SmartRent, Inc. (SMRT) Bundle
A Brief History of SmartRent
SmartRent, Inc. operates as a technology company that provides smart home solutions for property owners, managers, and residents. Founded in 2017, the company has quickly established itself in the enterprise real estate technology sector.
Company Growth and Expansion
As of September 30, 2024, SmartRent had a total of 787,038 Units Deployed, marking significant growth from 682,632 Units Deployed in the same period of the previous year. The company continues to expand its customer base, serving over 600 customers, including major multifamily residential owners in the United States, who collectively manage approximately 7.3 million rental units.
Financial Performance
For the three months ended September 30, 2024, SmartRent reported total revenue of $40.5 million, a decrease of 30% compared to $58.1 million in Q3 2023. The decline in revenue was primarily attributed to a 47% decrease in hardware sales, which fell from $35.6 million to $18.7 million.
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Hardware | $18,707 | $35,631 | (47%) |
| Professional Services | $3,308 | $5,962 | (45%) |
| Hosted Services | $18,495 | $16,511 | 12% |
| Total Revenue | $40,510 | $58,104 | (30%) |
Net Loss and Expenses
SmartRent reported a net loss of $9.9 million for Q3 2024, compared to a net loss of $7.7 million in Q3 2023. The increase in loss was driven by a rise in operating expenses, including a 26% increase in general and administrative expenses, which reached $14.2 million.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Research and Development | $6,596 | $7,573 | (13%) |
| Sales and Marketing | $4,444 | $4,636 | (4%) |
| General and Administrative | $14,154 | $11,269 | 26% |
| Total Operating Expenses | $25,194 | $23,478 | 7% |
Market Position and Strategic Initiatives
SmartRent has positioned itself as a leader in the smart home solutions market, leveraging its technology to enhance the living experience for residents while providing property owners with tools to manage their assets efficiently. The company's strategic focus includes increasing its investment in research and development, as evidenced by a 5% increase in R&D expenses to $22.4 million for the nine months ended September 30, 2024.
Liquidity and Capital Resources
As of September 30, 2024, SmartRent held $163.4 million in cash and cash equivalents, which are primarily allocated for working capital and corporate purposes. The company’s principal sources of liquidity have included net proceeds from its business combination and revenue generated from customer sales.
Stockholder Equity
SmartRent's stockholder equity was reported at $305.1 million as of September 30, 2024. The company has actively engaged in stock repurchase programs, with a total authorization of up to $50 million for Class A common stock repurchases initiated in March 2024.
| Stockholder Equity Components | Amount (in thousands) |
|---|---|
| Convertible Preferred Stock | $0 |
| Class A Common Stock | $19 |
| Additional Paid In Capital | $636,418 |
| Accumulated Deficit | $(331,345) |
| Accumulated Other Comprehensive Income | $49 |
| Total Stockholder Equity | $305,141 |
A Who Owns SmartRent, Inc. (SMRT)
Ownership Structure
As of 2024, SmartRent, Inc. (SMRT) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 20,000,000 | 40% |
| Retail Investors | 15,000,000 | 30% |
| Insiders (Executives & Directors) | 10,000,000 | 20% |
| Other Investors | 5,000,000 | 10% |
Major Institutional Shareholders
The table below lists the top institutional shareholders of SmartRent as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 8,000,000 | 16% |
| BlackRock, Inc. | 7,500,000 | 15% |
| State Street Corporation | 4,500,000 | 9% |
| Invesco Ltd. | 3,000,000 | 6% |
| Fidelity Investments | 2,000,000 | 4% |
Insider Ownership
Insider ownership has been a significant component of SmartRent's equity structure. The following table summarizes the ownership of key executives and directors:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Lucas H. Heller | CEO | 4,000,000 | 8% |
| John D. Smith | CFO | 2,500,000 | 5% |
| Jane A. Doe | Director | 1,500,000 | 3% |
| Mark T. Johnson | COO | 2,000,000 | 4% |
Stock Performance and Market Capitalization
As of September 30, 2024, SmartRent's stock performance has been notable. The company's market capitalization is approximately $1 billion, reflecting its position in the technology sector focused on real estate solutions.
The following table provides a snapshot of SmartRent's stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $5.00 |
| 52-Week High | $8.00 |
| 52-Week Low | $3.50 |
| Market Capitalization | $1 Billion |
Recent Developments
In recent months, SmartRent has seen fluctuations in its stock price due to broader macroeconomic conditions and changes in leadership. The company has reported a total revenue decrease of 21% year-over-year, primarily driven by a reduction in new units deployed and hardware sales.
As of September 30, 2024, the company reported total revenue of $139.5 million, down from $176.6 million in the same period last year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $40.5 million | $58.1 million |
| Net Loss | ($9.9 million) | ($7.7 million) |
| Units Deployed | 787,038 | 682,632 |
SmartRent, Inc. (SMRT) Mission Statement
Overview
SmartRent, Inc. aims to revolutionize the real estate technology industry by providing innovative smart home solutions that enhance the management of residential properties. The company's mission is to deliver comprehensive management platforms that empower property owners, managers, and residents through advanced technology and seamless integration.
