SMRT - Earnings call transcript Q1 2022

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Operator

Good evening and welcome to the SmartRent Inc.

First Quarter 2022 Earnings Call. at this time, all participants are in listen-only mode. A question-and-answer session will follow management's presentation.

As a reminder this conference call is being recorded. to Senior call Relations. Vice like host to now Infurna, Evelyn President would turn over the your I of Investor you, begin. may Evelyn, Thank you

Evelyn Infurna

Thank will our earnings first on close, release recently guidance as joining Chief Financial the for you quarter. Chairman and the we with quarter for CEO; from issued market you appointed XXst, our which you. an me Relations filed XXXX through are both as Lucas results and and well Okamoto, of today. taking Haldeman March and for Hiroshi and Officer Hello everyone be of After us second thank smartrent.com. XX-Q our our of today's section website XXXX, are Investor available our

the remind to over our like that may call existing our discussion and today plans may and I'd Lucas, statements the SightPlan, operational product plans expansion everyone plans execute enhancements, to including statements forward-looking, and the concerning our turn related our regarding benefits portfolio, statements to expected contain to our be on expectations financial prospects. Before to ability regarding business strategy, that I growth of other including acquisitions acquire metrics, opportunities, key acquisition maintain our strategic results, of customers, and new considered

identified to be forward-looking our any undertake any not only should not view as Forward-looking revise views we update expect, May such statements reflect XXXX date. similar or any our often words and subsequent statements we are do or as as of with These obligation anticipate, we statements. We expressions. believe, considered XXth, of today

of the and subject guarantees expectations. to of materially actual uncertainties from to promises that not a performance future are cause or and statements differ our results could are risks variety Forward-looking

report along our Form our For a SEC and annual on and X-K filed those quarterly XXth, our XXXX Form with the XX-Q on contained could risks report in material release important results, with and most affect with other recent on Form the discussion SEC on XX-K March earnings refer that please actual today. to filed factors of report current

are Relations website All publicly on at at which of on of the the section SEC's smartrent.com sec.gov. our available website and Investor

call, of financial non-GAAP to refer certain financial let non-GAAP during And measures these that, included to today's earnings our comparable a the is to discussion release. the reconciliation Lucas with most A along measures. will call over we results with in Finally, GAAP measure Lucas? me turn today's directly review to

Lucas Haldeman

interest for thank to investors support continued and and SmartRent. Evelyn your the you, you in the call Thank analysts and on

focused results record above the of quarter. We share execution guidance are booked record for on laid million, first with productive to strong XXXX our second continued our units indicating SmartRent groundwork tailwinds and market and quarter excited the to $XX.X had We translated from quarter an extremely revenue XXXX. and focus quarter. in share. our expansion outlook into This of momentum our the second started

units expanded over deployed guidance base by customers. year-over-year to our of the also XX% customer of deployed our end XX,XXX We ahead and XXX top units,

acquiring of in management step SightPlan, software. strategic multifamily the made a we addition, In leader workflow

on from XXX% now positioned units have deployed for further are over our our we up platform, only apart of level expectations to the SmartRent already, XXXX. experiencing, estate which sets our that anticipate combination, will from XXX,XXX We powerful has we total Our the another real build. even and year. believe in quarter platforms of demand first strong SmartRent first exceeds enterprise quarter the other continue progress We

on health as key committed and and units performance assessment year-over-year. are of business provide or year our and bookings booked a XXX X.X our dollar customers Our increase guide, own an XX% value Using our basis. units million units, unit ago a and metrics the a a control XX% from trajectory up of XXX,XXX

For units booked, the units over to setting units company a a delivered XX,XXX growth record XX,XXX quarter, of our first compared sales XXX% year in team ago.

