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 For the quarterly period ended March 31, 2023 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 in its charter) Delaware 85-4218526 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Empl ...

SmartRent, Inc. (NYSE:SMRT) Q4 2022 Earnings Conference Call March 8, 2023 4:30 PM ET Company Participants Annalise Lasater - Vice President of Investor Relations. Lucas Haldeman - Chairman and Chief Executive Officer Hiroshi Okamoto - Chief Financial Officer Conference Call Participants Sidney Ho - Deutsche Bank Ryan Tomasello - KBW Jason Weaver - Compass Point Brian Ruttenbur - Imperial Capital. Brett Knoblauch - Cantor Fitzgerald Tom White - D.A. Davidson Operator Hello, and thank you for standing by. My ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) SmartRent offers an integrated smart hardware and SaaS platform for real estate, enhancing efficiency and resident experience, with **547,196** units deployed and a recurring revenue model - SmartRent provides an integrated platform combining smart building hardware and cloud-based SaaS solutions for the real estate industry, aiming to improve operational efficiency, generate incremental revenue, reduce costs, and protect assets for property owners[14](index=14&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - The company's solutions are built on an open-architecture, hardware-agnostic platform that integrates with existing property management systems and third-party smart devices like Google Home and Amazon Alexa[15](index=15&type=chunk)[27](index=27&type=chunk) - The business operates on a SaaS model with recurring revenue contracts typically ranging from one month to ten years, with an average term of 2.6 years. In 2022, approximately **38%** of customers prepaid their software contracts[25](index=25&type=chunk) Key Metrics as of December 31, 2022 | Metric | Value | | :--- | :--- | | Units Deployed | 547,196 | | Committed Units | 851,815 | | Customers | 501 | | Customer-owned Units | ~6.7 million | [Item 1A. Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) SmartRent faces risks from persistent net losses, supply chain dependencies, data privacy compliance, product liability, intense competition, and stock price volatility - The company has a history of net losses, reporting a net loss of **$96.3 million** in 2022 and **$72.0 million** in 2021, and may not achieve or maintain profitability in the future as it continues to invest in growth[73](index=73&type=chunk) - SmartRent relies on a limited number of third-party suppliers, including a single-source manufacturer for Z-wave chips and the main CPU in its Hub Devices, creating significant risk of disruption from supply chain issues[66](index=66&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - The company is subject to numerous data privacy and security laws, such as the CCPA and CPRA in California. Failure to comply could result in significant liabilities, governmental investigations, and harm to the business[68](index=68&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - The business is exposed to product liability, warranty, and personal injury claims due to the nature of its products (e.g., smart locks, hubs). A major defect or recall could result in significant costs and reputational damage[70](index=70&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) [Item 1B. Unresolved Staff Comments](index=34&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - None[190](index=190&type=chunk) [Item 2. Properties](index=34&type=section&id=Item%202.%20Properties) SmartRent's primary facilities are leased, including its **40,893 sq ft** corporate headquarters in Scottsdale, AZ, and other offices/warehouses - The company's primary facilities are leased and include its corporate headquarters in Scottsdale, AZ (**40,893 sq ft**), an office in Orlando, FL (**9,928 sq ft**), a warehouse in Avondale, AZ (**60,820 sq ft**), and international facilities in Zagreb, Croatia[191](index=191&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) SmartRent is involved in routine legal matters, none of which are expected to materially impact its financial condition or operations - SmartRent is involved in various legal matters arising from normal business operations but does not expect them to have a material adverse impact[192](index=192&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[194](index=194&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) SmartRent's Class A Common Stock trades on the **NYSE** under "**SMRT**"; the company has never paid dividends and plans to retain earnings for growth - The company's Class A Common Stock trades on the New York Stock Exchange (**NYSE**) under the ticker symbol "**SMRT**"[196](index=196&type=chunk) - SmartRent has never declared or paid cash dividends and does not intend to in the foreseeable future, retaining funds for business development and growth[198](index=198&type=chunk) [Item 6. Selected Financial Data](index=36&type=section&id=Item%206.%20Selected%20Financial%20Data) This section has been intentionally omitted from the report - This item was intentionally omitted[205](index=205&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, revenue grew **52%** to **$167.8 million**, but net loss widened to **$96.3 million** due to increased operating expenses, with **$210.4 million** cash on hand [Key Operating Metrics](index=37&type=section&id=Key%20Operating%20Metrics) Key metrics show **Units Deployed** at **547,196**, **ARR** at **$32.3 million**, and **Adjusted EBITDA** at negative **$74.7 million** in 2022 Key Operating Metrics Comparison (2020-2022) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Units Deployed (End of Period)** | 547,196 | 339,485 | 155,105 | | **New Units Deployed (Annual)** | 207,711 | 167,743 | 83,293 | | **Units Booked (Annual)** | 282,512 | 219,901 | 112,555 | | **Annual Recurring Revenue (ARR)** | $32.3M | $10.6M | $4.9M | Adjusted EBITDA Reconciliation Summary (in thousands) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Net loss** | $(96,322) | $(71,961) | $(37,109) | | **EBITDA** | $(99,394) | $(71,134) | $(36,106) | | **Adjusted EBITDA** | $(74,709) | $(55,615) | $(26,679) | [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Total revenue grew **52%** to **$167.8 million** in 2022, but operating expenses rose **71%**, leading to a **34%** increase in net loss to **$96.3 million** Consolidated Results of Operations (in thousands) | Line Item | 2022 | 2021 | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$167,821** | **$110,637** | **52%** | | Total Cost of Revenue | $166,473 | $120,710 | 38% | | Total Operating Expenses | $105,599 | $61,579 | 71% | | **Loss from Operations** | **$(104,251)** | **$(71,652)** | **45%** | | **Net Loss** | **$(96,322)** | **$(71,961)** | **34%** | - Hosted services revenue saw the largest growth, increasing **163%** to **$48.1 million** in 2022, driven by a higher number of deployed units and a **93%** increase in SaaS ARPU, with approximately **$9.9 million** of the increase attributable to the iQuue and SightPlan acquisitions[249](index=249&type=chunk) - General