NYSE$SMRT

Smartrent Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Achieved adjusted EBITDA profitability and ended the year with a strong cash position.

SmartRent reported a 49% increase in Q4 revenue, reaching $60.3 million, and achieved positive adjusted EBITDA of $0.7 million, marking a significant milestone in the company's history. The company ended the year with $215.7 million in cash and announced a $50 million stock repurchase program.

  • Q4 revenue increased by 49% year-over-year to $60.3 million.
  • SaaS revenue grew by 43% year-over-year to $11.6 million.
  • Net loss significantly improved to $(3.3) million, an 85% decrease year-over-year.
  • Adjusted EBITDA was positive at $0.7 million, compared to a $(14.1) million loss in Q4 2022.

Headline financials

Total Revenue

$60.3M

Previous: $40.6M+48.6%
EPS (adj)

-$0.02

Previous: -$0.11+81.8%
Hardware Units Shipped

50.0K

No prior period
New Units Deployed

37.1K

Previous: 42.8K-13.4%
SaaS ARPU

$5.50

No prior period
Units Booked

41.8K

Previous: 64.4K-35.1%
Bookings

$39.9M

No prior period
Capital Expenditures

-$3.66M

Previous: $311K-1275.9%
Net Income

-$3.3M

Previous: -$21.4M+84.6%
Operating Income

-$5.83M

Previous: -$26M+77.6%
Gross Profit

$17M

Previous: $3.9M+335.9%
R&D Expense

$7.47M

No prior period
Stock-Based Comp

$3.04M

Previous: $2.89M+5.1%

Revenue & EPS history

Smartrent · Revenue · Quarterly

$60.3M

Q4 2023+48.6%vs Q4 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Smartrent · $58.1M total across 3 segments · Q3 2023

  • Hardware
    $35.6M+33.5%
  • Hosted Services
    $16.5M+23.8%
  • Professional Services
    $5.96M-20.3%

Forward guidance

SmartRent anticipates growth and profitability may be impacted in the first half of the year due to investment in scaling Community WiFi capabilities, with a rebound expected in the second half of the year. The company provided guidance for Q1 2024 with total revenue of $47 to $53 million and Adjusted EBITDA of $(1) million to positive $250 thousand. Full-year 2024 guidance includes total revenue of $260 to $290 million and Adjusted EBITDA of $5 to $8 million.

Tailwinds

  • Strong balance sheet allows for investment in the business and enhanced shareholder value.
  • Community WiFi offers a tremendous and sustainable multi-billion dollar growth opportunity.
  • Expects growth and profitability will rebound in the second half of the year.
  • Focus on scaling Community WiFi capabilities to complement existing product offerings.
  • Believes there is no better investment than in the Company with $50 million stock repurchase program.

Headwinds

  • Growth and profitability may be impacted in the first half of the year.
  • Wi-Fi sales cycles and deployments require significantly longer periods of time versus the IoT offerings.
  • Estimates exclude the impact of potential acquisitions, capital markets activities, and unforeseen continued challenges with supply chain and logistics.
  • 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.
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

-0.7%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.4%

Avg return

30 days after

48%

10 / 21 earnings

Positive

+28.6%

Q3 2023

Best reaction

-31.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-18.2%-18.2%-23.8%
Q4 2025+15.7%+15.6%-1.3%
Q3 2025+3.0%+8.1%+45.9%
Q1 2025+5.2%-10.3%+1.8%
Q4 2024+7.1%-8.7%-20.5%
Q3 2024-14.2%-12.5%+4.5%
Q2 2024-7.9%-16.4%-2.4%
Q1 2024-2.8%-2.4%-4.5%
Q4 2023-6.2%-6.2%-11.4%
Q3 2023+28.6%+17.0%+25.5%
Q2 2023-12.6%-10.8%-18.9%
Q1 2023+24.9%+36.0%+29.5%
Q4 2022-1.2%+1.5%-2.7%
Q3 2022+25.4%+25.4%+4.2%
Q2 2022-31.0%-33.9%-44.9%
Q1 2022+4.3%+20.6%+31.0%
Q4 2021-14.3%-7.8%-26.0%
Q3 2021-18.2%-11.7%-10.6%
Q2 2021-3.3%+8.8%-2.5%
Q1 2021+0.1%
Q4 2020+0.1%
Q3 2020
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q4 2012
Q3 2012

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro