‘No stone unturned’ as Resideo seeks value from acquisition

SCOTTSDALE, Ariz. – Resideo Technologies’ recent acquisition of Snap One provided a nice layup for company executives to talk about the impact on the company’s financial performance during a recent conference call. 

Resideo President and CEO Jay Geldmacher told investors on the call that Resideo had identified meaningful cost synergies between ADI and Snap One. 

“Needless to say, the team is quite excited about the future integration of Snap One into Resideo, and we expect the acquisition to have meaningful positive impact on our long-term value creation,” he said. “We are leaving no stone unturned to unlock long-term value within our portfolio.” 

At a glance, Resideo’s highlights for the first quarter of 2024 include net revenue of $1.49 billion, down 4% year over year; a net income of $43 million vs. $57 million; and an adjusted EBITDA of $137 million vs. $138 million. 

The company’s ADI Global Distribution unit saw net revenue fall by 3% for the first quarter year over year, for a total of $25 million. The losses can, in part, be attributed to volume declines in several categories, including residential security, access control and video, partially offset by expansion in fire and data communications. 

Geldmacher said Resideo is laser focused on managing costs and is working on driving operational and expense efficiencies. It was because of those efforts, he said, that Resideo was able to expand their products and solutions gross margins in the first quarter to 39.5%, up 180 basis points year over year, and further managed to reduce overall video operating expenses by $13 million for the quarter. 

“We believe all of these efforts position us well for growth and profit acceleration when the market environment becomes more favorable,” he said. “I'm excited to continue to build on the momentum together as we move through 2024.” 

The full report and webcast can be found online at investor.resideo.com.