Q1 2025 ADT Inc Earnings Call
Hello and welcome to the ADT first quarter 2025 earnings conference calls. All lines have been placed on mute to prevent any background noise.
Speaker Change: After the speaker's remarks, there will be a question and answer session, and if you would like to ask a question during this time, please press star one on your telephone keypad. I would now like to turn a conference over to Elizabeth Landers, head of investor relations, you may begin. Thank you very much.
Elizabeth Landers: Good morning, everyone, and thank you for joining us to discuss ADT's first quarter 2025 results. On today's call, we'll hear from ADT's Chairman, President and CEO , Jim DeVries, and our Chief Financial Officer, Jeff Likosar.
Elizabeth Landers: Following the prepared remarks, we'll have time for analyst questions. Earlier this morning, we issued a press release in slide presentation, summarizing our financial results.
Elizabeth Landers: These materials are available on our website at investor.adt.com. We will also discuss non-GAAP financial measures on this call. The most directly comparable GAAP measures , along with a reconciliation to those measures, can be found in our earnings presentation on the ADT investor relations website. As a reminder, financials and metrics for current and historical periods discussed on this call will be for continuing operations, except for non-GAAP cash flow measures which include amounts related to solar through the second quarter of 2024.
Elizabeth Landers: Today's remarks also include forward-looking statements that represent our beliefs or expectations about future events. These forward-looking statements are subjects to risks and uncertainties that could cause actual results to differ materially. Some of the factors that may cause these differences are described in our SEC filings. And with that, I'm happy to turn the call over to Jim.
Jim Devries: Good morning everyone, and thank you for joining us today. I am pleased to report that ADT is off to a very solid start in 2025 delivering results consistent with our expectations and demonstrating the resilience of our business model.
Jim Devries: which benefited from another record in our customer retention with gross attrition at just 12.6%. Both accomplishments are a testament to the continued strong demand for ADT's innovative offerings and premium customer experience.
Jim Devries: Total revenue also continued to grow up 7% versus the prior year. Of note, our growth comes while we remain focused on balancing profitability and investing for the future.
Jim Devries: We delivered adjusted earnings per deluded share of 21 cents and increase of 11%. ADT also continued to deliver strong free cash flows with adjusted free cash flow including interest rate swaps more than double last year's level.
Jim Devries: In our first quarter, we returned $445 million to ADT shareholders through sherry purchases and dividends.
Jim Devries: Jeff will provide more detail on our financial results later in the call.
Jim Devries: which is consistent with the themes I discussed on our February earnings call. We remain centered on delivering safety and peace of mind to our residential and small business customers with our strategy anchored in three areas. Unrivaled safety.
Innovative offerings, and a premium, best-in-class customer service experience.
Jim Devries: Our focus on unrivaled safety is and will always remain core to who we are, and what we do. And ADT will continue to strengthen the means by which we deliver peace of mind to our customers.
Jim Devries: While delivering our near-term financial objectives, we are continuing to invest in the product and experience ecosystem to develop additional differentiated customer offerings, which create even more reasons for customers to choose ADT and stay with ADT.
Jim Devries: A key component of our strategy has been investing in our product and experience ecosystem to create innovative offerings for our customers.
Jim Devries: As I mentioned on our last call, our primary objectives in 2025 are to continue execution of our strategy and importantly optimize our newly developed and launched capabilities.
Jim Devries: Increase availability across additional sales channels and enhance capabilities to enable existing customers to enjoy some of the features available to new customers.
Jim Devries: With our new and proprietary ADT-plus offering, now available to customers in all geographies,
Jim Devries: We are seeing an increasing percentage of our customers select our new ADT-plus platform.
Jim Devries: including substantially all new direct residential customer locations where ADT plus is the most efficient solution to meet customer needs.
Jim Devries: We are also seeing these new customers choose ADT plus professional installation at an overall higher average price.
Jim Devries: As part of ADT's discipline capital allocation strategy, and as we roll out our new platform in a somewhat unpredictable macroeconomic environment, we continue to optimize economic value creation, balanced with new subscriber additions.
