I think over time, our product and our service obviously continues to get better, and there's more functionality that they're able to get out of it. That's leading to, again, customers that are wanting the system and wanting this service that we provide. In terms of what we see, I think we've said, hey, guidance-wise, we expect attrition to probably be in the 12% range for the full year. I think, you know, that's what we said in coming into this year, in terms of guidance there. I think we still expect that. We're cautious. I mean, there's lots going on in the economy, as you know, Max. And, you know, while we think the attrition will continue to perform really well, and we believe it will, I would think for guidance-wise, we'd say we're expecting. Part of that is we know that the end of term percentage of customers will go up, from where it is today as we go through renewals here later in the year. I think we're at 10.2% of customers that are at their initial end of contract for this last twelve-month period. We expect that to go up and, you know, higher than that as we go through 2022. That's why we're saying, "Hey, based upon the hydraulics, when you have more customers at end of term, the attrition usually of those cohorts at that point in time are higher than we expect, you know, 12% or somewhere in that range for full year guidance." The one thing I would point out, and then David, you can jump in if you have anything else, is the last time we were at this type of low was in I think the Q2 of 2018, and we had, you know, 10.8% of, like I said of customers at their end of term. This period, it was 12.2% or 12.3% that way. So we've got, you know, we're performing better across the board. We're really excited about where that is, and continuing to perform better than what we expect. We continue to think that will happen throughout the year. David, I don't know if you have anything more on attrition. No, I think that point you just made is what I wanted to make. The other thing is, Max, I do think this is a good illustration of the integrated model. I see the collaboration between our operations teams and our innovation teams and, you know, we own the product, we own the IP. You know, seeing those two teams work well together to root cause anything that is causing friction with the customers and how they collaborate to knock down those issues proactively is great to see. Those two teams work really well together. It's very close. It's not, you know, this large disparate set of solutions from across a large array of parties. It's the majority of it is what we own and do internally. You know, I think we're really pleased with the results coming from that integrated model. You know, so far so good. I think as I mentioned in my comments, from everything we can see, I think we're materially ahead of a lot of our peers. We're proud of that, and we'll continue to work hard to continue to widen that gap. Got it. That's helpful. Thank you very much. Another question would be just from a macro perspective, how are you thinking about direct-to-home sales heading into the summer, with COVID largely in the rear view mirror, for the first time in, I guess, two years? I guess that should probably help your direct-to-home sales, but we also have a tough operating environment with rising labor costs. Wondering about your direct-to-home sales strategy, for this year. Yeah, no, great question. You know, direct-to-home is a very important channel for us. We launched this summer, about 2.5, almost three weeks ago. We're off to a great start, actually. We've been very pleased with the first few weeks. They're performing better than we expected. And it's probably one of our best launches in years. We're very encouraged by that. You know, it's a collaborative sell, it's an informative sell. We're very good at this. I think we're best in class at this. We've been doing this for decades now. And our teams know how to sell, where to sell. They're very pleased with the platform of services that we have to offer. You know, I think our productivity, we're very encouraged what we've seen these first few weeks. We're very bullish and I'm very, very encouraged by the results we've seen. You know, you usually know within the first four or five weeks of the summer how the summer's gonna trend out. Thus far, all the data tends to be a very strong summer for us. Very, very encouraged. You know, the fact. Great. Thank you very much. Behind us. Yeah, having COVID behind us is a great thing. Also, you know, we're seeing the sales productivity hasn't really been hurt by kind of the economic chaos going on. We're still cautious, but so far so good. Let's see how the few more weeks stack up, and we'll report, you know, out in August, but feeling good about it. Got it. Thank you very much. Thank you. Thanks, Max. Thank you. Our next question goes to Ashish Sabadra with RBC Capital. Ashish, your line is open. Please go ahead. Yeah, thanks for taking my question. Maybe just a quick question on the free cash flow guidance. I was just wondering what takes you to the high end versus the low end of the guidance range? Maybe just a follow-up question there, like why do we see that impact on the free cash flow, but I haven't really seen those headwinds impacting the EBITDA or other line items? Any color there will be helpful as well. Thanks. Yeah. With rising interest rates, you know, we have two pieces of kind of debt, I would say. We have the term loan that's on our balance sheet. And then the bigger component is really the Citizens financing. As you know, we offer that to consumers for 0% APR. Our cost associated to do that