SmartRent, Inc. (SMRT) has been beaten down lately with too much selling pressure. While the stock has lost 37.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator th ...

SmartRent (NYSE: SMRT ) is a provider of smart home and smart property solutions for the multifamily industry. Since its IPO via SPAC in 2021, the company has had a challenging time with unclarity of its visionWe write about all kinds of investments, as long as their price is reasonable.Some of our notable coverings:- ADTH 1. First "Buy" covering in September 2023 at $1.24 2. Second "Buy" covering in November 2023 at $1.2 3. ADTH gets acquired for $3.21 per share in June 2024- LUMN 1. First "Buy" covering i ...

Financial Results - SmartRent, Inc. announced preliminary financial results for Q1 2025, with specific figures to be detailed in the press release[4]. - The company plans to issue a press release detailing the CEO transition and financial results on April 10, 2025[15]. - The press release regarding the financial results and CEO transition is attached as Exhibit 99.1[18]. - The company has not disclosed specific user data or future product developments in this report[4]. CEO Transition - Michael Shane Paladin, the former President and CEO, departed effective April 9, 2025, and will receive a total of $168,648.20 in cash payments as part of his separation agreement[13]. - John Dorman has been appointed as the interim President and CEO, effective April 9, 2025, with a monthly salary of $54,166.67[10]. - Dorman will receive a bonus of $162,500 if he remains in the interim role through June 30, 2025[10]. - The interim CEO's restricted stock units (RSUs) will have a total intended value of $250,000, vesting in 2027[10]. - There are no arrangements or understandings regarding Dorman's appointment with other parties[9]. Company Classification - The company is classified as an emerging growth company under the Securities Act[3].

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $35.4 million, down 41% from the same quarter last year, while full year revenue was $174.9 million, a 26% decrease from 2023 [19] - SaaS revenue grew 17% year over year in Q4, with annual recurring revenue (ARR) increasing to $54.4 million, up from $46.2 million in Q4 2023 [20][22] - SaaS gross margin remained strong at 74.1%, while total gross margin improved to 34.5% from 20.9% in the prior year [25][27] Business Line Data and Key Metrics Changes - 38% of revenue in Q4 2024 came from recurring SaaS subscriptions, up from 19% in the prior year [14] - Hardware revenue decreased to $10.4 million, down 72% from the same quarter last year, while professional services revenue decreased to $6.2 million, down 7% year over year [32][33] Market Data and Key Metrics Changes - Units deployed reached 809,000, a 12% increase compared to December 2023 [24] - The total addressable market exceeds 50 million rental units, indicating significant growth potential for smart property technology adoption [12] Company Strategy and Development Direction - The company aims to deepen market penetration and expand reach, focusing on mid-market owners and operators [13] - Strategic investments are being made in enhancing the SaaS platform and improving operational efficiencies [25][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges faced during the transition but believes in the right strategy and leadership to complete the transformation into a SaaS-focused company [38] - There is a focus on aligning the cost structure with growth trajectory and monitoring key indicators for reinstating guidance [36][37] Other Important Information - The company repurchased approximately 3 million shares at a cost of $5.1 million in Q4, totaling $28.6 million for the full year [30][31] - Cash balance at the end of the quarter was approximately $143 million, with an undrawn credit facility of $75 million [31] Q&A Session Summary Question: Impact of transitioning to a SaaS-first company on hardware strategy - Management clarified that the focus is on monetizing hardware insights through software, emphasizing a symbiotic relationship between hardware and SaaS [45][47] Question: Focus on scaling unit deployments and potential channel partner programs - Management is currently in analysis mode regarding customer journeys and plans to address other markets once the current processes are well understood [52][54] Question: Update on the $10 million incremental growth investment and macroeconomic conditions - Initial emphasis has been on developing smart operation solutions, with ongoing work to make data more usable for customers [59] - Management noted that customers are being pragmatic about ROI and expect tailwinds in the coming years [61] Question: Response from larger landlords regarding smart unit conversions - Management indicated that larger landlords have shown positive responses and an appetite for more, focusing on ROI discussions [72]

Smart Community and Smart Operations Solutions for the Rental Housing Industry QUARTERLY EARNINGS UPDATE Q4 and Full Year 2024 March 5, 2025 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements ...

