SmartRent Inc (SMRT) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Janie and I will be your conference operator today.

謝謝你的支持。我叫珍妮，今天我將擔任你們的會議操作員。

At this time. I would like to welcome everyone to the SmartRent Q3 2024 earnings call. (Operator instructions)

此時。歡迎大家參加 SmartRent 2024 年第三季財報電話會議。（操作員說明）

Thank you. I would now like to turn the conference over to Kristen lee. You may begin.

謝謝。我現在想把會議交給克莉絲汀李。你可以開始了。

Hello and thank you for joining us today. My name is Kristen Lee, Chief Legal Officer for SmartRent.

您好，感謝您今天加入我們。我叫 Kristen Lee，SmartRent 首席法務長。

I'm joined today by Daryl Stemm CFO and Interim Principal Executive Officer and John Dorman, Chairman of the Board. Before the market opened today, we issued an earnings release and filed our 10-Q with the SEC, both of which are available on the investor relations section of our website SmartRent.com

今天與我一起出席會議的還有財務長兼臨時執行長 Daryl Stemm 以及董事會主席 John Dorman。在今天開市前，我們發布了收益報告並向 SEC 提交了 10-Q 報告，這兩項內容均可在我們網站 SmartRent.com 的投資者關係部分獲取

Before I turn the call over to John, I would like to remind everyone that the discussion today may contain certain forward-looking statements that involve risks 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 quarterly reports on form 10-Q.

在我把電話轉給約翰之前，我想提醒大家，今天的討論可能包含某些涉及風險和不確定性的前瞻性陳述。各種因素可能導致我們的實際結果與此類聲明所表達或暗示的任何未來結果有重大差異。這些因素在我們的 sec 文件中進行了討論，包括 10-K 表格中的年度報告和 10-Q 表格中的季度報告。

We undertake no obligation to provide updates regarding forward-looking statements made during this call. And we recommend that all investors review these reports thoroughly before taking a financial position in SmartRent .

我們沒有義務提供有關本次電話會議期間所做前瞻性陳述的最新資訊。我們建議所有投資者在對 SmartRent 進行財務定位之前仔細閱讀這些報告。

Also during today's call, we 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 presentation is available on the investor relations section of our website.

此外，在今天的電話會議中，我們也將提及某些非公認會計準則財務指標。在今天的收益發布中包含了對這些非公認會計原則財務指標的討論以及與最直接可比較的公認會計原則指標的調節。我們還想強調的是，第三季財報可在我們網站的投資者關係部分找到。

And with that, I will turn the call over to John.

然後，我會將電話轉給約翰。

Good morning and thank you all for joining us today as we report on the 3rd Quarter at SmartRent . I'd like to first acknowledge the substantial resilience and strategic focus. Our team has demonstrated during this period of significant change. It's been really exciting to see the level of passion, alignment and commitment of the entire team during what is by any definition, a challenging period.

早安，感謝大家今天與我們一起報道 SmartRent 第三季的狀況。我首先要承認其強大的韌性和戰略重點。我們的團隊在這段期間展現了重大變化。看到整個團隊在這個充滿挑戰的時期所表現出的熱情、團結和奉獻精神真是令人興奮。

It's now been 14 weeks since we announced the board's decision to initiate a leadership transition at SmartRent during this period. Reflecting on the significant importance of this decision toward driving sustainable improvements in shareholder value. The board has been deeply engaged with the entire management team in assessing both the strategic direction and the operational effectiveness of the company so that we're all aligned around a viable plan for recovery.

自從我們宣布董事會決定在此期間啟動 SmartRent 領導層換屆以來，已經過去 14 週了。反思這項決定對於推動股東價值可持續提高的重要性。董事會與整個管理團隊深入合作，評估公司的策略方向和營運有效性，以便我們圍繞可行的復甦計劃達成協議。

In order to inform our investors about our progress in this important transition.

為了讓我們的投資者了解我們在這重要轉變中所取得的進展。

I'd like to cover four key topics this morning.

今天早上我想討論四個關鍵主題。

First, I'll summarize what we've learned during this first quarter of transition.

首先，我將總結我們在第一季過渡期間學到的知識。

Second, I'll highlight some things that we've accomplished during this period. Third, I'll provide an update on our CEO search process.

其次，我將重點介紹我們在此期間完成的一些事情。第三，我將提供有關我們執行長搜尋流程的最新資訊。

And finally, I'll recap our four pillars of strategic focus that are guiding both our transition plan and our CEO search. Everything we've learned since making the decision to initiate a transition in leadership has confirmed the key perspectives that framed the board's decision that is we've confirmed and strengthened our firm belief that the key issues affecting smart rent performance are execution issues which are not too difficult to address. While the core business model, the growth potential of our market, our market leadership position and the differentiated value proposition for our customers all remain very compelling. We've concluded that our execution issues and growth challenges, nearly all stemmed from four key factors.