as rates rise will increase. We're trying to do some forecasting there around what we think will happen around rates and the different swap curves. That's why we've said, "Hey, based upon where we see rates today and what we expect the increases will be at the next two or three or four Fed meetings," we factor that into kind of our estimates and said, "Hey, we think that there will be potentially a greater use of cash than we originally anticipated when we did our models for the beginning of the year." The reason why you don't see that in, like EBITDA, for example, is when that comes through, it comes through as a deduction to revenue. You know, as we put it on, if you take the gross amount, less the fee, that net amount is what we put into deferred revenue, and we recognize over, you know, say at 60 months of the period of the loan. While it will be, you know, a lot, could be, you know, $10 million-$20 million in incremental cash, depending on what happens with rates here, it's very small when you look at it on a revenue basis because it gets spread out over, think about it, five years. In any one period of time for revenue, it's not gonna be material to change the numbers. On a cash basis because it's the cash that we get in this period related to those new sales, it will have some impact there. That's why we're just, you know, we're realizing what's really happening in the economy. We're seeing these rates go up, and they're going up a lot faster I think maybe when you look at the yield curves and the out two, three years. You gotta remember, you know, most of our loans we put on with Citizens are 60-month loans. That cost, while the rates have not increased that dramatically when you look at it just quarter-over-quarter or, you know, one-year rates, but the calculation used to figure out what our cost is with them, it uses longer term periods, and those rates have went up higher than what they were the last time when we put out our guidance. That's very helpful colo r. Maybe just on my follow-up, thanks for that disclosure on the Smart Energy partners and the new subscriber which are generated from that channel. Just given the higher energy prices seems to be a strong demand for solar energy. I was wondering, what are you seeing on that front, and how should we think that partnership helping drive accelerated subscriber growth going forward? Thanks. Yeah. You know, we are seeing some strong demand there. I think the work that the team did two years ago putting together that partnership that we really brought to market last summer was fortuitous because we knew that there was a strong desire to bundle the two. We've known that for years. We, you know, really saw the benefits of it at the end of last summer and then throughout this last fall and winter. You know, we have forecast that we think we'll double our megawatts. You know, we may do more than that. We also see that there are some challenges on the solar side. You know, there's some challenges with regards to supply constraints there on panels that is causing some concern. You know, we're also just being realistic around the access to panels there. There's also financing costs that impact, you know, solar, just like there is across all consumer products. Having said that, those headwinds are real. They're similar to what we see on the smart home side. There is this desire obviously to control your energy costs. I think with the rising cost of petroleum, there are people who are saying, "Hey, net-net long term, I wanna be able to be in control of that." I think that they have that longer vision, and they are pushing forward to adopt solar. There is a strong desire there. As we mentioned, we're seeing a much higher pull-through of those sales that actually go to install, which at the end of the day is what really matters when they bundle smart home. We knew from the work that we had done from all of the survey work that there was a strong desire to bundle them. In fact, you know, in practice, we're seeing a materially higher pull-through rate. We think we're onto something pretty special, and our partners agree. There's a yin and yang and a pro and a con in the current environment. Net-net, we think that the demand for solar will continue to be strong, and the demand to bundle what we have will be even stronger. Those that provide the bundle solution will delight the customers even more and provide them more value. As a result, we think we can actually do a better job in winning in that market space. Yeah, you know, we continue to be very, very strong in solar. That's great colo r. Again, solid results and good to see the great momentum in both subscriber and revenue growth. Thanks. Yeah. Thank you. It was a great quarter, and we're optimistic for the full year. Thank you, Ashish. Our next question goes to Erik Woodring with Morgan Stanley. Erik, your line is open. Please proceed. Hey, guys. Just wanna echo the congrats. Really strong quarter across the board really. That kinda gets to my question, which is, you know, you saw a nice upside in Q1, kept your full year guidance unchanged. Just wanna understand, is that more a function of, you know, trying to embed some conservatism in the model for the rest of the year given what's going on, or has there been any change in outlook as we think about the remainder of the year? I have a follow-up. Yeah, yeah. Hey, Erik. Thanks for the question. It's really reflecting conservatism. I don't know if it's conservatism or if it's being cautious about what we're seeing in the marketplace, frankly, right? It was a great Q1. As David just mentioned, we're bullish on the full-year