The successful launch of ADT Trusted Neighbor remains a highlight.
Jim Devries: This convenient feature allows our customers to grant trusted individuals temporary access to their homes for everyday events like package delivery or more urgent issues like water leaks.
Jim Devries: As mentioned last quarter, we continue to explore innovative and secure ways our customers are able to grant access to their home, such as with the ADT plus app on a neighbor's phone, codes, or in combination with Nest's familiar face feature.
Jim Devries: We are excited that this innovation will also be available through a touch lock feature later this quarter.
Jim Devries: Recently, we also launched the ADT plus translator, which makes it possible to convert signals from certain legacy ADT sensors into a format that ADT plus can also process.
Jim Devries: Allowing many of our existing customers the ability to utilize components and features of our new ecosystem.
Jim Devries: The translator provides a faster, lower-cost transition from ADT legacy equipment designed to function seamlessly with our new ADT Plus platform.
Jim Devries: We will also be launching an additional feature which allows an automated home away status to trigger certain trusted neighbor automations and features.
Jim Devries: We are pleased with the results and positive customer feedback we are receiving on trusted neighbor and the overall ADT plus customer experience.
Jim Devries: Averaging 4.8 stars across thousands of reviews in the Apple App Store and Google Play Store.
Jim Devries: Consistent with ADT's strategic objective of delivering the best-in-class customer experience, we are pleased that our customer satisfaction is at a three-year high.
Jim Devries: This record high results from our commitment to continuous improvement across several areas.
Jim Devries: especially including improved agent satisfaction and almost all of our customer experience metrics.
Jim Devries: Our progress has been aided by actions, including virtual service, first call resolution initiatives, the customer onboarding processes, and agent training enhancements.
Jim Devries: These combined successes contribute to the record level customer attention I mentioned earlier.
Jim Devries: We are also pleased with the progress we've made with our Remote Assistance Program and early artificial intelligence efforts.
Jim Devries: Continuing our 2024 progress, we are resolving over half of our service calls utilizing cost efficient, remote alternatives rather than conducting in-home service visits, avoiding thousands of truck rolls and contributing to reductions in our field service costs. [inaudible]
Jim Devries: Our initial AI efforts are focused in our customer care operations to improve the customer service experiences for both our customers and our agents while also improving efficiency.
Jim Devries: First quarter results show 90% of our customer service chats are being processed by AI agents with nearly half of these chats being resolved for our customers without the need for a live agent interaction.
Jim Devries: Examples of the types of resolutions are AI chats are handling include general troubleshooting, rescheduling, or canceling appointments, and even ordering a yard sign.
Jim Devries: We are excited about the many opportunities to leverage AI to support our virtual agent capabilities and serve our customers efficiently.
Jim Devries: As the year progresses, we plan to leverage AI to expand this capability to even more agents and processes.
Jim Devries: Concurrent with the launch of ADT Plus, we also continue to evolve and optimize our go-to-market processes.
Jim Devries: We are now able to offer more flexibility in product bundles, configurations and pricing to appeal to different segments of customers.
Jim Devries: And we are accordingly enhancing our marketing messages to highlight relevant features and differentiators.
Jim Devries: We made adjustments during late fourth quarter and into the first quarter which contributed to strong insulation revenues and overall subscriber economics.
ADT's partnership with State Farm remains a promising sales channel.
Jim Devries: showing continued progress during the first quarter. Our joint offering is available in 17 states including innovative solutions in select states focused on leak detection along with DIY alternatives.
Jim Devries: Before closing, I would like to mention two recent additions to our executive leadership team.
Jim Devries: We appointed Fawad Ahmad as our Chief Operating and Customer Officer, along with Omar Khan as our Chief Business Officer.
Jim Devries: While both are new to our ADT family, they bring strong, relevant talent and experience, and I know they will complement our existing team very well.
Jim Devries: We also announce during the corner that Dan Young will be leaving ADT in June , and I want to thank him for his many contributions at ADT, and wish him well in his next chapter.
