SmartRent, Inc. (NYSE:SMRT) Q3 2023 Earnings Conference Call November 7, 2023 10:30 AM ET

Company Participants

Brian Ruttenbur - Senior Vice President-Investor Relations

Lucas Haldeman - Chairman & Chief Executive Officer

Hiroshi Okamoto - Chief Financial Officer

Conference Call Participants

Nikhil Vijay - KBW

Erik Woodring - Morgan Stanley

Sidney Ho - Deutsche Bank

Brett Knoblauch - Cantor Fitzgerald

Tom White - D.A. Davidson & Co.

Operator

Hello, and welcome to smartrent.com Inc. Conference Call. Please note that this call is being recorded.

I'd now like to hand over to the first speaker for today, Brian Ruttenbur. Please go ahead.

Brian Ruttenbur

Hello, and thank you for joining us today. My name is Brian Ruttenbur, Senior Vice President of Investor Relations for SmartRent. I'm joined today by Lucas Haldeman, Chairman and CEO; and Hiroshi Okamoto, Chief Financial Officer. They will be taking you through our results for the third quarter of 2023, as well as discussing guidance for the fourth quarter of the year. Before today's market opened, we issued an earnings release and filed our 10-Q for the three months ended September 30, 2023 both of which are available on the Investor Relations section of our website, smartrent.com.

Before I turn the call over to Lucas, I’d like to remind everybody that the discussion today may contain forward-looking statements that involve risks and uncertainties. Various factors could cause our actual results to be materially different from any future results expressed or implied by such statements. These factors are discussed in our SEC filings, including our annual report on Form 10-K and our quarterly report on Form 10-Q. We undertake no obligation to provide updates with regard to the forward-looking statements made during this call, and we recommend that all investors review these reports thoroughly before taking a financial position in SmartRent.

During today's call, we will refer to certain non-GAAP financial measures. A discussion of these non-GAAP financial measures along with the reconciliation to the most directly comparable GAAP measure is included in today's earnings release. We would also like to highlight that the third quarter earnings deck is available on the Investor Relations section of the website.

And with that, let me turn the call over to Lucas to review our results.

Lucas Haldeman

Good morning. Thank you for joining our call. We reported a strong first nine months of 2023, marked by nearly 40% improvement in revenue and a decrease in our operating losses by more than $40 million. In the third quarter, we delivered both revenue and adjusted EBITDA within our guidance range. We grew total revenue by 22% year-over-year to more than $58 million and we improved adjusted EBITDA to negative $5 million, an increase of approximately $1.5 million sequentially and $12.6 million from the third quarter of 2022. This quarter marks our sixth consecutive quarter of improved adjusted EBITDA, primarily driven by higher gross margin.