8-K
SmartRent, Inc. (SMRT)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): January 11, 2022
SmartRent, Inc.
(Exact name of Registrant as Specified in its Charter)
| Delaware | 001-39991 | 85-4218526 |
|---|---|---|
| (State or Other Jurisdiction of<br><br>Incorporation or Organization) | (Commission<br><br>File Number) | (I.R.S. Employer<br>Identification Number) |
| 8665 E. Hartford Drive, Suite 200 | 85255 | |
| --- | --- | |
| Scottsdale, Arizona | (Zip Code) | |
| (Address of Principal Executive Offices) |
(844) 479-1555
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>Symbol | Name of Each Exchange<br><br>on Which Registered |
|---|---|---|
| Class A Common Stock, par value $0.0001 per share | SMRT | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On January 11, 2022, SmartRent, Inc. (the “Company”) issued a press release which contained, among other things, an announcement of select preliminary financial results for the fiscal year ended December 31, 2021. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02, including the information in Exhibit 99.1 attached hereto pertaining to this Item 2.02, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01. Regulation FD Disclosure.
The Company has prepared an investor presentation with information regarding its business. The Company intends to use the presentation as part of investor non-deal road show presentations. A copy of the investor presentation to be used for such presentations, as released on January 11, 2022, is furnished as Exhibit 99.2 to this Current Report on Form 8-K. The presentation will also be posted in the “Investor Relations” area of the Company’s website at www.smartrent.com.
The information in this Item 7.01 (including Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such a filing.
This Current Report on Form 8-K will not be deemed an admission as to the materiality of any information contained in this Item 7.01 (including Exhibit 99.2). The Company expressly disclaims any obligation to update or revise any of the information contained in the investor presentation.
Item 9.01. Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press release, dated January 11, 2022, announcing preliminary results for fiscal year 2021.
104 Cover Page Interactive Data File (formatted as Inline XBRL).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 11, 2022
| SMARTRENT, INC. | |
|---|---|
| By: | /s/ Lucas Haldeman |
| Name: | Lucas Haldeman |
| Title: | Chief Executive Officer |
EX-99.1
SmartRent Provides Business Update
SCOTTSDALE, January 11, 2022 – SmartRent, Inc. (NYSE: SMRT) (the “Company” or “SmartRent”), a leading provider of smart home and smart building automation for property owners, managers, developers, homebuilders, and residents, today provided an operational update and preliminary, unaudited revenue for the year-ended December 31, 2021, in advance of scheduled investor meetings.
Operational Update
Units Deployed for the fourth quarter and full year 2021 were approximately 51,000 and 167,000, respectively, increasing by approximately 69% and 100% as compared to the prior year periods
Units Booked rose 42% to approximately 84,000 for the fourth quarter and 95% for the year to approximately 219,000 as compared to the prior year periods
Increased customer base by 62% year over year from 142 to 230 customers
Completed acquisition of iQuue, a smart home technology company which adds 16,000 Deployed Units and 100,000 Committed Units. The acquisition is expected to contribute approximately $2 million in ARR during 2022
For the year-ended December 31, 2021, the Company expects to report total revenue in the range of $106 million to $109 million as compared to our previously provided revenue range of $100 million to $105 million
Lucas Haldeman Chairman and Chief Executive Officer stated, “We closed the year on a strong note exceeding both our 161,000 Units Deployed target as well as our revised revenue guidance. Supply chain headwinds notwithstanding, we achieved record growth in both revenue and units deployed while scaling our operational infrastructure to support the demand from our growing customer base. We look forward to providing a full report for 2021 and our outlook for 2022 in the coming weeks.”
The Company expects to provide a full operational and financial update, including guidance for full year 2022, when it reports fourth quarter and full year results in March 2022.
About SmartRent:
Founded in 2017, SmartRent (NYSE: SMRT) is an enterprise smart home and smart building technology platform for property owners, managers, and residents. The SmartRent solution is designed to provide property managers with seamless visibility and control over all their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. For more information, please visit smartrent.com.