Market Presence - As of December 31, 2024, SmartRent had 809,497 units deployed and over 650 customers, representing approximately 15% of the U.S. market for institutionally owned multifamily rental units and single-family rental homes [28]. - The company sees significant growth potential in both residential and commercial real estate sectors, including international markets [36]. Revenue Generation - The company generated revenue primarily from sales of smart home systems, including monthly subscription fees for hosted services, smart home devices, and installation services [29]. - Substantially all revenue is generated in U.S. dollars, while expenses are primarily in local currencies of operational jurisdictions [332]. Strategic Growth Initiatives - SmartRent defined four strategic pillars for growth: Sustainable Annual Recurring Revenue (ARR) Growth, Platform Superiority, Operational Excellence, and Collaborative Innovation [30]. - The near-term product roadmap includes new leasing solutions, resident experience solutions, home IoT solutions, building IoT solutions, and property operations solutions [55]. Technology and Solutions - The demand for smart home technology is driven by network effects, with many residents viewing it as a necessity, although few communities currently offer it [31]. - SmartRent's solutions include Smart Apartments, Access Control, Community WiFi, and Package Management, enhancing operational efficiency and resident experience [39][40][41]. - The Hub Devices are essential for the smart home operating system, allowing remote control of connected devices and enhancing the living experience for residents [42][43]. Competitive Advantages - SmartRent's competitive strengths include an integrated solution, hardware agnosticism, open architecture, and in-house professional services [34][35]. - The residential technology market remains fragmented, requiring owners to source solutions from multiple vendors, which SmartRent aims to address with its integrated smart home operating system [32]. Operational Factors - Seasonal factors impact SmartRent's business, with higher demand for deployments in Spring and Summer and lower demand in Fall and Winter [37]. - The company utilizes multiple sourcing methods to mitigate supply chain risks, although it relies on single source suppliers for some components [56]. Financial Position - The company had approximately $142.5 million in cash, cash equivalents, and restricted cash as of December 31, 2024, primarily in institutional money market funds, indicating exposure to interest rate risk [331]. - A hypothetical 10% change in interest rates could increase annual interest income by $14.3 million or decrease it by $8.2 million based on the cash position as of December 31, 2024 [331]. Employee Relations - The company has not experienced any work stoppages and maintains a good relationship with its 494 full-time employees as of December 31, 2024 [51]. - The total rewards program includes a 100% employer-paid medical option for employees and dependents, along with other competitive benefits [54]. Intellectual Property and Compliance - The company protects its intellectual property through trademarks, trade secrets, and patents, which are critical to its brand development [57]. - The company is subject to various federal and state regulations related to data privacy and security, including the California Consumer Privacy Act and the General Data Protection Regulation [59]. Currency and Foreign Operations - The company's operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates [332]. - A hypothetical 10% change in foreign currency exchange rates would not have a material impact on historical consolidated financial statements [332]. - The company has not engaged in any hedging strategies to manage currency risk to date [332]. - As international operations grow, the company will reassess its approach to manage currency rate fluctuations [332].

