SmartRent Reports Fourth Quarter 2023 Results – Adjusted EBITDA Positive
- Strong revenue growth of 49% and 41% year-over-year for Q4 and full-year 2023, respectively.
- Achieved positive Adjusted EBITDA for the first time in Q4 2023.
- Net loss improvement of 85% and 64% for Q4 and full year, respectively.
- Ended the year with $216 million in cash, cash equivalents, and restricted cash.
- Announced a $50 million share repurchase program.
- Plans to invest in scaling Community WiFi capabilities for market expansion.
- None.
Insights
The financial results of SmartRent, Inc. highlight a significant year-over-year revenue growth, with total revenue and SaaS revenue increasing by 41% and 48% respectively. This performance indicates a robust demand for SmartRent's smart home solutions in the rental housing market. Furthermore, the transition to positive Adjusted EBITDA from a loss in the previous year demonstrates operational efficiency gains and cost management. The announcement of a $50 million share repurchase program suggests confidence from the management in the company's valuation and future prospects. However, the decrease in new units deployed might be a concern, signaling potential market saturation or competitive pressures.
Investors should be aware of the implications of the share repurchase program on earnings per share (EPS) and the company's capital allocation strategy. The focus on Community WiFi investment indicates a strategic pivot to capture emerging market opportunities, but it also poses risks associated with entering a new market segment. The guidance for the upcoming quarters reflects cautious optimism, with anticipated growth in the second half of the year potentially offset by short-term investments and longer sales cycles for new offerings.
SmartRent's performance in the smart home industry is notable, especially with the substantial increase in Hardware ARPU by 101% and SaaS ARPU by 7%. These metrics indicate a higher value per unit and service, which may point to successful upselling strategies or a shift towards more premium products. The 105% Net Revenue Retention rate is a positive sign of customer satisfaction and the stickiness of SmartRent's offerings. However, the decline in bookings and units booked year-over-year raises questions about market demand and customer acquisition strategies moving forward.
While the company's investment in Community WiFi is aimed at leveraging a multi-billion dollar market opportunity, investors should consider the potential impact on the company's core IoT offerings and how this strategic move aligns with SmartRent's long-term vision. The industry is evolving rapidly and SmartRent's ability to innovate while maintaining profitability will be crucial for sustaining its market-leading position.
SmartRent's financials are reflective of broader economic trends within the technology sector, where companies are increasingly seeking to balance growth with profitability. The shift to positive Adjusted EBITDA indicates a maturing business model that is moving towards sustainable growth. The decision to initiate a stock repurchase program can be interpreted as a signal to the market of undervaluation, potentially designed to boost shareholder value in the short term. However, it is also indicative of a strategic choice to utilize excess capital for internal investment rather than external growth opportunities or dividend payouts.
Given the current economic climate, with potential headwinds from supply chain disruptions and inflationary pressures, SmartRent's prudent cash management and lack of debt provide it with financial stability. The company's forward-looking statements suggest careful navigation of market uncertainties, which is essential for maintaining investor confidence. The emphasis on Community WiFi investment also suggests a strategic foresight to diversify revenue streams and capitalize on new technology trends.
Ended the Year with
Announcing
Financial and Business Highlights for the Fourth Quarter and Full-Year 2023
-
Revenue of
$60.3 million $236.8 million 49% and41% year-over-year, respectively. -
SaaS Revenue of
$11.6 million $41.1 million 43% and48% year-over-year, respectively. -
Net Loss of
$(3.3) million $(34.6) million 85% and64% year-over-year, respectively. -
Adjusted EBITDA of
$0.7 million $(19.2) million $(14.1) million $(74.7) million -
Balance Sheet:
$215.7 million $75 million
Management Commentary
“In the fourth quarter we achieved our two-year goal to become Adjusted EBITDA profitable, marking a new inflection point in our company's history," said SmartRent CEO Lucas Haldeman. "We accomplished this goal by executing deliberate, strategic actions in our operations and by focusing on the three tenets of our business that create our sustainable competitive advantage: purpose-built hardware, open software and robust end-to-end implementation and support. We are proud to mark this milestone and look forward to continuing to develop innovative solutions to strengthen our market-leading position as the smart communities and operations provider to the rental housing industry. In 2024, this includes investing in scaling our Community WiFi capabilities to take advantage of the early-stage multi-billion dollar market opportunity and complement our existing product offerings."