最後，我將回顧我們的四大策略重點支柱，它們指導著我們的過渡計畫和執行長的尋找。自從決定啟動領導層過渡以來，我們所學到的一切都證實了董事會決策的關鍵觀點，即我們已經確認並強化了我們的堅定信念，即影響智慧租金績效的關鍵問題是執行問題，而不是執行問題。雖然核心業務模式、市場的成長潛力、市場領導地位以及為客戶提供的差異化價值主張仍然非常引人注目。我們得出的結論是，我們的執行問題和成長挑戰幾乎都源自於四個關鍵因素。

Number one, a lack of effective sales leadership to build and drive a scalable go to market organization. Number two, an over reliance on hardware revenue to sustain high levels of total revenue. While distracting focus from SAS revenue growth which remains the primary driver of shareholder value. Number three, a distraction of focus on the central importance of operational excellence during the drive to profitability.

第一，缺乏有效的銷售領導力來建立和推動可擴展的市場組織。第二，過度依賴硬體收入來維持高水準的總收入。同時分散了人們對 SAS 收入成長的注意力，而 SAS 收入成長仍是股東價值的主要驅動力。第三，在追求獲利的過程中，分散了對卓越營運核心重要性的關注。

And number four, the headwinds resulting from macroeconomic conditions and election uncertainty to be clear. Our North Star financial objective is to become a company that delivers both high, sustained fast revenue growth and profitable results.

第四，宏觀經濟狀況和選舉不確定性帶來的不利因素是顯而易見的。我們的北極星財務目標是成為一家能夠實現高、持續快速的收入成長和獲利結果的公司。

While we were only one quarter into this transition, we were able to highlight some key accomplishments delivered during this quarter, we stabilized the entire executive team which has been described by some investors in the past as a revolving door. The team is highly energized by the transition and we're confident that we're building forward momentum. Even before concluding the CEO Search two, we successfully recruited Natalie Cariola as our new Chief Revenue Officer to lead the revitalization of our sales and account management teams.

雖然我們只進行了四分之一的過渡，但我們能夠強調本季取得的一些關鍵成就，我們穩定了整個執行團隊，這在過去被一些投資者描述為旋轉門。整個團隊因轉型而充滿活力，我們有信心不斷累積前進動力。甚至在第二輪執行長搜尋結束之前，我們就成功聘請了 Natalie Cariola 擔任新任首席營收官，以領導我們銷售和客戶管理團隊的振興。

Three, we repurchased 9.8 million shares of stock for $17.1 million to return capital to shareholders while demonstrating the board's conviction that the stock is undervalued.

第三，我們以 1,710 萬美元回購了 980 萬股股票，向股東返還資本，同時顯示董事會堅信股票價值被低估。

Four, we made excellent progress on our CEO search which I will summarize shortly.

第四，我們在執行長搜尋方面取得了巨大進展，我將很快對此進行總結。

Five, we delivered 23% s year over year revenue growth despite the challenges I discussed earlier, thereby demonstrating the potential to deliver even higher growth as we address those challenges.

第五，儘管存在我之前討論過的挑戰，但我們仍實現了 23% 的同比收入增長，從而證明了在我們應對這些挑戰時實現更高增長的潛力。

Six, we have actively engaged with our customers to listen and learn about their priorities and concerns. We are deeply committed to customer alignment and service excellence and investing to address customer needs.

第六，我們積極與客戶互動，傾聽並了解他們的優先事項和擔憂。我們堅定地致力於客戶協調和卓越服務，並投資以滿足客戶需求。

Seven, we have lined the entire company around four strategic pillars which I will expand on in a minute. Importantly, these pillars have been shared with our leading CEO candidates to help ensure that the individual selected can hit the ground running. When we launched the CEO search with an outside executive search firm. We cast a broad net to identify a long list of potential candidates. We placed particular importance on finding candidates who had turned around businesses with performance issues, had run successful high growth businesses and had successfully demonstrated general management skills at scale much larger than the current size of SmartRent .

第七，我們將整個公司圍繞著四個策略支柱進行排列，我將在一分鐘內詳細介紹這四個策略支柱。重要的是，這些支柱已與我們的主要執行長候選人分享，以幫助確保選定的個人能夠立即投入工作。當我們與一家外部獵人頭公司一起推出執行長搜尋時。我們廣泛撒網以確定一長串潛在候選人。我們特別重視尋找那些曾經扭轉了業績問題的企業、成功經營過高成長企業並在規模遠大於 SmartRent 目前規模的情況下成功展示一般管理技能的候選人。。

We were quickly very pleasantly surprised by the quality of the candidates that we were able to attract to the opportunity. The general perception of these candidates was that SmartRent's current challenges presented a significant opportunity for a new leader to be successful and drive an exciting value creation story.