and administrative expenses more than doubled, increasing **113%** to **$55.3 million** in 2022. This was primarily due to higher personnel costs (**$10.3M**), asset impairment (**$4.4M**), stock-based compensation (**$4.2M**), and business insurance (**$3.6M**)[258](index=258&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) SmartRent held **$210.4 million** in cash as of December 31, 2022, with a **$75.0 million** undrawn credit facility, and believes it has sufficient liquidity for the next 12 months - The company's cash and cash equivalents decreased to **$210.4 million** as of December 31, 2022, from **$430.8 million** at the end of 2021[271](index=271&type=chunk)[326](index=326&type=chunk) - Net cash used in operating activities increased to **$81.0 million** in 2022, primarily due to the net loss of **$96.3 million** and a **$42.8 million** increase in inventory, partially offset by a **$43.7 million** increase in deferred revenue[281](index=281&type=chunk) - The company has a **$75.0 million** senior secured revolving credit facility established in December 2021, which was undrawn as of December 31, 2022[272](index=272&type=chunk)[430](index=430&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Operating Activities** | $(81,037) | $(70,376) | $(28,490) | | **Investing Activities** | $(130,789) | $(9,373) | $(2,680) | | **Financing Activities** | $(2,801) | $473,926 | $48,221 | [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) SmartRent faces interest rate risk on its **$217.7 million** cash balance and minor foreign currency risk, but does not currently use hedging strategies - The company is exposed to interest rate risk on its cash, cash equivalents, and restricted cash balance of approximately **$217.7 million** as of December 31, 2022[312](index=312&type=chunk) - Foreign currency exchange rate risk exists from operations, primarily in Croatia, but the effect of a hypothetical **10%** change in exchange rates is not expected to have a material impact on financial statements[314](index=314&type=chunk) - Inflation is not believed to have had a material effect on the business to date, but significant inflationary pressures could harm future results if costs cannot be fully offset[311](index=311&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents SmartRent's audited consolidated financial statements for 2020-2022, including balance sheets, statements of operations, equity, cash flows, and notes [Consolidated Balance Sheets](index=53&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$560.8 million** in 2022, driven by reduced cash to **$210.4 million**, while goodwill and intangible assets significantly increased due to acquisitions Consolidated Balance Sheet Summary (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $210,409 | $430,841 | | Total current assets | $378,356 | $536,007 | | Goodwill | $117,268 | $12,666 | | **Total Assets** | **$560,845** | **$579,683** | | Total current liabilities | $132,776 | $70,568 | | Deferred revenue (non-current) | $59,928 | $53,412 | | **Total Liabilities** | **$196,645** | **$130,181** | | **Total Stockholders' Equity** | **$364,200** | **$449,502** | [Consolidated Statements of Operations and Comprehensive Loss](index=54&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Total revenue grew **52%** to **$167.8 million** in 2022, but net loss widened to **$96.3 million**, resulting in a **$0.49** net loss per share Statement of Operations Summary (in thousands) | Line Item | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$167,821** | **$110,637** | **$52,534** | | Total Cost of Revenue | $166,473 | $120,710 | $56,831 | | Loss from Operations | $(104,251) | $(71,652) | $(35,716) | | **Net Loss** | **$(96,322)** | **$(71,961)** | **$(37,109)** | | **Net Loss Per Share (Basic & Diluted)** | **$(0.49)** | **$(0.96)** | **$4.32** | [Consolidated Statements of Cash Flows](index=56&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$81.0 million** in 2022, with **$130.8 million** used in investing, leading to a **$214.9 million** net decrease in cash Consolidated Cash Flow Summary (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(81,037) | $(70,376) | | Net cash used in investing activities | $(130,789) | $(9,373) | | Net cash (used in) provided by financing activities | $(2,801) | $473,926 | | **Net (decrease) increase in cash** | **$(214,891)** | **$393,986** | | **Cash at end of period** | **$217,713** | **$432,604** | [Note 13. Acquisitions](index=82&type=section&id=Note%2013.%20Acquisitions) In 2022, SmartRent acquired SightPlan for **$135 million**, recognizing **$104.6 million** goodwill and **$30.9 million** intangible assets, following prior acquisitions of iQuue and Zenith - On March 22, 2022, the Company acquired SightPlan for approximately **$135 million**, recognizing **$104.6 million** in goodwill and **$30.9 million** in intangible assets (customer relationships and developed technology)[491](index=491&type=chunk)[496](index=496&type=chunk)[500](index=500&type=chunk) - On December 31, 2021, the Company acquired iQuue for total consideration of **$12.95 million**, including **$7.2 million** in cash and **$5.2 million** in contingent consideration. The acquisition resulted in **$8.5 million** of goodwill[506](index=506&type=chunk)[508](index=508&type=chunk)[511](index=511&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=89&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no disagreements with its accountants regarding accounting principles, financial disclosure, or auditing procedures - None[528](index=528&type=chunk) [Item 9A. Controls and Procedures](index=89&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of December 31, 2022, having fully remediated prior material weaknesses - Management concluded that disclosure controls and procedures were effective as of December 31, 2022[529](index=529&type=chunk) - The company has fully remediated material weaknesses identified in 2020 concerning non-routine transaction accounting, journal entry review, and IT controls as of December 31, 2022[530](index=530&type=chunk)[531](index=531&type=chunk) [Item 9B. Other Information](index=90&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[535](index=535&type=chunk) Part III [Items 10-14](index=90&type=section&id=Items%2010-14) Information for Items 10-14 is incorporated by reference from the forthcoming 2023 Proxy Statement - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the forthcoming 2023 Proxy Statement[538](index=538&type=chunk)[539](index=539&type=chunk)[540](index=540&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=90&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This item lists financial statements from Item 8 and all exhibits filed with or incorporated by reference into the 10-K report - This item contains the index to financial statements from Item 8 and a list of all exhibits filed with or incorporated by reference into the 10-K report[544](index=544&type=chunk)[546](index=546&type=chunk) [Item 16. Form 10-K Summary](index=93&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for Form 10-K - None[552](index=552&type=chunk)