prospects. There's lots of things going on in the economy that we just don't know how consumer behavior, if it will change. We haven't seen it to date. As David mentioned, we're feeling good about the start of the direct-to-home sales season that's a couple weeks in. For where we are today, you know, we're five months into the year. I think we feel pretty good saying, "Hey, that's where we think we'll be." As we get, you know, deeper into the year and get Q2 printed, you know, if there's a need to make any upward revisions, you know, then we'll. I'm sure we will. It's really just thoughtful about everything that's going on out there with, you know, supply chain. You know, David, you can jump in on this, but I think everyone thought supply chain in 2022, like we went through 2021 and was like, "Oh, supply chain, it can't get any worse than this," or, "It's gonna get better in 2022." We're not. You know, we're still seeing it's, you know, it's every day it's a battle to make sure we've got decommits from subcomponents and suppliers, and we've gotta go work with them to get those components recommitted, or we gotta go out and find other suppliers to bring us those components. You've got, you know, they've got labor constraints. I think you've got China shut down, which is where a lot of subcomponents actually come out of. We don't really manufacture finished goods in China, but a lot of the subcomponents that go into our finished, you know, cameras and panels and so forth come out of there. That's a disruption. I don't know how long that's gonna go on or what that really will look like. It's not only in just timing to get those, but it's also in cost. Is there gonna be more cost? We're gonna have to use more air freight. You know, there's gonna be higher manufacturing costs because they're gonna have to use more labor and overtime to catch up to keep the volumes that we need to come in for production. There's just lots of things out there that we see, but don't have, like, full visibility to how those could impact us. That's why we're kind of leaving that full year kind of where it is, today from what we know and what we see. David, I don't know if you see anything else. Okay. No, you know, I agree. You know, we have a gentleman named Josh Crittenden who runs our direct-to-home. You know, been talking to him, it's interesting. You think about this year, you know, we're encouraged by the start of direct-to-home this year. The reason why I bring that up is because I think the solutions that we have this year that we're bringing forth with our sales force and with our customers, it resonates. You know, these bundled solutions, they resonate. The fact that we're trying to make homes safer, more efficient, and also more cost-effective, they resonate. You know, we talk about the roadmap of our company. You know, we're trying to extend how long we are with the customers to pull our high service margins we have today in our current business plus bundle an incremental margin. We're trying to create more value for our customers. I mean, you take all of that, and you know, we're encouraged by the year. Q1 was a great manifestation of that. I mean, the work we're doing with our inside sales, you know, our direct-to-home really kicks off in the spring and summer. Our inside sales was relatively strong. You know, we feel good about the refinement of our strategy and our execution of our strategy. Our operations teams, I mean, they continue to dial in on their ability to execute even in a more leveraged way than they have in the past. We're encouraged, but yeah, to Dale's point, you know, I'm not sure what the Ukrainian conflict with Russia, I'm not sure where oil price is gonna end up. Still am concerned about these supply chain constraints and then interest rates, even though we have the three-year curve. You know, not exactly sure where that goes. We try to bake that in. Just that unknown, we just thought it would be just prudent just to hold where we are. Our goal with you guys is to give it to you how we see it. You know, we've done a really good job performing ever since we did our IPO. We don't wanna blow that. We want you guys to believe in what we say and, you know, that's kinda how we roll. That's where we are. No, that's great. I appreciate all that color and I think you're taking the right strategy, so kudos to you. Maybe just my follow-up. David, I think you mentioned a comment earlier where you said the customer stays for nine years. You know, is that just a subtle hint that you think, you know, your long-term attrition rate, which was originally, you know, thought to be closer to 12% could actually be lower than that because you now see customers staying, you know, kind of nine years versus the high end of seven or eight years that was kind of the prior estimation? I just wanna make sure if that was just a comment in passing or if that's, you know, something that you think has fundamentally changed where now the long-term attrition rate might now be lower than it was, you know, than you were thinking maybe three, six, nine 12 months ago. No, Erik, well, we're very explicit about this. I mean, our aspiration is very much to turn long-term customers into lifetime customers. I mean, it's very aspirational, but, you know, our goal here is to have it be 12 years, 15 years. You know, a solar relationship is 35 years, you know. You know, if you bring to them a better insurance solution that they benefit from because of their smart home solution, you know, why would they go anywhere else? You know, if we can continue to make their home more efficient, today and more enjoyable, and they interact with that home more and more, why would they go anywhere else? It very much is our stated desire and objective to bring them value so that it goes from nine to 12 to 13, and that would very much reduce attrition. You know, I talk about this internally a fair bit. We're trying to have the entire bundled solution be at lower cost than they have today. When you do that, and you help educate the consumer about the value you're bringing, you know, I really do hope that we're dropping out, you know, hundreds of basis points of attrition over time. You know, by math, you extend that relationship. You know, it's so interesting. 