我們很快就對我們能夠吸引到這個機會的候選人的品質感到非常驚訝。這些候選人的普遍看法是，SmartRent 目前的挑戰為新領導者提供了一個成功並推動令人興奮的價值創造故事的重要機會。

After interviewing several candidates, we narrowed our focus to multiple highly qualified individuals, all of whom clearly met or exceeded our search criteria and expressed strong interest in the position. We're in the final few weeks of that evaluation process and expect to select a final candidate and begin negotiating contract terms shortly thereafter. It's our hope that we will be able to announce a new CEO during the first quarter of 2025. This process of deep engagement by the entire board with multiple CEO candidates has been extremely helpful and has informed the board's work with the management team to crystallize the strategic pillars we are using to align and focus the entire company to execute more effectively. During this transition, these pillars are

在面試了幾位候選人後，我們將關注範圍縮小到了多名高素質人才，他們都明顯符合或超出了我們的搜索標準，並對該職位表示了濃厚的興趣。我們正處於評估過程的最後幾週，預計將選出最終候選人並隨後不久開始談判合約條款。我們希望能夠在 2025 年第一季宣布新任執行長。整個董事會與多名首席執行官候選人的深入參與過程非常有幫助，並為董事會與管理團隊的工作提供了信息，使我們用來協調和集中整個公司更有效地執行的戰略支柱具體化。在此過渡期間，這些支柱是

First, sustainable and predictable our growth.

首先，我們的成長可持續且可預測。

Second, platform superiority for the complete integration of our IOT and operation solutions.

第二，我們的物聯網和營運解決方案完全融合的平台優勢。

Third, operational excellence which includes a particular focus on world class customer engagement and satisfaction.

第三，卓越運營，其中包括特別關注世界一流的客戶參與度和滿意度。

And Fourth collaborative innovation, which refers to our efforts at strategically enhancing our platform with A I to improve experiences for both residents and operators. While forging strategic partnerships to maximize platform value through these four pillars, we can better align our focus and resource allocation around the key initiatives that will drive the highest value for shareholders as we discuss these pillars with investors.

第四個協同創新，指的是我們透過人工智慧策略性地增強我們的平台，以改善居民和營運商的體驗。在透過這四大支柱建立策略夥伴關係以最大化平台價值的同時，當我們與投資者討論這些支柱時，我們可以更好地圍繞關鍵舉措調整我們的重點和資源分配，這些舉措將為股東帶來最高價值。

I hope it will become increasingly clear that our strategic North Star is to build an industry leading fast platform to meet our customers needs and focus our hardware development efforts on only those products that create a differentiated and sustainable competitive advantage. In achieving that goal, all of what I have shared this morning together. I can enthusiastically state that the board is more excited and optimistic than ever that we're on the path to restore the credibility of SmartRent as a public company and to deliver enhanced value to shareholders.

我希望我們的策略北極星會越來越清晰，那就是建立一個領先業界的快速平台來滿足客戶的需求，並將我們的硬體開發工作集中在那些能夠創造差異化和可持續競爭優勢的產品上。為了實現這一目標，我今天早上分享的所有內容都在一起。我可以熱情地說，董事會比以往任何時候都更加興奮和樂觀，因為我們正在恢復 SmartRent 作為上市公司的信譽並為股東提供更高的價值。

We're well aware that we will only reestablish this trust over time as we deliver actual results toward that end, I'm pleased to announce today that the board is committing a strategic investment of $10 million over the next year to accelerate our momentum and deliver the results of our strategic transition. More quickly, this investment will be directed to activities directly related to the four strategic pillars around AR R growth platform superiority, operational excellence and collaborative innovation. We have sufficient cash to continue returning capital to shareholders through share repurchases and make this strategic investment in the business. At the same time to be clear, investment does not mean that we plan to return to negative margins to drive higher growth. Rather, we're using our strong balance sheet to make targeted investments that we believe will accelerate our transition in progress by making this investment now and carefully aligning it with our strategic pillars. We hope to demonstrate to our investors, customers and other stakeholders that we're committed to reestablishing and accelerating our forward momentum. Thank you for your support and patience. As we navigate this transition, we look forward to delivering the results that will justify that patience next year.