Jim Devries: I've had the great privilege of knowing Don for over 30 years, and the camaraderie, professionalism, and support he's provided has been unwavering and deeply appreciated.
Jim Devries: In closing, I want to take just a moment to express my gratitude to our nearly 13,000 employees, our dealers, and our equity and business partners, State Farming Google. I'm incredibly proud of our ADT team and their accomplishments.
Speaker Change: We remain encouraged for the opportunities that lie ahead. Thank you for your time today. I'll now turn the call over to Jeff.
Jeff Likosar: Thanks Jim, and thanks everyone for joining our call today. I'll take the next few minutes to share some additional detail on our first quarter results, along with an update on our outlook for the full year. Like Jim, I'm very pleased with our first quarter performance and very strong start to 2025, particularly our continued cash flow and earnings growth.
Jeff Likosar: First quarter, adjusted free cash flow, including interest rate swaps more than doubled year over year to $226 million and adjusted earnings per share grew by 11% to 21 cents.
Jeff Likosar: Key drivers of the strong performance include Steady R. Margroth, and Efficient Service, and subscriber acquisition costs.
Jeff Likosar: Additionally, some timing items benefited cash flows in the quarter and lower share count benefited are adjusted earnings per share.
Jeff Likosar: Our top line was also very strong with total revenue up 7% to $1.3 billion.
Jeff Likosar: Monitoring in services revenue was up 2% driven by a record RMR balance of $360 million also up 2%
Jeff Likosar: This was driven by outright sales, which more than doubled compared to the prior year, do mainly to our transition to the ADT-plus platform.
Jeff Likosar: This differs from our historic model in which we retained equipment ownership and therefore capitalized and amortized the installation, revenue, and cost.
Jim Devries: Jim mentioned the optimization of our ADT plus offerings and subscriber economics.
Jeff Likosar: A relevant highlight in the quarter was improved installation revenue per unit at approximately $1,500.
Speaker Change: This was driven by continued customer interest in more comprehensive systems along with our efforts to sell on value and to rely less on promotions and discounts.
Jeff Likosar: Adjusted EBITDA in the first quarter with $661 million in increase of 4%.
Jeff Likosar: Building on Jim's comments about our ongoing discipline, we are highly focused on strong subscriber economics and returns on the capital we deploy.
Jeff Likosar: We accordingly have continued to balance our sac spending with other uses of cash, especially in the current macro environment.
Jeff Likosar: During the first quarter, we generated 172,000 gross new customer additions, adding $10.6 million of new RMR. Consistent with recent trends, our net spending on the acquisition of new subscribers remains efficient.
Jeff Likosar: In addition to the approved revenues I mentioned, we continue to progress initiatives focused on sales and marketing efficiencies and on installation costs.
Jeff Likosar: We also renewed our Receivable Securitization Facility late last month with enhanced terms.
Jeff Likosar: We expect this to tick back down in the second quarter as we settle securitization cash flows under our refreshed facility.
Jeff Likosar: Our net debt of $7.6 billion remained at two times adjusted EBITDA, with a very efficient weighted average interest rate of approximately 4.5%.
Jeff Likosar: This includes the new $600 million, seven-year term-long B we closed last month, and the partial redemption of our April 2026 notes.
Jeff Likosar: We intend to refinance all or part of the remaining $850 million of these notes later this year.
Jeff Likosar: We continue to return significant capital to shareholders in the first quarter, enabled by our progress reducing debt and leverage and strong cash generation.
Jeff Likosar: In addition to our January dividend payment of $49 million, we repurchased and retired 53 million shares for an aggregate price of $397 million.
Jeff Likosar: This included 20 million shares repurchased concurrent with Apollo's secondary sale of 80.5 million shares in March.
Jeff Likosar: In April , we repurchased an additional six million shares, and we now have $148 million remaining under our current repurchased authorization.
Jeff Likosar: We were able to do this with the only modest usage of our revolving credit facility, which as of today is undrawn.
Jeff Likosar: As we look to the rest of 2025, our plans remain anchored on our resilient and growing, recurring, monthly revenue and our focus on efficiency.
