SmartRent Inc (NYSE:SMRT), a provider of smart home solutions for rental housing, has reported robust financial results for the third quarter of 2023. The company's Q3 revenue rose by 22% year-on-year (YoY) to $58.1 million, and gross profit surged over 1,000% YoY to reach $13.5 million. The net loss improved by 70% YoY to $(7.7) million, while Adjusted EBITDA improved by 72% YoY to $(5.0) million.
The firm's cash reserves also increased by $14 million from Q2 2023, totaling $211.0 million. SmartRent deployed over 680,000 rental units during the quarter, achieved a gross margin growth from 2.5% to 23.3%, and reached record highs for hardware and hosted services. This marked the sixth consecutive quarter of improvement in Adjusted EBITDA.
CEO Lucas Haldeman attributed the company's success to its unmatched platform of smart hardware and cloud-based SaaS solutions, which have simplified operations, automated workflows, and created additional revenue opportunities. Haldeman reported nearly 40% revenue growth in the first nine months of 2023 and a decrease in operating losses by over $40 million.
Looking ahead, Haldeman expects positive cash flow from operations within six months and Adjusted EBITDA profitability in Q4 2023. CFO Hiroshi Okamoto confirmed this outlook, stating that the full-year guidance for 2023 was adjusted from $233-$250M to $235-$240M in revenue and to $(20) to $(18) million in Adjusted EBITDA.
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