Smartrent, Inc. · NYSE:SMRT
Smartrent — SPAC Merger (April 2021)
39 slides from Smartrent's SPAC merger presentation, Apr 22, 2021
Slide 1: Fifth Wall Acquisition Corp I
Fifth Wall Acquisition Corp I
Slide 2: Important Information for Investors and Stockholders
Important Information for Investors and Stockholders This document relates to the proposed merger involving Fifth Wall Acquisition Corp. I (“FWAA”) and SmartRent.com, Inc. (“SmartRent”). FWAA intends to file a registration statement on Form S-4 with the Securities and Exchange Commission (“SEC”), wh
Slide 3: Forward-looking statements and projections cautionary note
Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in FWAA’s most recent reports on Form 8-K, which are available, free of charge, at the SEC’s website at www.sec.gov, and will also be provided in FWAA’s
Slide 4: Largest, most active PropTech VC who pioneered institutional PropTech investing
Largest, most active PropTech VC who pioneered institutional PropTech investing 1 Early, “kingmaker” investor in the most iconic, category-leading businesses in Proptech over last 5 years Differentiated from more recreational / amateur corporate venture capital funds in real estate Most sought-after
Slide 5: Combination with FWAA further cements SmartRent as a category leader
Combination with FWAA further cements SmartRent as a category leader Why we chose FWAA? The PropTech validator Unparalleled access to potential customers Long-term investor Access to proprietary M&A targets Existing SmartRent investor and strategic partner Why we chose SmartRent? Category leader Sub
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS 01
Slide 7: Key investment highlights
Key investment highlights Leading solution provider for owners / operators & residents SmartRent is a category leader Highly visible pipeline of demand Large addressable market Significant growth opportunity Experienced team with deep industry expertise Attractive financial profile
Slide 8: We are an enterprise software company, providing fully-integrated solutions to the real estate industry
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 that drive multi-year recurring revenue 8
Slide 9: Proven land-and-expand model that will continue to fuel our growth
Proven land-and-expand model that will continue to fuel our growth Every product can be an entry point with switching costs exponentially increasing over time Building Access Control (2020) Self-Guided Tours (2019) Community WiFi (2020) Video Intercom (2021) Residential WiFi (2021) Smart Apartments
Slide 10: SmartRent delivers undeniable value to owners / operators
SmartRent delivers undeniable value to owners / operators 50% Return on investment1 3 Year payback period1 20-30% Savings on utilities Maximize resident engagement Fully integrated ecosystem Improved building quality Increased asset values 70-90% Decrease in water damage expense Help owners / operat
Slide 11: Powerful network effect is driving demand for our solutions
Powerful network effect is driving demand for our solutions Owners / Operators Need to meet residents’ growing demand for digital amenities, while improving profitability But no enterprise-level solution existed prior to SmartRent Smart Home Device Companies Continued product innovation to meet dema
Slide 12: Re-defining the next generation resident experience
Re-defining the next generation resident experience A single user app brings the smart home experience to rental communities Remote AccessGuest AccessBuilding AccessClimateComfortVideo 12
Slide 13: We built the right foundation for our business
We built the right foundation for our business Industry-leading holistic solution Most owner / operator-friendly provider Ability to serve any building anywhere In-house installation yields quality 100+ Enterprise Hardware Resident Hardware Open Deeply software App agnostic architecture integrated …
Slide 14: More units installed and states served than all of our competitors combined
More units installed and states served than all of our competitors combined Leading presence in all major MSAs throughout the U.S. 0 units< 1,000 units1,001 – 10,000 units+10,000 units More sectors than any other competitor 28M Institutionally owned multifamily US Units 15M Single Family US Rental R
