SmartRent(US:SMRT)2022-08-12 01:14Financial Data and Key Metrics Changes - In Q2 2022, SmartRent achieved record revenue of $42.4 million, a 96% increase from $21.7 million in Q2 2021, and a 14% increase from $37.4 million in Q1 2022 [17][18] - Adjusted EBITDA loss improved by over $3 million compared to Q1 2022, totaling $19.8 million, compared to a loss of $23.1 million in Q1 2022 [23] - Net loss for the quarter was $25.6 million, compared to a net loss of $10.1 million in Q2 2021 and $23.4 million in Q1 2022 [22] Business Line Data and Key Metrics Changes - SaaS revenue increased 337% to $7.6 million from $1.8 million in Q2 2021, and 88% from $4.1 million in Q1 2022 [19] - Units booked in the quarter grew 53% to approximately 59,000, up from approximately 39,000 in Q2 2021 [13] - Total bookings increased 87% to $57 million compared to $30 million for the same quarter last year [13] Market Data and Key Metrics Changes - Committed units increased 29% year-over-year to over 780,000, bringing total deployed and committed units to over 1.2 million, up 50% from 800,000 in Q2 2021 [12] - SaaS ARPU across all units booked was $4.79, compared to $3.83 in Q2 2021, with new customer ARPU reaching $7.48 [14] Company Strategy and Development Direction - The acquisition of SightPlan is expected to enhance SmartRent's SaaS revenue and operational efficiencies, with a focus on cross-selling and product enhancements [9][11] - The company aims to navigate supply chain challenges by pivoting to deployments for communities requiring more readily available hardware [16] - SmartRent anticipates achieving intra-year adjusted EBITDA positivity in 2023 due to year-over-year growth in units deployed and ARR [29] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for their solutions despite supply chain constraints, with a record backlog indicating customer loyalty [15][31] - The company expects full-year deployments to be between 190,000 and 220,000 units, with revenue projected between $155 million and $180 million [28] - Management remains optimistic about the macro environment, citing continued strong demand in the multifamily segment [35][37] Other Important Information - Total deferred revenue as of June 30, 2022, increased 68% to $125.4 million from $74.5 million at the end of Q2 2021, with over 60% expected to be recognized within the next 12 months [24] - The company had approximately $263 million in cash, no outstanding debt, and full access to a $75 million revolving line of credit as of June 30, 2022 [25] Q&A Session Summary Question: Impact of macro environment on customer purchasing behavior - Management observed continued strong demand in the multifamily segment, with renters increasingly seeking solutions as home prices rise [35][37] Question: Supply chain constraints and deployment backlog - Over 100,000 units are in backlog, with 300 access control jobs on hold, but the company can deploy 25,000 to 30,000 new units per month once supply improves [47] Question: Guidance on professional services margins - Professional services margins improved due to a 12% increase in ARPU and a 21% decrease in unit costs, but challenges are expected in Q3 due to lower unit volume [64] Question: Supplier relationships and pricing power - Management is diversifying suppliers and has not seen a decrease in labor costs, although they are able to pass through increased costs to customers [82]