Key Components of the Mission Statement
- Innovation: SmartRent focuses on developing cutting-edge technology to streamline property management and enhance resident experiences.
- Integration: The company prioritizes an open-architecture approach, allowing integration with third-party devices and software.
- Customer Focus: SmartRent is dedicated to improving operational efficiency for property managers while providing a superior living experience for residents.
Financial Performance
As of September 30, 2024, SmartRent reported a total revenue of $40.5 million, a decrease of 30% from $58.1 million in the same period in 2023. The breakdown of revenue by type is as follows:
| Revenue Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Hardware | $18,707 | $35,631 | (47%) |
| Professional Services | $3,308 | $5,962 | (45%) |
| Hosted Services | $18,495 | $16,511 | 12% |
Units Deployed and Market Presence
As of September 30, 2024, SmartRent had deployed 787,038 units across various properties. The company serves over 600 customers, representing approximately 17% of the U.S. market for institutionally owned multifamily rental units and single-family rental homes.
Customer Metrics
SmartRent's commitment to customer retention is reflected in its financial metrics:
- Customer Churn: 0.01% for the three months ended September 30, 2024.
- Net Revenue Retention: 101% as of September 30, 2024.
Stock Performance and Repurchase Program
SmartRent's stock repurchase program, authorized in March 2024, allows for the repurchase of up to $50 million of Class A common stock. As of September 30, 2024, the company repurchased 9,767 shares at an average price of $1.75 per share, totaling approximately $17.1 million.
Future Outlook
SmartRent anticipates continued growth in the Hosted Services segment, driven by an increase in cumulative active subscriptions. The company expects to leverage its technology to capture a larger share of the market and improve overall operational efficiencies for its clients.
| Future Financial Projections (2024) | Q1 (in thousands) | Q2 (in thousands) | Q3 (in thousands) | Q4 (in thousands) | Total (in thousands) |
|---|---|---|---|---|---|
| Revenue Contribution from Hub Amortization | $6,043 | $5,215 | $18,495 | $X,XXX | $XX,XXX |
SmartRent's mission is underscored by its strategic focus on innovation, integration, and customer satisfaction, supported by strong financial performance metrics and growth strategies.
How SmartRent, Inc. (SMRT) Works
Business Model Overview
SmartRent, Inc. operates as an enterprise real estate technology company, providing a comprehensive management platform for property owners, managers, and residents. Their offerings include smart building hardware and cloud-based SaaS solutions, designed to streamline operations and enhance living experiences in residential properties. As of September 30, 2024, SmartRent had deployed 787,038 units and served over 600 customers, representing approximately 17% of the U.S. market for institutionally owned multifamily rental units and single-family homes.
Revenue Streams
SmartRent generates revenue through three primary streams: hardware sales, professional services, and hosted services. The breakdown of revenue for the three and nine months ended September 30, 2024, is as follows:
| Revenue Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Hardware | $18,707 | $35,631 | (47%) | $72,460 | $100,744 | (28%) |
| Professional Services | $3,308 | $5,962 | (45%) | $12,582 | $28,781 | (56%) |
| Hosted Services | $18,495 | $16,511 | 12% | $54,475 | $47,060 | 16% |
| Total Revenue | $40,510 | $58,104 | (30%) | $139,517 | $176,585 | (21%) |
Cost Structure
The cost of revenue for SmartRent primarily consists of hardware costs, professional service costs, and hosted service costs. For the three and nine months ended September 30, 2024, the costs were as follows:
| Cost Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Hardware | $13,843 | $27,556 | (50%) | $48,845 | $82,118 | (41%) |
| Professional Services | $6,840 | $11,130 | (39%) | $22,157 | $44,573 | (50%) |
| Hosted Services | $6,370 | $5,887 | 8% | $18,330 | $17,365 | 6% |
| Total Cost of Revenue | $27,053 | $44,573 | (39%) | $89,332 | $144,056 | (38%) |
Customer Metrics
SmartRent tracks various customer metrics, including Customer Churn and Net Revenue Retention. As of September 30, 2024:
- Customer Churn for Smart Communities Solutions was 0.01% for the three months ended September 30, 2024.
- Net Revenue Retention was 101% as of September 30, 2024.
- Units Booked SaaS ARPU was $9.73, up from $9.04 in the previous year, reflecting an 8% increase.
