SmartRent, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue decreasing by approximately 26% to $174.9 million, down from $236.8 million in 2023. This decline was primarily driven by a substantial drop in hardware and professional services revenue, which fell by 40% and 47%, respectively. The company attributed this downturn to a decrease in New Units Deployed, which fell to 89,806 units from 172,495 units in the previous year, as customers deferred capital expenditures amid broader macroeconomic challenges. However, hosted services revenue increased by 14% to $73.2 million, reflecting a 12% rise in the number of active subscriptions.
In terms of profitability, SmartRent reported a net loss of $33.6 million for 2024, slightly improved from a net loss of $34.6 million in 2023. The company’s operating expenses rose by 10% to $102.1 million, largely due to increased general and administrative costs, which included $11.3 million in legal fees and settlements. Despite these challenges, the company maintained a strong cash position, ending the year with $142.5 million in cash and cash equivalents.
Operationally, SmartRent deployed a total of 809,497 units by the end of 2024, representing a 12% increase from the previous year. The company also reported a customer base of over 650, which includes some of the largest multifamily residential owners in the U.S. The company’s annual recurring revenue (ARR) reached approximately $54.4 million, up from $46.2 million in 2023, indicating a positive trend in subscription-based revenue despite the overall revenue decline.
Strategically, SmartRent has focused on enhancing its product offerings and expanding its market presence. The company introduced several new solutions, including Community WiFi and Smart Package Room, aimed at improving operational efficiency and resident satisfaction. Additionally, SmartRent has undergone leadership changes, appointing Michael Shane Paladin as the new CEO in February 2025, following the departure of former CEO Lucas Haldeman. This transition is expected to guide the company through its next growth phase.
Looking ahead, SmartRent anticipates continued investment in research and development to drive innovation and improve its competitive position in the smart home technology market. The company remains committed to expanding its customer base and enhancing its service offerings, although it acknowledges the potential for ongoing challenges related to macroeconomic conditions and market competition.
About SmartRent, Inc.
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