SmartRent Reports Double Digit First Quarter 2021 Revenue Growth
- New Units Deployed in the first quarter were 32,483, up 81% year-over-year
- Total Committed Units of over 600,000 as of end of March 2021
- Total first quarter revenue of $19.2 million, up 16% year-over-year
- Deferred revenue of $64.0 million as of March 31, 2021, up 134% year-over-year
- Launched an exclusive integration with map visualization technology leader Engrain, as well as new product features including Guest Parking, Hubless Credentials and Salto Locks
- Business combination with Fifth Wall Acquisition Corp. I expected to close in the third quarter of 2021
SmartRent.com, Inc. (“SmartRent” or “the Company”), a leading provider of smart home and smart building automation for property owners, managers, developers, homebuilders and residents, which recently announced it will go public through a merger with special purpose acquisition company (“SPAC”) Fifth Wall Acquisition Corp. I (NASDAQ: FWAA) (“FWAA”), reported financial results for the first quarter ended March 31, 2021.
Lucas Haldeman, Founder and CEO of SmartRent, commented, “We had an excellent quarter growing at a rapid pace while staying focused on providing the ultimate smart home experience for our clients and their residents. We remain well positioned for future success as evidenced by the substantial increase in our deferred revenue base, up 134% year-over-year, which we expect will provide a consistent revenue stream moving forward. We deployed more than 32,000 new units, a quarterly record, in the first quarter and are excited to see continued demand momentum in the second quarter.”
Mr. Haldeman, continued, “Excitingly, we announced our business combination with Fifth Wall Acquisition Corp. I, sponsored by Fifth Wall, the world’s largest proptech investor, that will allow us to go public and accelerate the growth of our category-leading smart home technology. Looking ahead, we will continue to capitalize on our enhanced product offerings and industry-leading zero customer churn to further expand our growing base of recurring revenue.”
First Quarter Results
Total revenue increased by $2.6 million, or 16%, to $19.2 million in the first quarter of 2021, from $16.6 million in the first quarter of 2020. The year-over-year increase in revenue resulted primarily from an increased number of active subscriptions for the Company’s software service applications and an increase in the volume of installations of the Company’s smart home hardware devices.
Operating expenses increased by $1.4 million to $8.8 million in the first quarter of 2021 from $7.4 million in the first quarter of 2020, primarily resulting from an increase in research and development expenses related to product portfolio enhancements and sales and marketing expenses resulting primarily from increased personnel-related costs in order to support the growth of the Company’s operations. The Company continues to invest for growth and has increased its total headcount by approximately 100% since the end of March 2020.
Adjusted EBITDA was $(7.9) million in the first quarter of 2021. Net loss was $(9.3) million in the first quarter of 2021.
Total deferred revenue was $64.0 million as of March 31, 2021, up from $53.5 million as of December 31, 2020 and up from $27.4 million as of March 31, 2020.
Key Operating Metrics
- New Units Deployed in the first quarter of 2021 were 32,483, up 81% compared to 17,940 in the prior year period. As of March 31, 2021, SmartRent had a total of 187,588 Units Deployed, up 109% year-over-year.
- Units Booked in the first quarter of 2021 were 45,536, up 101% compared to 22,700 in the prior year period.
- SmartRent’s customers owned an aggregate of 2.9 million rental units and included 15 of the top 20 multifamily residential owners in the United States as of March 31, 2021. To date, the Company has not experienced any customer churn and had 604,478 Committed Units in its near-term pipeline as of March 31, 2021.
- ARR in the first quarter of 2021 was $5.3 million, up 101% compared to $2.7 million in the prior year period.
Recent Business Highlights
- In May, SmartRent announced the launch of an exclusive integration with map visualization technology leader Engrain, to optimize its new parking management solution, Alloy Parking, which uses parking sensors to track vehicles on-site and provide real-time occupancy data, violation alerts and trend reporting. Earlier this year, SmartRent announced a number of new features including the addition of Guest Parking to Alloy Parking and the addition of Hubless Credentials to Alloy Access. The Company also announced the SmartRent platform supports electronic locks from Salto Locks, which provides wire-free bluetooth, low energy solutions that does not require a WiFi connection.
- SmartRent was named a winner in the HousingWire Tech100 Real Estate awards, recognizing the most innovative technology companies serving the mortgage and real estate industries. SmartRent was also named #1 in Growjo’s “100 Fastest Growing Companies in Arizona” Awards for 2021 and the SmartRent Support Team was recognized as a Silver Stevie Winner for Contact Center of the Year within the technology sector.
Transaction with Fifth Wall
On April 22, 2021, SmartRent announced that it will go public in a merger with Fifth Wall Acquisition Corp. I, a special purpose acquisition company, to accelerate the growth of its category-leading smart home technology for the global real estate industry. Following the completion of the transaction, SmartRent expects up to approximately $513 million in cash, including proceeds from an oversubscribed $155 million PIPE anchored by leading real estate companies, SmartRent customers, and institutional investors including Starwood Capital Group, Lennar, Invitation Homes, Koch Real Estate Investments, Baron Capital Group, D1 Capital Partners L.P., Long Pond Capital, LP, and Conversant Capital LLC. The equity value of the combined company is $2.2 billion at the $10.00 per share PIPE subscription price and assuming no redemptions by FWAA’s public shareholders. The transaction is expected to close during the third quarter of 2021, subject to the satisfaction of customary closing conditions, including the approval of shareholders of both parties. Upon closing of the business combination, SmartRent’s current shareholders are expected to own approximately 73% of the pro forma company, which is expected to be listed under the symbol “SMRT”.
About SmartRent
Founded in 2017, SmartRent 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.