Slide 15: The industry leaders
The industry leaders 2021 Rank Company Name Units Owned (K) SmartRent Client Multifamily 1 MAA 100 x 2 Morgan Properties 91 x 3 Starwood Capital Group 89 x 4 AvalonBay Communities 80 x 5 Equity Residential 79 x 6 Greystar Real Estate Partners 75 x 7 Related Companies 73 8 Edward Rose Building Enterp
Slide 16: Highly visible pipeline of demand: Case Study: Early Adopters
Highly visible pipeline of demand Case Study: Early Adopters Close to full portfolio roll-out 93% 82% 1 $13B Total market capitalization 33K Apartments in 13 states 7th Largest Multifamily REIT Close to full “And so when we think of SmartRent, using that as the example, over the last year, we put 30
Slide 17: Highly visible pipeline of demand
Highly visible pipeline of demand From existing customers alone, SmartRent sees an opportunity to generate up to $1.5Bn in annual revenue Number of Units 2.9M unit opportunity from existing customers alone $1.5B 2M 752K 2.9M annual revenue opportunity from existing customers 4 $624M Current booked r
Slide 18: Large addressable market opportunity
Large addressable market opportunity We are targeting a substantially larger market than our competitors ~$200B Global Expansion ~$80B New Products / Other Asset Classes 1 ~$.03B Annual New Developments ~$30B Existing Residential Stock 2 Source: NAREIT, John Burns Real Estate Consulting, Statista, c
Slide 19: Sector tailwinds are driving smart home penetration in rental communities
Sector tailwinds are driving smart home penetration in rental communities The same dynamics will apply to other asset classes and geographies The rental industry is lagging… …and owners / operators risk obsolescence if they do not evolve U.S. Smart home penetration Homes1Rentals2 57% 40% 28% +75% 1%
Slide 20: Near-term product roadmap
Near-term product roadmap Ongoing investment in technology for continued leadership Payments & wos FUTURE Marketplace IN PROGRESS Video & security FUTURE Smart appliances IN PROGRESS Energy, water, air metering FUTURE Video intercom / mgmt. CURRENT / unit monthly opportunity Note: Average recurring
Slide 21: Our solutions help owners / operators prepare for the future
Our solutions help owners / operators prepare for the future Building data & analytics Green initiatives 1 By deploying our solutions, owners / operators are able to substantially reduce energy consumption 1 2 SmartRent’s leak sensors prevent water damage across entire portfolios 2 3 SmartRent helps
Slide 22: SmartRent has a compelling M&A pipeline and a proven ability to acquire and integrate companies
SmartRent has a compelling M&A pipeline and a proven ability to acquire and integrate companies FWAA will supercharge SmartRent’s M&A pipeline Largest and most active VC in real estate tech PropTech Universe: 8,300+ Fifth Wall’s CRM1 tracks more than 8,300 real estate technology companies, including
Slide 23: Illustrative financial impact of capital raised
Illustrative financial impact of capital raised Sales, marketing & administrative 36% For every $100M Investment Installation & services 64% 1.4M Units $220M Annual hosted service revenue opportunity Other potential uses of proceeds $900M Hardware and installation revenue opportunity Research & Deve
Slide 24: Experienced team with deep industry expertise
Experienced team with deep industry expertise Experienced team with deep industry expertise Our team is why we win Lucas Haldeman Chief Executive Officer CJ Edmonds Chief Revenue Officer Demetrios Bernes Chief Operating Officer Jonathan Wolter Chief Financial Officer Heather Auer Senior Vice Preside
Slide 25: Attractive financial profile
Attractive financial profile Visible. Profitable. Repeatable. Embedded pipeline expected to drive multi-year revenue visibility Decreasing CAC1 and increasing ARPU2 expected to drive margin expansion Long-term contracts provide a large base of deferred revenues Sticky customer base Clear path to cor
Slide 26: Financial Overview
FINANCIAL OVERVIEW 02
Slide 27: Cumulative units, total revenue, gross profit and Adjusted EBITDA