10 years ago, when you were just in the security business, you know, you sold a system, and, you know, people hoped that they never had to use it. They hoped they never had an instance where they had an alarm go off. By default, they never knew if it was really working. We've completely flipped that. We are trying to drive interaction with them every day. We're reminding them every day the value that we bring. We always talk about that 11x per day. We hope that we get that to 13x a day, 15x a day, where you're so integral into their family. It's so funny. My wife, she hates it, but I will often get on my phone. I will see her on our my cameras in the house. I'll talk to her over the phone, and she's like, "You know, David, I hate this. You can now see what I'm doing at home, you know? You know, I'm interacting with my family at different times. If I'm late for dinner, you know, they'll be having dinner, and I'll be talking to them. You know, there's new ways that I'm interacting with my family that I never even thought about a year ago. We're always trying to think about ways that we can become more central to who they are, so that they can't live without us. Yeah, very much, Erik. I hope that average lifetime continues to go up. Like I said, on just the Smart Home alone, not even including insurance or solar, just the Smart Home, for every year we extend it depends on how big their package is. It's $200-$400 more of lifetime value. When you add in solar and you add in insurance. You know, my goal here is to show you guys over time that the lifetime value of the customer is expanding nicely. You as investors are saying, you know, "Wait a minute. You know, this is the superior investment option for us. He's got something." That's what we're trying to prove to you. Perfect. I love that answer. Thank you so much, guys. All the best. Thank you, Erik. Thank you, Erik. Our next question goes to Paul Chung with JP Morgan. Paul, your line is open. Please go ahead. Paul, your line is open. Please proceed. Oh, sorry about that. Thanks for taking my question. Just on Q1, what kind of drove the big you know uptick there, typically seasonally slower? You know, what were some pockets of you know demand? What regions you saw strength? How's competition kind of faring? Are more and more people becoming aware of your brand? Well, hey, Paul. It's David. You know, in Q1, most of that was driven through our inside sales. The seasonality of our direct-to-home, they really kick in as we've diversified our channels. You really see the strength of direct-to-home in Q2 and Q3, and then parts of Q4. Really Q1, the majority of that is from inside sales. I really think that's a function of many things. You know, one, once again, is I think our product is getting better. That's folks who are researching our product. They're seeing the accolades that we have from our product. We call ourselves a category of one. We really do think that we have the best product out there for the money. I think people see that. You know, the success of our direct-to-home, you see all the advertisements, all the homes that have the signs out front, you know, that we benefit from that. There's a symbiotic relationship there between the two. That was really around just digital marketing and the effectiveness of that and just the brand awareness. We've done a fair bit of survey work around our brand awareness. It's surprisingly high for how little we spend on brand. And we think that's earned brand. That is, you know, that's from doing this now for 20 years and really earning that, on a word-of-mouth basis, which is the most valuable brand awareness you can possibly have. You know, once again, it's hard earned, and that was really largely from inside sales, which I think stands on the merit of the efficacy of the product. The other thing I'd just layer in that too is the inside sales really strong quarter. We did pick up almost 3,000 additional new subscribers from that partnership that we've created. As David said, groundwork was laid 18, 24 months ago, really started to come into fruition in 2021, and we're continuing to see that really come full circle, so to speak, in 2022. You got almost 3,000 new Vivint Smart Homes from a channel that didn't exist previously, and we think there's lots of opportunities. Because solar largely sold year-round. You're right. The team has helped them understand the value of bundling, and as we've trained them and they've seen the benefits. That's true. That engine has also helped us. Yeah. Inside sales and that new channel coming online. Yeah, good point. Yeah. You see that in the numbers. I follow up on the. You. Right. Yeah. Go ahead, Paul. Just following up on the solar stuff. Yeah, the solar stuff, so nice momentum there. How do we think about kind of the new subs growth relative to, you know, the doubling of the megawatts you mentioned and kind of the revenue and margin contribution per sub kind of moving forward on that basis? I guess the same kind of question for Smart