Key Operating Metrics Defined
SmartRent regularly monitors several operating and financial metrics including the following non-GAAP financial measures which the Company believes are key measures of its growth, to evaluate its operating performance, identify trends affecting its business, formulate business plans, measure its progress, and make strategic decisions. The Company’s Key Operating Metrics may not provide accurate predictions of future GAAP financial results.
Total Units Deployed is defined as the aggregate number of the Company’s SmartHubs that have been installed (also including customer self-installations) as of a stated measurement date. The Company uses this operating metric to assess the general health and trajectory of its business growth.
New Units Deployed is defined as the aggregate number of SmartHubs that have been installed (also including customer self-installations) during a stated measurement period. The Company uses this operating metric to assess the general health and trajectory of its business growth.
Total Committed Units is defined as aggregate number of SmartHub units that are subject to binding orders from customers together with units that existing customers who are parties to a SmartRent master services agreement have informed us (on a non-binding basis) that they intend to order in the future for deployment within two years of the measurement date. The Company tracks the number of committed units to assess the general health and trajectory of its business and to assist in its longer-term resource analysis.
Units Booked is defined as the aggregate number of SmartHubs associated with binding orders executed during a stated measurement period. The Company utilizes the concept of Units Booked to assist in assessing near-term resource demand and the resulting approximate range of post-delivery revenue that it will earn and record. Units Booked represent binding orders only and accordingly are a subset of Total Committed Units.
Annual Recurring Revenue (“ARR”) is defined as the annualized value of our recurring SaaS revenue earned in the current quarter.
Preliminary Financial Information
The preliminary financial information included in this press release is unaudited and based on currently available information and does not present all necessary information for a complete understanding of SmartRent’s financial condition as of December 31, 2021, or the Company’s results of operations for the three months and year ended December 31, 2021.
Forward-Looking Statements
This press release contains forward-looking statements which address the Company's expected future business and financial performance, and may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek,"
"project," "may," "should," "will" or similar expressions. Examples of forward-looking statements include, among others, statements regarding the benefits of the Company's strategic acquisitions, changes in the market for our products and services, expected financial results, product portfolio enhancements, expansion plans and opportunities and expectations regarding key operational metrics. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward‑looking statements include, among other things: (1) our ability to execute our business strategy within the smart home technology industry; (2) our ability to expand our products and solutions to meet the demands of the market; (3) our ability to meet legal obligations, including laws and regulations related to security and privacy; (4) our ability to prevent unauthorized or inadvertent access to our information technology systems and customer or resident data; (5) the competitiveness of our market and pricing levels of our competitors; (6) our ability to hire, retain, manage and motivate employees, including key personnel; (7) the ability of our suppliers to produce or obtain quality products and services on a timely basis or in sufficient quantity; (8) interruptions to, or other problems with, our website and interactive user interface, information technology systems, manufacturing processes or other operations; (9) our ability to successfully identify, acquire, and integrate quality acquisition targets; (10) legal proceedings, recall claims, and governmental inquiries; (11) our ability to acquire and protect our intellectual property and acquire or make investments in other businesses, patents, technologies, products or services to grow the business; (12) our compliance with laws and regulations applicable to our business, including developments in federal, state and local regulations; (13) our ability to fuel growth and accelerate the adoption of our products and services; (14) our ability to develop, design, and sell services that are differentiated from those of competitors; (15) our ability to manage risks associated with product liability, warranty, personal injury, property damage and recall matters; and (16) successful deployment of the proceeds from the business combination. The forward-looking statements herein represent the judgment of the Company, as of the date of this release, and SmartRent disclaims any intent or obligation to update forward-looking statements. This press release should be read in conjunction with the information included in the Company's other press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important in order to fully understand the Company's reported financial results and our business outlook for future periods.