Jeff Likosar: At the midpoint of the respective ranges, adjusted free cash flow, including interest rate swaps, would be up 14%, adjusted earnings per share would be up 8%.
In total revenue, an adjusted EBITDA would be up 5%.
Jeff Likosar: As a reminder, we expect monitoring and services revenue to be up approximately 2%.
Jeff Likosar: And are transitioned to outright sales and the treatment of some other expenditures while cash neutral pressures are adjusted EBITDA margins.
Jeff Likosar: Aladdin caveat around tariffs with the landscape still highly uncertain.
Jeff Likosar: If fully enacted, the tariff structure as most recently publicized will lead to higher equipment costs.
Jeff Likosar: We are developing several mitigating actions to offset our gross exposure, which includes supplier negotiations, inventory management, potential source changes, and potential customer pricing increases or search arges.
Jeff Likosar: While any new tariffs pressure the midpoints of our 2025 guidance, we currently believe we can manage our net exposure within the ranges we've shared. Additionally, there are some seasonal dynamics in our business and other timing items that affect the quarterly phasing of our full-year results.
Jeff Likosar: In consideration of these factors, we expect second quarter revenue to be slightly higher than the first quarter due to more installation revenue.
Jeff Likosar: We expect adjusted free cash flow to be similar to the first quarter with higher cash taxes offsetting lower interest and we expect adjusted EBITDA and EPS to be similar to or slightly lower than the prior quarter due to some timing items in the potential initial effect of tariffs.
Jeff Likosar: Before turning to questions, I want to reiterate my enthusiasm about our strong start to 2025 and highlight again the resilience of our business model. I also want to echo the gratitude Jim Express to our employees and partners. I want to welcome Fawad and Omar to our team and I want the wish done well in his new endeavors.
Jeff Likosar: Thank you everyone for joining our call today and for your support of our company.
Operator, please open the line to questions.
Speaker Change: Thank you. If you would like to ask a question, please press star one on your telephone keypad. If you would like to withdraw your question, simply press star one again. Please ensure you are not on speakerphone and that your phone is not on mute when called upon. Thank you.
Speaker Change: Your first question comes from Manav Patnik with Barclays. Your line is open.
Speaker Change: Hi, good morning. This is Ronan Kennedy. I'm from Manaath. Thank you for taking my question. You referenced uncertainty in the macro environment. Could I just ask for kind of a holistic assessment of that demand environment and what you're seeing from customers and then also kind of what you've spoken to before the two sides of the coin with regards to the housing market, nutrition, gross ads, etc. Please. Thank you.
Jim Devries: Sure Ronan, and it's Jim. Thanks for your question. So from a macro perspective, I think the headline for us is we have an exceptionally resilient business.
Jim Devries: and feel very good about that. As you know, Ronan, demand for personal safety increases during uncertain times.
Jim Devries: Factors that pressure new subscriber ads for us, such as fewer relocations, actually contribute to customer retention. We're not particularly reliant on new home builds, perhaps 5% or so of our gross ads.
Jim Devries: So NET, we've done well in past recessions and generally expect our model to be resilient this time around.
Speaker Change: Thank you, and can you talk about some of the metrics that would be indicative of the strength of the consumer, whether it's, you know, voluntary, or non-pays and delinquencies, things of that nature.
Speaker Change: Jeff, we've seen a little bit of uptick in slower payments, not enough to rise to a level of materiality, but I'd also point to some positive trends. We're seeing even in this environment, such as higher average pricing, on install, higher average, monthly pricing, and we delivered.
Speaker Change: Record attrition in the environment and then just want one other point further to what Jim mentioned. If you go back and look at our performance during the last downturn or downturn around the time of COVID, you'll see that we weather that very well and we would expect to do the same here.
Thank you. If I may just speak in a follow-up.
Speaker Change: You talked about the high potential higher cost in tariffs and the leverage you can pull with regards to fire negotiations and inventory management.
Speaker Change: You know, what about it, if you can also speak to kind of a general downturn playbook in libraries that could be pulled within the cost structure, etc. Please.
