SmartRent(US:SMRT)2021-11-10 21:36Financial Performance - Total revenue for the three months ended September 30, 2021, was $35,132,000, representing a 112% increase from $16,588,000 in the same period of 2020[17]. - Net loss for the nine months ended September 30, 2021, was $46,003,000, compared to a net loss of $26,421,000 for the same period in 2020, indicating a 74% increase in losses[17]. - The company reported a comprehensive loss of $26,754,000 for the three months ended September 30, 2021, compared to a comprehensive loss of $8,597,000 for the same period in 2020[17]. - For the nine months ended September 30, 2021, the net loss was $26.7 million, reflecting an increase from a net loss of $10.1 million in the previous quarter[20]. - The company reported a comprehensive loss of $69,000 for the period ending September 30, 2021[21]. - The company recorded a net loss of $26.7 million for the three months ended September 30, 2021, which is a 207% increase from a net loss of $8.7 million in the same period of 2020[211]. Revenue Breakdown - Hardware revenue for the three months ended September 30, 2021, was $22,025,000, up 125% from $9,782,000 in the same period of 2020[17]. - Revenue from the United States for the three months ended September 30, 2021, was $34,247,000, up 120% from $15,568,000 in 2020[90]. - Professional services revenue for the three months ended September 30, 2021, was $8,180,000, up 73% from $4,717,000 in the same period of 2020[90]. - Total revenue for the nine months ended September 30, 2021, increased by $37.0 million, or 95%, to $76.0 million compared to $38.9 million for the same period in 2020[212]. - The increase in revenue for both periods was primarily due to an increase in New Units Deployed and the number of cumulative active subscriptions for hosted services[212]. Assets and Liabilities - Cash and cash equivalents increased significantly to $472,502,000 as of September 30, 2021, up from $38,618,000 at the end of 2020[15]. - Total current assets rose to $557,357,000, a substantial increase from $87,655,000 at the end of 2020[15]. - Total liabilities increased to $110,413,000 from $70,667,000 at the end of 2020, reflecting a 56% rise[15]. - Total stockholders' equity increased to $472,421,000 as of September 30, 2021, from a deficit of $78,250,000 at the end of 2020[15]. - The balance of accumulated deficit as of September 30, 2021, was $128.6 million, indicating a significant increase from $91.9 million at the end of the previous quarter[20]. Stock and Financing - The company issued 16.4 million shares of Series C Convertible Preferred Stock, raising approximately $34.8 million[20]. - Stock-based compensation for the nine months ended September 30, 2021, totaled $4.3 million[20]. - The company raised $500,628 thousand from a business combination and private offering, significantly boosting its financial position[25]. - The Company received gross proceeds of $500,628 from the Business Combination and PIPE Investment, with net proceeds amounting to $444,984 after transaction costs of $55,859[40]. - The total original issuance price per share of the Company's preferred stock as of August 24, 2021, was $146,076 million[117]. Business Combination - The Business Combination was completed in August 2021, resulting in the merger of Legacy SmartRent and Fifth Wall Acquisition Corp. I, with the new name "SmartRent Technologies, Inc." and trading symbol "SMRT" on NYSE[31]. - Each share of Legacy SmartRent was converted into approximately 4.8846 shares of the Company's Class A common stock as part of the Business Combination[33]. - The Company incurred direct and incremental costs of approximately $55,859 related to the Business Combination, primarily for investment banking, legal, and accounting fees[37]. - The Business Combination is treated as a reverse recapitalization, with Legacy SmartRent deemed the accounting acquirer[38][49]. Operational Metrics - SmartRent's cash used in operating activities was $41,745 thousand for the nine months ended September 30, 2021, slightly lower than the $42,311 thousand used in the same period of 2020[25]. - New Units Deployed during the three months ended September 30, 2021, were 59,347, an increase of 31,157 units, or 111%, compared to 28,190 units in the same period in 2020[213]. - New Units Deployed during the nine months ended September 30, 2021, were 115,667, an increase of 62,594 units, or 118%, compared to 53,073 units in the same period in 2020[213]. - The aggregate number of Units Deployed was 270,772 at September 30, 2021, compared to 124,885 at September 30, 2020[213]. - As of September 30, 2021, SmartRent's customers owned approximately 4.1 million rental units, representing about 10% of the U.S. market for institutionally owned multifamily rental units and single-family rental homes[163]. Expenses - Research and development expenses for the three months ended September 30, 2021, were $6,881,000, a 61% increase from $2,637,000 in the same period of 2020[17]. - Operating expenses increased by 145% to $19.7 million for the three months ended September 30, 2021, compared to $8.1 million in the same period of 2020[211]. - The company expects costs of revenue to increase in absolute dollars in future periods, reflecting ongoing investments in product development and market expansion[197][203]. Market and Growth Potential - The U.S. market for residential real estate is estimated to have around 43 million institutionally owned multifamily rental units and single-family rental homes, indicating significant growth potential for SmartRent[164]. - SmartRent's open-architecture system is projected to provide property owners and operators with a 50% return on investment after installation[165]. - SmartRent aims to expand its market presence internationally, with pilot programs and partnerships initiated in the UK, Canada, the Netherlands, and Ireland[164]. - SmartRent's future growth is dependent on consumer adoption of its products and the ability to enhance the resident experience while providing additional revenue opportunities for property owners[182].