value Our bookings, units in a of discounts booked estimate the with typically and for which well convert executed the purchase is dollar aggregate quarter. services reflect included of The revenue, the value, the of of net purchase provides by dollar by dollar signed represented booked. any including booked, the order. software as value units associated master units SmartHubs live to binding a near-term generated deployed agreement in first as services, the period hardware the during professional orders subsequent potential or Bookings of year services, all units

in XX% approximately, its late our ARR remainder on forecast of an growth $XX The for million XXXX in SightPlan for million bookings these of to translates March, annual was in the of the for rate bookings, SaaS increase booked million. This of compound generated SmartRent SightPlan's XXXX. ARR believe year. since there team XXXX. of all as for last time and customers. million the metrics million approximately us quarter a the across of sales On XXXX. unit a revenue, to market bookings dollar with $X.X and customers, At units acquisition per the value This The $XX along of to as our potential integrated respectively. $X.XX product expectations, in $X.XX in the is quarter, that basis, to year average the first and the $XX.X compared SightPlan fourth upon revenue through the totaled fully We SaaS for begins was to For compared totaled platform. $XX million suites, the formation $X.X enterprise of quarter new $X.XX, end and same quarter, combined to the SaaS the first our initial ARPU IoT its SightPlan favorably as is compares XXX overall new first improve

another Our organic of longer-term is Units, our operating indicator key Committed of growth metrics.

XX XXXX, XXX,XXX Units of Units of March XX% quarter up XXX,XXX Committed end at of totaled first from As Committed the the XXXX.

a of number orders, the master be deployed SmartHubs agreement aggregate to years. represent to the within services that expected Units that are under Committed are with reminder, binding next two purchase units subject a As together

offering of real X.X the new units, enterprise out estate platform. for a application rolling and order products, will SightPlan investment. enterprise deployed portfolios. information incremental SightPlan also in larger more is real number is rollouts with features million to future online customer and with these They coming these unit-pipeline. additional the through quarters. our road XXX,XXX Like work sharing to forward in look robust We The products. implementing its engagement, estate property audit an compelling an currently and These supply can across subject we way significantly us about Our are app, approximately solutions addition in our features believe even managed. new platform opportunity value occur opportunity prospects And is relatively properties is our are and acquisition that resident SightPlan, operated that are There developing headwinds. the initiatives applications. combined advance quickly. product while CRM believe vast, since to by the add chain deployment resident that enterprise improve and the is works estate our inspection We platform real this its of will not the software, the suite more significantly SmartRent, specifically to map enhancing product affords are a SightPlan and to of constantly unified

who asset acquired that to leases efficiencies, and which economic will our This satisfied in all-cash value also for $XXX their transaction. residents more important, We are in the all renew customers, are million, backdrop. experience resident be enhanced. for greatly increasingly the translates believe We likely increased current of to an operating SightPlan

of cash million XX our of revolving of line had on we XXXX, our $XXX and sheet March approximately As to credit. full access $XX million balance

macro our ability new long or our ability in units. The gains volatile property to XXX key customers We deliver the over the our what our tail, have continue we're in as, liquidity maximizing confident, I been large line our control confidence initiatives. first the be attract position to the pleased own well footprint from growth us to In will gives focused of disciplined acquisitions arguably increasingly growth, the advance our We rollout an our on and ability our owners recent the We're environment, platform as, come to been organic top integrating majority our accomplished customers, supports throughout our testimony and our will over our The quarter expectations. that is last estate am deployed on million and with by solutions our metrics. portfolio with XXXX, the of has that well as our collectively of that and current units use deal capital. years. real remain enterprise continuing of on in across X.X harvesting managers our value on internal returns delivers. several and great legacy to as in growth, making performance a

our quarter executive the team During the further executive our this of their Officer. Robyn Financial grown. contributions. Hiroshi forward newest members evolved Chief time, and depth Hiroshi Young, has welcome experience and we strengthen our that brings After Okamoto, our fresh Officer; Marketing will we Chief of and and Robyn team to and SmartRent look end, perspective team,

