On March 5, 2024, SmartRent Inc (SMRT, Financial), a leading enterprise smart home and smart building technology platform, released its 8-K filing, announcing its financial results for the fourth quarter and full year ended December 31, 2023. The company, which operates predominantly in the United States, reported significant year-over-year revenue growth and achieved a milestone by turning its Adjusted EBITDA positive for the first time in Q4 2023.
Financial Performance and Strategic Achievements
SmartRent's revenue for Q4 was $60.3 million, marking a 49% increase compared to the same period in the previous year. The full-year revenue also saw a substantial rise to $236.8 million, a 41% year-over-year growth. The SaaS segment of the business was particularly strong, with annual revenue climbing 48% to $41.1 million. The company's net loss improved significantly, decreasing to $(3.3) million for Q4 and $(34.6) million for the full year, down 85% and 64% respectively from the previous year.
SmartRent's CEO, Lucas Haldeman, commented on the achievement of Adjusted EBITDA profitability, stating,
In the fourth quarter we achieved our two-year goal to become Adjusted EBITDA profitable, marking a new inflection point in our company's history."This accomplishment reflects the company's strategic focus on purpose-built hardware, open software, and robust end-to-end implementation and support.
Financial Health and Share Repurchase Program
The balance sheet of SmartRent remains strong with $215.7 million in cash, cash equivalents, and restricted cash, and no debt. The company also announced a $50 million share repurchase program, signaling confidence in its own stock and a commitment to enhancing shareholder value.
Operational and Financial Metrics
Operational efficiency was evident in the improved gross margins across all revenue streams, with total gross margin reaching 28%. Operating expenses for the year were reduced to $92.7 million from $105.6 million in 2022. The company deployed 719,691 units by the end of the year, although New Units Deployed for 2023 decreased by 17% from the previous year. Despite this, Q4 saw an increase in New Units Deployed compared to Q3 2023.
SmartRent's CFO, Daryl Stemm, provided a financial outlook, expressing pride in the company's growth and profitability, particularly in the SaaS revenue stream. Stemm highlighted the company's strong balance sheet, which will support investments in the business and generate enhanced shareholder value.
Looking Ahead
SmartRent anticipates that its investment in Community WiFi capabilities will create a sustainable multi-billion dollar growth opportunity, although it may impact growth and profitability in the first half of the year. The company expects a rebound in the second half and has provided guidance for Q1 and full-year 2024, projecting total revenue of $47 to $53 million for Q1 and $260 to $290 million for the full year, with Adjusted EBITDA of $(1) million to positive $250 thousand for Q1 and $5 to $8 million for the full year.
For more detailed information on SmartRent Inc (SMRT, Financial)'s financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from SmartRent Inc for further details.