Contact
Investor Relations
Evelyn Infurna – SVP, Investor Relations
Phone: 480-371-2828
Email: investors@smartrent.com
Media
InkHouse
Email: smartrent@inkhouse.com
Investor Presentation January 2022 Opening Doors to a Smarter World
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor from civil liability provided for such statements by Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Forward-looking statements address our expected future business and financial performance, and may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan,“ "seek," "project," "may," "should," "will," the negative form of these expressions or similar expressions. These statements are based on management’s current beliefs, expectations assumptions about future events, conditions and results and on information currently available to us. Although we believe that the expectations reflected in the forward-looking statements reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Examples of forward-looking statements include, among others, statements regarding the benefits of the Company's strategic acquisitions, changes in the market for our products and services, expected financial results, product portfolio enhancements, expansion plans and opportunities and expectations regarding key operational metrics. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently anticipated. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward‑looking statements include, among other things: (1) our ability to execute our business strategy within the smart home technology industry; (2) our ability to expand our products and solutions to meet the demands of the market; (3) our ability to meet legal obligations, including laws and regulations related to security and privacy; (4) our ability to prevent unauthorized or inadvertent access to our information technology systems and customer or resident data; (5) the competitiveness of our market and pricing levels of our competitors; (6) our ability to hire, retain, manage and motivate employees, including key personnel; (7) the ability of our suppliers to produce or obtain quality products and services on a timely basis or in sufficient quantity; (8) interruptions to, or other problems with, our website and interactive user interface, information technology systems, manufacturing processes or other operations; (9) our ability to successfully identify, acquire, and integrate quality acquisition targets; (10) legal proceedings, recall claims, and governmental inquiries; (11) our ability to acquire and protect our intellectual property and acquire or make investments in other businesses, patents, technologies, products or services to grow the business; (12) our compliance with laws and regulations applicable to our business updates, including developments in federal, state and local regulations; (13) our ability to fuel growth and accelerate the adoption of our products and services; (14) our ability to develop, design, and sell services that are differentiated from those of competitors; (15) our ability to manage risks associated with product liability, warranty, personal injury, property damage and recall matters; and (16) successful deployment of the proceeds from the business combination. The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. The forward-looking statements herein represent the judgment of the Company as of the date of this presentation, and we disclaim any intent or obligation to update forward-looking statements, unless required by applicable law. This presentation should be reviewed in conjunction with the information included in our press releases, reports and other filings with the SEC. Understanding the information contained in these filings is important to fully understanding our reported results and business outlook for future periods. This presentation also contains estimates and other statistical data made by independent parties and by us relating to market size, growth and other data about our industry and our business. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. Preliminary Financial Information The preliminary financial information included in this presentation is unaudited and based on currently available information and does not present all necessary information for a complete understanding of SmartRent’s financial condition as of December 31, 2021, or the Company’s results of operations for the three months and year ended December 31, 2021.
Key Investment Highlights Leading solution provider for owners / operators & residents 1 Large addressable market 2 Highly visible pipeline of demand 3 Significant growth opportunity 4 5 Attractive financial profile
SmartRent Company Snapshot (NYSE: SMRT) Source: Company data as of 9/30/2021, unless otherwise indicated 1) As of January 10, 2022 2) Preliminary Estimates for the year ended 12/31/2021 45 States 28 States with local SmartRent Teams Key Statistics 500K+ Total Users Total Devices Installed 1.4M+ 322K Total Units Deployed2 4.1M Unit Opportunity from Existing Customers Founded 2017 Headquarters Scottsdale, AZ Communities Served 3,800+ Total Customers 230 Employees 630 Market Capitalization1 $1.4B TTM Metrics2 Units Deployed 167K Units Booked 219K Estimated Revenue Range $106M to $109M A leader in enterprise smart home technology
We are an enterprise software company, providing fully-integrated solutions to the real estate industry We are hardware agnostic and deeply integrated into most Property Management Systems
Standard Smart Home Package Flexible Options Upgrades Fusion Hub Self-guided Tours Access Control Smart Intercom Managed Wifi and parking Source: Company data as of 9/30/2021 Flexible Product Offering with Expansion Opportunity 6 Honeywell T6 Pro Thermostat Alloy Leak Sensor Alloy Hub Yale YRD256 Lock Schlage BLE LoRa/WiFi Leak Detector Salto BLE Honeywell Wifi Motion Sensor Contact Sensor Smart Plug Switch/Dimmer Video Doorbells Shades Garage Doors Voice Assistants
Community Wifi Building Access Control Pool Access East Building A Access Unit A101 Expires: 08/14/20 2:15pm Hold Phone by Lock Your Passes Profile Activity Passes Front Door Locked Tap to unlock Product Ecosystem Self-Guided Tours Video Intercom Activity Home Security Welcome Home My Devices Thermostat COOL 72-78° Living Room OFF Front Window OPEN 75% Front Door LOCKED Smart Apartments Hello, Jane Your Self-Guided Tour is Ready! 2 BED 2 BATH 2 FLOOR 1,200 SQFT 1234 E. Main St. 323 458 Your Access Code CHECK OUT Launched in 2021 Smart Parking Parking Permit Orchard Valley Vehicle LP Elapsed Time Rate RFV567 $2.00 per hour 45 min Space Number 123 Checked In Start time 3:45pm 7 Proven land-and-expand model that we believe will continue to fuel growth. Every product can be an entry point with switching costs exponentially increasing over time. As we expand, privacy remains a key focus.