Revenue Performance - Total Revenue for Q4 2024 was $35.4 million, a 41% decrease year-over-year, while full-year revenue was $174.9 million, down 26% from the prior year[4] - SaaS Revenue increased by 17% year-over-year in Q4 2024 to $13.6 million, and for the full year, it rose by 26% to $51.6 million[4] - Total revenue for the year ended December 31, 2024, was $174.885 million, a decrease of 26.1% compared to $236.838 million in 2023[33] - Professional services revenue for the full year decreased by 47% to $18.8 million, primarily due to reduced volume in New Units Deployed[6] Profitability and Loss - Net loss for Q4 2024 increased to $(11.4) million from $(3.3) million in the same quarter last year, while the full-year net loss improved to $(33.6) million from $(34.6) million[4] - Net loss for the year ended December 31, 2024, was $33.643 million, compared to a net loss of $34.587 million in 2023, showing a slight improvement[33] - Net loss for 2024 was $33,643 thousand, a slight improvement from a loss of $34,587 thousand in 2023[37] - Adjusted EBITDA for 2024 was $(9,882) thousand, an improvement from $(19,187) thousand in 2023[39] Assets and Liabilities - Total current assets decreased to $257.650 million as of December 31, 2024, down from $340.340 million in 2023, reflecting a reduction in cash and cash equivalents[35] - Total liabilities decreased to $130.741 million as of December 31, 2024, compared to $167.308 million in 2023, indicating improved financial stability[35] - Cash and cash equivalents were $142.482 million as of December 31, 2024, down from $215.214 million in 2023, highlighting liquidity challenges[35] - Total cash, cash equivalents, and restricted cash decreased to $142,482 thousand at the end of 2024 from $215,709 thousand at the end of 2023[37] Operating Expenses - Operating expenses for Q4 2024 were $23.1 million, a 1% increase year-over-year, while full-year operating expenses rose by 10% to $102.1 million[10] - Research and development expenses for the year ended December 31, 2024, were $29.369 million, slightly increasing from $28.805 million in 2023, indicating continued investment in innovation[33] Units Deployed and Market Metrics - Units Deployed reached 809,497, a 12% increase year-over-year, despite a 39% decrease in New Units Deployed during Q4[7] - Units Deployed includes the total number of Hub Devices installed with active subscriptions, which is a key metric for assessing market penetration[23] - Customer Net Revenue Retention measures SaaS revenue retention from existing customers, reflecting the company's ability to maintain and grow its customer base[31] - Average Revenue per Unit (ARPU) is used to assess the growth and health of the overall business, reflecting the company's ability to monetize its customer base effectively[27] - SaaS ARPU increased by 3% to $5.68 in Q4 2024, compared to $5.50 in the same quarter last year[5] Share Repurchase and Stock Compensation - The company repurchased 3.0 million shares at a cost of $5.1 million in Q4 2024, with a total of 15.2 million shares repurchased for $28.6 million throughout the year[4] - Payments for repurchases of Class A common stock amounted to $28,566 thousand in 2024[37] - The company incurred stock-based compensation expenses of $10,766 thousand in 2024, down from $13,271 thousand in 2023[39] Other Financial Metrics - Depreciation and amortization increased to $6,495 thousand in 2024 from $5,533 thousand in 2023[37] - Net cash used in operating activities was $32,913 thousand in 2024, compared to a cash provided of $5,981 thousand in 2023[37] - Cash used in investing activities was $7,599 thousand in 2024, compared to $6,023 thousand in 2023[37] - The company recorded a provision for expected credit losses of $1,436 thousand in 2024, up from $819 thousand in 2023[37] - The company reported a provision for excess and obsolete inventory of $2,606 thousand in 2024, compared to $2,494 thousand in 2023[37]

Financial Data and Key Metrics Changes - SaaS ARR grew to $53.2 million, up from $43.3 million in Q3 2023, representing a year-over-year increase of 23% [34] - Total revenue for the quarter was $40.5 million, a 30% decrease from the same quarter last year [35] - Total gross margin improved significantly to 33.2% from 23.3% in the same quarter of the prior year [38] - Net losses were $9.9 million compared to $7.7 million in Q3 2023 [40] - Adjusted EBITDA improved by 24% to a loss of $3.8 million, down from a loss of $5 million in the same quarter last year [41] Business Line Data and Key Metrics Changes - SaaS revenue increased by 23% year-over-year, driven by improvements in SaaS ARPU and units deployed [33] - Hardware revenue decreased by 47% to $18.7 million [35] - Professional services revenue decreased by 45% to $3.3 million [35] - Hosted services revenue, including $13.3 million of SaaS revenue, increased by 12% to $18.5 million [35] Market Data and Key Metrics Changes - Units deployed reached just over 787,000, a 15% increase from last year [36] - New units deployed during the quarter decreased by 53% with just over 15,000 units deployed [36] - Total bookings for the quarter were $19.6 million, a decrease of $30.1 million or 61% from the same quarter in the prior year [36] Company Strategy and Development Direction - The company is focusing on sustainable and predictable ARR growth, platform superiority, operational excellence, and collaborative innovation [24][25] - A strategic investment of $10 million over the next year will be directed towards activities related to these four pillars [28] - The company aims to build an industry-leading SaaS platform while focusing hardware development on products that create a competitive advantage [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledges challenges due to macroeconomic conditions and election uncertainty affecting capital expenditures [14][37] - There is optimism about the future, with a belief in the demand for integrated smart property technologies [42] - The company is committed to returning value to shareholders while making targeted investments to accelerate transition progress [30][43] Other Important Information - The company repurchased 9.8 million shares for $17.1 million, reflecting the Board's conviction that the stock is undervalued [16][43] - The company has approximately $164 million in cash, providing strategic flexibility [43] Q&A Session Summary Question: How have macro headwinds evolved recently? - Management noted that customers are still cautious about capital expenditures due to interest rate changes and election results, expecting no loosening of capital expenditures in the near term [50][51] Question: Can you elaborate on the $10 million strategic investment? - The investment will focus on sales and marketing, engineering, and operations to enhance customer satisfaction and support the four strategic pillars [54][59] Question: How does the Board view the Wi-Fi opportunity? - The focus will be on reinvigorating core IoT and work management solutions, with a commitment to reestablish market leadership [62] Question: What feedback are you receiving from customers regarding internal changes? - Customer feedback has been encouragingly positive, with strong metrics on churn and net revenue retention, indicating satisfaction with solutions [71][73]

