Why SmartRent Shares Are Down Today

SmartRent SMRT shares are trading lower after the company reported worse-than-expected fourth-quarter earnings and issued soft revenue guidance for first-quarter and FY24.

Revenue rose 49% Y/Y to $60.25 million, beating the consensus of $59.50 million. SaaS revenue increased 43% Y/Y to $11.6 million in the quarter.

As of the end of the year, Units Deployed stood at 719,691. ARR Booked in the quarter exceeded $5 million for the second consecutive quarter and Net Revenue Retention for the year was 105%.

Adjusted EBITDA stood at $0.7 million, the first period of generating a positive Adjusted EBITDA versus a loss of $(14.1) million in the quarter.

EPS of $(0.02) missed the consensus of $(0.01).

As of Dec. 31, 2023, cash, cash equivalents and restricted cash stood at $215.7 million, with no debt and an undrawn credit facility of $75 million.

“We are proud to mark this milestone and look forward to continuing to develop innovative solutions to strengthen our market-leading position as the smart communities and operations provider to the rental housing industry,” SmartRent CEO Lucas Haldeman said.

“In 2024, this includes investing in scaling our Community WiFi capabilities to take advantage of the early-stage multi-billion dollar market opportunity and complement our existing product offerings.”

Buyback: The company announced a $50 million stock repurchase program.

Outlook: For the first quarter, SmartRent expects revenue of $47 million-$53 million (versus estimate of $64.92 million) and adjusted EBITDA of $(1) million to positive $250 thousand.

For FY24, the company projects revenue of $260 million-$290 million (versus estimate of $289.256 million) and adjusted EBITDA of $5 million to $8 million.

SMRT Price Action: SmartRent shares are down 4.84% at $2.75 on the last check Tuesday.

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