我們很清楚，只有隨著時間的推移，當我們為此提供實際成果時，我們才會重新建立這種信任。的發展勢頭，交付我們策略轉型的成果。更快地，這筆投資將直接用於與 AR R 成長平台優勢、卓越營運和協作創新四大策略支柱直接相關的活動。我們有足夠的現金繼續透過股票回購向股東返還資本並對業務進行策略性投資。同時需要明確的是，投資並不意味著我們計劃恢復負利潤率以推動更高的成長。相反，我們正在利用我們強大的資產負債表進行有針對性的投資，我們相信透過現在進行這項投資並仔細地將其與我們的策略支柱保持一致，將加速我們的轉型進程。我們希望向我們的投資者、客戶和其他利害關係人表明，我們致力於重建和加速我們的前進動力。感謝您的支持與耐心。在我們完成這項轉變的過程中，我們期待明年能達成成果，證明我們的耐心是值得的。

I will now turn the call over to Daryl.

我現在將把電話轉給達裡爾。

Thank you, John and Good Morning everyone. We appreciate you joining our call today as we navigated through SmartRent's 3rd Quarter. Our focus on delivering ARR growth and enhancing customer satisfaction has been top of mind. We believe our core strategy remains solid ensuring that as market conditions and our own operational excellence improves. We're well positioned to capitalize on growth. This quarter, we were focused on ARR growth over one off hardware deals. During the quarter, the company delivered a robust 23% year over year increase in SaaS revenue, primarily driven by improvements in SaaS ARPU and units deployed two key metrics that are crucial for sustainable ARR growth. Our SaaS ARR grew to $53.2 million up from $43.3 million in the 3rd Quarter of 2023. SaaS ARPU increased by 5% to $5.70 from $5.41 from the same quarter last year, primarily attributable to improvements in pricing. Units booked SaaS ARPU also saw an increase of 8% up to $9.73 from $9.04 from the same quarter last year.

謝謝約翰，大家早安。感謝您今天加入我們的電話會議，我們正在回顧 SmartRent 第三季的業績。我們始終將重點放在實現 ARR 成長和提高客戶滿意度。我們相信，我們的核心策略仍然穩固，確保隨著市場狀況和我們自身卓越營運的改善。我們已做好充分利用成長的準備。本季度，我們將重點放在一次性硬體交易的 ARR 成長。本季度，該公司 SaaS 營收年增 23%，這主要是由於 SaaS ARPU 的改善以及部署了對可持續 ARR 成長至關重要的兩個關鍵指標的單位的推動。我們的 SaaS ARR 從 2023 年第三季的 4,330 萬美元增至 5,320 萬美元。SaaS ARPU 成長 5%，從去年同期的 5.41 美元增至 5.70 美元，這主要歸功於定價的改善。預訂 SaaS 的單位 ARPU 也成長了 8%，從去年同期的 9.04 美元增加到 9.73 美元。

Total revenue for the quarter was $40.5 million. A 30% decrease from the same quarter last year, primarily driven by lower units shipped and new units deployed. Hosted services revenue including $13.3 million of SaaS revenue increased by 12% to $18.5 million. Hardware revenue decreased by 47% to $18.7 million. And Professional Services revenue decreased by 45% to $3.3 million.

該季度總收入為 4,050 萬美元。較去年同期下降 30%，主要是因為出貨量和新部署量減少所致。託管服務收入（包括 1,330 萬美元的 SaaS 收入）成長了 12%，達到 1,850 萬美元。硬體收入下降 47% 至 1870 萬美元。專業服務收入下降 45% 至 330 萬美元。

As of September, 30 2024 units deployed reached just over 787,000 (787,038), a 15% increase from last year. New units deployed during the quarter decreased by 53% with just over 15,000(15 168) units deployed. Total bookings for the quarter were $19.6 million. A decrease of $30.1 million or 61% from the same quarter in the prior year.

截至 9 月，部署的 30 2024 台設備數量略高於 787,000 (787,038)，比去年增加 15%。本季部署的新設備數量減少了 53%，部署數量略多於 15,000 (15 168) 個。該季度的總預訂量為 1,960 萬美元。比去年同期減少 3,010 萬美元，即 61%。

Total bookings includes bookings of approximately 17,000(17,048) new units overall decreases in new units deployed. Units shipped and units booked are primarily attributable to our customer's decision to defer capital expenditures driven by broad macro economic conditions.

總預訂量包括約 17,000 (17,048) 個新單位的預訂，新部署單位的總體減少。出貨量和預訂量主要歸因於我們的客戶在宏觀經濟狀況的推動下決定延後資本支出。

In addition, changes in leadership and the structure of our sales organization have impacted sales and overall volumes. Total gross margin improved significantly to 33.2% from 23.3% in the same quarter of the prior year. This improvement was driven by changes to our product mix and cost management.

此外，領導階層和銷售組織結構的變化也影響了銷售和總量。總毛利率從去年同期的23.3%大幅提高至33.2%。這項改進是由我們的產品組合和成本管理的變化所推動的。

SaaS gross margin saw a slight decrease to 73% from 74.2%. Primarily due to increased variable cost total. Gross profit was flat at $13.5 million. Primarily due to the reduction in shipped and deployed units which offset gains in gross margin. Hosted services remains our most profitable revenue stream with gross profit increasing to $12.1 million from 10.6 million in the prior year.