Cumulative units (K) Total revenue ($M) % committed1 85%75%26%4% 2,624 $1,308 155314 701 1,476 $119 $53 $342 $782 2020 2 2021E2022E2023E2024E 2020 2 2021E2022E2023E2024E Gross profit ($M) Adjusted EBITDA ($M) Margin: 12%23%27%30% Margin: -3%10%15% $392 $190 ($3) $15 $80 $208 ($28)($22) $78 $9 2020 2
Slide 28: Revenue Build By Annual Cohort
Key HighlightsRevenue Build By Annual Cohort2 ($M) $1,592 0% churn to date 5-7 year contract life $1,004 633 74% 2024E hosted 75% of customers prepay $158 50 $443 160 283 397 607 959 service1 gross margin software contract108 2021E2022E2023E2024E Source: Company Data Sales multiplier effect3 1.5x1.6
Slide 29: Transaction summary
Transaction summary ($ Millions, except per share values) Key highlights Pro forma valuation calculation Valuation Pro forma enterprise value of $1.66B Capital Structure $513M pro forma cash held on balance sheet1 PIPE $155M of PIPE commitments Secondary No secondary proceeds Warrants None Existing
Slide 30: Operating and valuation benchmarking
Operating and valuation benchmarking PropTech comps Smart home comps Integrated hardware and software comps 2022E Revenue Multiple 4.9x 3.9x GAAP Operational1 15.5x 12.2x 6.5x6.5x6.5x 13.3x 8.0x7.4x 2 2020E - 2022E Revenue Growth3 154%54% 15%11%8%na 2 74% 41%31% Source: Company estimates, company fi
Slide 31: Appendix
APPENDIX 03
Slide 32: Detailed financials
Detailed financials GAAP and Operational metrics ($ Millions) Source: Company Data Note: The forecasted results of operations for the years 2021-2024 presented herein reflect the material positive impact of the proposed transaction and SmartRent’s planned uses of the anticipated post-closing cash on
Slide 33: Detailed financials (cont'd)
Detailed financials (cont’d) Projections 20201 2021 2022 2023 2024 Operational2 Hardware and installation Revenues $46.4 $98.2 $274.5 $610.7 $987.4 Cost of sales 48.9 94.5 236.7 522.3 831.9 Gross Profit ($2.5) $3.7 $37.8 $88.4 $155.5 % gross profit margin nm 4% 14% 15% 16% Hosted service Revenues $2
Slide 34: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics Projections 20201 2021 2022 2023 2024 GAAP net income (loss) ($35.7) ($24.1) $7.1 $74.8 $183.6 Less: Other income (expense)2 1.0 0.0 0.0 0.0 0.0 Plus: Interest expense, net 0.6 0.3 0.2 0.0 0.0 Plus: Provision for income taxes 0.0 0.0 0.2 2.0 4.9 Plus: Share-based c
Slide 35: Case study: Illustrative building economics and ROI
Case study: Illustrative building economics and ROI Per unit (annually) Traditional Rental Building SmartRent Building 50% Revenue$18.0K$18.8K OpEx($8.4K)($8.2K) NOI$9.6K$10.6K NOI Margin53%59% Gross Value / Unit1$192K$211K Gross Value / Building2$42.2M$46.5M Owner / operator IRR from deploying Smar
Slide 36: SmartRent helps its clients decarbonize while meaningfully reducing costs
SmartRent helps its clients decarbonize while meaningfully reducing costs 2,564 Water leaks prevented1 21% Residential real estate accounts for 21% of total U.S. energy consumption4 366K+ MWH electricity saved2 50 Peaker plants avoided3 4% Reduction in U.S. energy consumption if all rental buildings
Slide 37: Customer quotes on smart home technology investment
“This year, we intend to invest approximately $20 million on smart home tech.” “We don't implement technology just for technology sake or some sort of whizz-bang. At the end of the day, we really have a couple of things.” “. . . We're about 27,000 units in. We do think [residents] value it. We think
Slide 38: Risk factors relating to the business of SmartRent
In this section, all references to the “Company,” “we,” “us” or “our” refer to the business of SmartRent. The risks presented below are certain of the general risks related to the business of the Company, and such list is not exhaustive. You should carefully consider these risks and uncertainties, t
Slide 39: Risk factors (continued)
If we are unable to achieve or maintain profitability in the future, we may require additional capital to pursue our business objectives and to respond to business opportunities, challenges, or unforeseen circumstances. If capital is not available to us, our business, results of operations, and fina