Financial Performance - Total revenue for Q3 2024 was $40,510,000, a decrease of 30.3% compared to $58,104,000 in Q3 2023[14] - Hardware revenue decreased to $18,707,000 in Q3 2024 from $35,631,000 in Q3 2023, representing a decline of 47.5%[14] - Hosted services revenue increased to $18,495,000 in Q3 2024, up 12.0% from $16,511,000 in Q3 2023[14] - Net loss for Q3 2024 was $9,923,000, compared to a net loss of $7,723,000 in Q3 2023, reflecting an increase in losses of 28.5%[14] - Total revenue for the nine months ended September 30, 2024, was $139,517, a decrease of 21.0% from $176,585 for the same period in 2023[84] - Total revenue decreased by $17.6 million, or 30%, to $40.5 million for the three months ended September 30, 2024, from $58.1 million for the same period in 2023[185] Assets and Liabilities - Total current assets decreased to $284,986,000 as of September 30, 2024, down 16.3% from $340,340,000 as of December 31, 2023[10] - Total liabilities decreased to $143,452,000 as of September 30, 2024, down 14.3% from $167,308,000 as of December 31, 2023[11] - Cash and cash equivalents decreased to $163,403,000 as of September 30, 2024, down 24.1% from $215,214,000 as of December 31, 2023[10] - Total stockholders' equity decreased to $305,141,000 as of September 30, 2024, down 11.0% from $342,448,000 as of December 31, 2023[12] Stock and Equity - The company repurchased Class A common stock totaling $17,214 thousand during the quarter ending September 30, 2024[20] - The company repurchased 9,767 shares of Class A common stock at an average price of $1.75 per share for a total of $17,081 during the three months ended September 30, 2024[111] - The company has approximately $26,660 remaining available for stock repurchases under its stock repurchase program as of September 30, 2024[111] - The company has an authorized stock repurchase program of up to $50,000 for Class A common stock, with approximately $22,728 remaining available for repurchase as of November 1, 2024[144] Research and Development - Research and development expenses for Q3 2024 were $6,596,000, a decrease of 12.9% compared to $7,573,000 in Q3 2023[14] - The Company capitalized $3,209 in research and development costs for the three months ended September 30, 2024, compared to $822 for the same period in 2023, representing a 290.5% increase[69] - Research and Development expenses are anticipated to increase in absolute dollars as the company invests more in product development, particularly in enhancing WiFi offerings[177] Revenue Recognition - The Company recognized hardware revenue at the point in time when the hardware device is shipped to the customer, with a one-year warranty period[58] - Hosted Services revenue is recognized on a straight-line basis over the contract term, which can range from one month to eight years[60] - Revenue recognized from the balance of deferred revenue at the beginning of the period for the nine months ended September 30, 2024, was $(8,656,000), compared to $(14,505,000) in 2023, showing a reduction of 40.00%[88] Units and Shipments - The company shipped 44,763 Units for the three months ended September 30, 2024, down 28.5% from 62,585 Units shipped in the same period of 2023[160] - For the three months ended September 30, 2024, Units Booked were 17,048, a decrease of 63.3% compared to 46,272 Units Booked in the same period of 2023[161] - New Units Deployed decreased by 50% to 67,347 units for the nine months ended September 30, 2024, compared to 135,436 units for the same period in 2023[185] Expenses - General and administrative expenses for the three months ended September 30, 2024, were $1,499, down from $1,964 in 2023, reflecting a decrease of 23.6%[128] - General and administrative expenses increased by 26% to $14.154 million for the three months ended September 30, 2024, compared to $11.269 million for the same period in 2023[183] - The company incurred $23,462 thousand in payments for repurchases of Class A common stock during the nine months ended September 30, 2024[24] Legal and Compliance - The company recorded a legal accrual of $1,500 related to a collective action lawsuit as of September 30, 2024, which was not present as of December 31, 2023[141] - The company reported a total settlement amount of $1,500 for the overtime wages lawsuit, which includes all plaintiffs' attorneys' fees and costs[141] Leadership and Strategy - The company is in the process of transitioning leadership following the departure of its CEO, with an interim CEO appointed and a search for a new CEO underway[154] - The company aims to enhance its smart home operating system with new products and features, including Community WiFi and Smart Package Room solutions, to improve customer value[152] Market Conditions - The overall decreases in New Units Deployed and Units Shipped are attributed to customers deferring capital expenditures due to broader macroeconomic conditions[185] - Changes in leadership and the structure of the sales organization have impacted sales and overall volumes[185]

