SmartRent Q2 Earnings Call Highlights

SmartRent NYSE: SMRT reported second-quarter results marked by accelerating core revenue growth, higher recurring software revenue and expanded margins, as the smart-home technology provider continued to execute its Vision 2028 strategy. President and Chief Executive Officer Frank Martell said the company’s plan is centered on expanding its installed base, scaling its go-to-market organization, developing data, analytics and artificial intelligence capabilities, simplifying hardware and improving operating discipline. “By almost every measure, SmartRent delivered strong progress in the second quarter,” Martell said, pointing to growth in bookings, installed units, annual recurring revenue and profitability. Revenue Mix Shifts Toward SaaS and Services Total revenue was $40 million, up 4% from the year-earlier period. Core revenue, which excludes non-cash hub amortization and which management said better represents underlying business volume, rose 14% to $38 million. Martell said it was the company’s highest quarterly core-revenue growth rate in more than two years. SaaS revenue increased 13% to $16 million and represented more than 40% of total revenue. Annual recurring revenue rose to approximately $65 million from $57 million a year earlier, driven by the expansion of the company’s installed base and increased adoption of access-control and self-guided-tour products. Hardware revenue declined 10% to $14 million. Meanwhile, professional services revenue doubled to $9 million, reflecting greater hardware-refresh installation activity and higher access-control volume, according to Chief Financial Officer Daryl Stemm. Stemm said SmartRent is evolving into a “full-cycle, hardware-enabled technology company,” with revenue increasingly supported not only by new deployments but also by hardware refreshes, subscription renewals and add-on solutions. Because individual products have different equipment, installation and average-revenue-per-unit characteristics, the company expects booking and ARPU mixes to fluctuate. Total revenue: $40 million, up 4% Core revenue: $38 million, up 14% SaaS revenue: $16 million, up 13% Annual recurring revenue: approximately $65 million Professional services revenue: $9 million, up 100% Bookings and Installed Base Continue to Grow SmartRent booked more than 48,000 units during the quarter. On a trailing 12-month basis, units booked increased 40% to approximately 112,000, compared with 80,000 in the comparable period a year earlier. The company’s installed Internet of Things footprint grew 10% to nearly 930,000 units. Martell said the pace of orders supports SmartRent’s objective of surpassing 1 million installed units in the f...