Today the Company also announced a
Fourth Quarter and Full-Year 2023 Results
Total revenue for the year was
Research and development expense, sales and marketing expense, and general and administrative expense, decreased individually and in aggregate for the quarter. Total operating expenses for the year were
Net loss was
Units Deployed as of the end of the year were 719,691. New Units Deployed for 2023 were 172,495, a decrease of
The Company ended 2023 with a cash balance of
Revenue Drivers
|
For the three months ended December 31, |
|
|
|||||
|
|
2023 |
|
|
2022 |
|
% Change |
|
Hardware |
|
|
|
|
|
|||
Hardware Units Shipped |
|
49,962 |
|
|
48,715 |
|
3 |
% |
Hardware ARPU |
$ |
729.69 |
|
$ |
362.93 |
|
101 |
% |
|
|
|
|
|
|
|||
Professional Services |
|
|
|
|
|
|||
New Units Deployed |
|
37,059 |
|
|
42,787 |
|
(13 |
%) |
Professional Services ARPU |
$ |
180.58 |
|
$ |
205.46 |
|
(12 |
%) |
|
|
|
|
|
|
|||
Hosted Services |
|
|
|
|
|
|||
Units Deployed (1) |
|
719,691 |
|
|
547,196 |
|
32 |
% |
Average aggregate units deployed |
|
701,162 |
|
|
525,803 |
|
33 |
% |
Non-distinct hub amortization ARPU |
$ |
2.64 |
|
$ |
3.80 |
|
(31 |
%) |
SaaS ARPU |
$ |
5.50 |
|
$ |
5.12 |
|
7 |
% |
|
|
|
|
|
|
|||
Bookings |
|
|
|
|
|
|||
Units Booked |
|
41,848 |
|
|
64,439 |
|
(35 |
%) |
Bookings (in thousands) |
$ |
39,948 |
|
$ |
51,551 |
|
(23 |
%) |
Units Booked SaaS ARPU |
$ |
11.88 |
|
$ |
4.39 |
|
171 |
% |
|
|
|
|
|
|
|||
(1) As of the last date of the quarter |
|
|
|
|
||||
Share Repurchase Program
The Company’s Board of Directors has authorized a stock repurchase program of up to
Financial Outlook
“We are proud to have met our goal of achieving Adjusted EBITDA profitability in Q4 2023 while maintaining strong growth particularly in our SaaS revenue stream, which has increased
SmartRent believes Community WiFi offers a tremendous and sustainable multi-billion dollar growth opportunity and, as part of its investment to capture that long-term opportunity, growth and profitability may be impacted in the first half of the year as Wi-Fi sales cycles and deployments require significantly longer periods of time versus the IoT offerings. The Company anticipates growth and profitability will rebound in the second half of the year.
Accordingly, guidance for Q1 and full-year 2024 are as follows:
First Quarter 2024 Guidance
-
Total Revenue of
$47 $53 million -
Adjusted EBITDA of
$(1) million $250 thousand
Full-Year 2024 Guidance
-
Total Revenue of
$260 $290 million -
Adjusted EBITDA of
$5 $8 million
The estimates presented above represent a range of possible outcomes and may differ materially from actual results. These estimates exclude the impact of potential acquisitions, capital markets activities, and unforeseen continued challenges with supply chain and logistics. The estimates are forward-looking based on the Company’s current assessment of demand for its product, execution capabilities and market conditions, as well as other risks outlined below under the caption “Forward-Looking Statements.”
SmartRent has not provided the forward-looking GAAP equivalents or a GAAP reconciliation for forward-looking Adjusted EBITDA in this presentation due to the uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation expense. Accordingly, a reconciliation of Adjusted EBITDA guidance to net income or loss is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results.
Conference Call Information
SmartRent is hosting a conference call today, March 5, 2024 at 10:30 a.m. ET to discuss its financial results. To join the call, please register on the Company’s investor relations website here.
A fourth quarter and year-end 2023 earnings deck is available on the Investor Relations section of SmartRent’s website.
About SmartRent
Founded in 2017, SmartRent, Inc. (NYSE: SMRT) is a leading provider of smart home and smart property solutions for the multifamily industry. The company’s unmatched platform, comprised of smart hardware and cloud-based SaaS solutions, gives operators seamless visibility and control over real estate assets, empowering them to simplify operations, automate workflows, benefit from additional revenue opportunities and deliver exceptional site team and resident experiences. SmartRent serves 15 of the top 20 multifamily owners and operators, and its solutions enable millions of users to live smarter every day. For more information, please visit www.smartrent.com.