SmartRent Delivers Undeniable Value To Owners / Operators Asset Protection Revenue Generation Cost Reduction Operating Expenses 20-30% Savings on utilities, staffing Maximize resident engagement Fully integrated ecosystem Improved building quality Increased asset values 70-90% Decrease in water damage expense Help owners / operators meet decarbonization goals 2,800+ water leaks detected Reduced insurance costs 366K+ MWH electricity saved $25-100/month Rent increase / unit Higher rent Increased resident retention Accelerated leasing velocity Ancillary monetization opportunities 20-50% Decrease in leasing costs Re-leasing costs Resident onboarding / Opportunity costs Customer servicing costs Property Management Systems redundancies 50% Return on investment1 3-year payback period1 1. Company estimate based on customer feedback relating to SmartRent platform performance through 9/30/2021
Near-Term Product Roadmap Ongoing investment in technology for continued leadership Leasing Resident Experience Home IoT Building IoT Lease signing FUTURE Online app FUTURE CRM FUTURE Self-Guided tour CURRENT Payments & WOs FUTURE Marketplace CURRENT WiFi CURRENT Smart Home CURRENT Video & security IN PROGRESS Smart appliances IN PROGRESS Hubless IN PROGRESS Base IoT CURRENT Energy, water, air metering Video intercom CURRENT Parking CURRENT Access control CURRENT CURRENT
Competitive Advantage Flexible Technology Solutions White Glove Implementation Brand Strength Open architecture platform maximizes flexibility and allows for customized solutions Hardware agnostic Deeply integrated into most existing Property Management Systems Customer journey drives design and deployment of our operating platform Retrofit and new build installation capabilities increases TAM while mitigating risk of new construction cyclicality Dedicated installation services, ongoing customer and resident support, enhance customer connectivity Category leader with first mover advantage, switching costs exponentially increase over time Deep industry relationships with largest multifamily & SFR operators, homebuilders and I-buyers that should drive multi-year recurring revenue Partnership with largest and most active VC in prop tech industry Effective technology solutions built by real estate operators
SmartRent’s Product Suite Enhances Sustainability Goals 11 HVAC Control Leak Detection Water Management Waste Monitoring Smart Appliances Smart Lighting Access Control Alloy Access has been developed to offer a seamless, community wide access control experience enhancing safety for residents, site teams, and guests alike. Circadian and scheduled melanopic lighting boosts resident energy, mood, and sleep and reduces unnecessary energy consumption. Remote diagnostics, overflow monitoring, and proactive maintenance reduces the number and magnitude of appliance failures for residents. Streamlined pickup scheduling and fire detection aids residents, while also reducing waste collection routes by 30%-63%, thereby cutting greenhouse gas emissions from trucks. Reduces overall energy consumption by setting limitations on vacant units, controlling ventilation, and providing automated work orders based on temperature and humidity thresholds. Fluid monitoring, leak detection, and shut off controls minimizes water damage and water waste. Data, analytics, and automated work orders assist residents who may not be aware of an issue. Minimizes water damage and water waste with real-time leak alerts. Reduces insurance costs for landlords and helps residents to protect their apartments and belongings. Our platform mitigates risks and positively impacts our clients’ communities, the resident experience, and the environment
Large Addressable Market Opportunity We are initially targeting three large end-markets ~$.03B Annual New Developments ~$80B New Products / Other Asset Classes 1 ~$30B Existing Residential Stock 2 ~$200B Global Expansion Source: NAREIT, John Burns Real Estate Consulting, Statista, company assumptions 1. Assumes 43M multifamily and single family units, 15M of other rental units, commercial real estate opportunity. 2. Assumes 43M multifamily and single family units and ~$700M annual revenue opportunity. 3. 5.3M existing homes sold in 2019 and 682K newly constructed homes sold in 2019 based on U.S. Census Bureau. 28M Institutionally owned multifamily US Units 15M Single Family US Rental Residences 6M Homebuilders / iBuyers annual U.S. homes sold 3