Robyn, today's two call, going saying future financial endeavors. not was listing structuring ensure that outgoing Jon to will through CFO. smooth role played We we the a continue Jon with to But With last in the our great we process. transition. instrumental As on over him discuss welcome us Jon to Wolter, Jon's and Hiroshi we're results. wish a Hiroshi processes his will and this appreciate critical procedures over to our in turn our also and end the and call participating he to financial service the be as farewell he success and you navigated thank years month to of work I'm

and update questions. before remarks, Hiroshi? outlook supply call on for share our the will Hiroshi's I chain Following operational opening the an

Hiroshi Okamoto

for coming to and our analysts be and and team you, months. SmartRent and I joining look investors am Lucas all forward weeks on over the excited thank Thank you the today. to meeting

nine recurring from experienced operational in execution million, the growth $XXX,XXX the SmartRent, Notably, $XX.X of to included deployments quarter in quarter attributable of growth a revenue with number subscriptions, our for revenue to volume from the and SightPlan. let's to days strong home a the in compared the in the in number in contributions March. turn in of and we contribution $X.X of hardware iQuue $XX.X Now smart year-over-year which from contribution XXX% million SightPlan and full financials. quarter of software reflects of This increased financial devices was increased for SmartRent's the which iQuue of of million first quarter XXXX. SaaS $XXX,XXX the Total and to increase $X.X to a from as first XX% our our first million, records. revenue resulted

from and a revenue primarily QX quarter from by significantly SaaS to deployment expect of new grow contribution in full driven operations. We growth, organic the units SightPlan's from of both

Lucas customer to contributions per quarter for was in of noted products, XX% SightPlan the compared from to we contribute our of driven current opting for service SaaS first SaaS of SightPlan iQuue as and earlier, quarter an that we $XX will the the operation in our which approximately the our of the customers, recurring XXXX. unit in more increased as by million services in ARPU to XXXX. for believe hosted $X.XX million of base first the value of As improvement million ARR, to expanding pricing $XX.X revenue legacy quarter SaaS The the month $X.XX upselling annualized per in quarter our XXXX. as SaaS improved define $X.X compared subscriptions. revenue primarily and first was ARPU Posted

increased Cost XXXX. now deployments, quarter first to of team the quarter the for professional increased related impact costs number The scaling $XX.X year-over-year up $XX.X contract of was in million labor. Moving our change expenses. from to the third-party first reflects the services and revenue of million,

gross While services increases. improvement professional margin, time to margin the services professional over continues anticipate incremental the as team our in our our growth pressure volume of deployment we

increases We across trained our margin we from positively our realize efficiencies our incorporate respond believe in-house into gross operating standard fully As all tools procedures. streams. to three seasoned team revenue we of and should that a productivity price and as

reflecting with being call, transaction margin The for associated As attributable of or our as to quarter to is to the G&A. first $XX.X incremental we units. expenses Net quarter $X.X the new for costs year seeing quarter as EBITDA the public loss shared the $XX.X pricing the of for half our estate first increase year-over-year million QX deployed in and to as of anticipate bookings the quarter for The of well corporate in reflects related were Operating second and the approximately to our a to to in year. first for our the million for company from enterprise was as response compared for in $XX.X million investment in quarter. compared demand first quarter converted increase loss prior to million the growth XXXX. platform second as million on we acquisitions fourth costs the improvement included primarily team the net XXXX as compared quarter the our of real approximately million infrastructure of first quarter of $X.X $XX.X loss first Adjusted $X.X compared the was million XXXX. sequential loss and the

move let's to on the Now balance sheet.