Forward-Looking Statements
This press release contains forward-looking statements which address the Company's expected future business and financial performance, expansion of our Community WiFI offering, expected benefits from stock repurchase program, and other future events. Forward-looking statements may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will" or similar expressions. Examples of forward-looking statements include, among others, statements regarding the expected financial results, product portfolio enhancements, expansion plans and opportunities and earnings guidance related to financial and operational metrics. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, among other things, our ability to: (1) accelerate adoption of our products and services; (2) anticipate the uncertainties inherent in the development of new business lines and business strategies; (3) manage risks associated with our third-party suppliers and manufacturers and partners for our products; (4) manage risks associated with adverse macroeconomic conditions, including inflation, slower growth or recession, barriers to trade, changes to fiscal and monetary policy, tighter credit, higher interest rates, high unemployment, and currency fluctuations; (5) attract, train, and retain effective officers, key employees and directors; (6) develop, design, manufacture, and sell products and services that are differentiated from those of competitors; (7) realize the benefits expected from our acquisitions; (8) acquire or make investments in other businesses, patents, technologies, products or services to grow the business; (9) successfully pursue, defend, resolve or anticipate the outcome of pending or future litigation matters; (10) comply with laws and regulations applicable to our business, including privacy regulations; (11) realize the benefits expected from our stock repurchase program; and (12) maintain key strategic relationships with partners and distributors. The forward-looking statements herein represent the judgment of the Company, as of the date of this release, and SmartRent disclaims any intent or obligation to update forward-looking statements. This press release should be read in conjunction with the information included in the Company's other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand the Company's reported financial results and our business outlook for future periods.
Use of Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with GAAP, SmartRent also discloses certain non-GAAP financial measures in this press release., including EBITDA and Adjusted EBITDA These financial measures are not recognized measures under GAAP and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.
We define Adjusted EBITDA as EBITDA before the following items: stock-based compensation expense, non-employee warrant expense, non-recurring warranty provisions, asset impairment, loss on extinguishment of debt, non-recurring expenses in connection with acquisitions, severance charges, and other expenses caused by non-recurring, or unusual, events that are not indicative of our ongoing business. We define EBITDA as net income or loss computed in accordance with GAAP before interest income/expense, income tax expense and depreciation and amortization.
EBITDA and Adjusted EBITDA may be determined or calculated differently by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP financial measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.
EBITDA and Adjusted EBITDA are not used as measures of SmartRent’s liquidity and should not be considered alternatives to net income or loss or any other measure of financial performance presented in accordance with GAAP.
SmartRent’s management uses EBITDA and Adjusted EBITDA in a number of ways to assess the Company’s financial and operating performance and believes that these measures provide useful information to investors regarding financial and business trends related to SmartRent’s results of operations. EBITDA and Adjusted EBITDA are also used to identify certain expenses and make decisions designed to help SmartRent meet its current financial goals and optimize its financial performance, while neutralizing the impact of expenses included in its operating results which could otherwise mask underlying trends in its business. SmartRent’s management believes that investors are provided with a more meaningful understanding of SmartRent’s ongoing operating performance when non-GAAP financial information is viewed with GAAP financial information.
Operating Metrics Defined
SmartRent regularly monitors several operating and financial metrics including the following non-GAAP financial measures which the Company believes are key measures of its growth, to evaluate its operating performance, identify trends affecting its business, formulate business plans, measure its progress, and make strategic decisions. These metrics may not provide accurate predictions of future GAAP financial results.
Units Deployed is defined as the aggregate number of Hub Devices that have been installed (including customer self-installations) as of a stated measurement date.
New Units Deployed is defined as the aggregate number of Hub Devices that were installed (including customer self-installations) during a stated measurement period.
Units Shipped is defined as the aggregate number of Hub Devices that have been shipped from warehouse locations during a stated measurement period.
Units Booked is defined as the aggregate number of Hub Device units associated with binding orders executed during a stated measurement period. The Company utilizes the concept of Units Booked to measure estimated near-term resource demand and the resulting approximate range of post-delivery revenue that it will earn and record. Units Booked represent binding orders only.
Bookings represent the contract value of hardware, professional services, and the first year of ARR for binding orders executed during a stated measurement period.
