SmartRent(SMRT) - 2024 Q3 - Quarterly Results

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]