Q1 2024 SmartRent Inc Earnings Call Transcript
Key Points
- SmartRent Inc (SMRT) reported a revenue of $50.5 million for the quarter, with $12 million coming from SaaS recurring revenue products, showing a 32% year-over-year growth in the SaaS business.
- The company achieved positive adjusted EBITDA of almost $400,000, surpassing guidance and marking the second consecutive quarter of positive adjusted EBITDA.
- SmartRent Inc (SMRT) saw a 24% increase in deployed units year-over-year, reaching nearly 750,000 units, indicating strong market demand and operational growth.
- Gross margin significantly improved to 38.5% from 14% in the same quarter of the previous year, driven by a favorable change in product mix towards Alloy SmartHome hardware.
- The company is expanding its Community WiFi offerings, investing in new talent and technologies, which aligns with its strategic vision to dominate the early-stage multifamily community WiFi market.
- Hardware and professional services revenue both declined year-over-year, with hardware revenue affected by a decrease in hardware RPU and a change in product mix.
- Professional services revenue decreased primarily due to a reduction in new units deployed, reflecting challenges in scaling this segment of the business.
- Total operating expenses increased to $29.6 million in Q1 2024 from $24.4 million in Q1 2023, partly due to a one-time accrual of $5.3 million related to a contractual dispute.
- The company's cash balance decreased by $11 million from the previous quarter, primarily due to stock repurchases and payment of annual cash bonuses.
- SmartRent Inc (SMRT) faces macroeconomic challenges such as higher interest rates and slowing rent growth, which are creating headwinds for customer investment and impacting the deployment of new technologies.
Ladies and gentlemen, thank you for standing by. We'd like to welcome you to today's conference. This is the SmartRent Q1 2024 conference call. (Operator Instructions)
I would like to start our call and turn our call over to Kristen Lee, General Counsel for SmartRent. Kristen, you may begin.
Hello, and thank you for joining us today. My name is Kristen Lee, General Counsel for SmartRent. I'm joined today by Lucas Haldeman, Chairman and CEO; and Daryl Stemm, CFO, who will be taking you through our financial results as well as discussing guidance. Before the market opened today, we issued our earnings release and filed our 10-Q with the SEC, both of which are available on the Investor Relations section of our website, smartrent.com.
Before I turn the call over to Lucas, I would like to remind everyone that the discussion today may contain certain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially
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