SmartRent Goes Public, Raises ~$500 Million at $2.2 Billion USD Valuation
SmartRent went public today, raising ~$500 million at a $2.2 billion valuation, bigger than Latch's SPAC earlier this year. SmartRent touts its open architecture and being hardware agnostic, as a differentiator vs Latch.
In this report, IPVM examines SmartRent's plans, including:
- SmartRent background
- Big deal with powerful VC backing
- 2020 financials
- Q1 2021 financials
- Modest gross margins
- Open architecture
- Customer churn
- Video surveillance offerings
- Future expansion
SmartRent **********
************** ****** ** "********** ***** **** automation *******" ***** ******* ** ************* for ****** **********. ****-****** *****, "***** parking", ****** *******, *** **** ********** (e.g. **********, ***** *****, *********) *** some ** *** ********* ********* ********* offers.
********* ******** ******** ******** *** ******* a ****** ********* *** *********** ********, coordinating ******, ********* **** ********, ***.
*** ******* ***** ****** "******** ********," meaning ********* *** *** ******* *****-***** hardware **** *** ****** (******** ********* does **** *** *** ******** *****, Alloy). *** *******,******* **** **** ********* *****-***** ************** ****** ** ********** ******** ** SmartRent's *******. **** **** **** *** not ****** *********'* ******** ** ***, so ** ****** ******* *** ******* of *** ********.
Deal ****** ***** ***, ******** ** *******
********* **** ****** ** ******* **** a **** (*******-******* *********** *******) ********* by ***** ****, *** ** *** most ********* ******** ********** *** ** the **, **** $*.*+ ******* ****** under **********.
**** ~$*** ******* ***** ****** **** of ********* ***** **** ******* ***-** ******* in ****. **** ***** *** ************* ** the ****** ******* ********. *** **********,********************** $** *** $** ******* ************ in ****. ******** ***** **** ******** amounts, ***** *** *** ********* **** raised *** ****.
Current ********* *********** - ~$** ******* ******* ** ****
********* ******** ~$** ******* ***** ******* in ****, ***** ************ ** *** ****. *** ******* ** *** ****** at ~$*.* ******* ***, * ~*** valuation ******** ** *****.
********* *********** ******* *** ******* ** reach $*.* ******* *** ** ****, or *** ***** ******* ** **** ~25x.
** ****, **** ****** ** **** 2.6 ******* ***** ********** ** **** 155,000 ***** **** ****:
*** ******* ******* ** **** * profit ** **** *** ******* **** that ****** *********** **********:
Q1 **** ***********
********* ********* *** ** **** ***** revenue *** $**.* *******, ** **% from $**.* ******* ** ** ****. We **** ***** ********* ***** **** low ******** *** **** ****** ** they ******* **********.
*******, ********* ******* *** ******* ** grow ~***% ******* **** *** ****, to $*** ******* ** *** *** of **** ****. ******* *** ******* can *** **** **** ******* ** be ****.
Gross ******* ******
*********'* ***** ****** ******* *** ***** near **** *** *** ********* ** rise ** ~**%, ** ****.
***** ****** ******* *** ********* ** hardware ***** ***** *** **** **** 20% *******, ** **** ** *** table *****:
***** *** ******* ******* ** ******* expand *** ******** ****, ******** ***** are ******** ** ** ~**% ** total ******* **** ** ****.
Key ************** - **** *********, "******** ********"
*********'* *** ************** ******* *****, ***** also ****** $*** ******* ******* **** year, ** **** ********* ***** *** "open ************" *** **** *** ******* is "******** ********." ****-** ****** *** highly ****** ** *********, ***** ******** why ***** *** * *** ***-***** valuation ******** ** ***** **** ** made ~$** ******* ** *** ******* in ****.
**********, ********* **** ******* ** *********'* prospects, ****** ** * *** ********* relative ** *****.
Latch ** ********* *******
*********'* **** ******* *** ***** ** that ** *****'*. *****'* **** ******* was $** ******* *** ****** *********'* $53 *******. *******, **** ********* *** raising ******* *** **** ****** ** money, ~$*** ******* ***. ******** ********* is * ****** ********* (~$*.* *******) vs. *****'* $*.** *******, ***** *** a ****** ***** ** ***** ***** because *** ******* *** **** */* of *********'*.
Zero ***** *********
********* *** ******** **** ******** ***** since ********* ** ****. *******, ********* customers ********* **** * *-* **** contract ****, ** *** ******* ********* would ** ** *** ****** ** completing ***** ********. ** **** ** important ** ***** ******* ********* **** churned ***** ***** ********* *** **.
Landgrab *********
*********, **** ** * ******** ******* the *** *********, **** ******** ** millions ** ******* ****, *** ******* well ****** ******. *******, ** ******* to ** **** **** ***** ******** will ** ****** ** ***** **** might *** **** *** ********* ***** of ****.
Video ************ *********
*********, ********* ****** ****** *** ******* video ************ ******* **** *******. ** is ***** **** ********* **** ******** to ****** *** ***** *** ******** products ** *** ****** ** ********* on *** ****-**** ******* ******* ** the ********** ****:
Potential *** *********
******* ~$*** ******* ******* ***** ********* the *********** *** ******* ** ************ and ******* ****** *** ********. ********* listed *&*, ********* *************** *** **** commercial **** ******, *** ************ ** areas ***** *** ***** **** ** used:
*******, *** ******* ********* **** ******* from ***** **** ** * ****-****** property ********** ******** ***** ** ******* as ********* *******. ** ****, *** company ******** ****** **** ** *** been ********** ** * ****** ** Fifth **** ********:
***** *** ********** ** ***** ****, Fifth **** *** ******* *********** ** introductions **** ****** *** ** *** partner *******, ************ *.** ********* *****.
Import ******* ******
********* *** ******** ******** ***,***** *******, *** *********** **** ******* and ********, ****** ******* ****. *******, these ******* **** ***** ********** **** 2020, *** ***** *** ** ******* records *** **** ****** ********* ******* in ****. *********:
****** *** ** *********'* ********* *** from *** **** ***** *.*.*, * Croatian ******* **** ***** ***** **** products (*.*. *****, ***********, *******, ***** sensors) ***** *** ***********. *** **** ********** **** ** ********* ** ********, *** ** ** ******** * number ** ********* *** *** ** LinkedIn. ***** ** ****** ****** *********** about *** **** ***** *** ***** its ************* **** *********. *******, * TechCrunch ******* **** ************* **** * ******** **** ** one ** ******'* ***** ****"***** ** ****** ** **** * front **** **** * ***** ****."
Today ***** ***** ****
*********'* *********** ** $**.** * ***** **** morning, *** ***** **** *** ** trading, *** ** ********* **** *% to $**.**. *** *****'* **** ***** was $**.**.
******* ***** *** **** ***** *** going ** ** * *** ** bag *******.