SmartRent(US:SMRT)2024-08-07 12:10Revenue 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]