quarter million the first increased XXXX. provides near to XX, deferred million revenue, March us of XX revenue from at visibility March $XX XXXX $XXX.X SmartRent's total of of which end medium-term of As the as with and XXXX

total We available liquidity our $XXX expect capital months. XX, with that, respect to growth next organic outstanding provides the had revenue March XX no sufficient XX% advance deferred our as to and cash and to XXXX approximately debt. us liquidity position plans. within million of our of recognize believe capital our With We SmartRent of approximately

exercise Lucas? of on business As back capital additional quarter the maximizing of Lucas and to liquidity. are the the and the SightPlan call discipline we to second will balance benefits our of I while perspective the investment, our earlier, Lucas turn for our mentioned to our on and with outlook focused for XXXX. and respect integration continuing

Lucas Haldeman

gains Thank you in footprint. its to continues make steady Hiroshi. expanding SmartRent

went we expect our acceleration two and next quarters deployments for in supply see customer smoothly notwithstanding. chain to new the quarter headwinds seasonal first a Our deployments

our took possession continuing warehouse sheet our April. of to We are our reflected balance home increase core on-hand XXXXX on the devices, square inventory of smart and increase in expanded in foot

That in deployments that seeing improved later Alloy which should component include, the Alloy access this availability allow set on-hold highly work the to for smart Access. year, us are to Access will of access control. We improve after parts devices through

keep We our work with components and continued said, situation and closely deployments schedule. remains to to We're carefully on our to fluid. navigating necessary to access facilitate suppliers With that the devices conditions. competitive ability market pleased supply positioning to proactively our our we chain excited to responding changing operations rapidly increase continue headwinds, share. our with and scale are to and Despite our about

enterprise and we are shared for expectations. seeing real platform build continues our earlier, I to demand our estate As the exceed

set pace remain of limits However, on a governor deployments. of products access the full to hardware our on the

to to discussing moving I'd outlook the Before on for for our quarter margins first second our like minutes quarter. spend a the few

impacted as adversely call. was the our customer in margin and as swapping hardware mix Fusion Hub discussed that we Our the by by well Alloy year-end of

first of as the addition customer with for units a were believe pricing an customers legacy quarter. legacy driven and With additional preferential Hub heavily implemented in margin higher towards deployment. hardware quarter to our deployed In of on year in amount bookings. work we services We similar hardware through the updated anticipate reflecting to swap professional drag our anticipate improvement quarter second We pricing. half weighted will the the second margin the improved in in primarily respect the second third a be quarters the in of volume margins by first we

acquisitions. hosted Our a margin revenue from by contribution iQuue year-over-year increased quarter and first was of SightPlan for the XX% and our quarter primarily sequential services basis the SaaS expanding driven on

services to total the take of business of SaaS carefully perspective, the units We recent perspective our hold of contribution the an build-out From synergies. members SightPlan further hiring our meet and potential margins a from from are completed new increased Hiroshi welcome SightPlan. also our expect and the as the organizational believe Robyn XXXX product well-positioned have remainder team anticipate the and and SaaS from deployed with executive takes hosted for we to people and improvement to as deployments for for we believe our will of combined XXXX. are XX integrating we remainder objectives. pricing of pleased margin team revenue we advantage We in our both and We team bookings as benefit grow

bear road from of as and and three bookings. are record quarter there our is as by quarter remainder executive our takeaways advance our our guidance, key Demand team record to and XXXX revenue the offering turning is the and place experienced full plan the the for team expected to revenue and unchanged. acquisition arena. successes SightPlan for addition in in has this accelerated we the enterprise strong and of technology our to the leader Before our evidenced year. market of are we platform members quarter-to-date million map guidance real influence $XX that product product this breadth our ensure With built-out advance have a the and repeating. XXXX headwinds The we SightPlan of SaaS estate the to first leaving add fully ability year our outlook The and business

are total which $XX,XXX $XX units seasonal our second the $XX and headwinds. For guidance of potential assessment our we revenue deployed million chain of $XX,XXX, to and reflects million quarter, and between supply current deployment increase guidance providing

please guidance began solid as for or the consider year strong Our a markets acquisitions our contribution open SaaS anticipate for footing did business questions. and not from executing ahead, we a against the quarter we additional expectations SightPlan includes our on and the continue for XXXX We activities. capital call plan. second Operator,