Speaker Change: Sure, Ronan, Jim, I'll provide maybe a couple of contextual comments for you on tariff pressure and then Jeff will jump in and share some perspective on the quantitative side.
Speaker Change: Jeff covered this topic and his prepared remarks, but it may be a few brief thoughts.
Speaker Change: Items to add some color, as you said, it's obviously difficult to predict given the frequency of changes, but we've got a team focused on mitigation plans.
Speaker Change: Those mitigation plans in the immediate term include existing negotiating with existing partners. We're even considering in some cases selecting new partners.
Speaker Change: We're doing a lot of work around inventory management, buffer stock, considering by-fowards and we're considering potential price increases, a tariff charge for new customers. [inaudible]
Speaker Change: So, net monitoring very closely a team of talented leaders were benefited from the fact that our two biggest.
Speaker Change: sources, countries of origin for our product, our Vietnam in Mexico. Much of the product we buy in Mexico is covered under U.S.M.C.A.
Speaker Change: and so we're managing it and feel pretty good about where we are for now.
and everything else here.
Speaker Change: Yeah, I would add, as we quantify it internally, it's of course challenging because of the frequency of changes in some cases, lack of clarity as to the exclusions and in par of outs, and then the timing, of course, matters. So in our prepared remarks, I noted that it could put pressure on the midpoint, but we believe we could cover our net exposure.
Speaker Change: For the year within the guidance ranges, you can deduce from that the range of expected outcomes.
Speaker Change: That we could envision in our 2025 results is within those ranges, and then even on the mitigating actions, we expect to take those...
Speaker Change: Timely, or you're very soon, upon starting to actually incur some expense. And I also noted that maybe there's a little bit of pressure in the second quarter, but we see this as more of a second half challenge to work through the second quarter.
Speaker Change: Thank you very much, appreciate it. Thank you very much, Peter. Ronan.
Speaker Change: The next question comes from George Tong of Goldman Sachs. Your line is open.
Speaker Change: Hi, thanks. Good morning. Gross RMR editions fell 7% year in the quarter. Can you talk about some of the contextualize some of the dynamics driving that and then also whether you expect any bulk purchases potentially reverse that?
Speaker Change: George, good morning. Thanks for your question. So the headline on gross ads that I want to underscore is that we're going to be disciplined.
Speaker Change: We clearly prefer for gross ads to be up versus down, but let me share a little bit more color on the 7%.
Speaker Change: And I think that quantifies to 15,000 units versus Q lower than Q124.
Speaker Change: And so here's a bit of detail, DIY, where we tightened our credit standards and were very returns focus, accounted for 9,000 of the year over year decline.
Speaker Change: and our health business, which can be fairly lumpy, accounted for another 8,000 ads less this year than last.
Speaker Change: And we also tighten our credit standards there. Dealer Channel got off to a little slower start than what we would like, but it's starting to come back in Q2. Small business George was about flat to last year, but most importantly in our core business pro-installed direct.
ads vs. last year were actually up 4%.
So, we...
Speaker Change: Again, we'd like to see Gross ads higher, but in the core, we feel pretty good about it. Your second question with regard to bulk.
Speaker Change: We did no bulk deals in the first quarter. We don't have anything, I would say, on the immediate horizon.
Speaker Change: There's opportunities available to us. We're not going to chase those transactions. We're exploring alternatives with a couple of different parties now. And like with Gross ads, we'll stay disciplined and returns focused, but we are kicking tires on bulk.
Speaker Change: Got it, very helpful. And then revenue payback increased year-over-year. Can you talk about what that means with respect to subscriber acquisition costs that you're seeing or any other moving parts that may be causing that? That's it.
Speaker Change: George's Jeff, I'll take that one. The short answer is as I noted in the preparatory remarks, we expect it to reverse.
Speaker Change: In the second quarter, there's some timing dynamics associated with our securities, our customer, receivables.
We have a historically reported cash-sack inclusive of the...
