SmartRent, Inc. announced its third-quarter 2024 financial results, revealing a 23% year-over-year increase in SaaS revenue, reaching $13.3 million. Annual Recurring Revenue (ARR) also grew to $53.2 million, up from $43.3 million in the prior year's third quarter, driven by improvements in SaaS Average Revenue per Unit (ARPU) which rose 5% to $5.70.
Despite the strong SaaS performance, total revenue for the quarter decreased by 30% year-over-year to $40.5 million, primarily due to a 47% decline in hardware revenue to $18.7 million. New Units Deployed saw a 53% decrease to 15,168, and Units Booked fell 63% to 17,048, reflecting anticipated market headwinds and disruptions from a July leadership change.
The company reported a total gross margin improvement to 33.2% from 23.3% in Q3 2023, driven by product mix changes and cost management, though SaaS gross margin slightly decreased to 73.0%. Adjusted EBITDA improved by 24% to a loss of $(3.8) million, while net losses increased to $(9.9) million. SmartRent also repurchased 9.8 million shares for $17.1 million and ended the quarter with $164 million in cash, while announcing the hiring of Natalie Cariola as Chief Revenue Officer and defining four strategic pillars for growth.
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