Smartrent, Inc. · NYSE:SMRT
Smartrent — Fifth Wall Acquisition Corp. I — SPAC Merger (July 2021)
55 slides from Smartrent's SPAC merger presentation, Jul 21, 2021
Slide 1: SmartRent Analyst Day
Smart Homes Connected Communities SmartRent Analyst Day
Slide 2: Disclaimer
Disclaimer 2 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 filed an amended registration statement on Form S-4 (the “Registration Statement”) with the Sec
Slide 3: Disclaimer (cont'd)
Disclaimer (cont’d) 3 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 are also i
Slide 4: Analyst Day Agenda
Analyst Day Agenda 4 Introduction Brendan Wallace – CEO (Fifth Wall Acquisition Corp. I) Technology and Product Platform Mitch Karren – CPO Operational Highlights Demetrios Barnes - COO CJ Edmonds – CRO Client Insights Jason Kessler – COO (Edward Rose & Sons) Sustainability at the Core of SmartRent’
Slide 5: Combination with FWAA further cements SmartRent as a category leader
Combination with FWAA further cements SmartRent as a category leader 5 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 FWAA? Category leader Substantial synergies wit
Slide 6: Experienced team with deep industry expertise
Experienced team with deep industry expertise 6 Our team is why we win Jonathan Wolter Chief Financial Officer CJ Edmonds Chief Revenue Officer Demetrios Barnes Chief Operating Officer Mitch Karren Chief Product Officer 430 Employees 77 Engineering professionals 102 Field Installation employees 141
Slide 7: Supported by a strong Board of Directors
Supported by a strong Board of Directors Source: Company filings as of 6/30/2021 Alana Beard Director Robert Best Director Lucas Haldeman Chairman John Dorman Director Frederick Tuomi Director Bruce Strohm Director Additional Director to be added to the Board FIFTH WALL ACQUISITION CORP. I 7
Slide 8: Recent business highlights
Recent business highlights 8 Source: Company data as of 6/30/2021 1. Units Deployed is defined as the aggregate number of SmartHubs expected to be installed during the period (including customer self-installations). 2. Booked units is defined as the aggregate number of SmartHubs associated with Mate
Slide 9: Company Overview
COMPANY OVERVIEW 01
Slide 10: Company Overview
450k+ Total Users 3.8k+ Completed Communities 211k+ Total Units Deployed 1.15M Total Devices Installed Company Overview Source: Company data as of 6/30/2021 10
Slide 11: We are an enterprise software company serving 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 11
Slide 12: SmartRent Product Ecosystem
Community Wifi Building Access Control Pool Access East Building A Access Unit A101 Expires: 08/14/20 2:15pm Hold Phone by Lock Your Passes Profile Activity Passes F ront Door Locked Tap to unlock Proven land-and-expand model that will continue to fuel growth. Every product can be an entry point wit
Slide 13: SmartRent delivers undeniable value to owners / operators
SmartRent delivers undeniable value to owners / operators 13 Operating Expenses Asset Protection Revenue Generation Cost Reduction 20-30% Savings on utilities • Maximize resident engagement • Fully integrated ecosystem • Improved building quality • Increased asset values 70-90% Decrease in water dam
Slide 14: Powerful network effect is driving demand for our solutions
Powerful network effect is driving demand for our solutions 14 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 d
Slide 15: Sector tailwinds are driving smart home penetration in rental communities
Sector tailwinds are driving smart home penetration in rental communities 15 Source: News run 1. Statista as of November 2020 2. Estimated based on 400K units divided by 43M rental units in the U.S. 3. Entrata 4. Schlage 5. RemoteLock article The rental industry is lagging… +75% of residents would p
Slide 16: Large addressable market opportunity
Large addressable market opportunity We are targeting a substantially larger market than our competitors ~$.03B Annual New Developments ~$80B New Products / Other Asset Classes 1 ~$30B Existing Residential Stock 2 ~$200B Global Expansion Source: NAREIT, John Burns Real Estate Consulting, Statista, c
Slide 17: Continued momentum for 2021E
Source: Company filings 1. Recurring revenue earned from the fees collected from customers to provide access to one or more of our software applications including access controls, asset monitoring and related services. Total software recurring revenue1 Total customers 44 85 121 142 161 182 2020 Q1 2
Slide 18: Technology & Product Platform
TECHNOLOGY & PRODUCT PLATFORM 02
Slide 19: We built the right foundation for our business
We built the right foundation for our business 19 COMPETITORS… COMPETITORS… SMARTRENT’S COMMITMENT SMARTRENT’S OFFERING Industry-leading holistic solution Most owner / operator-friendly provider Ability to serve any building anywhere … mostly deliver a series of point solutions… … include hardware c
Slide 20: Cutting-edge Research & Development Team