Cash flows back and forth between us and our-
Speaker Change: If we look at our revenue payback as we do internally on the basis of our contractual arrangements with customers, in other words, how much revenue did the customer agree to pay irrespective of timing, we see revenue payback approximately flat.
and I'll also note that we
Speaker Change: We renegotiated our securization facility with our partner with some more favorable terms. So again, we expect that particular trend to reverse. And then I highlight again that we delivered. Thank you very much.
Speaker Change: RMR overall consistent with our expectations, while doubling our adjusted free cash flow, so if we feel really good about our overall cash performance in the quarter.
Got it. Thanks for clarifying that.
Speaker Change: The next question comes from Ashish Sabadra with RBC Capital Markets. Your line is open.
Speaker Change: Hi, good morning. This is David Page on for Ashish. I was wondering if you could give an update on two fronts. One, the State Farm Partnership. I believe you have some pilot programs in several states going on.
Speaker Change: And then, how is the AI initiative going in terms of virtual calls, call center efficiencies? I know you progressed really nicely last quarter and hasn't targets for 25, so just an update on those two fronts. Thank you.
Jim: Sure, David, it's Jim. Thanks for the question. On State Farm, I'm...
Jim: Pretty certain I shared this last time, but we're feeling good about the trajectory, 5,500 units in 23.
Jim: 18,000 units in 24. Gross ads for us in Q1 of 25 were 4,000. That compares to Q1 of 2024 last year of 3,200.
The pilots are underway, we're early-ish in the process.
D.I.Y. is having more success than the...
Jim: Pilot with regard to leak detection. DIY represented about 10% of our gross ads in the first quarter. In the relationship and working teams continue to do well. I should mention customer satisfaction is holding very high.
Jim: Your second question with regard to AI, the initial focus for us has been in the area of customer care operations, so this is call deflection, agent efficiency, improved customer experience.
Jim: At the end of Q1 90% of our customer service chats were processed by AI agents. We had a nice percentage of containment with those chats, meaning the customer request is addressed.
Jim: Without the need for any human interaction, and we started a roll out AI agents for voice calls in late in the quarter, and expect to have 20% of our voice calls. [inaudible]
Jim: Completely contained by AI agents by the end of the year. Savings in 2025 are not material, we expect those to begin to ramp up nicely for us in 2026.
Great. Thank you so much. Appreciate it.
Speaker Change: The next question comes from Peter Christensen with City Group. Your line is open.
Good morning. Thanks for the question.
Question, Jim.
You get some good macro content on the residential side, just...
Speaker Change: I'm wondering if you've juxtaposed that versus what you're seeing on your small business channel, in terms of price realization, system purchases versus, you know, leasing versus, you know, purchases, that kind of stuff. Thank you.
Speaker Change: Thanks, Pete. Good morning. On the small business side, I say we're holding our own. Things are generally going well. We see this as a opportunity to drive a bit of growth.
Speaker Change: One of the things that we pay very close attention to in SMB is attrition. I think that's a bit of a leading indicator of where things are and we're generally flap in SMB attrition.
Speaker Change: It's an area that we're going to be focusing a bit more on going forward than we have in the past.
Speaker Change: There's some pretty exciting product work that the team is developing, but generally speaking, I think that the market for us has been holding its own.
Speaker Change: Oh, that's good to hear. And then Jeff, I guess in terms of the outlook.
Speaker Change: If you could, it's possible. Can you give us a sense of mix between monitoring and installation? An installation was certainly a bit higher in the quarter as percentage of the total mix. How should we think about that as we look at the full year outlook? Thank you.
Speaker Change: Yeah, generally when we shared our initial guidance with a revenue at the midpoint of the range being up around 5%, we noted at the time and I would still say this is the case that we would.
Speaker Change: Expect monitoring and services revenue in a range of 2%, which of course implies meaningfully higher. From install revenue, the reason for that, as we've described, is our transition to a larger percentage.
Speaker Change: of our transactions with customers, particularly with the ADT Plus platform, being outright sales, which you causes us to record the revenue, and effectively the sack expense up front. So it's lower margin.