SaaS 毛利率從 74.2% 略有下降至 73%。主要是由於變動成本總額增加。毛利持平於 1,350 萬美元。主要是由於發貨和部署數量的減少抵消了毛利率的增長。託管服務仍然是我們最賺錢的收入來源，毛利從去年的 1,060 萬美元增加到 1,210 萬美元。

Operating expenses increased to $25.2 million this quarter from 23.5 million in the same quarter in the prior year. Primarily. Reflecting the impact of onetime separation expenses related to our leadership change. Net losses were $9.9 million compared to $7.7 million in the third quarter of 2023. Adjusted EBITDA improved by 24% to a loss of $3.8 million down from a loss of $5 million in the same quarter of last year.

本季營運費用從去年同期的 2,350 萬美元增加到 2,520 萬美元。主要是。反映與我們的領導層變動相關的一次性離職費用的影響。淨虧損為 990 萬美元，而 2023 年第三季淨虧損為 770 萬美元。調整後 EBITDA 改善 24%，虧損 380 萬美元，低於去年同期的虧損 500 萬美元。

Although there were a few bright spots.

雖然也有一些亮點。

Our third quarter results were disappointing but not unexpected. Q3 was a quarter of significant and we believe positive transition for the company. As John mentioned, we remain optimistic about the future of the company. Recent studies including one by Parks Associates highlight the significant benefits of smart building technologies benefits that our customers are already experiencing including reduced operational cost, improved net operating income, enhance resident experience and increase retention rates.

我們第三季的業績令人失望，但並不出乎意料。第三季度是重要的一個季度，我們相信公司會發生積極的轉變。正如約翰所提到的，我們對公司的未來保持樂觀。最近的研究（包括 Parks Associates 的一項研究）強調了我們的客戶已經體驗到的智慧建築技術的顯著優勢，包括降低營運成本、提高淨營運收入、增強住戶體驗並提高保留率。

We believe there's demand at scale for integrated smart property technologies that enhance operational efficiencies and reduce cost. Turning back to the quarter, our strong balance sheet with approximately $164 million in cash provides a strategic flexibility. This quarter, we continued our commitment to returning value to shareholders by repurchasing approximately 9.8 million shares at an aggregate cost of approximately $17.1 million.

我們相信，對於可提高營運效率並降低成本的整合智慧物業技術存在大規模需求。回到本季度，我們擁有約 1.64 億美元現金的強勁資產負債表提供了戰略靈活性。本季度，我們持續致力於為股東回報價值，以總成本約 1,710 萬美元回購約 980 萬股股票。

We've continued purchasing shares in Q4 and through November 4th, we've repurchased approximately 2.4 million additional shares at an aggregate cost of $4.1 million leaving $22.6 million available on our authorized repurchase plan. This action reflects our board and management committee's confidence and smart rent.

我們在第四季繼續購買股票，截至 11 月 4 日，我們已回購約 240 萬股額外股票，總成本為 410 萬美元，在我們的授權回購計畫中剩餘 2,260 萬美元。這項行動反映了我們董事會和管理委員會的信心和明智的租金。

We will continue to focus on maximizing shareholder value. Affirming our belief in the company's long term value. We continue to closely monitor several key indicators that will inform our decision to reinstate guidance including the stabilization of market conditions, clarity on economic trends that affect capital expenditure timing within our industry and the successful execution of strategic initiatives currently underway . As these factors align, we believe we will be better positioned to offer guidance.

我們將繼續專注於股東價值最大化。肯定了我們對公司長期價值的信念。我們將繼續密切關注幾個關鍵指標，這些指標將為我們恢復指導的決定提供依據，包括市場狀況的穩定、影響行業內資本支出時間的經濟趨勢的清晰度以及當前正在進行的戰略舉措的成功執行。隨著這些因素的結合，我們相信我們將能夠更好地提供指導。

In conclusion, Despite the near term challenges SmartRent Strategic Foundation is strong. Our commitment to the pillars around sustainable ARR growth platform, superiority, operational excellence, and collaborative innovation, as well as prudent capital allocation position us well, to navigate our current challenges and capitalize on future opportunities.

總之，儘管近期面臨挑戰，SmartRent 的策略基礎依然強勁。我們對永續 ARR 成長平台、優勢、卓越營運和協作創新等支柱的承諾以及審慎的資本配置使我們能夠很好地應對當前的挑戰並充分利用未來的機會。

Thank you for your continued support. As we execute our commitments and drive towards sustained growth and innovation.

感謝您一直以來的支持。當我們履行我們的承諾並推動持續成長和創新時。

We'll now open the line and take your questions.