Industry Leaders Have Chosen SmartRent… 15 of the top 20 multifamily owners are SmartRent clients ~3% of addressable multifamily market represented by top 20 owners / operators 1.3M Units owned 43M Units in the U.S.1 …and more of the real estate industry is expected to follow Recognized thought leaders for the rest of the residential industry Source: NMHC, company filings, as of 3/31/2021 Assumes 28M rental apartment units and 15M single family rental residences in the U.S.. 2021 Rank Company Name Units Owned (K) SmartRent Client SmartRent Investor Multifamily 1 MAA 100 ✔ ★ 2 Morgan Properties 91 ✔ 3 Starwood Capital Group 89 ✔ ★ 4 AvalonBay Communities 80 ✔ 5 Equity Residential 79 ✔ ★ 6 Greystar Real Estate Partners 75 ✔ ★ 7 Related Companies 73 ★ 8 Edward Rose Building Enterprise 67 ✔ ★ 9 Monarch Investment & Management Group 63 ✔ 10 The Irvine Company 62 11 Cortland 62 ✔ ★ 12 Essex Property Trust 60 ✔ ★ 13 Nuveen Real Estate 60 ✔ ★ 14 Hunt Companies 58 ✔ ★ 15 Weidner Apartment Homes 57 16 Camden Property Trust 57 17 Lincoln Property Company 53 ✔ ★ 18 The Michaels Organization 53 19 UDR 52 ✔ ★ 20 BH Equities 51 ✔ ★
Units Installed The Next Tier of Owners And Managers Are Choosing SmartRent Too… Source: Company data as of 12/31/2021 Consultative sales team successful in signing smaller, private institutional rental owners – “the long-tail” 14 Customer Gains by Quarter
Organic Revenue Growth From Existing Customers Is Substantial (data as of September 30, 2021) Note: Preliminary estimates 1. Total number of units deployed to date as of 9/30/2021 2. We define Committed Units as both (i) units that are subject to binding purchase orders from customers and (ii) units that existing customers who are parties to a SmartRent master services agreement have informed us (on a non-binding basis) that they intend to order in the future for deployment within two years of the measurement date. 3. Remaining units for existing customers, excluding deployed units and committed units 4. Cancellations comprised of 29 Self-Guided Tour installations – not Core Smart Home product as of 09/30/21 4.1M unit opportunity from existing customers alone 0.01% customer churn since inception 4 80% of ’21-’23 units are Committed Units $84.7M of Deferred Revenues
Largest Multifamily REIT Largest Multifamily REIT Illustrative Sales Cycle and Portfolio Roll Out “And so when we think of SmartRent, using that as the example, over the last year, we put 30,000 units in, we were out in front of the market and what we've seen is that our residents have a smoother experience, our service team members are cutting less keys, and at the end of the day, it really comes down to residents staying with us longer, team members wanting to have a more rewarding job and it's a holistic look at all of those things combined.” Terry Considine – CEO Q3 2019 Earnings Call “To date, we have completed 1,800 home installation with rent premiums..., although there are clearly significant benefits to our controllable expenses as well. An additional $30 million investment in other technologies for the overall operating platform will also occur over the next three years.” Jerry A. Davis - President and COO Q4 2018 Earnings Call $13B Total market capitalization 33K Apartments in 13 states 7th $20B Total market capitalization 51K Apartments in 14 states 5th Source: Company Data, Public Filings 1. AIR (Apartment Income REIT Corp.) was spun-off from Aimco in December 2020. Metrics represent AIR and Aimco combined. Full portfolio rollout September ‘18 UDR pilot Jul ‘18 Aimco pilot May ‘18 Portfolio roll-out soon to exceed 90% Close to full portfolio roll-out Full portfolio rollout December ‘18 Aimco1 UDR 93% 82% 1