Cutting-edge Research & Development Team Innovative Product Development Team …Working Hand-in-Hand with Seasoned Team of Software Engineers 20 Source: Company data as of 6/30/2021 Mitch Karren Chief Product Officer Product Managers (18) Product Marketers (6) Partnerships (3) Solution Architects (3)
Slide 21: User-friendly, connected interface for property managers
User-friendly, connected interface for property managers 21 Today, property managers are expected to host property tours, manage resident requests, coordinate visits from vendors, deliveries and assist maintenance teams with service requests. Maintenance Access Move-In Work Orders Vacant Unit Contro
Slide 22: Re-defining the next generation resident experience
Re-defining the next generation resident experience 22 A single user app brings the smart home experience to rental communities Remote Access Guest Access Building Access Climate Comfort Video
Slide 23: Resident Experience 2.0
Resident Experience 2.0 I have a leaky sink AC Hi Jane! I’m Marvin and am here to help. What kind of problem are you experiencing? Gotcha DUE NOW $1,407.98 Unit Rent $1,200.00 Parking Space $99.99 High Speed Internet $99.99 Taxes $8.00 PAY NOW Fitness Center 5:00AM - 10:00PM Work towards a better yo
Slide 24: Alloy Access
Alloy Access Alloy Access is a cloud-based, mobile first, access control platform, purpose built for the multifamily industry. We have launched several disruptive products over the past year and are continuously innovating in both access and video solutions. Cloud Bridge Solo Door Kit Smart Intercom
Slide 25: Smart Parking
Smart Parking Smart Parking allows site staff to easily monitor and manage guest and resident parking. 25 Revenue Inefficiencies
Slide 26: Near-term product roadmap
Near-term product roadmap 26 Note: Average recurring revenue per unit in a fully deployed community 1. Includes Hub recurring Ongoing investment in technology for continued leadership $1-10 WiFi $1-2 Video Intercom $1-2 Alloy Parking $1-3 Alloy Access $2-5 Self-Guided Tours $7-12 Smart Homes1 Leasin
Slide 27: Sustainability at the Core of SmartRent's Value Proposition
SUSTAINABILITY AT THE CORE OF SMARTRENT’S VALUE PROPOSITION 03
Slide 28: Our solutions help owners / operators prepare for the future
Our solutions help owners / operators prepare for the future 28 Building data & analytics Green initiatives Our software provides owners / operators with predictive maintenance tools 1 SmartRent tracks valuable asset and amenity data that may be monetized in the future 2 We assist smart appliance co
Slide 29: Energy Management
Energy Management Energy platform manages data with >300 utility companies to facilitate ESG reporting Case Study 1: Client A with ~125 communities generates ~$500,000 in annual Demand Response revenue and >$1M of upfront rebates for smart devices Case Study 2: Client B with ~250 communities generat
Slide 30: SmartRent helps clients achieve their sustainability goals while reducing costs
SmartRent helps its clients achieve their sustainability goals while meaningfully reducing costs 30 1. Per company data 2. Based on 1M installed and committed units, assuming 2kwh per apartment / home saved per day during half a year; assumes 43M rental units in the U.S. for total reduction figure.
Slide 31: Operational Highlights
OPERATIONAL HIGHLIGHTS 04
Slide 32: More units installed and states served than all competitors combined
45 28 States States with local SmartRent teams Source: Company data as of 6/30/2021 More units installed and states served than all of our competitors combined Positions SmartRent to scale quickly with new clients – we serve local and national owners and operators 0 units < 1,000 units 1,001 – 10,00
Slide 33: Largest field network combined with in-house custom software creates a strong moat
Largest field network combined with our in-house custom software creates a strong moat for our business Alloy Install 33 200+ W-2 employees in implementation, installation, support & warehouse
Slide 34: The industry leaders have chosen SmartRent
The industry leaders have chosen SmartRent… 34 15 of the top 20 multifamily owners are SmartRent clients ~3% of addressable multifamily market represented by top 20 owners / operators 1.3M Units owned 43M Units in the U.S.1 …and the rest of the real estate industry is expected to follow Recognized t
Slide 35: Case Study: Early Adopters
Largest Multifamily REIT Largest Multifamily REIT Case Study: Early Adopters “And so when we think of SmartRent, using that as the example, over the last year, we put 30,000 units in, we were out in front of the market and what we've seen is that our residents have a smoother experience, our service
Slide 36: Up to $1.8Bn annual revenue opportunity from existing customers
From existing customers alone, SmartRent sees an opportunity to generate up to $1.8Bn in annual revenue 36 Note: Preliminary estimates 1. Total estimated number of units deployed to date as of 6/30/2021 2. We define Committed Units as both (i) units that are subject to binding purchase orders from c