Annual Recurring Revenue (“ARR”) is defined as the annualized value of our recurring SaaS revenue earned in the current quarter.
Average Revenue per Unit (“ARPU”) is used to assess the growth and health of the overall business and reflects our ability to acquire, retain, engage and monetize our customers, and thereby drive revenue. Each revenue stream ARPU is calculated as follows:
Hardware ARPU is total hardware revenue during a given period divided by the total Units Shipped during the same period.
Professional Services ARPU is total professional services revenue during a given period divided by the total New Units Deployed during the same period.
SaaS ARPU is total SaaS revenue during a given period divided by the average aggregate Units Deployed in the same period.
Net Revenue Retention is defined as revenue from customers at the end of a prior period compared to revenue from the same set of customers at the end of the current period. This includes any reductions in revenue caused by cancellations or downgrades, offset by additions to revenue from price increases on existing products, additions of new products at existing properties and subscription upgrades.
EBITDA and Adjusted EBITDA: Management uses EBITDA and Adjusted EBITDA to identify controllable expenses and make decisions designed to help us meet our current financial goals and optimize our financial performance, while neutralizing the impact of expenses included in our operating results which could otherwise mask underlying trends in our business.
SMARTRENT, INC. |
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS |
|||||||||||||||||||
(in thousands, except per share amounts) |
|||||||||||||||||||
|
For the three months ended December 31, |
|
For the years ended December 31, |
||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
|
|
||||||||||
Hardware |
$ |
36,457 |
|
|
$ |
17,680 |
|
|
$ |
137,201 |
|
|
$ |
87,372 |
|
|
$ |
69,629 |
|
Professional services |
|
6,692 |
|
|
|
8,791 |
|
|
|
35,473 |
|
|
|
32,301 |
|
|
|
22,732 |
|
Hosted services |
|
17,104 |
|
|
|
14,080 |
|
|
|
64,164 |
|
|
|
48,148 |
|
|
|
18,276 |
|
Total revenue |
|
60,253 |
|
|
|
40,551 |
|
|
|
236,838 |
|
|
|
167,821 |
|
|
|
110,637 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue |
|
|
|
|
|
|
|
|
|
||||||||||
Hardware |
|
26,662 |
|
|
|
15,063 |
|
|
|
108,780 |
|
|
|
83,289 |
|
|
|
70,448 |
|
Professional services |
|
10,922 |
|
|
|
15,879 |
|
|
|
55,495 |
|
|
|
59,547 |
|
|
|
38,189 |
|
Hosted services |
|
5,669 |
|
|
|
5,688 |
|
|
|
23,034 |
|
|
|
23,637 |
|
|
|
12,073 |
|
Total cost of revenue |
|
43,253 |
|
|
|
36,630 |
|
|
|
187,309 |
|
|
|
166,473 |
|
|
|
120,710 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating expense |
|
|
|
|
|
|
|
|
|
||||||||||
Research and development |
|
7,465 |
|
|
|
7,336 |
|
|
|
28,805 |
|
|
|
29,422 |
|
|
|
21,572 |
|
Sales and marketing |
|
4,583 |
|
|
|
4,670 |
|
|
|
19,209 |
|
|
|
20,872 |
|
|
|
14,017 |
|
General and administrative |
|
10,783 |
|
|
|
14,185 |
|
|
|
44,674 |
|
|
|
55,305 |
|
|
|
25,990 |
|
Total operating expense |
|
22,831 |
|
|
|
26,191 |
|
|
|
92,688 |
|
|
|
105,599 |
|
|
|
61,579 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss from operations |
|
(5,831 |
) |
|
|
(22,270 |
) |
|
|
(43,159 |
) |
|
|
(104,251 |
) |
|
|
(71,652 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest income (expense), net |