我們現在將開通電話並回答您的問題。

Thank you. The floor is now open for questions. (Operator Instructions)

謝謝。現在可以提問。（操作員說明）

Press star one to join the queue and your first question comes from the line of Ryan Tomasello with KBW.

按星號 1 加入佇列，您的第一個問題來自 KBW 的 Ryan Tomasello。

Hi, everyone. Thanks for taking the questions and appreciate all the updates on the strategic front. I just wanted to start on, Macro and was hoping you could put a finer point around how the headwinds you've been facing have evolved over the last few months since we last got an update. What recent indications have been from customers around capital expenditures next year.

大家好。感謝您提出問題並感謝戰略方面的所有更新。我只是想從宏觀開始，希望你能更詳細地說明自我們上次更新以來你所面臨的逆風在過去幾個月中是如何演變的。客戶最近就明年的資本支出給出了哪些跡象。

And just generally, if there's any, , guard rails, you can put around expectations for the fourth quarter as we think through, a continuation of those headwinds around bookings and unit deliveries.

一般來說，如果有任何護欄，您可以根據我們的考慮對第四季度的預期進行預測，預訂和單位交付方面的阻力將繼續存在。

We've been heavily engaged with our customers, in particular, since we added Natalie to our team. And the general feeling from our customer conditions are that, it was a good start to see the interest rates go down in September. But there's still a certain amount of angst around the timing of future interest rate changes. Most folks are acting.

特別是自從 Natalie 加入我們的團隊以來，我們一直與客戶密切合作。我們客戶的整體感覺是，9 月利率下降是一個好的開始。但對於未來利率變動的時機仍存在一定程度的擔憂。大多數人都是在演戲。

But also there was a in my mind, a relatively surprising amount of angst around the election results as well. And as a result of those two primary macro economic, just macro conditions we didn't expect to see and still don't expect to see any loosening of capital expenditures in.

但在我看來，對選舉結果也有相對令人驚訝的焦慮。由於這兩個主要宏觀經濟因素，我們沒有預期會看到並且仍然預期不會出現資本支出的任何放鬆。

We are hopeful that the results of the election might really lead to more investment from our customers and property technology in 2025.

我們希望選舉結果能夠在 2025 年真正帶來我們的客戶和房地產技術的更多投資。

And then maybe just turning to the strategic investment that was called out $10 million over the next year, maybe just elaborate on what exactly you mean by that, what areas of the business that's going to be allocated towards, how we should think about the impact to margins and the time line to a more sustainable break even and, and cash flow positive profile for the business.

然後也許只是轉向明年 1000 萬美元的策略投資，也許只是詳細說明您的意思到底是什麼，業務將分配給哪些領域，我們應該如何考慮影響利潤率和時間線，以實現更可持續的盈虧平衡，以及現金流的正面形象。

The four strategic pillars that that John did outline, that's going to be the general guide guidelines around the investment activities. We some of the internal factors that John called out earlier around the leadership and building a scalable go to market organization. Other things around really refocusing on our core solution, which is the IOT platform as well as work management solutions. These are the, the the primary areas of focus. And so really it's going to it's really going to from a practical standpoint lead to investments in sales and marketing engineering as well as operations. Anything that directly impacts the satisfaction of our customer experience is the most general way.

約翰概述的四個策略支柱將成為圍繞投資活動的一般指導方針。我們了解約翰早些時候提到的一些內部因素，這些因素圍繞著領導力和建立可擴展的市場組織。其他事情真正重新專注於我們的核心解決方案，即物聯網平台以及工作管理解決方案。這些是主要關注領域。因此，從實際的角度來看，這確實會帶來對銷售和行銷工程以及營運的投資。任何直接影響顧客體驗滿意度的方法都是最通用的方法。

Tom White, DA Davidson and Co.

湯姆懷特（Tom White），地方檢察官戴維森公司

Maybe just a follow up on the, on the last one about the $10 million, I guess. I'm just, I'm trying to reconcile the comments about kind of not taking the company back in the negative margin territory. Kind of with the, with the $10 million. Can you maybe just talk a little bit about what time frame you're kind of referring to there and what when you think the investments might start to yield returns and then just a follow up there you kind of mentioned sort of a little bit more focus on some of the core products like core IOT just curious how the board views wifi if you guys view that opportunity and kind of the commitment to investing there any differently than than Lucas. Thanks.

我猜，也許只是對最後一個關於 1000 萬美元的後續行動。我只是，我正在努力協調有關不讓公司回到負利潤率領域的評論。有點像，1000萬美元。您能否簡單談談您所指的時間框架以及當您認為投資可能開始產生回報時會發生什麼，然後您提到的更多關注點進行跟進在核心物聯網等一些核心產品上，我只是好奇董事會如何看待wifi，如果你們認為這個機會和投資的承諾與盧卡斯有什麼不同的話。謝謝。

Yeah, let me start and then perhaps John might offer a bit of context.

