SmartRent Q3 revenue tops estimates on hardware shipments 

Overview

• US building intelligence provider's Q3 revenue rose 15% yr/yr, beating analyst expectations

• Adjusted EBITDA turned positive, improving by $4 mln from prior year

• Company repurchased 2.5 mln shares, or 1% of shares outstanding

Outlook

• SmartRent sees Q4 total revenue growing 15% to 20% year-over-year

• Company expects Q4 core revenue growth of 20% to 25% from prior year

• SmartRent projects Q4 adjusted EBITDA growth of 450% to 650% year-over-year

Result Drivers

• CORE REVENUE GROWTH - Co said higher access control revenues, equipment upgrades, hardware shipments and a larger installed base drove 24% core revenue growth

• ACCESS CONTROL DEMAND - Revenue from access control solutions rose sharply, with 171% overall growth and 242% growth in hardware

• MARGIN EXPANSION - Gross margin improved due to cost reduction efforts, operating discipline and higher SaaS revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the integrated hardware & software peer group is "buy."

• Wall Street's median 12-month price target for SmartRent Inc is $1.50, about 9.5% above its November 3 closing price of $1.37

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)