Financial Data and Key Metrics - Total revenue for Q2 2024 was $48.5 million, a 9% decrease YoY, primarily due to lower units deployed as a result of delayed capital investment spending by customers [17] - SaaS annual recurring revenue (ARR) reached a record $51.2 million, a 32% YoY increase, driven by improvements in SaaS ARPU and the number of units deployed [14][16] - SaaS ARPU increased by 9% YoY to $5.63 per unit, up from $5.16 in Q2 2023 [15] - Total units deployed reached 772,000, a 19% YoY increase, with 22,000 new units deployed in Q2 2024 compared to 48,000 in Q2 2023 [18] - Adjusted EBITDA for Q2 2024 was $900,000, a 114% improvement from a loss of $6.4 million in Q2 2023, marking the third consecutive quarter of positive adjusted EBITDA [20] Business Line Performance - Hosted services revenue increased by 16% YoY to $18 million, while hardware revenue decreased by 11% to $24.7 million, and professional services revenue decreased by 42% to $5.8 million [17] - SaaS gross margin improved to 75.5%, up 43 basis points YoY, while total gross margin improved to 35.7%, up 1,700 basis points YoY [18] - Hosted services gross profit increased to $12 million, up from $9.8 million in Q2 2023, and remains the company's most profitable revenue stream [19] Market and Strategic Direction - The company is refocusing on direct sales after the channel partner sales program did not meet expectations, with plans to hire a new sales leader and enhance sales operations [12] - The company is prioritizing organic reinvestment in high-return projects, focusing on product enhancements informed by customer feedback, which has contributed to a net revenue retention rate above 100% [13] - The company is implementing rigorous cost management while maintaining the agility to capitalize on market opportunities, with a focus on growing recurring revenue streams [14] Management Commentary on Market Conditions - The company is operating in a challenging economic landscape characterized by shifting capital expenditure patterns due to interest rate uncertainties and macroeconomic factors [11] - Customers have deferred the deployment of units originally forecast for 2024 into 2025, but the overall long-term market opportunity remains unchanged and compelling [22] - The company has suspended financial guidance due to the CEO transition, market conditions, and customer capital spending delays, but plans to reinstate guidance as visibility improves [20][21] Other Key Information - The company has a strong balance sheet with $187 million in cash and no debt, positioning it well to pursue growth initiatives and navigate economic challenges [21] - The company repurchased 765,000 shares in Q2 2024 and an additional 842,000 shares after the quarter, with $42 million remaining under the share repurchase program [22] Q&A Session Summary Question: Wi-Fi Strategy and Investment Plans - The Wi-Fi strategy remains a bullish opportunity, with continued investment in the program. A new CEO may bring changes, but the company remains confident in the Wi-Fi opportunity [25] Question: Customer Capital Project Delays - The company has a high degree of confidence that deployments delayed from 2024 will occur in 2025, with persistently high interest rates being a key factor impacting customer spending [26][27] Question: Confidence in 2025 Deployments - The company's confidence in 2025 deployments is based on discussions with customers and the expectation of interest rate reductions, which would normalize capital expenditure investment [32] Question: Hardware vs. Software Focus - The company is renewing its focus on deployed units, with both hardware and software being equally important to the platform. The focus is on improving SaaS ARPU and unit deployment [33] Question: CEO Search and Characteristics - The company is looking for a CEO with a history of successful scaling, as the company transitions from a $200 million to a potential $1 billion revenue company [35] Question: SaaS ARPU and Hosted Services Gross Margin - SaaS ARPU growth was driven by timing of deployments and higher pricing on new units. Hosted services gross margin was relatively flat, with expectations of approaching 75% over time [38][40] Question: Guidance and CEO Search Timeline - The company is not providing specific guidance for the rest of 2024 but expects to provide clarity as market conditions improve. The CEO search is ongoing, with no set timeline [41][42] Question: Channel Partner Strategy and Unit Deployment Profitability - The company is scaling back the channel partner program to focus on direct sales to existing customers. The company is positioned to expand unit deployment volumes profitably [45][46] Question: Conclusion and Long-Term Opportunity - Despite near-term challenges, the company remains confident in its long-term opportunity, with a strong foundation and strategic focus on innovation and customer satisfaction [48][49]