Insurance, kind of the unit economics per sub there? I'll start with Smart Insurance and work my way back. Paul, this is Dale. We're not really giving out. We haven't given out. I think we're still very early into the life cycle of the insurance business and building out. I mean, we did 7,000 or so, you know, sold policies last year. That's very early and continue to build out. We're actually spending, investing there. That's one of the investments that we're making in 2022 to build out the MGA that we're working on. You know, Ron's been in place, Ron Davies, who we brought in to lead, has been in place for 60 days, I think, at this point. Very early there. We definitely believe it's accretive to our EBITDA margin and it definitely drives extended and increased lifetime value of a customer. But you know, we'll give those out when I think it's appropriate, when we have a better feel for what those really look like, because there's a lot of movement there still today. I think on the Smart Energy side, you know, I think that 45 MW that we did last year would be, you know, that was probably 5,000 homes or so. So if you double that this year, you get to 90, you're probably in the 9,000 to 9,500, 10,000 homes. You know, we believe that we'll be able to drive, you know, incremental value and margin out of that business. What I think comes, there's two pieces of that, right? There's the revenue that's generated from the selling of that solar to that customer, and we get the margin we get from that. There's also from this partnership the development and increase in smart home customers that have very strong, you know, margins in terms of lifetime value for those. There's kind of two pieces to that. I think we wanna make sure we think about it that way. You know, I think we can drive 10,000-ish or more new subs from that, smart home subs. You'll have, you know, last year I think we said that 45 MW was, you know, call it $45-$50 million of revenue. You can kinda back in. If we're doubling where we are this year, then we're probably looking at somewhere between call it $85-$95 million of revenue from that. We're still working. It's early. I think we feel good about where our cost structure will come out there. But it's probably a little still early, but I think it'll be, you know, somewhere north of 10%, what we'd say was the margin on that. I think our goal is to get it, you know, into the mid- to high teens. There's, you know, we're still working on that. Our investments, we're making investments now to make sure that we scale it correctly. Again, I think, Paul, to make sure that, you know, it's incremental to what we're doing today, so it's positive to whatever we're doing today in terms of the EBITDA we're getting from that. I think it's really about, as David said previously, it's about the lifetime value of the customer, and if you can take that customer that has a 75%-80% service margin from the smart home side, you can add incremental revenue that you're getting from that customer related to a solar sale or the annual insurance premiums coming in from that customer. It really expands out, we believe, the lifetime value of that customer and pull the margin from smart home in other years. It's really quite powerful. Yeah, we saw some people were saying, "Hey, the margin's dilutive," and I'm like, "You gotta open your aperture." You know? If you were running this business on your own, you'd make the investment because you're protecting and elongating and adding, and most importantly, you're adding value to the customer, which makes you a must-own asset. So as you open your aperture and think about value to the customer, defending your base, and incrementally adding margin, on a very risk-adjusted basis, it is a no-brainer to do. The way we're doing it in a asset-light, balance sheet-friendly way, it's very, very Thank you so much. Thank you for the question, Paul. Thank you, Paul. Our next question goes to Brian Ruttenbur. Excuse me, Ruttenbur with Imperial Capital. Brian, your line is open. Please proceed. Yes, thank you very much. First of all, in terms of Q2, can you talk a little bit about where you see G&A going? 'Cause you had a dramatic drop in G&A year over year sequentially in the Q1. Where do you see that going in Q2? Yeah. Yeah, it'll go up. Sequentially it'll go up. From Q1 to Q2 it'll go up. I think when you look at it on a year-over-year basis, it's gonna be, you know, call it 5%, 6% growth. So again, one of the things we've really focused on is really trying to drive efficiencies out of the dollars that we're investing. G&A is an investment. I mean, it's like a capital allocation like anything else, whether it's new subscribers or technology or products. We're really focused on that, Brian, making sure that where we're spending our dollars in G&A, whether that's in finance, you know, legal, operations or marketing, executives, wherever that's at, that we're actually getting a return on those dollars. There will be, you know, some year-over-year. I mean, there's gotta be some, as you know, Brian, there's gotta be some inflationary pressures just on some of the. Right The core things that we have in that, whether it's travel. You know, we're starting to see a little bit more travel. David and I, you know, have been to conferences and so forth, so there are certain things like that that we're starting to see. We're gonna try our best to maintain and really drive, you know. Scale Scale across the G&A. Okay. Very good. The other question is more macro. It's kinda your roadmap. Can you talk a little bit more about the insurance offering, where you are now in terms of the