|
2,516 |
|
|
|
1,199 |
|
|
|
8,580 |
|
|
|
1,946 |
|
|
|
(249 |
) |
Other (expense) income, net |
|
(71 |
) |
|
|
29 |
|
|
|
(116 |
) |
|
|
595 |
|
|
|
55 |
|
Loss before income taxes |
|
(3,386 |
) |
|
|
(21,042 |
) |
|
|
(34,695 |
) |
|
|
(101,710 |
) |
|
|
(71,846 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax (benefit) expense |
|
(86 |
) |
|
|
347 |
|
|
|
(108 |
) |
|
|
(5,388 |
) |
|
|
115 |
|
Net loss |
$ |
(3,300 |
) |
|
$ |
(21,389 |
) |
|
$ |
(34,587 |
) |
|
$ |
(96,322 |
) |
|
$ |
(71,961 |
) |
Other comprehensive loss |
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustment |
|
53 |
|
|
|
898 |
|
|
|
(40 |
) |
|
|
(185 |
) |
|
|
(226 |
) |
Comprehensive loss |
$ |
(3,247 |
) |
|
$ |
(20,491 |
) |
|
$ |
(34,627 |
) |
|
$ |
(96,507 |
) |
|
$ |
(72,187 |
) |
Net loss per common share |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
$ |
(0.02 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.17 |
) |
|
$ |
(0.49 |
) |
|
$ |
(0.96 |
) |
Weighted-average number of shares used in computing net loss per share |
|
|
|
|
|
|
|
|
|
||||||||||
Basic and diluted |
|
203,200 |
|
|
|
197,011 |
|
|
|
200,700 |
|
|
|
195,575 |
|
|
|
74,721 |
|
SMARTRENT, INC. |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
(in thousands, except per share amounts) |
|||||||
|
As of December 31, |
||||||
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
215,214 |
|
|
$ |
210,409 |
|
Restricted cash, current portion |
|
495 |
|
|
|
7,057 |
|
Accounts receivable, net |
|
61,903 |
|
|
|
62,442 |
|
Inventory |
|
41,575 |
|
|
|
75,725 |
|
Deferred cost of revenue, current portion |
|
11,794 |
|
|
|
13,541 |
|
Prepaid expenses and other current assets |
|
9,359 |
|
|
|
9,182 |
|
Total current assets |
|
340,340 |
|
|
|
378,356 |
|
Property and equipment, net |
|
1,400 |
|
|
|
2,069 |
|
Deferred cost of revenue |
|
11,251 |
|
|
|
22,508 |
|
Goodwill |
|
117,268 |
|
|
|
117,268 |
|
Intangible assets, net |
|
27,249 |
|
|
|
31,123 |
|
Other long-term assets |
|
12,248 |
|
|
|
9,521 |
|
Total assets |
$ |
509,756 |
|
|
$ |
560,845 |
|
|
|
|
|
||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
15,076 |
|
|
$ |
18,360 |
|
Accrued expenses and other current liabilities |
|
24,976 |
|
|
|
34,396 |
|
Deferred revenue, current portion |
|
77,257 |
|
|
|
80,020 |
|
Total current liabilities |
|
117,309 |
|
|
|
132,776 |
|
Deferred revenue |
|
45,903 |
|
|
|
59,928 |
|
Other long-term liabilities |
|
4,096 |
|
|
|
3,941 |
|
Total liabilities |
|
167,308 |
|
|
|
196,645 |
|
|
|
|
|
||||
Commitments and contingencies (Note 12) |
|
|
|
||||
Convertible preferred stock, |
|
- |
|
|
|
- |
|
|
|
|
|
||||
Stockholders' equity |
|
|
|
||||
Common stock, |
|
20 |
|
|
|
20 |
|
Additional paid-in capital |
|
628,156 |
|
|
|
615,281 |
|
Accumulated deficit |
|
(285,512 |
) |
|
|
(250,925 |
) |
Accumulated other comprehensive loss |
|
(216 |
) |
|
|
(176 |
) |
Total stockholders' equity |
|
342,448 |
|
|
|
364,200 |
|
Total liabilities, convertible preferred stock and stockholders' equity |
$ |
509,756 |
|
|
$ |
560,845 |
|
SMARTRENT, INC. |
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||
(in thousands) |
|||||||||||
|
For the years ended December 31, |
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
||||||
Net loss |
$ |
(34,587 |
) |
|
$ |
(96,322 |
) |
|
$ |
(71,961 |
) |
