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Sep 30, 2023

Smartrent Q3 2023 Earnings Report

SmartRent reported increased revenue, improved gross margins, and a reduced net loss, marking the sixth consecutive quarter of improved Adjusted EBITDA.

Key Takeaways

SmartRent reported a 22% increase in revenue to $58.1 million, a gross profit of $13.5 million, and a net loss of $(7.7) million, a 70% improvement year-over-year. The company's cash and cash equivalents increased by $14 million to $211.0 million. They are on track to achieve Adjusted EBITDA profitability in Q4 2023 and positive cash flow from operations within six months following.

Revenue increased by 22% year-over-year to $58.1 million.

Gross profit increased by over 1,000% year-over-year to $13.5 million.

Net loss improved by 70% year-over-year to $(7.7) million.

Cash and cash equivalents increased by $14 million to $211.0 million.

Total Revenue
$58.1M
Previous year: $47.5M
+22.3%
EPS
-$0.04
Previous year: -$0.13
-69.2%
Gross Profit
$13.5M
Previous year: $1.18M
+1041.2%
Cash and Equivalents
$211M
Previous year: $210M
+0.4%
Free Cash Flow
$14.3M
Previous year: -$45.7M
-131.2%
Total Assets
$516M
Previous year: $551M
-6.4%

Smartrent

Smartrent

Smartrent Revenue by Segment

Forward Guidance

The Company has tightened its full year 2023 guidance to $235 to $240 million from $233 to $250 million in revenue and to $(20) to $(18) million from $(22) to $(18) million in Adjusted EBITDA. SmartRent’s guidance for the fourth quarter and full-year 2023 is as follows: Fourth Quarter 2023 Guidance •Total Revenue of $58 to $63 million •Adjusted EBITDA of $0 to $2 million

Positive Outlook

  • Total Revenue of $58 to $63 million in Q4 2023.
  • Adjusted EBITDA of $0 to $2 million in Q4 2023.
  • Full Year 2023 Total Revenue of $235 to $240 million.
  • Full Year 2023 Adjusted EBITDA of $(20) to $(18) million.
  • Achieve Adjusted EBITDA profitability by year end.

Challenges Ahead

  • Timing differences may lead to some quarter-to-quarter variability.
  • Estimates exclude the impact of potential acquisitions.
  • Estimates exclude the impact of capital markets activities.
  • Estimates exclude the impact of unforeseen continued challenges with supply chain and logistics.
  • Estimates are forward-looking based on the Company’s current assessment of demand for its product, execution capabilities and market conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income