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SmartRent (SMRT)
NYSE:SMRT
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SmartRent
(NYSE:SMRT)
52Neutral
Positive Factors
Financial Stability
The company is well capitalized with $142.5 million in cash and cash equivalents, no debt and an undrawn credit facility of $75 million.
Profitability
Hosted services gross profit rose to $12.5 million from $11.4 million last year, continuing to be the most profitable revenue stream.
SaaS Revenue Growth
SaaS revenue grew by 17% year-over-year, resulting in a record SaaS ARR of $54.4 million.
Negative Factors
Execution Challenges
The company has faced a challenging quarter, due to execution issues and growth challenges as a result of ineffective sales leadership and an overreliance on hardware revenue.
Leadership Uncertainty
The company is in flux as they search for a new CEO.
Revenue Decline
Quarterly revenue totaled $35.4 million, marking a 41% decrease from the previous year, driven by fewer units shipped and new units deployed.
SmartRent (SMRT) vs. S&P 500 (SPY)
Market Cap
$215.83M
Dividend YieldN/A
Average Volume (3M)2.11M
Price to Earnings (P/E)―
Beta (1Y)1.94
Revenue Growth-26.16%
EPS Growth2.89%
CountryUS
Employees494
SectorTechnology
Sector Strength44
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.17
Shares Outstanding192,701,260
10 Day Avg. Volume1,203,350
30 Day Avg. Volume2,111,371
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.29
Price to Cash Flow (P/CF)-4.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.80Price Target Upside48.76% Upside
Rating ConsensusHold
Number of Analyst Covering2
SmartRent Business Overview & Revenue Model
Company DescriptionSmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. Its solution is designed to provide communities with visibility and control their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. The company's products and solutions include smart apartments and homes, access control for buildings, common areas, rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. SmartRent, Inc. was founded in 2017 and is headquartered in Scottsdale, Arizona.
How the Company Makes MoneySmartRent generates revenue through the sale and installation of its smart home devices and services to property owners and managers. The company offers its technology solutions through a combination of hardware sales, software subscriptions, and ongoing service fees. Key revenue streams include the initial sale and installation of smart home products, recurring subscription fees for access to their management platform, and maintenance or service contracts. Strategic partnerships with real estate developers and property management companies also play a significant role in driving sales and expanding market reach. Additionally, SmartRent may derive revenue from data analytics services, providing insights and operational efficiencies to property managers leveraging the data collected from its devices.
SmartRent Financial Statement Overview
Summary
SmartRent shows mixed financial performance. Revenue growth is inconsistent, with a recent decline raising concerns. Despite an improved gross profit margin, the company remains unprofitable. A strong balance sheet with no debt highlights financial stability, but cash flow generation needs improvement for long-term growth.Income Statement
SmartRent has shown fluctuations in revenue over the years, with a significant increase in revenue from 2020 to 2023, but a decline in 2024. The gross profit margin improved considerably in 2024 compared to earlier years, indicating better cost management. However, the company remains unprofitable, with negative EBIT and net income margins, which is a concern. Revenue growth has been inconsistent, posing a challenge for sustained profitability.55
Neutral
Balance Sheet
SmartRent's balance sheet reflects a strong equity position with zero total debt in recent years, which is favorable. The equity ratio has remained robust, showing a strong capital structure. However, the return on equity is negative due to continuous net losses, highlighting inefficient utilization of equity.65
Positive
Cash Flow
The company has struggled to generate positive operating and free cash flows consistently. Despite having substantial cash reserves, the lack of consistent free cash flow is concerning. The positive free cash flow in 2023 is a positive sign but requires sustained improvement.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 174.88M | 236.84M | 167.82M | 110.64M | 52.53M | Gross Profit |
| 60.34M | 49.53M | 1.35M | -10.07M | -4.30M | EBIT |
| -41.77M | -43.16M | -104.25M | -71.65M | -35.72M | EBITDA |
| -41.77M | -37.63M | -96.04M | -71.13M | -35.65M | Net Income Common Stockholders |
| -33.64M | -34.59M | -96.32M | -71.96M | -37.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 142.48M | 215.21M | 210.41M | 430.84M | 38.62M | Total Assets |
| 420.18M | 509.76M | 560.85M | 579.68M | 103.85M | Total Debt |
| 7.02M | 1.31M | 0.00 | 0.00 | 4.82M | Net Debt |
| -135.46M | -215.21M | -210.41M | -430.84M | -33.80M | Total Liabilities |
| 130.74M | 167.31M | 196.65M | 130.18M | 70.67M | Stockholders Equity |
| 289.44M | 342.45M | 364.20M | 449.50M | 33.18M |
| Cash Flow | Free Cash Flow | |||
| -40.51M | 2.21M | -82.15M | -71.85M | -28.79M | Operating Cash Flow |
| -32.91M | 5.98M | -81.04M | -70.38M | -28.49M | Investing Cash Flow |
| -7.60M | -6.02M | -130.79M | -9.37M | -2.68M | Financing Cash Flow |
| -32.96M | -1.91M | -2.80M | 473.93M | 48.22M |
SmartRent Technical Analysis
Neutral
1.21
Price Trends
1.34
Negative
1.51
Negative
1.71
Negative
Market Momentum
-0.05
Negative
47.69
Neutral
44.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMRT, the sentiment is Neutral. The current price of 1.21 is above the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.34, and below the 200-day MA of 1.71, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 44.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMRT.