Financial Performance - Total revenue for Q3 2024 was $40.5 million, a decrease of 30% year-over-year[1] - Net loss for the quarter was $(9.9) million, a 29% increase from $(7.7) million year-over-year[1] - Adjusted EBITDA improved by 24% to $(3.8) million from $(5.0) million in the same quarter last year[1] - Total revenue for the three months ended September 30, 2024, was $40,510,000, a decrease of 30.3% compared to $58,104,000 for the same period in 2023[14] - Hardware revenue for the three months ended September 30, 2024, was $18,707,000, down 47.5% from $35,631,000 in the prior year[14] - The net loss for the three months ended September 30, 2024, was $9,923,000, compared to a net loss of $7,723,000 for the same period in 2023[14] - The company reported a comprehensive loss of $9,653,000 for the three months ended September 30, 2024, compared to a comprehensive loss of $7,911,000 in the prior year[14] - Net loss for the nine months ended September 30, 2024, was $22,220 thousand, an improvement from a net loss of $31,287 thousand for the same period in 2023[19] Revenue Streams - SaaS revenue increased by 23% year-over-year to $13.3 million, with ARR reaching $53.2 million, up from $43.3 million in Q3 2023[3] - Total bookings for the quarter were $19.6 million, marking a 61% decrease from the same quarter in the prior year[3] - Annual Recurring Revenue (ARR) is a key metric, reflecting the annualized value of SaaS revenue earned in the current quarter[14] - Net Revenue Retention for the company includes revenue from price increases and new products, offset by cancellations or downgrades[14] Operational Metrics - Units deployed reached 787,038, a 15% increase year-over-year, while new units deployed decreased by 53% to 15,168[3] - Gross margin improved to 33.2%, up approximately 1,000 basis points from the same quarter in the prior year[3] - Total operating expenses for the three months ended September 30, 2024, were $25,194,000, an increase of 7.3% from $23,478,000 in the prior year[14] Cash and Assets - The company maintains a strong balance sheet with $163.7 million in cash and no debt as of September 30, 2024[1] - Cash and cash equivalents decreased to $163,403,000 as of September 30, 2024, from $215,214,000 at the end of 2023[16] - Total assets decreased to $448,593,000 as of September 30, 2024, from $509,756,000 at the end of 2023[16] - Total liabilities decreased to $143,452,000 as of September 30, 2024, from $167,308,000 at the end of 2023[17] - Total cash, cash equivalents, and restricted cash at the end of the period was $163,650 thousand, down from $211,494 thousand at the end of the same period in 2023[19] Shareholder Actions - The company repurchased 9.8 million shares at an aggregate cost of $17.1 million during the quarter[4] - Payments for repurchases of Class A common stock amounted to $(23,462) thousand during the nine months ended September 30, 2024[19] Management Changes - The new Chief Revenue Officer, Natalie Cariola, has been hired to revitalize the sales strategy and drive revenue growth[2] Other Financial Metrics - Depreciation and amortization increased to $4,730 thousand for the nine months ended September 30, 2024, compared to $3,991 thousand in 2023[19] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(2,523) thousand, significantly better than $(19,930) thousand for the same period in 2023[20] - Cash used in operating activities for the nine months ended September 30, 2024, was $(20,898) thousand, compared to $(1,366) thousand in 2023[19] - Provision for expected credit losses increased to $804 thousand for the nine months ended September 30, 2024, from $39 thousand in 2023[19] - Stock-based compensation for the nine months ended September 30, 2024, was $9,523 thousand, slightly down from $10,120 thousand in 2023[19] - Net cash used in investing activities for the nine months ended September 30, 2024, was $(5,025) thousand, compared to $(3,313) thousand in 2023[19] - Non-cash legal expenses for the nine months ended September 30, 2024, were $7,255 thousand, with no comparable expenses in 2023[19]