Snap One Holdings Corp. (NASDAQ:SNPO) Q4 2022 Earnings Call Transcript

And so we’re seeing great excitement around that and the software platform that underlies that. Our Halo remote line that offers a host of capabilities to the end consumer, including voice control, I think, is something that consumers are already providing great feedback on. And integrators are really excited, because it’s a family of products, as opposed to one, so it allows them to meet a variety of budgets. I’d say, the Radiance outdoor product line is kind of a one-of-a-kind product that combines lighting and audio great reception around that product, but that’s something that comes more in the spring, and kind of our — a host of our lighting products. So I think we’ve created a significant amount of excitement. We view those as fairly incremental to this year’s sales.

Many of those products are replacing other products that we already have, but we think they’re critical to integrate our adoption and share of wallet over the coming years. So really feel good about that. And we haven’t had any negative response to any of those products. I would also say, we had a major OvrC release during the quarter that is now out in the market. And after some pains of any kind of change management that comes with software adoption, that’s been really well received. I am not seen in our sales data or anecdotally any products that our integrators are shying away from in terms of categories of products, et cetera. So the product development team has done a great job. I think across the Board, we feel like we’re the leaders in many of these product categories, the awards I’ve mentioned speaks to that.

And I feel like we’ve only upped the game with the products we’re introducing.

Paul Chung : Great. That’s super helpful. And then just a follow-up. How do we think about the kind of the product mix on the top line throughout the year integrated versus domestic versus international mix? And then can we start to see possibly some RMR revenue this year as well? Thank you.

John Heyman: Mike why don’t you take the mix question. And on the RMR side, we are — we already have low eight-figure RMR revenues in the business. So that comes from our Parasol service offering and our 4Sight software offering. We’ve spoken about the huge opportunity in front of this industry to deliver against a recurring revenue model. And we think it’s a very healthy model aligning the end customer with the integrator with us. We are in market testing right now with integrators with that product line and we’ll continue to keep you guys abreast of that. But we’re seeing generally very favorable response and extending our end market testing with a few more integrators as we speak. Mike do you want to talk to the mix question?

Mike Carlet: Sure John. I think as we talk about 2023 and how we’re thinking about the business. Within the model that we talked about in our guidance, we would say that we expect the 1P/3P mix to remain relatively flat in 2023 versus 2022. We expect there will be some adoption of new 3P products. We’re going to continue to drive share of wallet of our proprietary products. Now, we think that there are certain initiatives that we’re looking at that are not in our guidance right now or not in our models that we may or may not choose launched. That could change that mix, but that would be incremental to how we thought about the existing model. Today, the vast majority of our business is our domestic integrator business. It’s over 85% of our business today.

That might even grow a little bit. I think the international markets remain a little bit more challenged just with some of the issues going on in Europe and some other challenges that are there. So, I do think you see our domestic partner business as an overall share of our business increase slightly in the coming year.

Paul Chung: Great. Thank you so much.

John Heyman: Thanks Paul.

Operator: Thank you. Our next question comes from Chris Snyder with UBS. You may proceed.