SmartRent, Inc. reported significant financial changes in its latest 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a notable decline in total revenue, which amounted to $40.5 million for the third quarter, down 30% from $58.1 million in the same period of 2023. For the nine months, revenue decreased by 21% to $139.5 million from $176.6 million. The primary driver of this decline was a substantial drop in revenue from the Smart Apartments solution, which fell by $17.4 million in Q3 and $38.9 million year-to-date.
Hardware revenue also saw a significant decrease, with Q3 2024 figures at $18.7 million, a 47% drop from $35.6 million in Q3 2023. For the nine months, hardware revenue decreased by 28% to $72.5 million. In contrast, revenue from Hosted Services increased by 12% in Q3 to $18.5 million and by 16% year-to-date to $54.5 million, indicating a shift in revenue generation towards subscription-based services.
Operating expenses rose to $25.2 million in Q3 2024, a 7% increase from the previous year, while total operating expenses for the nine months increased by 13% to $79.0 million. The net loss for Q3 was $9.9 million, compared to $7.7 million in Q3 2023, while the nine-month net loss improved to $22.2 million from $31.3 million in the prior year.
The company’s total current assets decreased to $285.0 million as of September 30, 2024, from $340.3 million at the end of 2023, while total assets fell to $448.6 million from $509.8 million. Stockholders' equity also declined to $305.1 million from $342.4 million, and the accumulated deficit increased to $(331.3 million).
Strategically, SmartRent underwent leadership changes with the departure of CEO Lucas Haldeman on July 29, 2024, and the appointment of Daryl Stemm as Interim Principal Executive Officer. The company has also initiated a stock repurchase program, authorizing up to $50 million in Class A common stock repurchases, with approximately $26.7 million remaining available as of September 30, 2024.
The company continues to focus on enhancing its product offerings, including new solutions for property management and improvements in supply chain management, particularly regarding semiconductor shortages. As of September 30, 2024, SmartRent had deployed 787,038 units, reflecting growth in its customer base despite the revenue challenges.
About SmartRent, Inc.
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