Financial Performance - Total revenue for 2022 was $167.821 million[7], driven by strong year-over-year (YoY) revenue growth[6] - SaaS revenue experienced significant expansion, with YoY growth of 251%[17] - SaaS ARR (Annual Recurring Revenue) reached $32.3 million as of Q4 2022[21] - The company is on track toward intra-quarter profitability in 2023, with a 20% QoQ Adjusted EBITDA improvement[30] Revenue Breakdown - Hardware revenue in 2022 was $87.372 million[7] - Professional Services revenue in 2022 was $32.301 million[7] - Hosted Services revenue in 2022 was $48.148 million[7] - Hosted Services revenue is further broken down into SaaS revenue of $27.788 million and Hub revenue of $20.360 million in 2022[31] Unit Deployment - Total deployed units reached 547,196 as of December 31, 2022[64] - YoY unit deployment growth was 24%[45] Gross Margin and Operating Expenses - Gross margins showed significant QoQ improvements across Hardware, Professional Services, and Hosted Services[22] - Operating expenses have been reduced on a quarterly basis[28] - QoQ Gross Profit Improvement 7%[59] Guidance - The company projects total revenue between $225 million and $250 million for the full year 2023[51] - Adjusted EBITDA is projected to be between negative $25 million and negative $15 million for the full year 2023[51]