Revenue Performance - Total revenue for Q2 2024 was $48,518,000, a decrease of 9.4% compared to $53,402,000 in Q2 2023[16] - Hardware revenue decreased to $24,676,000 in Q2 2024 from $27,788,000 in Q2 2023, representing a decline of 11.4%[16] - Hosted services revenue increased to $18,026,000 in Q2 2024, up 15.8% from $15,564,000 in Q2 2023[16] - Total revenue for the six months ended June 30, 2024, was $118,481,000, compared to $106,474,000 for the same period in 2023, marking an increase of 11.3%[177] - Revenue related to Smart Apartments solution decreased by $6.1 million, primarily due to a 53% decrease in New Units Deployed to 22,469 units for the three months ended June 30, 2024[194] - Total revenue decreased by $19.5 million, or 16%, to $99.0 million for the six months ended June 30, 2024, from $118.5 million for the same period in 2023[195] Net Loss and Financial Improvement - Net loss for Q2 2024 was $4,605,000, compared to a net loss of $10,349,000 in Q2 2023, showing an improvement of 55.6%[16] - For the six months ended June 30, 2024, the net loss was $12,297 thousand, compared to a net loss of $23,564 thousand for the same period in 2023, indicating a 47.8% improvement in losses year-over-year[33] Assets and Liabilities - Total current assets decreased to $313,836,000 as of June 30, 2024, down from $340,340,000 as of December 31, 2023, a decline of 7.8%[13] - Total liabilities decreased to $145,964,000 as of June 30, 2024, down from $167,308,000 as of December 31, 2023, a reduction of 12.7%[14] - Cash and cash equivalents were $187,435,000 as of June 30, 2024, down from $215,214,000 as of December 31, 2023, a decrease of 12.9%[13] - Total stockholders' equity decreased to $329,383,000 as of June 30, 2024, down from $342,448,000 as of December 31, 2023, a decline of 3.8%[15] Research and Development - Research and development expenses increased to $7,484,000 in Q2 2024, up from $6,536,000 in Q2 2023, an increase of 14.5%[16] - The company is investing in research and development to enhance its product offerings and maintain competitive advantage[160] - Research and Development expenses are expected to increase as the company invests in enhancing existing products and developing new offerings, particularly in WiFi solutions[186] Stock and Equity - Weighted-average number of shares used in computing net loss per share increased to 201,986 in Q2 2024 from 199,619 in Q2 2023[16] - Stock-based compensation for the six months ended June 30, 2024, was $6,565 thousand, slightly down from $6,847 thousand in the same period of 2023, showing a decrease of 4.1%[33] - The 2021 Equity Incentive Plan was amended to increase the number of shares authorized for issuance to a total of 24,400 shares of Class A common stock[121] Customer and Market Insights - Significant customers accounted for 15% and 18% of accounts receivable as of June 30, 2024, and December 31, 2023, respectively, highlighting reliance on key clients[50] - The company reported a net cash used in operating activities of $17,214 thousand for the six months ended June 30, 2024, compared to $15,684 thousand for the same period in 2023, representing an increase of 9.8%[33] - Cumulative active subscriptions for Hosted Services increased by 19% during 2024 compared to 2023[194] Operational Metrics - The company reported 22,469 New Units Deployed, a decrease from 47,768 in the same period of 2023[166] - Units Booked SaaS ARPU decreased to $8.07 in Q2 2024 from $8.74 in Q2 2023, a decline of 7.7%[173] - Customer Churn for Smart Communities Solutions was 0.05% for Q2 2024, compared to 0% in Q2 2023, indicating a slight increase in churn[173] Future Outlook and Challenges - The company may need to raise additional capital through equity or debt financing to fund future operations until it generates positive operating cash flows[41] - The company continues to experience improvements in global supply chain challenges, reducing backlogged Units Deployed for Access Control and specialty locks[159] - The company has formed a Management Committee to guide operations during the transition period following the CEO's departure[163]

Group 1 - SmartRent, Inc. is under investigation by Pomerantz LLP for potential securities fraud or unlawful business practices involving its officers and/or directors [1] - On July 30, 2024, SmartRent announced the resignation of CEO Lucas Haldeman and suspended its previous guidance for full-year 2024 due to market headwinds and customer capital spending delays [2] - Following the announcement, SmartRent's stock price dropped by $0.48, or 20.00%, closing at $1.92 per share on the same day [2] Group 2 - Pomerantz LLP is recognized as a leading firm in corporate, securities, and antitrust class litigation, with a history of recovering billions in damages for victims of securities fraud and corporate misconduct [3]

Core Insights - SmartRent, Inc. is under investigation for potential violations of federal securities laws and unlawful business practices [1] - The company announced a CEO transition plan, with Lucas Haldeman stepping down as CEO and resigning from the Board of Directors, effective July 29, 2024 [2] - Following the CEO transition announcement, SmartRent's stock price dropped by $0.47, or 19.58%, closing at $1.93 on July 30, 2024 [2] Company Developments - The CEO transition plan was announced on July 30, 2024, indicating a significant leadership change within SmartRent [2] - The company has suspended its 2024 guidance, which may indicate uncertainty in future performance [2] Legal Investigation - Bragar Eagel & Squire, P.C. is investigating potential claims on behalf of SmartRent stockholders regarding possible violations of securities laws [1] - The law firm is reaching out to stockholders who may have suffered losses or have information related to the investigation [3]

