APX — Q3 2017 Earnings Presentation
19 slides from APX's earnings presentation, Nov 17, 2017
Slide 1: 3rd Quarter 2017 Results
APX Group Holdings, Inc. 3rd Quarter 2017 Results November 14, 2017
Slide 2: Industry data and forward-looking statements
APX Group Holdings, Inc. (the ”Company”, “Vivint”, “we”, “our”, or “us”) obtained the industry, market and competitive position data included in this presentation from its estimates and research as well as from industry publications, surveys and studies conducted by third parties. Industry publicati
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 not a measurement of our financial performance u
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: Third quarter 2017 update
third quarter 2017 update Vivint Flex Pay Positive customer adoption… ~69% of new subscribers paid for the purchase of products and installation through consumer finance and paid-in-full options ~$88 million of cash collected at point of sale during the quarter Best Buy Partnership 353 stores at Q3
Slide 6: Revenue and Adjusted EBITDA
revenue and adjusted EBITDA(1) (1) A reconciliation of Adjusted EBITDA to GAAP Net Loss is included in Annex A of this presentation Adjusted EBITDA Three Month Period ended September 30, Revenue ($ in Millions) Growth: 17.6% 15.3% Growth: 14.9% 8.9% Revenue Adjusted EBITDA Nine Month Period ended Se
Slide 7: Service and subscriber acquisition costs
service and subscriber acquisition costs(1) Net Subscriber Acquisition Costs LTM Ended September 30, Net Service Costs and Margin per Subscriber Quarter Ended September 30, (1) Excludes wireless internet business and pilot sales channel initiatives Net Service Costs Net Service Margin 74.5% 73.2% Fo
Slide 8: New smart home subscriber originations
Three-Month Period ended September 30, new smart home subscriber originations (1) Net New Subscribers 88,406 94,272 89,019 US Flex Pay Mix Nine-Month Period ended September 30, 203,400 237,436 221,148 AMRNU AMSRNU (1) Excludes wireless internet business and other pilot sales channel initiatives. Can
Slide 9: Smart home subscriber portfolio data
smart home subscriber portfolio data(1) Excludes wireless internet business and pilot sales channel initiatives and data is stated as of the end of each period As of September 30, Total Subscribers Growth: 16.9% 9.0% ($ in Millions) Total MSR Growth: 12.5% 11.2% AMSRU Growth: 3.9% (1.9%)
Slide 10: Subscriber account attrition
11.3% Annualized Attrition 12.0% Annualized Attrition 12.9% Annualized Attrition subscriber account attrition(1) ~ 6% of portfolio reaching initial end of contract term in 2017 2013 42-mo contracts (4Q16 – 1Q17) 2014 42-mo contracts (4Q17 – 1Q18) (1) Excludes wireless internet business and pilot sal
Slide 11: Management's focus… building toward the future
Management’s focus… building toward the future Priorities for the remainder of 2017 Execute on changes and improvements made in 2017… flex pay, large-format retail Vivint customer experience… technology, reliability and service System and process improvements… people, process, systems Q4 Sales activ
Slide 12: Q&A
Q&A
Slide 13: Quarters Ended September 30, 2017 and 2016 Consolidated Financial Statements
APX Group Holdings, Inc. Quarters Ended September 30, 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 Monthly Service Revenue - the aggregate, contracted recurring monthly Service billings to our smart home and security subscribers as of the end of a given period. T