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 was $47.5 million, up 12% from $42.4 million in Q2 2022 [15] - Adjusted EBITDA loss improved by over $2 million to $17.6 million compared to the previous quarter [20] - Total gross margin increased from 2.3% to 2.5%, marking the third consecutive quarter of improvement [18] - Net loss for the quarter was $26 million, slightly higher than the $25.6 million loss in Q2 2022 [20] - Cash position as of September 30, 2022, was approximately $217.4 million with no outstanding debt [21] Business Line Data and Key Metrics Changes - SaaS revenue reached approximately $8 million, a 4% increase from $7.6 million in Q2 2022 [17] - Average organic SaaS ARPU increased by 6.3% from $3.29 to $3.50 [17] - Hardware revenue grew by 28%, while Hosted Services revenue increased by 8% [15] - Professional Services revenue decreased by 18% due to lower unit deployments [15] Market Data and Key Metrics Changes - Over 53,000 units were deployed in Q3 2022, contributing to a total of over 500,000 units deployed [10][11] - The committed units pipeline reached an all-time high with over 800,000 units expected to come under the platform in the next two years [11] Company Strategy and Development Direction - The company is focused on increasing revenue from higher-margin sources and reducing dependency on new unit growth [16] - SmartRent aims to achieve positive adjusted EBITDA on an intra-quarter basis in 2023 while maintaining growth [23] - The company is well-positioned in the real estate ecosystem, leveraging strong relationships with top multifamily owners and operators [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, stating it remains robust despite macroeconomic pressures [10][12] - Supply chain constraints are easing, allowing for improved hardware procurement [13] - The company anticipates achieving $10 million in SaaS revenue from SightPlan this year [17] Other Important Information - The company has a liquidity position that supports organic growth plans and potential non-organic growth initiatives [21] - Updated guidance for 2022 revenue is now $165 million to $180 million, with unit deployments expected to be between 200,000 to 220,000 [22] Q&A Session Summary Question: Update on competitive front and market share shifts - Management noted no significant changes in competitive dynamics, maintaining a strong market position with more units deployed than competitors combined [29] Question: Resilience of the business in a potential recession - Management highlighted that the company's offerings help reduce costs and labor needs for property owners, making the business resilient [30] Question: Supply chain constraints and potential unit deployments - Management indicated that supply chain issues have been the primary constraint, but improvements are being seen [35] Question: Cash burn and inventory levels - Cash burn for the quarter was approximately $46 million, attributed to higher accounts receivable [42] Question: 2023 revenue and adjusted EBITDA guidance - Management reaffirmed the goal of achieving intra-quarter positive adjusted EBITDA in 2023, with guidance to be provided early in the year [44] Question: Professional Services breakeven point and capacity - Management estimated the maximum capacity for Professional Services at around 75,000 units per quarter [62] Question: Impact of new suppliers on hardware margins - Management indicated that new suppliers would likely have a net neutral impact on hardware margins, with expectations for continued margin improvement [66]

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 For the quarterly period ended September 30, 2022 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 in its charter) (State or Other Jurisdiction of Incorporation or Organization) Delaware 85-4218526 (I.R.S. ...

SmartRent, Inc. (NYSE:SMRT) Q2 2022 Earnings Conference Call August 11, 2022 5:00 PM ET Company Participants Evelyn Infurna - Senior Vice President-Investor Relations Lucas Haldeman - Chairman & Chief Executive Officer Hiroshi Okamoto - Chief Financial Officer Conference Call Participants Rod Hall - Goldman Sachs Ryan Tomasello - KBW Barry Oxford - Colliers Sidney Ho - Deutsche Bank Erik Woodring - Morgan Stanley Jason Weaver - Compass Point Steven McDermott - Cantor Fitzgerald Operator Good evening and wel ...

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 For the quarterly period ended June 30, 2022 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 in its charter) (State or Other Jurisdiction of Incorporation or Organization) Delaware 85-4218526 (I.R.S. Emplo ...

Investor Presentation May 2022 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 the Securities Exchange Act of 1934, as amended). Forward-looking statements address our expected future business and financial performance, and may contain words such as "goal," " ...

Investor Presentation May 2022 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 the Securities Exchange Act of 1934, as amended). Forward-looking statements address our expected future business and financial performance, and may contain words such as "goal," " ...