Operator

Instructions] Sachs. be question Thank Please first you. a At from Goldman this ahead. Hall go Our is conducting Rod time, session. question-and-answer we [Operator of will

Unidentified Analyst

on Rod. taking [ph] Max you Thank for Yes. This for is Cameron our questions.

should more it of of wondering your to then I'm regard about fiscal could this end in on you for expected And you than of on for have year better the the in we then guidance did in customers, First the reiterated quarter? timing I high think deployed elaborate what And deployments demand a your just Thank exceed you a of new be see helped is the be deployed follow-up. if question would you. XXXX? how unit QX? units. guidance factor or And

Lucas Haldeman

Max get at than we originally Okay. for additional a were it's anticipated. how QX we to top Yes, question. we Thanks little able supply in end. the the in That's Lucas. came

quarter demand of remains is that strong. reiterating is headwinds. what finding it we're So supply -- kind And the like again last incredibly just

get minus and more that's And It's originally we plus there. get or than demand really able the around So in. customers hardware we can it anticipated. to isn't we're

Unidentified Analyst

Got expected your incorporated, or in guidance XXXX guidance, QX end in it. supply guess, supply that you more do And that given be this it's recent the those you're seeing? is would I than conservative better think -- on trends

Lucas Haldeman

No.

think we gave beat that of I high because the guidance think, because in delta that -- I chain. a of broad we have of there a and Max, range low supply

So kind And fluid chain. I we It's with good of guidance. seen a know reiterating about is and of I've reports feel other supply still situation. in water still choppy analysts some everyone dealing other the our

we're feeling optimistic, is think a still I all So but day dog fight. cautiously every

Unidentified Analyst

to expenses? low and range you us with what And gross factors believe the for I range but high you. you EBITDA? of about you EBITDA operating end you at wondering guidance of minus Got it. on one higher the end the time question. professional on year those your of more of million and there? walk the Thank we more Lucas. implies for one you remainder this $XX how talked the get Yes. consider get I guess, the And your the midpoint for plan margins your call, the for for up throughout guidance. then Thanks just negative year should if adjusted confirming about adjusted year, end through there could at versus the the Do services especially

Lucas Haldeman

Yes.

see really so and about of the down in lot that moving I with Also, that start talked quarter, and feel of you're come effect, put our QX new to we see that's a we're pricing into some you'll deployments confident -- going that's -- to it to to really we of last see guidance. second this high we XXXX, and higher half going why QX where and season think comes for we're that. in

Unidentified Analyst

Got it. so Thank you much.

Lucas Haldeman

Max. Thanks,

Operator

is ahead. Tom Davidson. question of from White go next Please Our D.A.

Tom White

of ARPU update some Great. commercial evening. that customers Thanks you most that on Is just there channel different and guys. mostly still comments of color in the prepared for being to to the I of how guys of there was kind be would new customers. Good kind hoping SaaS you kind difference longer partners One of Lucas, newer bookings you look guys helpful. where kind might your look impact I could. leverage Is your pressure? then there? you ambitions of overall Two Any pricing kind versus of of have and of something tail there the an about the after remarks And whether space could market? in might to kind go get Thanks. result

Lucas Haldeman

Yes.

it that first commitments. the customer long-tail legacy is pricing not On Tom, the really bulk on right, subject you're and ARPU, large yes, side, expanded large to that is that

clarity So give Evelyn of becoming on at. that commercial team sales invested we've deals sharing you're always in that higher terms to in new looking that's in but something of not some productive only we're deals. expansion, metric is why And new we're ARPU it's this try is that to

channel our on units it customers right through partner. -- that be But a likely think really that's I focused say the we're you're just and are more million own today multifamily current would operate. to X.X

we like go for So there to organic is the the that's us focus. feel growth primary harvest really and

Tom White

execution nice guys. this quarter Good. And Thanks for color.

