- Total Revenue (Q4 2024): $35.4 million, down 41% year-over-year.
- Full Year Revenue (2024): $174.9 million, a 26% decrease from 2023.
- SaaS Revenue Growth (Q4 2024): 17% year-over-year increase.
- Annual Recurring Revenue (ARR): $54.4 million, up from $46.2 million in Q4 2023.
- SaaS Revenue Share (2024): Approximately 33% of total revenue, up from 17% in 2023.
- SaaS ARPU (Q4 2024): Increased 3% to $5.68 from $5.50 in Q4 2023.
- Units Deployed: 809,000, a 12% increase compared to December 2023.
- Hosted Services Revenue (Q4 2024): $18.8 million, a 9.7% increase year-over-year.
- Full Year Hosted Services Revenue (2024): $73.2 million, up 14% from the prior year.
- SaaS Gross Margin: 74.1%.
- Total Gross Margin (Q4 2024): 28.7%, up from 28.2% in the same quarter last year.
- Full Year Total Gross Margin (2024): 34.5%, up from 20.9% in 2023.
- Adjusted EBITDA (2024): Negative $9.9 million, improved by $9.3 million compared to the prior year.
- Net Loss (Q4 2024): $11.4 million.
- Net Loss (Full Year 2024): $33.6 million.
- Share Repurchase Program: 3 million shares repurchased at $5.1 million in Q4; 15.2 million shares at $28.6 million for the full year.
- Cash Balance (End of Q4 2024): Approximately $143 million with no debt.
- Undrawn Credit Facility: $75 million.
- Hardware Revenue (Q4 2024): $10.4 million, down 72% year-over-year.
- Professional Services Revenue (Q4 2024): $6.2 million, down 7% year-over-year.
Release Date: March 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SmartRent Inc (SMRT, Financial) has a strong product foundation with significant SaaS growth potential, which is a key differentiator in the market.
- The company has strong relationships with 15 of the top 20 multifamily operators and over 600 customers managing more than 7 million rental units.
- SaaS revenue grew 17% year-over-year in the fourth quarter, reflecting progress in the strategic shift towards a SaaS-focused business model.
- Annual recurring revenue (ARR) increased to $54.4 million, up from $46.2 million in Q4 2023, demonstrating growth in recurring revenue streams.
- SmartRent Inc (SMRT) maintained a strong SaaS gross margin of 74.1%, providing a solid foundation for profitable growth as the business scales.
Negative Points
- Total revenue for the fourth quarter was $35.4 million, down 41% from the same quarter the prior year, primarily due to reduced volumes in units shipped.
- Full year revenue decreased by 26% from 2023, reflecting challenges in the channel partner sales program and leadership transition.
- Hardware revenue decreased to $10.4 million, down 72% from the same quarter last year, due to demand generation issues and extended customer decision-making cycles.
- Professional services revenue decreased to $6.2 million, down 7% year-over-year, contributing to a net loss of $11.4 million for the quarter.
- The company faces uncertainties related to potential tariff policy changes affecting the hardware supply chain, impacting near-term visibility.
Q & A Highlights
Q: How will SmartRent's focus on becoming a SaaS-first company impact its hardware strategy?
A: Shane Paladin, CEO, explained that while hardware has been a key component, the focus is on monetizing it by leveraging data from hardware to enhance SaaS offerings. The goal is to create a symbiotic relationship between hardware and software, using insights from hardware to drive SaaS growth.
Q: What are the strategic priorities for scaling unit deployments, and are there plans for a new channel partner program?
A: Shane Paladin, CEO, mentioned that he is currently reviewing these strategies. The focus is on understanding the customer journey and optimizing the sales process. Daryl Stemm, CFO, added that restructuring the sales team is a priority, with new hires to enhance customer success and sales operations.
Q: Can you provide an update on the $10 million growth investment and its deployment?
A: Daryl Stemm, CFO, stated that the investment is primarily focused on developing smart operation solutions, enhancing data accessibility, and centralizing maintenance operations. Additional features are expected to be announced in Q2 2025.
Q: What is the current sentiment among customers regarding macroeconomic conditions?
A: Shane Paladin, CEO, noted that customers are pragmatic and focused on ROI. He mentioned that customers are optimistic about future tailwinds and are interested in the ROI delivered by SmartRent's solutions.
Q: Did the leadership transition affect engagement with large apartment landlords?
A: Shane Paladin, CEO, indicated that the focus is on improving sales processes and customer engagement. He emphasized the importance of understanding customer needs and ensuring a customer-centric approach to drive engagement and conversions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