Slide 37: Highly motivated sales team
Highly motivated sales team 37 Source: Company data as of 6/30/2021 Sales (10) CJ Edmonds Chief Revenue Officer (25) Marketing (9) Account Services (33) RevOps Growing Revenue Organization Focused on Acquiring and Retaining Customers… Sales team with decades of experience successfully selling softwa
Slide 38: Case study: Illustrative building economics and ROI
Case study: Illustrative building economics and ROI 38 Per unit (annually) 1. Based on a 5% cap rate 2. Based on assumed 220 units per building 3. Inclusive of SmartRent upfront charge and recurring fees Revenue $18.0K $18.8K Traditional Rental Building SmartRent Building OpEx ($8.4K) ($8.2K) NOI $9
Slide 39: Client Insights: Jason Kessler, Edward Rose & Sons
CLIENT INSIGHTS: JASON KESSLER EDWARD ROSE & SONS
Slide 40: Financial Overview & Transaction Highlights
FINANCIAL OVERVIEW & TRANSACTION HIGHLIGHTS 05
Slide 41: Transaction summary
Transaction summary 41 Note: Assumes no shareholder redemptions 1. Inclusive of PIPE proceeds and transaction expenses 2. Substantially all of the stockholders expected to be in place by closing 3. Founder shares of FWAA’s sponsor are locked up for periods of up to three years 4. Shares subject to v
Slide 42: Illustrative financial impact of capital raised
Sales, marketing & administrative 36% Installation & services 64% International expansion Strategic acquisitions Illustrative financial impact of capital raised 42 $100M Investment 1.4M Units $220M Annual hosted service revenue opportunity $900M Hardware and installation revenue opportunity Research
Slide 43: Delivered double-digit revenue growth and record quarterly new units
43 ($ millions except for units installed and units booked) Units installed Total revenue Bookings1 Units booked Adj. EBITDA 17,940 32,483 1Q20 1Q21 $15.1 $32.4 1Q20 1Q21 22,700 45,536 1Q20 1Q21 ($5.5) ($7.9) 1Q20 1Q21 $0.7 ($0.4) 1Q20 1Q21 Source: Company filings 1. We define Bookings as the aggreg
Slide 44: Attractive growth potential and expected path to profitability
Attractive growth potential and expected path to profitability 44 Cumulative units (K) 155 314 701 1,476 2,624 2020 2021E 2022E 2023E 2024E 85% 75% 26% 4% % committed1 $53 $119 $342 $782 $1,308 2020 2021E 2022E 2023E 2024E Total revenue ($M) Source: Company Data Note: The forecasted results of opera
Slide 45: Attractive projected recurring revenue model
Attractive projected recurring revenue model 45 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 hand. The abi
Slide 46: Detailed financials
Detailed financials 46 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
Slide 47: Detailed financials (cont'd)
Detailed financials (cont’d) 47 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 hand. The ability to advance
Slide 48: Visible. Profitable. Repeatable.
Visible. Profitable. Repeatable. 48 1. Customer Acquisition Cost 2. Average Revenue Per User 3. Hosted services includes Hub and SaaS revenue 4. Represents Hub revenue that is amortized over 4 years, and Core SaaS revenue that is amortized over 5 years 80% of ’21-’22 units are Committed Units Embedd
Slide 49: Key investment highlights
Key investment highlights Leading solution provider for owners / operators & residents 1 SmartRent is a category leader 2 Highly visible pipeline of demand 3 Large addressable market 4 Significant growth opportunity 5 Experienced team with deep industry expertise 6 Attractive financial profile with
Slide 50: Appendix
APPENDIX 06
Slide 51: Fifth Wall is the preeminent PropTech investor
Fifth Wall is the preeminent PropTech investor 51 Source: Fifth Wall provided information >5x Larger next largest Proptech VC Largest, most active PropTech VC who pioneered institutional PropTech investing • $2.5B of AUM; over 5x larger than our closest competitor • Early, “kingmaker” investor in th
Slide 52: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics 52 ($ Millions) Projections 2020 2021 2022 2023 2024 GAAP net income (loss) ($37.9) ($24.1) $7.1 $74.8 $183.6 Less: Other income (expense) 1.9 0.0 0.0 0.0 0.0 Plus: Interest expense, net 0.6 0.3 0.2 0.0 0.0 Plus: Provision for income taxes 0.1 0.0 0.2 2.0 4.9 Plus:
Slide 53: Side-by-side Q1 financial comparison
Side-by-side Q1 financial comparison 53 ($ Millions) Three months ended March 31, 2021 2020 Change (%) Revenue Hardware + professional services $16.0 $14.9 7% Hosted services 3.2 1.6 94% Total revenue $19.2 $16.6 16% Cost of revenue Hardware + professional services 17.6 14.7 20% Hosted services 2.0
Slide 54: Key risks
Key risks 54 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 unc
Slide 55: Key risks (cont'd)
Key risks (cont’d) 55 • We make estimates relating to customer demand and errors in our estimates may have negative effects on our inventory levels, revenues, and results of operations. • Our ability to use net operating loss carryforwards may be subject to limitations. • Interruptions to, or other
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