SmartRent(US:SMRT)2021-11-15 16:42Financial Data and Key Metrics Changes - SmartRent reported record revenue of $35.1 million for Q3 2021, a 112% increase from $16.6 million in Q3 2020 [7][29] - New units deployed reached 59,347 in Q3 2021, compared to 28,190 in the same quarter last year, marking a 111% increase [27] - Total units deployed increased to 270,772, up 117% year-over-year [27] - Annual recurring revenue (ARR) was $8.7 million, up 158% compared to the same quarter last year [31] - Total deferred revenue was approximately $84.7 million, growing 100% year-over-year [30] Business Line Data and Key Metrics Changes - The company added 17 new customers in Q3, bringing the total customer base to 199, controlling approximately 4.1 million units [12] - Committed units increased to 704,242, up 16% sequentially [29] - Hosted services ARPU increased to $6.81 per unit per month, compared to $6.29 in Q3 2020 [32] Market Data and Key Metrics Changes - The company is experiencing strong demand for its smart home solutions, particularly in the multifamily and single-family rental markets [12][66] - The majority of new customers are large institutional landlords, with significant opportunities in retrofitting existing units [12] Company Strategy and Development Direction - SmartRent is focused on expanding its sales force, field installation services, and R&D teams to support growth [8] - The company aims to capitalize on its first-mover advantage in the smart building industry and enhance its product offerings [9][15] - There is a strategic emphasis on energy management and efficiency, integrating with utility companies for ESG reporting [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite near-term supply chain challenges [26] - The company anticipates continued growth in customer base and revenue, with a refined revenue projection of $100 million to $105 million for 2021 [37] - Management noted that the business model is resilient to economic cycles, as institutional owners budget for capital improvements regardless of market conditions [62] Other Important Information - The company has pivoted to a new battery supplier to address warranty issues related to smart hub units [33] - SmartRent is exploring international expansion opportunities, with recent progress in Canada and the U.K. [25] Q&A Session Summary Question: Impact of Fusion Hub delays on revenue guidance - Management confirmed that delays in the Fusion Hub and Alloy Access products are affecting revenue guidance, but unit deployment targets remain unchanged [42][44] Question: Competitive landscape and market dynamics - Management acknowledged the presence of competitors but emphasized confidence in winning RFPs and the differentiation of their platform [46][50] Question: Customer construction timelines and retrofit opportunities - Management highlighted the flexibility of their business model, focusing on retrofits rather than new builds, which allows for continued growth despite construction delays [53][65] Question: Labor market impact on hiring and deployment timelines - Management reported no issues with hiring, successfully attracting high-caliber talent ahead of plan [55] Question: Revenue mix and occupancy rates - Management indicated that while occupancy rates are high, their sales pitch focuses on the overall platform benefits rather than solely on passing costs to residents [60][62]