rollout? Are you going to be, you know, farming this out? Are you self-insuring, you know, your customers here? What's the structure? Then maybe what other offerings could you potentially be selling through your channel? Right. Brian, thanks for the question. I'll take that one. First and foremost, we believe this is a platform play, and I, you know, we're really seeing that come to fruition last year and then this year. This ecosystem we have in the home, the relationship we have with the customers, you know, they're asking us to say, "Hey, bring us other solutions." You know, we've talked about solar. The insurance is a great manifestation of that. Where we are, you know, this last year and a half, we really were working on just making sure that we could actually be relevant and the customers would buy from us. We've just been actually selling policies, re-selling policies, just making sure the systems in place, the compliance apparatus to be able to sell to our 2 million customers. There wasn't anything terribly creative about that. It was just trying to get the ability to sell correctly through an agency piece. We've been working to actually develop an MGA model, where we can then take the data that we have and underwrite with partners, with a reinsurer, to actually be able to have them underwrite a lot of the risk to actually bring data to bear that the customers have on their behalf to underwrite a product that would benefit them. This year, our goal is to be into three states. We should be into our first state as an MGA later this summer, and then hopefully be in two more states by the end of the year. You know, the states we're going into is a function of where our partners want us to go, where we have a large customer base, and the risk profile works for our product. You know, Dale mentioned this is not gonna be a material piece of our economics, probably for a year or two. What we're trying to do now is just making sure that we do it correctly, methodically, working with our partners. There is a very large interest level because we own the data, you know, with our customers, we have the platform. We're just making sure we're doing it correctly. We're not relying upon this to be a large revenue lift or a large EBITDA lift or large cash lift or drain. We're doing this to be able to prove out value to our customers, and this will be a nice growth engine in the years to come. Most importantly, it's a great manifestation of the platform play, and as we'll do. The second part of your question. To answer your question there, Brian, we're partnering with some large industry players. We're making sure the risk falls appropriately where it should be, relying upon their expertise and our expertise. We're not trying to play in areas of risk that we're not competent in. We're relying upon them, and we're relying upon what we're really good at to do our part. That really is the data we have, the installation we have, and the servicing we have. They're helping make sure that we price the risk and underwrite the risk correctly. With regards to where else we can go, we've done a fair bit of work on this, on one of the platforms. We feel right now our plate is pretty full, not only with the continued expansion of Smart Home, Smart Energy and Smart Insurance, but also the expansion of channels and how we bring things to market. There's a fair bit on our plate. For the next 18-24 months, we're really digesting and scaling that. We've mentioned in prior calls that we're interested in aging in place. It's an area in the marketplace we think we have a really strong product offering to bring to bear there, and we can really drive out a lot of costs and bring a lot of you know comfort and value to folks who wanna age in their home where they are happier, healthier, and do it in a much more cost-effective way and connect their families. You know, that's an area that we're doing some work around, and I can see that being an area that we'll probably invest in the future. Right now, we're focusing on what we have. Great. Thank you very much. That might be through acquisition, that may be through partnerships, that may be through organic. We're still trying to manage exactly how we want to approach that marketplace and when we'll do it. That's another example of where the platform will most likely go down the road. Great. Thanks. Thanks. Appreciate it. Thank you, Brian. All questions have been exhausted. I will turn the conference back over to David Bywater for closing remarks. Great. Thank you. We appreciate you guys' interest. Like I said, I think we had a great Q1. We're looking forward to a solid year. We appreciate you guys' ongoing interest in us. We're focused on delighting the customers, taking care of our shareholders, taking care of our employees. I did want to mention to all of you guys that we really appreciate our employees. We think they're world-class. I hear often from our customers how well our employees take care of them, whether it's how they sell, whether it's how they service them, whether it's you know, calls over the phone or when they're in their homes. I'm very proud of our employees. I appreciate how they innovate. I appreciate how they take care of each other, and how they've come through this COVID crisis with respect for one another and just how they treat each other and how they treat our customers. Once again, thanks for your time and your interest, and we look forward to talking to you guys on our next call. Take care. That concludes today's Vivint Smart Home Q1 2022 Financial Results conference call. Thank you for your participation. You can now disconnect your line.