APX — FY2017 Earnings Presentation
19 slides from APX's earnings presentation, Mar 9, 2018
Slide 1: 4th Quarter and Full Year 2017 Results
APX Group Holdings, Inc. 4th Quarter and Full Year 2017 Results March 6, 2018
Slide 2: Forward-looking statements
This presentation includes forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, including but not limited to, statements of APX Group Holdings, Inc. (the “Company”, “Vivint”, “we”, “our”, or “us” related to the performance of our business, our financial resu
Slide 3: Non-GAAP financial measures
non-GAAP financial measures This presentation includes Adjusted EBITDA, which is a supplemental measure that is not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). “Adjusted EBITDA” is defined as net income (loss) before interest
Slide 4: Participants
participants Todd Pedersen Chief Executive Officer Alex Dunn President Mark Davies Chief Financial Officer Dale R. Gerard SVP, Finance & Treasurer
Slide 5: 2017 in review
Modify business model Transition to Vivint Flex Pay, made possible by Vivint’s high hardware attachment rate Yielded $211 million in point of sales proceeds Impacted sales productivity… primarily the Direct to Home channel Sales channel expansion Offered in 450 Best Buy stores nationwide in large fo
Slide 6: Revenue and Adjusted EBITDA
revenue and adjusted EBITDA(1) (1) A reconciliation of Adjusted EBITDA to GAAP Net Loss is included in Annex A of this presentation Adjusted EBITDA Three Month Period ended December 31, Revenue ($ in Millions) Revenue Adjusted EBITDA Years ended December 31, ($ in Millions) Growth: 16.9% 15.3% Growt
Slide 7: Service and subscriber acquisition costs
service and subscriber acquisition costs(1) Net Subscriber Acquisition Costs per New Subscriber Years Ended December 31, Net Service Costs per User and Net Service Margin Years Ended December 31, (1) Excludes wireless internet business and pilot sales channel initiatives Net Service Costs $1,472 Net
Slide 8: New subscribers and Vivint Flex Pay mix
Vivint Flex Pay Mix(2) (US Only) New Subscribers new subscribers(1) Three Month Period ended December 31, 33,162 39,805 52,342 236,562 277,241 279,735 Years ended December 31, Average product and installation sales of $1,300 across channels 91% of Customer Financing and RIC New Subscribers executed
Slide 9: Smart home subscriber portfolio data
smart home subscriber portfolio data(1) As of December 31, Total Subscribers ($ in Millions) Total Monthly Revenue AMRU (1) Excludes wireless internet business and pilot sales channel initiatives Growth: 13.1% 12.7% Growth: 17.8% 14.9% Growth: 4.2% 1.7% $75.4 $58.29
Slide 10: Attrition rate
11.0% Annualized Attrition 12.2% Annualized Attrition 12.6% Annualized Attrition Attrition Rate(1) ~ 13% of portfolio reaching initial end of contract term during 2018 2013 60-mo contracts 2014 42-mo contracts (4Q17 – 1Q18) 2015 42-mo contracts (4Q18 – 1Q19) LTM Quarterly Attrition Rate 160 bps (1)
Slide 11: 2018 objectives
2018 objectives Financial and Operational Continue the momentum of Vivint Flex Pay in identifying opportunities to lower subscriber acquisition cost and dependence on external funding Drive scale from the investments in engineering and information technology Focus on quality and customer experience…
Slide 12: Q&A
Q&A
Slide 13: Consolidated Financial Statements
APX Group Holdings, Inc. Full Years and 4th Quarters Ended December 31, 2017 and 2016 Consolidated Financial Statements
Slide 14: Condensed consolidated balance sheets
condensed consolidated balance sheets APX Group Holdings, Inc. and Subsidiaries (In thousands) (Unaudited)
Slide 15: Consolidated statements of operations
consolidated statements of operations APX Group Holdings, Inc. and Subsidiaries (In thousands) (Unaudited)
Slide 16: Summary of consolidated statements of cash flows
summary of consolidated statements of cash flows APX Group Holdings, Inc. and Subsidiaries (In thousands) (Unaudited)
Slide 17: Annex A
APX Group Holdings, Inc. Annex A
Slide 18: Reconciliation of non-GAAP financial measures – APX Group
reconciliation of non-GAAP financial measures – APX Group ($ in Millions) Reflects costs associated with the restructuring charges and asset impairments related to the transition of our Wireless Internet business and the sale in 2016 of our New Zealand and Puerto Rico Subscriber Contracts Excludes l
Slide 19: Certain definitions
certain definitions Total Subscribers – the aggregate number of active smart home and security subscribers at the end of a given period. This metric excludes subscribers originated under pilot programs. Total Monthly Service Revenue (MSR) – the aggregate, contracted recurring monthly Service billing