Lucas Haldeman

Tom. Thanks

Operator

question Ryan next Please go of KBW. Our from is Tomasello ahead.

Ryan Tomasello

to just questions. nice $X pricing ARPU larger Hi, the how Is guess for appreciate And I those the legacy to disclosure. the quantify taking up you on Thanks customers typical alluded that like for you are discounts and other for new customers it Really and everyone. questions already possible large new the above any following the clients' the received. clients? discounts see drive larger on the uplift hardware maybe services you appetite business? that that's time? sense place on to attach color these finally both level quantify just the if you stronger Thanks. really then additional software in of pricing that over ARPU the beyond legacy can of expecting you're of piece your and And put and to there

Lucas Haldeman

start I'll and We're legacy Access. we in Thanks around Yeah. customers fighting your I still chain questions. of work Alloy amongst the way incredible the backwards terms customers. demand last my with larger adding supply Ryan. to products part mean legacy larger have

so lot actually of And a that is hold. on

if expansion So a would see every if -- -- perfect there's certainly supply large actually least ratio, product already that customer that But one at is happening. you taking additional legacy market not legacy more. have we've brought to

And trend actually so It I think the we're into seeing we a until deploy. flow there. won't really positive financials go can

I services that's the contracts of by that specific so professional overall on to increase terms price one-size-fits-all some is sort across but customers. you can the And price increase really professional those of the increase the seeing into then And our that an on in a of XXX both XXX, And really into of why going put just reworking two without there. numbers disclosing we And the detail place the see really you're services lots ARPU software, wasn't versus board. of for hardware from delta and variance. so think options

tiers better for characteristics margin So us. installation, have all seven different of

but see even and the cases incurring will an of you'll So maybe as flatter won't our down, customers go cost either. cost increase in be deployment. much have won't some It in we stay

through. for flowing to see really in into before half we that XXXX that time I about the flow will we're So But really take think really of that. it second again excited

Ryan Tomasello

breakeven you discuss your there framework year I the -- count point -- unit Got on for of that? the front, there next willing to maybe visibility guess of drive that count that in sometime provide time you ARR for adjusted flow today live it. any bridging you a EBITDA? would could profitability that that line maybe cash is be a path maybe unit that to or have And would is breakeven And level terms

Lucas Haldeman

that providing just We're revenue feel that track. where of to EBITDA hardware we we're it's services Yeah. that in mean EBITDA along not we're on we counts that. feel that, SaaS certainly into positive increasing a I adjusted -- unit but revenue on are XXXX. cross And detailed on with combination definitely guidance professional the and reiterating we with along the and expanding comes track

Ryan Tomasello

XXXX, to across full certain quarter? breakeven on clarify you the or basis just intra-year say in you year do on And EBITDA when a mean a

Lucas Haldeman

Yeah, it's good question. a

in anticipating for really So year. EBITDA into not communicating full intra year adjusted We're year a XXXX. make an it's I XXXX want to that year positive that intra positive but we sure clear adjusted EBITDA move we're will in

Ryan Tomasello

Great. Thanks for clarifying.

Lucas Haldeman

Ryan. Thanks Yeah.

Operator

question next from ahead. Bank. Deutsche Our Sidney Ho Please of go is

Sidney Ho

of for taking Thanks my them. A couple question. Great.

there's a guys understand On can X.X compared the of guidance. then we million a things terms your months just your the perspective trajectory or curious first has constraints. deploy since in there the changed know for revenue macro but the lot even spending, you happening. level. guide you original reaffirm changes number in one, I ARPU the anything thinking But moving you're to are talk different of the if can of units about guidance million revenue consumer mix, in $XXX I parts a of of there's ago? lot to of expectations year, $XXX lot from product supply at maybe But inflation, demand there's March

