SmartRent, Inc.

Hello and welcome to SmartRent.com Incorporated conference call. Please note that this call is being recorded. I'd now like to hand over to the first speaker for today, Brian Ruttenberg. Please go ahead.

Hello and thank you for joining us today. My name is Brian Ruttenberg, 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 open, we issued an earnings release and filed our 10Q for the three months ended September 30th, 2023, both of which are available on our 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 risk 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 Smart Rent. during today's call 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 a third quarter earnings deck is available on the investor relations section of our website. And with that, let me turn the call over to Lucas to review our results.

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. In the third quarter, we increased bookings from second quarter levels by 57% to more than $49 million. We also expanded overall gross margin by nearly 5 percentage points from the second quarter to more than 23% and from 2.5% last year. Hardware and hosted services gross margin hit record highs. We increased our cash position by $14 million. We believe that we will achieve sustainable positive cash flow from operations within six months after reaching profitability on an adjusted EBITDA basis. SmartRent continues to lead in innovation, creating new products that pave the way for the next generation of smarter living and working in rental housing. This quarter, I'm pleased to share that we're launching a product that has been years in the making. We're bringing our HubPlus device to rental housing, the latest, best-in-class solution that we have built from the ground up. It's sleek, it's modern, it's smart. It's the next level of smart technology for our customers and combines the power of our smart home hub and a smart thermostat into one single device. It's less hardware to install and offers all the benefits of our other hubs and thermostats. It powers remote capabilities, simplified automation, and more efficient operations. It's a product we are proud to bring to market and are encouraged by the positive feedback we're hearing from our customers. We are beginning to deploy the HubPlus and anticipate that we will see more meaningful results and revenue contribution in 2024. We are also moving forward with integrating new artificial intelligence applications into our products. The strategic application of AI is growing in importance for streamlining operations in rental housing. One example of how SmartRent is introducing AI to our solutions is a new feature in our work management product called Walk & Talk. This AI-powered feature enables users to use natural language to describe tasks that need to be completed, like any unit repairs, and automatically creates and assigns work orders. Walk & Talk saves site teams valuable time, empowering them to easily categorize and complete day-to-day tasks. SmartRent data shows that when utilizing Walk & Talk, maintenance technicians can create a work order 70% faster. The efficiencies realized from automating countless tasks result in hours and dollars saved while also contributing to higher team satisfaction. We continue to lead the industry by innovating new hardware and software solutions for the rental housing market. We are pleased with our results and our strengthening balance sheet. We remain on track to achieve adjusted EBITDA profitability by the end of the year and cash flow breakeven within the following six months. I will now turn the call over to Hiroshi to review the financials in more detail.