Adjustments to reconcile net loss to net cash used by operating activities |
|
|
|
|
|
||||||
Depreciation and amortization |
|
5,533 |
|
|
|
4,262 |
|
|
|
463 |
|
Amortization of debt discount |
|
- |
|
|
|
- |
|
|
|
14 |
|
Asset Impairment |
|
- |
|
|
|
4,441 |
|
|
|
- |
|
Non-employee warrant expense |
|
(193 |
) |
|
|
289 |
|
|
|
931 |
|
Provision for warranty expense |
|
2,135 |
|
|
|
(784 |
) |
|
|
7,634 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
27 |
|
Non-cash lease expense |
|
1,104 |
|
|
|
1,405 |
|
|
|
621 |
|
Stock-based compensation related to acquisition |
|
109 |
|
|
|
811 |
|
|
|
812 |
|
Stock-based compensation |
|
13,162 |
|
|
|
12,905 |
|
|
|
7,319 |
|
Compensation expense related to acquisition |
|
2,057 |
|
|
|
5,042 |
|
|
|
- |
|
Change in fair value of earnout related to acquisition |
|
412 |
|
|
|
310 |
|
|
|
- |
|
Deferred tax benefit |
|
- |
|
|
|
(5,720 |
) |
|
|
- |
|
Non-cash interest expense |
|
139 |
|
|
|
107 |
|
|
|
11 |
|
Provision for excess and obsolete inventory |
|
2,494 |
|
|
|
117 |
|
|
|
(39 |
) |
Provision for doubtful accounts |
|
819 |
|
|
|
242 |
|
|
|
226 |
|
Change in operating assets and liabilities |
|
|
|
|
|
||||||
Accounts receivable |
|
(177 |
) |
|
|
(15,943 |
) |
|
|
(23,969 |
) |
Inventory |
|
31,689 |
|
|
|
(42,811 |
) |
|
|
(15,778 |
) |
Deferred cost of revenue |
|
13,003 |
|
|
|
(9,880 |
) |
|
|
(9,315 |
) |
Prepaid expenses and other assets |
|
838 |
|
|
|
5,570 |
|
|
|
(11,284 |
) |
Accounts payable |
|
(3,484 |
) |
|
|
12,446 |
|
|
|
3,811 |
|
Accrued expenses and other liabilities |
|
(11,046 |
) |
|
|
3,243 |
|
|
|
1,605 |
|
Deferred revenue |
|
(16,800 |
) |
|
|
43,691 |
|
|
|
38,945 |
|
Lease liabilities |
|
(1,226 |
) |
|
|
(1,254 |
) |
|
|
(449 |
) |
Net cash provided by (used in) operating activities |
|
5,981 |
|
|
|
(77,833 |
) |
|
|
(70,376 |
) |
SMARTRENT, INC. |
|||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED |
|||||||||||
(in thousands) |
|||||||||||
|
For the years ended December 31, |
||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
||||||
Payments for SightPlan acquisition, net of cash acquired |
|
- |
|
|
|
(129,676 |
) |
|
|
- |
|
Payments for iQuue acquisition, net of cash acquired |
|
- |
|
|
|
- |
|
|
|
(5,902 |
) |
Payments for investment in non-affiliate |
|
(2,250 |
) |
|
|
- |
|
|
|
- |
|
Purchase of property and equipment |
|
(147 |
) |
|
|
(1,113 |
) |
|
|
(1,471 |
) |
Payment for loan receivable |
|
- |
|
|
|
- |
|
|
|
(2,000 |
) |
Capitalized software costs |
|
(3,626 |
) |
|
|
(3,204 |
) |
|
|
- |
|
Net cash used in investing activities |
|
(6,023 |
) |
|
|
(133,993 |
) |
|
|
(9,373 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
||||||
Payment on term loan |
|
- |
|
|
|
- |
|
|
|
(4,861 |
) |
Payments of senior revolving facility transaction costs |
|
- |
|
|
|
- |
|
|
|
(658 |
) |
Proceeds from warrant exercise |
|
- |
|
|
|
3 |
|
|
|
5 |
|
Proceeds from options exercise |
|
913 |
|
|
|
186 |
|
|
|
- |
|
Proceeds from ESPP purchases |
|
809 |
|
|
|
1,125 |
|
|
|
- |
|
Taxes paid related to net share settlements of stock-based compensation awards |
|
(1,925 |
) |
|
|
(4,045 |
) |
|
|
- |
|
Convertible preferred stock issued |
|
- |
|
|
|
- |
|
|
|
35,000 |
|
Payments of convertible stock transaction costs |
|
- |
|
|
|
- |
|
|
|
(207 |
) |
Proceeds from business combination and private offering |
