Resideo Technologies Inc.’s first-quarter earnings results showed weakening ecommerce performance.

The company, which was formed in 2018 as a spinoff from Honeywell, manufactures and distributes room air temperature, quality, humidity control and security systems, primarily for residential dwellings.

Resideo Q1 earnings results

For its fiscal Q1 ended March 31, net revenue totaled $1.49 billion, down 4% compared with $1.55 billion in the first quarter of 2023. Net income for the first quarter reached $43 million, compared with $57 million in the first quarter of 2023.

Resideo only breaks out certain ecommerce metrics. But ecommerce sales for the company’s ADI division were flat.

“ADI’s e-commerce channel grew 1% in the first quarter 2024 compared to the prior year period, representing 21% of total ADI revenue,” the company says. “ADI digital engagement accelerated during the quarter with revenue, orders, and customer count all up year over year.”

Resideo plans improvements to website speed, on-site search, estimated delivery dates, and the ADI mobile app. Those updates are expected to support continued customer digital growth looking forward.

What Resideo’s ADI division does

ADI is a distributor of low-voltage security products including access control, fire detection, fire suppression, security and video products. For the first quarter, sales for ADI declined 4.1% to $1.486 billion from $1.549 billion in the first quarter of 2023, according to Resideo’s reported earnings results. With ecommerce accounting for 21% of all sales, Digital Commerce 360 projects that ADI online sales totaled $312.06 million.

“At ADI, we are increasing our digital capabilities and improving our customer experience and in the first quarter, ecommerce sales continued to grow, reaching 21% of sales,” CEO Jay Geldmacher told analysts on an earnings call. “ADI’s digital customers count also expanded in the quarter, demonstrating that our website and mobile app continue to be embedded into the integrators’ purchasing process.”

Resideo hopes to improve its relationships with integrators following its recent acquisition of Snap One. That deal is expected to close sometime before the end of 2024.

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