SmartRent Risk Analysis
SmartRent disclosed 51 risk factors in its most recent earnings report. SmartRent reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SmartRent Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.10B | 15.57 | 14.41% | 2.72% | -13.19% | 10.03% | |
74 Outperform | $2.77B | 24.43 | 17.54% | ― | 6.59% | 53.89% | |
70 Outperform | $54.72B | 134.92 | 27.44% | 1.25% | 8.62% | 163.53% | |
66 Neutral | $2.64B | 25.07 | 3.83% | ― | 8.31% | -49.90% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
52 Neutral | $215.83M | ― | -10.65% | ― | -26.16% | 2.89% | |
43 Neutral | $440.33M | ― | -166.29% | ― | 0.37% | -20.49% |
* Technology Sector Average
Performance Comparison
SMRT
SmartRent
1.21
-1.44
-54.34%
ALRM
Alarm
55.65
-15.51
-21.80%
SENS
Senseonics Holdings
0.66
0.14
26.92%
ADT
Adt
8.14
1.84
29.21%
REZI
Resideo Technologies
17.70
-4.35
-19.73%
CARR
Carrier Global
63.40
6.69
11.80%
SmartRent Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -4.72% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Negative
The earnings call reflected a company in transition, with significant revenue challenges and strategic shifts impacting financial results. However, there were positive developments in SaaS revenue growth and strategic investments in the platform. The sentiment is mixed but leans towards challenges outweighing achievements.Highlights
Increase in SaaS Revenue
SaaS revenue grew 17% year over year in the fourth quarter, with annual recurring revenue (ARR) increasing to $54.4 million from $46.2 million in Q4 2023.
Improved Gross Margin
Gross margin improved to 28.7% in Q4 from 28.2% in the same quarter last year, with a full-year gross margin improvement to 34.5% from 20.9%.
Strategic Investment in SaaS Platform
The company has made strategic investments in its SaaS platform, aiming to drive smart operations revenue growth and enhance the SaaS ARPU, which increased by 3% to $5.68.
Successful Share Repurchase Program
Repurchased approximately 15.2 million shares at an aggregate cost of $28.6 million during 2024, reflecting confidence in the company's long-term value.
Lowlights
Significant Revenue Decline
Total revenue for Q4 was $35.4 million, down 41% from the same quarter prior year, while full-year revenue decreased by 26% from 2023.
Decrease in Hardware Revenue
Hardware revenue decreased to $10.4 million, down 72% from the same quarter last year, due to demand generation issues and extended customer decision-making cycles.
Net Losses Reported
Net loss of $11.4 million for the quarter and $33.6 million for the full year, attributed to declining revenues and strategic shifts.
Challenges with Channel Partner Program
The company faced challenges with its channel partner sales program, leading to reduced visibility and demand generation issues.
Company Guidance
During the SmartRent, Inc. Fourth Quarter 2024 Earnings Call, newly appointed CEO Shane Paladin and CFO Daryl Stemm provided guidance on the company's strategic transformation toward a SaaS-focused business model. They reported a decline in total revenue to $35.4 million for Q4 2024, down 41% from the previous year, primarily due to reduced hardware sales. However, there was a 17% year-over-year growth in SaaS revenue for the fourth quarter, with annual recurring revenue (ARR) rising to $54.4 million. SaaS now accounts for 38% of the total revenue, up from 19% in the prior year. The company plans to focus on enhancing its SaaS platform and operational excellence, aiming to improve gross margins, which increased to 28.7% in Q4. They also highlighted a $50 million share repurchase program, with $21.6 million remaining, and ended the quarter with a cash balance of $143 million. Looking forward, SmartRent aims to expand its market reach, particularly among mid-market owners, and optimize cost structures to support SaaS growth, while closely monitoring external factors like tariff policy changes that could impact the hardware supply chain.SmartRent Corporate Events
Business Operations and StrategyFinancial Disclosures
SmartRent Reports Q4 2024 Financial Results
Neutral
Mar 5, 2025
On March 5, 2025, SmartRent reported its financial results for the fourth quarter and full year of 2024, highlighting a 17% increase in SaaS revenue for the quarter despite a 41% decline in total revenue due to reduced hardware sales. The company is undergoing a strategic transformation to focus more on its SaaS offerings, with new leadership and restructuring efforts aimed at long-term growth and operational excellence.
Executive/Board ChangesBusiness Operations and Strategy
SmartRent Appoints Ana Pinczuk to Board of Directors
Positive
Feb 3, 2025
On January 30, 2025, SmartRent appointed Ana Pinczuk to its Board of Directors as a Class III director, serving until the 2027 annual meeting of stockholders and as a member of the Compensation and Nominating and Corporate Governance Committees. This strategic move leverages Pinczuk’s extensive experience in technology leadership to drive SmartRent’s market expansion and enhance value for customers, partners, and shareholders.
Executive/Board ChangesBusiness Operations and Strategy
SmartRent Appoints New CEO and Enhances Incentives
Positive
Jan 27, 2025
SmartRent announced the appointment of Michael Shane Paladin as President and CEO effective February 24, 2025, replacing Daryl Stemm who will continue as CFO. Paladin, with extensive experience in SaaS and enterprise software, is expected to drive growth and innovation in the rental housing industry. Additionally, SmartRent amended executive employment agreements to enhance severance benefits and adopted the 2025 Inducement Equity Incentive Plan, reserving 6.5 million shares to attract new talent.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.