|
- |
|
|
|
- |
|
|
|
500,628 |
|
Payments for business combination and private offering transaction costs |
|
- |
|
|
|
(70 |
) |
|
|
(55,981 |
) |
Payment of earnout related to acquisition |
|
(1,702 |
) |
|
|
- |
|
|
|
- |
|
Net cash (used in) provided by financing activities |
|
(1,905 |
) |
|
|
(2,801 |
) |
|
|
473,926 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(57 |
) |
|
|
(264 |
) |
|
|
(191 |
) |
Net decrease (increase) in cash, cash equivalents, and restricted cash |
|
(2,004 |
) |
|
|
(214,891 |
) |
|
|
393,986 |
|
Cash, cash equivalents, and restricted cash - beginning of period |
|
217,713 |
|
|
|
432,604 |
|
|
|
38,618 |
|
Cash, cash equivalents, and restricted cash - end of period |
$ |
215,709 |
|
|
$ |
217,713 |
|
|
$ |
432,604 |
|
|
|
|
|
|
|
||||||
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
215,214 |
|
|
$ |
210,409 |
|
|
$ |
430,841 |
|
Restricted cash, current portion |
|
495 |
|
|
|
7,057 |
|
|
|
1,268 |
|
Restricted cash, included in other long-term assets |
|
- |
|
|
|
247 |
|
|
|
495 |
|
Total cash, cash equivalents, and restricted cash |
$ |
215,709 |
|
|
$ |
217,713 |
|
|
$ |
432,604 |
|
SMARTRENT, INC. |
|||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||||||||||||
|
For the three months ended December 31, |
|
For the years ended December 31, |
||||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2021 |
|
|
(dollars in thousands) |
|
(dollars in thousands) |
||||||||||||||||
Net loss |
$ |
(3,300 |
) |
|
$ |
(21,389 |
) |
|
$ |
(34,587 |
) |
|
$ |
(96,322 |
) |
|
$ |
(71,961 |
) |
Interest (income) expense, net |
|
(2,516 |
) |
|
|
(1,199 |
) |
|
|
(8,580 |
) |
|
|
(1,946 |
) |
|
|
249 |
|
Income tax (benefit) expense |
|
(86 |
) |
|
|
347 |
|
|
|
(108 |
) |
|
|
(5,388 |
) |
|
|
115 |
|
Depreciation and amortization |
|
1,542 |
|
|
|
1,386 |
|
|
|
5,533 |
|
|
|
4,262 |
|
|
|
463 |
|
EBITDA |
|
(4,360 |
) |
|
|
(20,855 |
) |
|
|
(37,742 |
) |
|
|
(99,394 |
) |
|
|
(71,134 |
) |
Stock-based compensation |
|
3,042 |
|
|
|
3,098 |
|
|
|
13,271 |
|
|
|
13,716 |
|
|
|
8,131 |
|
Non-employee warrant expense |
|
(193 |
) |
|
|
- |
|
|
|
(193 |
) |
|
|
289 |
|
|
|
931 |
|
Compensation expense in connection with acquisitions |
|
- |
|
|
|
1,592 |
|
|
|
2,010 |
|
|
|
5,042 |
|
|
|
- |
|
Asset impairment |
|
- |
|
|
|
2,000 |
|
|
|
- |
|
|
|
4,441 |
|
|
|
- |
|
Severance charges |
|
265 |
|
|
|
- |
|
|
|
1,070 |
|
|
|
- |
|
|
|
- |
|
Other acquisition expenses |
|
243 |
|
|
|
53 |
|
|
|
651 |
|
|
|
1,197 |
|
|
|
- |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27 |
|
Non-recurring warranty provision |
|
1,746 |
|
|
|
- |
|
|
|
1,746 |
|
|
|
- |
|
|
|
6,430 |
|
Adjusted EBITDA |
$ |
743 |
|
|
$ |
(14,112 |
) |
|
$ |
(19,187 |
) |
|
$ |
(74,709 |
) |
|
$ |
(55,615 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305829203/en/
Investor Contact
Brian Ruttenbur
Senior Vice President, Investor Relations
investors@smartrent.com
Media Contact
Amanda Chavez
Senior Director, Corporate Communications
media@smartrent.com
Source: SmartRent
FAQ
What were SmartRent's revenue figures for Q4 and full-year 2023?
What was SmartRent's net loss for Q4 and full-year 2023?
How much cash did SmartRent have at the end of 2023?
What investment did SmartRent announce for market expansion?
What financial guidance did SmartRent provide for Q1 and full-year 2024?