Group 1 - SmartRent's CEO Lucas Haldeman has resigned, with John Dorman stepping in as interim CEO and chairman of the board [1][2] - The board expressed gratitude for Haldeman's contributions and indicated a need for a CEO with a different skill set for the company's next growth phase [2] - SmartRent has suspended its full-year 2024 outlook due to the CEO change, increasing market headwinds, and a reduction in its channel partner program [2] Group 2 - Following the announcement of the CEO departure, SmartRent's stock (NYSE:SMRT) dropped by 20.6%, with approximately 4.3 million shares traded, significantly higher than the daily average of 1.3 million shares [4][6]

What is this all about? Anyone who purchased SmartRent, Inc. common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more. What should you do next? If you have non-public information about SmartRent, Inc., you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide ori ...

Who is eligible? What is Block & Leviton doing? If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at shareholders@blockleviton.com, or by phone at (888) 256-2510. Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigati ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2024 reached $50.5 million, with SaaS recurring revenue contributing nearly $12 million, reflecting a 32% year-over-year growth [80] - Adjusted EBITDA was positive at almost $400,000, marking the second consecutive quarter of positive adjusted EBITDA [13] - Gross profit increased to $19.4 million from $9.1 million in the same period of 2023, with hardware gross profit more than doubling to $10.4 million [69][70] - Gross margin improved significantly to 38.5% from 14% year-over-year, attributed to a favorable product mix [30] Business Line Data and Key Metrics Changes - Hardware revenue was $29.1 million, while professional services revenue was $3.5 million, and hosted services revenue was $18 million for Q1 2024 [27] - SaaS ARR increased to $47.6 million from $36 million in Q1 2023, driven by a 24% increase in total units deployed [29] - Professional services gross loss narrowed to $3 million from $4.9 million in the same quarter of the previous year [73] Market Data and Key Metrics Changes - The company ended the quarter with almost 750,000 deployed units, a 24% increase from the previous year [13] - Shipments for the quarter were just under 52,000 units, with bookings for the quarter approximately $38.8 million [68] Company Strategy and Development Direction - The company aims to dominate the early-stage multifamily community WiFi market and is investing in projects to expand Community WiFi offerings [35] - The strategy includes deep integration with leading rental housing platforms to reduce vendor fatigue and automate processes [36] - The company is positioned to capture significant market share and sustain growth through its scalable offerings and proven track record [64] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic factors such as higher interest rates and slowing rent growth are creating headwinds for customers [57] - Some customers are accelerating investments in technology to gain a competitive edge, while others are focusing on cash preservation [72] - The company expects SaaS revenue to continue growing faster than total revenue, despite some challenges in the current environment [49] Other Important Information - The company reported a total cash balance of $205 million at the end of Q1 2024, a reduction of $11 million from the prior quarter [70] - A one-time accrual of $5.3 million was included in the operating expenses due to a contractual dispute with a supplier [73] Q&A Session Summary Question: Clarification on the relationship between units booked and deployed - Management explained that the mismatch in units booked and deployed is due to delays in deployment schedules, with some units expected to be deployed in future quarters [6][7] Question: Guidance on revenue outlook and customer concentration - Management indicated that there are no significant customer concentrations affecting revenue guidance, and they have a wide base of customers [4] Question: Insights on SaaS revenue growth and ARPU - Management acknowledged that SaaS revenue growth may have slowed sequentially due to deployment timing and seasonal factors, but they expect it to grow faster than total revenue [48][49] Question: Update on WiFi project installations and demand - Management confirmed that initial WiFi project installations are proceeding as planned, with indications of demand for additional projects from customers [51]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 8665 E. Hartford Drive, Suite 200 Scottsdale, Arizona (Address of Principal Executive Offices) (844) 479-1555 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-39991 SMARTRENT, INC. (Exact name of Registrant as specified i ...

Exhibit 99.1 SmartRent Accelerates SaaS Growth by 32% Y/Y; Reports First Quarter 2024 Results Sets New Record with $47.6 million SaaS Annual Recurring Revenue ("ARR") in Q1 2024 Confirms 2024 Growth Outlook; Enables Expansion and Innovation Scottsdale, Ariz., May 8, 2024 – (BUSINESS WIRE) – SmartRent, Inc. (NYSE: SMRT) ("SmartRent" or the "Company"), a leading provider of smart home and property operations solutions for the rental housing industry, today reported financial results for the three months ended ...