SmartRent Inc (SMRT, Financial), a leading provider of smart home and property operations solutions for the rental housing industry, released its financial results for Q3 2023 on November 7, 2023. The company reported a 22% YoY increase in revenue, reaching $58.1 million. Gross profit rose by over 1,000% YoY to $13.5 million, while net loss improved by 70% YoY to $(7.7) million. Adjusted EBITDA also improved by 72% YoY to $(5.0) million.
Financial Highlights
SmartRent Inc (SMRT, Financial) reported a total revenue of $58.1 million for Q3 2023, marking a 22% increase from the same period last year. The company's gross profit rose by over 1,000% YoY to $13.5 million. The net loss improved by 70% YoY to $(7.7) million, while Adjusted EBITDA improved by 72% YoY to $(5.0) million. The company's cash and cash equivalents as of September 30, 2023, stood at $211.0 million, marking an increase of $14 million from Q2 2023.
Management Commentary
“With more than 680,000 rental units deployed, SmartRent continues to lead in innovation, creating new products that pave the way for the next generation of smarter living and working in rental housing. We reported a strong first nine months of 2023, marked by nearly 40% growth in revenue and a more than $40 million decrease in operating losses,” said SmartRent CEO Lucas Haldeman. “We were pleased with operating metrics in Q3 including the increase in bookings and cash balance. This was our sixth consecutive quarter of improvement in Adjusted EBITDA and we reported continued improvement in gross margin, growing to 23.3% from 2.5% last year, with both hardware and hosted services hitting record highs for the quarter. We remain on track to achieve Adjusted EBITDA profitability in Q4 2023 and positive cash flow from operations within six months following.”
Financial Outlook
SmartRent's CFO, Hiroshi Okamoto, stated that the company had another solid quarter of revenue growth, expanding margins, and narrowing Adjusted EBITDA loss. He believes the company can achieve Adjusted EBITDA profitability by the end of the year. 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.
About SmartRent
Founded in 2017, SmartRent Inc (SMRT, Financial) is a leading provider of smart home and smart property solutions for the multifamily industry. The company's unmatched platform, comprised of smart hardware and cloud-based SaaS solutions, gives operators seamless visibility and control over real estate assets, empowering them to simplify operations, automate workflows, benefit from additional revenue opportunities and deliver exceptional site team and resident experiences. For more information, please visit www.smartrent.com.
Explore the complete 8-K earnings release (here) from SmartRent Inc for further details.