Lucas Haldeman

No. I report full rather our did mean the year. Sidney question to good you. and We for thanks to QX on our talk late and just

chain -- that So year account that supply no count are laid When for the we out point. took into the experiencing. we headwinds the full of nothing's we XXXX, we're really since revised unit changed

feel a actually complexity. see our inflation demand to kicking continuing reduce see And of for we in. we cost business. our for business And positive terms and our is tighter reduce like factored catalysts customers, so And are that in increase. helping I it's Those terms -- demand, those think market we in and in labor happening are especially with we the thing only those of indicators are as

we're anything on and we've And about good fighting guidance And track. feel again that's supply if we're so we're seeing we chain growing issued like we the where demand that the feel headwinds. and

Sidney Ho

That's guys I Okay. to booking be but number are -- so delivering right despite just the old document, is we in in year? think think to what And you in the it's you think growing year know chain the unit about that to going through may you the the past? guys the rest the supply a units seasonality issues XXX% past, as than about of the one is XXXX. bookings still in we thinking helpful. Is still area in be you should consistently this about the an how be books Maybe that compared go you about And do that this follow-up on to the unit all seem the year-over-year it? way booking S-X for talked spoke. there

Lucas Haldeman

a budgets Yeah. seasonality. a don't We bit typically seasonality terms little see question. of of a in multifamily. of QX in we We QX in set see good It's lot late early

the And we'll is a see really be sort demand there. so bump you're so sometimes seasonality is what seeing But we'd that muting any seeing. at great of

our seeing sort long-term I for really like We're as number good remain what Those you're bookings highest going be sort ever constraints And incredibly to the to right Sidney seen chain bookings. we're new in seeing this But to through all of And of and positive the existence is we've work -- future. are the goes we all positive. that's a feel demand in yeah, platform. still way I of coming demand. customers in that key we We're of supply harvesting product is bookings strong mean company. indicators. think to the the incredibly to So the this indicators near-term me the this strong incredibly macro

Sidney Ho

Thank you. Great. Okay.

Operator

of Please go Woodring question Erik ahead. is Stanley. next from Morgan Our

Unidentified Analyst

This you did regards you of quarter, which the off committed customers, in similar new by Patrick in made XX strong Erik. Kind for XX,XXX to customers of our to last going is XXX,XXX on math, units kind XQ. new comment from in the add but to fell new was XQ, first

challenging? seeing commit are question units any you from the rising getting new here to more the and So rates owners to hesitation macro with is, property

Lucas Haldeman

unit that to it No, the of of factor revenue any comes out we're And also becomes we -- and in when of not seeing out committed Units install producing. you that. have Committed remember

you factor if as that got about to think that in so well. And you

really -- seen or strong hitting we're with a single demand. slowing off I We've customer all. where it no, we've we So where see at no pots, one on and had been to haven't not happy down continue backing

Unidentified Analyst

to good know. another And on kind of then here. subject That's

comments, your top over For maybe members next of executive choose them CFO you of and some so? some new each you team just what CMO. and talk you obviously the to Could drove months the priorities have about the XX leader for or adding

Lucas Haldeman

it's the a Chief executive be have the continued spent XX good think and side, And definitely reasons. be we I through a I to Marketing to was couldn't the finding strategy think out have first great I variety Robyn on I next that. for and And a thought CFO. company Chief is built a had see as of team focus full pricing we'll a on time of this the pricing Officer the Yeah. perfect months. Hiroshi Officer. happier going we've Marketing the over the the forward team mean what We time joining amount

And think you'll more be so see marketplace in I us the active promotional. more much and

Unidentified Analyst

Great. the and you quarter. congrats Thank on

Lucas Haldeman

Thanks Patrick.