Delivered meaningful year over year growth for 4Q and full year 2021 ($ millions except for units deployed and units booked) Recent Units Deployed and Booked Highlights1 Units Deployed Bookings2 Units Booked Source: Company filings & preliminary 2021 estimates 1) Units Deployed, Units Booked and Bookings for 4Q21 and full year 2021 are preliminary and subject to change 2) We define Bookings as the aggregate dollar value associated with binding orders executed during the stated measurement period. Bookings include the value of all hardware, professional services and SmartHubs and the value of the first year of software services included in the signed master service agreements or binding purchase orders, reflecting all discounts. +69% +100% +42% +95% +82% +14%
Capital Allocation $445M1 available for deployment from Fifth Wall merger Research & Development Real Estate vertical expansion International expansion Strategic acquisitions 1. As of 9/30/21, the Company had approximately $473m in cash on its balance sheet Enhance logistics and build inventory Staff to support growth
2021 Business Update1 Revenue $106M to $109M 101% to 108% increase year-over-year New Units Deployed 167K 100% increase year-over-year Units Booked 219K 95% increase year-over-year 1) The preliminary financial information included in this presentation is unaudited and based on currently available information and does not present all necessary information for a complete understanding of SmartRent’s financial condition as of December 31, 2021, or the Company’s results of operations for the three months and year ended December 31, 2021.
APPENDIX
($ millions, as of September 30, 2021) Financial Highlights Total revenue Adj. EBITDA Source: Company filings as of September 30, 2021 (21.4%) (19.3%) Margin Gross profit $35.1 $13.6 $19.2 $21.7 (2.2%) 1.3%
SmartRent Revenue Streams Three revenue streams, initiated by Units Booked and Units Deployed, recognized at differing points of time and for varying duration Recognized when the hardware is shipped Generally deployed the quarter after Booking Hardware Recognized over time as the installations are completed Generally deployed the quarter after Booking Professional Services Recognized over the life of the contract after the unit is Deployed Contract duration typically 5 to 7 years Hosted Services
Definition Of Key Operating Metrics SmartRent regularly monitors a number of operating and financial metrics including the following non-GAAP financial measures which the Company believes are key measures of its growth, to evaluate its operating performance, identify trends affecting its business, formulate business plans, measure its progress and make strategic decisions. The Company’s Key Operating Metrics may not provide accurate predictions of future GAAP financial results. Units Deployed is defined as the aggregate number of the Company’s SmartHubs that have been installed (also including customer self-installations) as of a stated measurement date. The Company uses this operating metric to assess the general health and trajectory of its business growth. New Units Deployed is defined as the aggregate number of SmartHubs that have been installed (also including customer self-installations) during a stated measurement period. The Company uses this operating metric to assess the general health and trajectory of its business growth. Committed Units is defined as the aggregate number of SmartHubs that are subject to binding orders from customers together with units that existing customers who are parties to a SmartRent master services agreement have informed us (on a non-binding basis) that they intend to order in the future for deployment within two years of the measurement date. The Company tracks the number of committed units to assess the general health and trajectory of its business and to assist in its longer-term resource analysis. Units Booked is defined as the aggregate number of SmartHubs associated with binding orders executed during a stated measurement period. The Company utilizes the concept of Units Booked to assist in assessing near-term resource demand and the resulting approximate range of post-delivery revenue that it will earn and record. Units Booked represent binding orders only and accordingly are a subset of Committed Units. Annual Recurring Revenue (“ARR”) is defined as the annualized value of our recurring SaaS revenue earned in the current quarter.