Speaker Change: Revenue, and maybe a little bit more subject to some seasonality than Mondragon services because we tend to have more ads in the middle part of the year than around the holidays. [inaudible]
Speaker Change: So it's all that was used, factored in, and you see 7% in the...
Speaker Change: In the first quarter on total revenue, no change to our guidance of it being in the mid-single digits for the full year.
Speaker Change: Okay, so we should see, I guess, normalizing for the term last year. We should see roughly a similar sequential uptick.
Speaker Change: and 2Q3Q versus last year just on the higher base.
Yeah, I think you could think of an uptick from...
Speaker Change: from a Q1 to Q2, looking kind of like the uptake from...
Speaker Change: from Q1 or from the fourth quarter last year to the first quarter of this year. And that's just because you're continuing to roll out, continuing to increase the percentage of our new customers with ADT plus that are outright sales. And that's just because you're continuing to increase the percentage of our new customers with ADT plus that are outright sales.
Okay, that's helpful. Thank you so much.
Tony Kaplan: The next question comes from Toni Kaplan with Morgan Stanley . Your line is open.
Tony Kaplan: Hi, good morning. This is Yehuda Silverman on the line for Toni. But set a question about
Speaker Change: Alright, thanks for the question. I'll share a little bit of color on the quarter and trying to give you a sense for where we're headed with attrition.
For the quarter, 12-6, that's how you think. [inaudible]
Speaker Change: Let's see, about 50 basis points, I believe, better than last year.
Speaker Change: Non-payment cancels are flat to last year. A good sign for us.
Speaker Change: Relocation losses were a little bit better than last year, and voluntary losses were solidly better than last year. Thank you very much for your time
Speaker Change: Our NPS scores have steadily improved. We're now at a record best in the last three years. Call center of metrics are continuing to improve. And there's there's some new initiatives underway that
Speaker Change: They give us some optimism. We're being more proactive with at risk customers.
Speaker Change: There's a new program for new customers around white club treatment. There's some new retention offers that are getting...
Speaker Change: Some traction, you know, longer term. I'd like to see this start with an 11 versus a 12, but, you know, next up for us is 12-5 and 12-4 after that, and we'll keep plugging away. I've often said that the improvement...
Speaker Change: It isn't necessarily linear in this space, but it's generally been linear the last few years. I think we were 13, 5, and 21.
Speaker Change: 12-9-23 and now down to 12-6. Feeling good about it at a high level when you parse out some of the details, there's cause for optimism, and I like what I'm seeing on some of the new programs. [inaudible]
Speaker Change: And in one point, too, I just emphasize, if comparing to other firms, we report the number on a gross basis.
Jim Devries: So if a relocating customer signs back up for ADT service or if a home that we've previously secured signs back up, we don't net that against our attrition. If we did so, we'd be closer to the ranges that the gyms are already describing. So if we did so, we'd be closer to the ranges that the gyms are already describing.
Speaker Change: Ryan, and just one follow-up about pricing. So, the question about revenue and inflation. So, is the guy's implying or with the understanding that insulation is more moderating or studying or just wondering if there's any update to the insulation outlook for their manger of the year?
Speaker Change: Not anything that I would add beyond, of course, the tariffs as avenue with which we incur inflation in our material cost.
but by and large, and including...
Speaker Change: Our overall outlook for revenue, we do have price escalations, and in some cases even richer mix of pricing because of richer configurations is certainly considered, but the...
Great. Thank you.
Speaker Change: This concludes the question and answer session. I will turn the call to Jim DeVries for closing remarks.
Jim Devries: Thank you, Sarah, and thanks everyone for taking the time to join us today. We had a strong first quarter. We feel very good about the momentum in the business. We're confident in our plans for 2025. The priority of our team is to execute on our commitments.
Jim Devries: Again, I'd like to extend my appreciation to our ADT employees and dealer partners, congrats on a great quarter and an excellent beginning to our 151st year. Thanks again, everyone, and have a great day.
Jim Devries: This concludes today's conference call. Thank you for joining. You may now disconnect.