Smartrent, Inc. · NYSE:SMRT
Smartrent — Investor Presentation (September 2021)
25 slides from Smartrent's investor presentation, Sep 8, 2021
Slide 1: Opening Doors to a Smarter World – Investor Presentation
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Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of
Slide 3: Use of Projections and Non-GAAP Financial Measures
This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size, growth and other data about our industry and our business. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to
Slide 4: Company overview
1 Company overview Founded in 2017, SmartRent is a leader in enterprise smart home technology. The open architecture SmartRent solution is designed to provide property managers with seamless visibility and control over all their assets while delivering cost savings and additional revenue opportuniti
Slide 5: Key investment highlights
Key investment highlights Leading solution provider for owners / operators & residents 1 2 SmartRent is a category leader 3 Highly visible pipeline of demand 4 Large addressable market 5 Significant growth opportunity 6 Seasoned team with deep industry expertise Attractive financial profile 7Key inv
Slide 6: Leading solution provider for owners / operators & residents
Leading solution provider for owners / operators & residents We are an enterprise software company, providing fully-integrated solutions to the real estate industry We are hardware agnostic and deeply integrated into most Property Management Systems We have meaningful ongoing customer relationships
Slide 7: SmartRent delivers undeniable value to owners / operators
Leading solution provider for owners / operators & residents SmartRent delivers undeniable 50% 3 value to owners / operators Return on Year payback 1 1 investment period 20-30% $25-100/month Operating Savings on utilities Rent increase / unit Expenses • Maximize resident engagement• Higher rent • Fu
Slide 8: SmartRent Product Ecosystem
Leading solution provider for owners / operators & residents SmartRent Product Ecosystem Proven land-and-expand model that will continue to fuel growth. Every product Recently Launched can be an entry point with switching costs exponentially increasing over time. As Smart we expand, privacy remains
Slide 9: SmartRent is a category leader
SmartRent is a category leader We believe we have more units installed and states 1 served than all of our competitors combined Positions SmartRent to scale quickly with new clients – we serve local and national owners and operators Comprehensive Operating Platform 45 28 States States with local Sma
Slide 10: The industry leaders have chosen SmartRent
SmartRent is a category leader The industry leaders Units SmartRent SmartRent 2021 Rank Company Name have chosen SmartRent… Owned (K) Client Investor Multifamily 15 of the top 20 multifamily 1 MAA 100✔★ owners are SmartRent clients 2 Morgan Properties 91✔ 3 Starwood Capital Group 89 ✔★ 4 AvalonBay C
Slide 11: Highly visible pipeline of demand
Highly visible pipeline of demand From existing customers alone, SmartRent sees an opportunity to generate up to $1.8Bn in annual revenue As of Q2 2021 Number of Units 3.5M 3.5M 2.7M unit opportunity from existing customers alone $1.8B 4 potential annual recurring revenue from existing customers 606
Slide 12: Secular tailwinds driving smart home penetration in rentals
Large addressable market Secular tailwinds are driving smart home penetration in rental communities The same dynamics are expected for other asset classes and geographies …and owners / operators risk The rental industry is lagging… obsolescence if they do not evolve U.S. Smart home penetration 1 2 H
Slide 13: Large addressable market opportunity
Large addressable market Large addressable market opportunity We are targeting a substantially ~$200B larger market than our competitors Global Expansion ~$80B 28M New Products / Institutionally owned multifamily US Units 1 Other Asset Classes 15M ~$30B Single Family US Rental Residences Existing 2
Slide 14: Near-term product roadmap
Significant growth opportunity Near-term product roadmap Ongoing investment in technology for continued leadership Recent Products Launched Leasing Resident Experience Home IoT Building IoT FUTURE IN FUTURE CURRENT Lease signing Payments & WOs Video & security Energy, water, air metering PROGRESS CU
Slide 15: Helping clients achieve sustainability goals while reducing costs
Significant growth opportunity SmartRent helps its clients achieve their sustainability goals while meaningfully reducing costs 366K+ 4% 2 MWH electricity saved Reduction in U.S. energy consumption if all rental 4 buildings had SmartRent green initiatives By deploying our solutions, owners / operato
Slide 16: Capital raised via merger to accelerate M&A pipeline
Significant growth opportunity Capital raised via merger to accelerate SmartRent’s M&A pipeline Illustrative financial impact of capital raised Sales, marketing & administrative 36% For every $900M $100M 1.4M $220M Hardware and Investment Units Annual hosted service installation revenue opportunity
Slide 17: Seasoned team with deep industry expertise
Seasoned team with deep industry expertise Our team is why we win Lucas Haldeman CJ Edmonds Demetrios Barnes Jonathan Wolter Heather Auer Isaiah DeRose- Mitch Karren Evelyn Infurna Chief Executive Chief Revenue Chief Operating Chief Financial Senior Vice President, Wilson Chief Product Senior Vice P
Slide 18: Attractive financial profile
Attractive financial profile Visible. Profitable. Repeatable. 80% Embedded pipeline expected to drive multi-year revenue visibility 1 of ’21-’22 units are Committed Units 1 2 573bps Decreasing CAC and increasing ARPU expected to drive margin expansion 2 4 Gross margin improvement $75M Long-term cont
Slide 19: Clean Capital Structure
Clean Capital Structure 1 Well Capitalized with Strong Shareholder Base Ownership Structure Key Highlights $485M SMRT 1 Cash and cash 4.5% FWAA Sponsor Ticker on the NYSE equivalents 11.3% Insider Ownership 193.7M $1.9B Shares Outstanding 3 Enterprise Value Holders 0 11.3% Transaction Warrants Insid
Slide 20: Recent business highlights
Recent business highlights • Launched Smart Intercom, SmartRent’s own in-house intercom offering that can be installed on any building entry point • Launched Alloy Access Solo, a single door access control solution that can be retrofitted on nearly any door or perimeter gate using 40 174 WiFi or cel
Slide 21: Recent financial highlights
Recent financial highlights Delivered triple-digit Q2 revenue growth ($ millions except for units installed and units booked) Units deployed Total revenue Gross profit Margin 1.3% (35.6%) $0.3 23,834 $21.7 $4.1 $5.8 6,943 $17.6 $1.7 $4.1 ($2.1) 2Q20 2Q21 2Q20 2Q21 2Q20 2Q21 1 Units booked Bookings A
Slide 22: Appendix
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Slide 23: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ Millions) Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Net loss $ (10,051) $ (10,448) $ (19,318) $ (17,724) Interest expense, net 64 170 142 380 Provision for income taxes 41 44 87 122 Depreciation and amortization 93 95 173 121 EBIT
Slide 24: Close to full portfolio roll-out
Close to full portfolio roll-out Case Study: 93% Early Adopters 82% 1 $13B 33K 7th Total market Apartments in 13 states Largest Multifamily REIT Portfolio roll-out capitalization soon to exceed Full portfolio “And so when we think of SmartRent, using that as the example, over the last year, we put 9
Slide 25: Definition of key operating metrics
Definition of key operating metrics SmartRent regularly monitors a number of 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, f