Operator

of from Fitzgerald. Ben next Sherlund Our question Instructions] go is [Operator Please ahead. Cantor

Ben Sherlund

Thanks for taking guys. my Hey questions.

once there of than in think go can any the inventory other getting pace comes there mix we to here deployment offer the once about stock? hardware is to of should the bottlenecks appointment how bookings of an targeting any the you Is back? ready that road? So fulfilling backlog sense, on inventory versus kind are down Are

Lucas Haldeman

for thanks Ben, question. Hi the Yes.

So, contracts. fulfill It's as we've that able a of of our to sure we a we're lot this too sort new on of lot clear access customer of trouble control and supply is SKUs we're the we're hardware mean talked want make or -- sets. good I of margin, before about specific have having the semi-custom specific around around on to lock which some around especially a I products and where was

go lags true. deployment. lot the and feel new a about headwinds. number to them aren't we that able ahead our are bookings to really And supply and good actually about that's that. fulfill share quarter bookings of We're a subject so, that still coming And Typically, in to chain

no -- to forward still move issues. be different supplier. they're chain at see And it's of into not at supply certainly and year, they're looking in to a well earlier QX. just because than is, going a we a delayed first quarter the or going may delay. but that, other go We've quarter, one excited Sometimes maybe in one to I is It bit a some think QX great little deployments is had we're no you to the longer thing say those

And really so, to overall positive. me that's

Ben Sherlund

Okay. Yes.

XXX,XXX rather SKUs them And Units you guess bookings. of there I of specific if you percentage Committed the was sorry stock. in large Is I the kind a than the think, have meaning that

is just You be a evenly relatively kind spread-out fulfill that to go of to more in them going longer or could process of those? kind quickly, there and fulfill

Lucas Haldeman

clarification. that at the a out. over just of of part answer, a because years or we to be rolling question definition, so spread committed our Yes. say more the wand had Thanks constraints, supply able of the sort full, two forecast our And look be wouldn't next to say of It's evenly no other a waived rolling it. The and of the we going for units we then in always terms and sort installs. triple just double so magic your had let's monthly to just we warehouse of it's

but business. growing you the the growing can we're have of as installation we why We that margin that and that ahead that's on we're quickly services seeing -- constraint is another come glove white see in, demand part and as high on the as touch, we're a pressure professional it of experience

three units we So did or do month add can nicely, to if we're every we we of the needed. the able four in we We the couldn't month times grow grow next that but number one hardware month. all

Ben Sherlund

really to some previously or marketplaces is experiences provide Okay. And And see services any what maybe Yes. these or incremental then take from moving the initiatives? there maybe resident it just would color some of you helpful. meaningful mentioned XXXX. revenue payments on one roll these of in you out of more, can plans Great. to some That's that I know

Lucas Haldeman

not that we're down it report at I direction to you look just chain. think something if talk of acquisition experience underway. a moving into the that about. the also on ready the IoT of Yes out and was more world the But those SightPlan or and It's in clear move of are resident complete

are love love of and again thinking to opportunity in it about time. So that And think drivers. those the works and sort over growth I -- be I it's brings the I that all long-term continue

Our marketplace is live.

to is You mentioned already so continue our really to live focus do And land products if upsell We be products and bring on X.X marketplace continuing to we current expand the continue have marketplace to can it customers current over time these that those after have million expand. units deploy. But market. as go own able land the our new the like and just that we and is will we we'll contribute. feel to we

Ben Sherlund

for Thanks Thanks, the Great. Okay. Ben. guys. color

Lucas Haldeman

Ben. Thanks,

Operator

Lucas would we hand to call Ladies to the go-ahead like I end sir. of the session. And Haldeman. reached and gentlemen, have the back question-and-answer Please

Lucas Haldeman

thank Have your for today. great Look night. support. soon. and all time, forward us speaking your to a continued you Thanks, Irene appreciate Really joining

Lucas Haldeman

you Thank That joining us. concludes today's conference. for

Goodbye. disconnect now your may You lines.

SmartRent (SMRT) 12 May 222022 Q1 Earnings call transcript