Smartrent, Inc. · NYSE:SMRT
Smartrent — Q3 2022 Earnings Presentation
16 slides from Smartrent's earnings presentation, November 2022
Slide 1: 3Q Earnings Deck
3Q Earnings Deck November 2022
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: Third Quarter Highlights
Third Quarter Highlights • Record revenue of $47.5 million • Up 12% quarter-over-quarter • Up to 35% year-over-year SmartRent’s scale solidifies its industry-leading position • Over 53,000 units deployed, surpassing the 500,000 unit milestone • SaaS ARR of $31.8 million • Up 4% q-o-q • Up to 264% y-
Slide 4: Record Quarterly Revenue
Record Quarterly Revenue Robust demand, improved pricing and recurring SaaS lead to a record quarter $50,000 Revenue by Type ($ in thousands) 12% Total Revenue Growth $13,341 $45,000 28% $40,000 $12,391 $35,000 $8,336 $4,927 $6,104 $7,478 Hardware Revenue Growth $30,000 $8,180 $9,123 $7,387 $6,909 $
Slide 5: Accelerating SaaS Contribution to Hosted Services
Accelerating SaaS Contribution to Hosted Services Strong momentum driven by growth in deployed unit base and the contribution of SightPlan revenues Hub Revenue vs SaaS Revenue ($ in thousands) $14,000 $31.8M $2,933 3Q-22 SaaS ARR $12,000 $3,484 $10,000 $5,018 $8,000 $723 $4,160 4% $3,351 SaaS ARR gr
Slide 6: Consecutive Quarters of Positive Gross Margins
Consecutive Quarters of Positive Gross Margins Improved unit economics and economies of scale drive positive gross margins Gross Profit ($ in thousands) & Gross Margin (%) $4,000 20.0% $3,000 2.3% 2.5% .0% $2,000 (9.1%) (12.7%) $1,000 $1,183 (19.3%) $988 (20.0%) $0 ($1,000) (40.0%) ($2,000) ($3,000)
Slide 7: Hardware and Hosted Services Margins Increase
Hardware and Hosted Services Margins Increase Professional services gross margin hindered by constrained quarterly unit volume Gross Margins by Revenue Stream (%) 60.0% 51.2% 5.0% 40.0% 48.7% Hardware Margin Percentage 34.2% 39.1% Point Improvement 30.3% 20.0% 4.7% 1.2% (37.7%) 0.0% (11.5%) (0.2%) (
Slide 8: Consecutive Adjusted EBITDA Improvements
Consecutive Adjusted EBITDA Improvements Improvements in gross margins and operating efficiencies leading to a path to profitability in 2023 Adjusted EBITDA ($ in thousands) $2.2M $5,000 $0 Adjusted EBITDA Improvement ($5,000) ($10,000) 11% Adjusted EBITDA Improvement ($15,000) ($16,140) Growth ($17
Slide 9: Organic SaaS ARPU Growth Continues
Organic SaaS ARPU Growth Continues Current booking SaaS ARPU growth continues to pull up SaaS ARPU for all deployed units Core Smart Home SaaS ARPU $6.00 6.4% $5.50 $5.22 $5.00 SaaS ARPU Growth for $4.79 All Deployed Units $4.50 $4.17 9.0% $4.00 $3.79 $3.69 $3.50 $3.50 SaaS ARPU Growth for Booked $3
Slide 10: Deployed Units and Committed Units Exhibit Steady Growth
Deployed Units and Committed Units Exhibit Steady Growth Market demand continues to drive increase in Units Committed and Units Deployed Units Deployed and Committed 1,400,000 1,315,721 1,231,046 1,151,272 811,312 1,200,000 780,036 1,065,277 760,591 975,014 742,429 1,000,000 704,242 800,000 600,000
Slide 11: Strong Organic Growth Opportunity
Strong Organic Growth Opportunity 5.4M Remaining Client Unit Opportunity 6.7M Owned or Controlled Units 811K Committed Units 504K Units Deployed Note: 1. Information as of September 30, 2022. Source: SmartRent SEC filings. 2. We define Committed Units as both (i) units that are subject to binding pu
Slide 12: Financial & Business Outlook
Financial & Business Outlook Full Year Guidance Previous Guidance Revised Guidance Total Revenue $155M to $180M $165M to $180M Adjusted EBITDA ($75M) to ($70M) ($75M) to ($70M) Units Deployed 190,000 to 220,000 200,000 to 220,000 The above estimates represent a range of possible outcomes and may dif
Slide 13: TTM Condensed Consolidated Balance Sheet
TTM Condensed Consolidated Balance Sheet (Unaudited, $ in thousands, except per share amounts) Three months ended 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 Cash and cash equivalents $ 210,112 $ 255,008 $ 278,003 $ 430,841 $ 472,502 Accounts receivable, net 64,085 45,135 62,543 45,486 32,942 Inventory
Slide 14: TTM Condensed Consolidated Statement of Operations
TTM Condensed Consolidated Statement of Operations (Unaudited, $ in thousands, except per share amounts) Three months ended 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 Revenue Hardware $ 26,683 $ 20,895 $ 22,114 $ 21,177 $ 22,025 Professional services 7,478 9,123 6,909 7,387 8,180 Hosted services 13,34
Slide 15: Reconciliation of Non-GAAP Metrics
Reconciliation of Non-GAAP Metrics ($ in thousands) Three months ended Reconciliation of Non-GAAP Measures 9/30/22 6/30/22 3/31/22 12/31/21 9/30/21 Net loss $ (25,950) $ (25,589) $ (23,394) $ (25,958) $ (26,685) Interest income, net (506) (253) 12 50 57 Provision for income taxes 81 (1,009) (4,807)
Slide 16: Definition of Key Operating Metrics
Definition of Key Operating Metrics SmartRent regularly monitors several operating and financial metrics to evaluate its operating performance, identify trends affecting its business, formulate business plans, measure its progress, and make strategic decisions. SmartRent’s key operating metrics may