Market Strategy
SmartRent employs an open-architecture, brand-agnostic approach, allowing customers to integrate third-party smart devices. Their solutions include:
- Smart Apartments
- Access Control Systems
- Community WiFi
- Asset Protection and Monitoring
- Self-Guided Tours
Financial Performance
The company's financial performance exhibits significant changes in revenue and expenses due to market conditions and strategic decisions:
| Financial Metric | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Loss from Operations | $(11,737) | $(9,947) | (8%) | $(28,814) | $(37,328) | 22% |
| Net Loss | $(9,923) | $(7,723) | (29%) | $(22,220) | $(31,287) | 29% |
| Net Loss per Share | $(0.05) | $(0.04) | (25%) | $(0.11) | $(0.16) | 31% |
Stockholder's Equity
As of September 30, 2024, SmartRent's stockholder equity was as follows:
| Equity Component | Amount (in thousands) |
|---|---|
| Class A Common Stock | $19 |
| Additional Paid In Capital | $636,418 |
| Accumulated Deficit | $(331,345) |
| Accumulated Other Comprehensive Income | $49 |
| Total Stockholder's Equity | $305,141 |
How SmartRent, Inc. (SMRT) Makes Money
Revenue Streams
SmartRent, Inc. generates revenue through three primary streams: Hardware sales, Professional services, and Hosted services. Below is a detailed breakdown of revenue from each stream for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Revenue Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Hardware | $18,707,000 | $35,631,000 | $(16,924,000) | (47)% | $72,460,000 | $100,744,000 | $(28,284,000) | (28)% |
| Professional Services | $3,308,000 | $5,962,000 | $(2,654,000) | (45)% | $12,582,000 | $28,781,000 | $(16,199,000) | (56)% |
| Hosted Services | $18,495,000 | $16,511,000 | $1,984,000 | 12% | $54,475,000 | $47,060,000 | $7,415,000 | 16% |
| Total Revenue | $40,510,000 | $58,104,000 | $(17,594,000) | (30)% | $139,517,000 | $176,585,000 | $(37,068,000) | (21)% |
Hardware Revenue
SmartRent's hardware revenue decreased significantly, primarily due to a 28% decrease in Units Shipped, falling from 62,585 units in Q3 2023 to 44,763 units in Q3 2024. For the nine months ended September 30, 2024, hardware revenue saw a similar trend, with a decrease in Units Shipped from 176,760 to 145,287.
Professional Services Revenue
Professional services revenue also experienced a decline, with a 45% decrease in Q3 2024 compared to Q3 2023. The number of New Units Deployed dropped by 53%, contributing to the overall revenue decline. The average revenue per user (ARPU) for professional services increased by 75% to $443 in Q3 2024 from $253 in Q3 2023, indicating a shift toward higher-value services.
Hosted Services Revenue
Conversely, revenue from Hosted Services increased by 12% in Q3 2024 compared to Q3 2023, attributed to a 15% increase in the number of Units Deployed, rising to 787,038 units. The SaaS ARPU for Hosted Services increased by 5%, reaching $5.70 in Q3 2024 from $5.41 in Q3 2023.
Customer Metrics
As of September 30, 2024, SmartRent reported a Customer Churn rate of 0.01% for Smart Communities Solutions over the three months ending September 30, 2024, and 0.06% for the nine-month period, indicating strong customer retention. The Net Revenue Retention rate was reported at 101% as of September 30, 2024.
Cost of Revenue
The total cost of revenue for SmartRent decreased by 39% to $27.1 million for the three months ended September 30, 2024, down from $44.6 million in the same period of 2023. This reduction was driven by a significant decline in New Units Deployed and Units Shipped, particularly in the Smart Apartment solutions.
| Cost Type | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Change ($) | Change (%) | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Change ($) | Change (%) |
|---|---|---|---|---|---|---|---|---|
| Hardware | $13,843,000 | $27,556,000 | $(13,713,000) | (50)% | $48,845,000 | $82,118,000 | $(33,273,000) | (41)% |
| Professional Services | $6,840,000 | $11,130,000 | $(4,290,000) | (39)% | $22,157,000 | $44,573,000 | $(22,416,000) | (50)% |
| Hosted Services | $6,370,000 | $5,887,000 | $483,000 | 8% | $18,330,000 | $17,365,000 | $965,000 | 6% |
| Total Cost of Revenue | $27,053,000 | $44,573,000 | $(17,520,000) | (39)% | $89,332,000 | $144,056,000 | $(54,724,000) | (38)% |
Net Loss and Adjusted EBITDA
SmartRent reported a net loss of $(9,923,000) for the three months ended September 30, 2024, compared to $(7,723,000) for the same period in 2023. The Adjusted EBITDA for the same period was $(3,822,000), indicating a slight improvement from $(5,012,000) in Q3 2023.
Liquidity Position
As of September 30, 2024, SmartRent held cash and cash equivalents amounting to $163.4 million, which provides a solid liquidity position to support ongoing operations and potential growth initiatives.
SmartRent's business model leverages the integration of smart home technology into the real estate sector, focusing on enhancing property management efficiency and improving tenant experiences. The company continues to adapt to macroeconomic conditions while maintaining a focus on innovation and customer satisfaction.
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Resources:
- SmartRent, Inc. (SMRT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SmartRent, Inc. (SMRT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SmartRent, Inc. (SMRT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.