SmartRent Q3 revenue tops estimates on hardware shipments
SMRT•SmartRent's Q3 revenue rose 15% year over year to $41.6 million, beating the $40.06 million estimate, and adjusted EBITDA turned positive, improving by $4 million from a year earlier. The company expects Q4 revenue growth of 15% to 20%.
1. Revenue and drivers
SmartRent reported Q3 revenue of $41.6 million, up 15% year over year and above the $40.06 million analyst estimate. Core revenue grew 24%, driven by higher access control revenue, equipment upgrades, hardware shipments and a larger installed base. Access control revenue grew 171%, including 242% growth in hardware.
2. Profitability and outlook
Adjusted EBITDA turned positive, improving by $4 million from the prior year. Gross margin improved with cost reductions, operating discipline and higher SaaS revenue. SmartRent repurchased 2.5 million shares, or 1% of shares outstanding, and expects Q4 total revenue growth of 15% to 20%, core revenue growth of 20% to 25%, and adjusted EBITDA growth of 450% to 650% year over year.
