Why did SMRT's Q4 2024 earnings fall short of forecasts?

SmartRent's (SMRT) Q4 2024 earnings fell short of forecasts due to a combination of factors:

1. **Revenue Decline**: Total revenue decreased by 30% year-over-year, falling from $58.10 million in Q3 2023 to $40.51 million in Q3 2024. This decline was primarily attributed to a reduction in hardware revenue and fewer new units deployed. Analysts had estimated $45.94 million for the quarter, which was not met.
2. **Hardware and Professional Services Challenges**: Hardware revenue decreased by 47%, and professional services revenue decreased by 45%. New units deployed during the quarter decreased by 53%, reflecting customer hesitance to invest due to macroeconomic conditions.
3. **Strategic Initiatives**: The company is navigating strategic initiatives, including a leadership transition, which poses a risk to operational stability. Increased operating expenses, primarily due to one-time separation expenses related to leadership changes, further impacted profitability.

In summary, SmartRent's Q4 2024 earnings fell short of forecasts due to a significant revenue decline in hardware and professional services, strategic initiatives, and macroeconomic challenges.

|code|Ticker|Name|Date|Revenue Surprise|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|SMRT|SMRT.N|SmartRent|2024 Q1|-1.509E7|5.0489E7|169|
|SMRT|SMRT.N|SmartRent|2024 Q2|-2830000|4.8518E7|169|
|SMRT|SMRT.N|SmartRent|2024 Q3|-5440000|4.051E7|169|
|SMRT|SMRT.N|SmartRent|2024 Q4|-1.184E7|3.5368E7|169|

|code|Ticker|Name|Date|Net Income|market_code|
|---|---|---|---|---|---|
|SMRT|SMRT.N|SmartRent|2024 Q1|-7692000|169|
|SMRT|SMRT.N|SmartRent|2024 Q2|-4605000|169|
|SMRT|SMRT.N|SmartRent|2024 Q3|-9923000|169|
|SMRT|SMRT.N|SmartRent|2024 Q4|-1.1423E7|169|