是的，讓我開始，然後約翰也許可以提供一些背景資訊。

The, we're going to first and foremost and we've already started moving on this. We really need to work on the sales team and the sales leadership, which again, we've already acted on. Natalie Cariola has been brought on the team about one month ago and managing the sales team will serve.

我們首先要做的是，而且我們已經開始著手解決這個問題。我們確實需要在銷售團隊和銷售領導層上開展工作，我們已經再次採取了行動。娜塔莉·卡里奧拉 (Natalie Cariola) 大約一個月前加入團隊，負責管理銷售團隊。

We set really speaking to the timing of the investments and the and the why, if we look back over the last several years, the company has started applying more attention to point solutions that are adjacent to our core. And again, our core offering and our core, let me even take one step further back. Our core value proposition is around protecting the assets and helping improving the efficiency of the operations of our customers and our core offerings. Our IOT platform and our work management solutions are the most direct way that we impact that core value proposition.

我們確實談論了投資的時機、投資的時機以及原因，如果我們回顧過去幾年，公司已經開始更專注於與我們核心相鄰的單點解決方案。再說一遍，我們的核心產品和核心，讓我退後一步。我們的核心價值主張是保護資產並幫助提高客戶和核心產品的營運效率。我們的物聯網平台和工作管理解決方案是我們影響核心價值主張的最直接方式。

In recent years, we've applied more attention and more resources to adjacent point solutions that also impact the operations of our customers. And in doing so, I think that we've we've our so ocean, our work management solutions have lost their clear leadership positions in the market. So this investment is to reinvigorate both our IOT and our work management solutions to re establish clearly our market leading position.

近年來，我們對鄰點解決方案投入了更多的注意力和更多的資源，這也影響了我們客戶的營運。在這樣做的過程中，我認為我們已經擁有瞭如此廣闊的海洋，我們的工作管理解決方案已經失去了其在市場上明顯的領導地位。因此，這項投資是為了重振我們的物聯網和工作管理解決方案，以重新明確我們的市場領先地位。

And I I would just clarify further Daryl in in response to the question, both Brian and Tom raised with respect to time line while we can't and won't be specific about a timeline for returns. I would highlight that what's motivating these investments as we see some very specific opportunities around our highlighted strategic pillars to make some investments that will accelerate our achievement of our North Star goal of accelerating and developing more sustainable AR R growth and it's not going to be measured in a long term time horizon. We see multiple opportunities to accelerate our growth in 2025 and we're investing behind those opportunities.

我想進一步澄清達裡爾在回答這個問題時，布萊恩和湯姆都提出了時間線，而我們不能也不會具體說明回報的時間表。我想強調的是，是什麼推動了這些投資，因為我們看到圍繞我們突出的戰略支柱的一些非常具體的機會進行一些投資，這些投資將加速我們實現加速和發展更可持續的AR R 增長的北極星目標，而且它不會被衡量從長遠來看。我們看到了 2025 年加速成長的多種機會，並且我們正在對這些機會進行投資。

Thank you.

謝謝。

Eric Woodring, Morgan Stanley.

艾瑞克‧伍德林，摩根士丹利。

Thanks so much for taking my questions guys. I have two. John just, just maybe quickly, I understand the kind of renewed focus on SaaS sales, obviously, that is a high margin, long term annuity, so to speak. But to turn on that SaaS, you obviously need to, to deploy units. And II, I guess my question is more maybe a clarification which was when, when we go to the beginning and talk about the four challenges or the challenges from four factors. One was an over reliance on hardware distracting from SaaS. And I'm just wondering, is the comment there an over reliance on hardware, meaning deployments and not necessarily focusing more attention on Saas or a focus on developing your own hardware and a lack of focus on SaaS. I just want to make sure I kind of understand that comment and then I have a follow up.

非常感謝你們回答我的問題。我有兩個。約翰只是，也許很快，我理解了對 SaaS 銷售的重新關注，顯然，可以說，這是一種高利潤、長期年金。但要啟用該 SaaS，您顯然需要部署單元。第二，我想我的問題可能更多的是一個澄清，當我們從頭開始討論四個挑戰或來自四個因素的挑戰時。一是過度依賴硬件，分散了對 SaaS 的注意力。我只是想知道，那裡的評論是否過度依賴硬件，意味著部署而不一定更多地關注 Saas，或者專注於開發自己的硬件而缺乏對 SaaS 的關注。我只是想確保我理解該評論，然後進行後續跟進。

Thanks. It, it's, it's more the latter. Obviously, our hard hardware is the the leading top of the spear that with, with the sale and deployment of units. We drive SaaS growth. But what I was referring to in, in terms of the challenge of the distraction is is in the board's evaluation, we became overly distracted and and scattered our resources toward hardware point solutions. Other hardware initiatives all around building our own hardware distractions from the core focus of driving fast growth. And it's that alignment around using hardware strategically to drive SaaS growth is our North Star.

謝謝。它，它，更多的是後者。顯然，我們的硬硬體是領先的，隨著單位的銷售和部署。我們推動 SaaS 的成長。但我指的是，就分心的挑戰而言，在董事會的評估中，我們變得過度分心，並將我們的資源分散到硬體點解決方案上。其他圍繞構建我們自己的硬體的硬體計劃分散了我們對推動快速增長的核心焦點的注意力。圍繞策略性地使用硬體來推動 SaaS 成長的一致性是我們的北極星。

Got it. That makes that makes a lot of sense. Thank you for that. And then my follow up is is, is maybe just what are you hearing from your customers? Right, obviously kind of went through the macro environment. So I'm not really focused on that. It's more just what are your customers saying about kind of the internal changes that are going on at smart red and maybe concerns around either, changing sales people, changing relationships, uncertainty about the future path. how is that impacting their confidence in working with SmartRent , whether that means ongoing work or even expanding with you would just would just love to hear what you're hearing from your customers over these last 14 weeks. Thanks so much.

知道了。這很有意義。謝謝你。然後我的後續行動是，也許這正是您從客戶那裡聽到的？是的，顯然經歷了宏觀環境。所以我並不真正關注這一點。更重要的是，您的客戶對 smart red 正在發生的內部變化有何看法，也許還有對其中任何一個的擔憂，例如銷售人員的變化、關係的變化、未來道路的不確定性。這對他們與 SmartRent 合作的信心有何影響？非常感謝。

I would say that our feedback from customers is is Encouragingly positive which is not to say we don't have pressure from customers over some of the operational issues and principally the concerns we hear from customers is over the low stock price. And what does that imply and just a quick reminder about our balance sheet and our financial strength and our market leadership strength settles that down pretty quickly. But our customers are happy with the solutions in general. We as Daryl allowed to we have some issues around completing the integration of our operations platform with our IOT platform. And we're, that's, that's a very high priority area focus with our investment to remedy that quickly. But in general, the board's been quite pleased with the level of commitment that customers have to SmartRent as a strategic provider.

我想說，我們從客戶那裡得到的回饋是令人鼓舞的正面的，這並不是說我們沒有因某些營運問題而受到客戶的壓力，主要是我們從客戶那裡聽到的擔憂是對低股價的擔憂。這意味著什麼？ 只要快速提醒一下我們的資產負債表、我們的財務實力以及我們的市場領導力，就能很快解決這個問題。但我們的客戶總體上對這些解決方案感到滿意。作為達裡爾，我們承認在完成營運平台與物聯網平台的整合方面存在一些問題。也就是說，這是我們投資的一個非常高度優先的領域，旨在快速解決這個問題。但總的來說，董事會對客戶對 SmartRent 作為策略提供者的承諾程度感到非常滿意。

Just want to comment in that regard, which is, two important metrics with regards to SaaS growth, our churn and net revenue retention and in both cases, it remains strong. Our churn is about 100 and our net revenue retention remains above 100%. So in both cases it's a positive indicator about our customer experience.

只是想就這方面發表評論，即關於 SaaS 成長的兩個重要指標，即我們的客戶流失率和淨收入保留率，在這兩種情況下，它仍然保持強勁。我們的流失率約為 100，而我們的淨收入保留率仍然高於 100%。因此，在這兩種情況下，這都是我們客戶體驗的正面指標。

And that again, drives back to the board person. The turnaround opportunity here which guided our decisions over leadership transition was the the clear indication that there's the core of a very strong, very successful SaaS business here. We just need to focus on building the SaaS business and not get quite so distracted on other initiatives. And we need to build what this is fully aligned and scaled to the magnitude of our market opportunity by virtue of our market leadership position.

這又回到了董事會成員身上。這裡的轉變機會指導了我們關於領導層過渡的決策，這清楚地表明這裡有一個非常強大、非常成功的 SaaS 業務的核心。我們只需要專注於建立 SaaS 業務，而不是在其他計劃上分心。我們需要憑藉我們的市場領導地位來建立與我們的市場機會大小完全一致和擴展的東西。

Great. Thanks so much for that color guys. Good luck.

偉大的。非常感謝那個顏色的傢伙。祝你好運。

That concludes our Q&A session. Thank you for joining today's call. You may now disconnect.

我們的問答環節到此結束。感謝您參加今天的電話會議。您現在可以斷開連線。