SMRT - SmartRent: Profitability On The Horizon
2024-02-09 02:04:25 ET
Summary
- SmartRent aims to reach profitability in 2024 despite its current lack of profits, thanks to its strong market presence and upward revenue trend.
- With over 680,000 device installations and a focus on integrated hardware and software solutions, SMRT demonstrates the potential for significant growth within its customer base.
- While risks exist in the competitive home automation industry, the Company's improving financials and positive analyst sentiment suggest a bullish outlook for potential investors.
SmartRent, Inc. ( SMRT ) is a small-cap stock that offers integrated innovative hardware and cloud-based software solutions for rental property owners and operators. With a strong market presence and an upward revenue trend, SmartRent is expected to reach profitability and generate positive cash flow in 2024. Despite yet delivering profits, the company's financial position is improving; the stock received positive analyst commentary in May after posting a strong Q1 2023 . However, we've seen the stock fluctuate this year due to missed revenue expectations in Q2 and Q3 and a tightening of FY2023 guidance. Although cautious of the risks of investing in younger companies that lack sufficient historical data, the company has already installed over 680,000 devices, its solution penetration is less than 10% across its existing customer base, and there is a positive near and long term outlook regarding its top and bottom-line growth. Therefore, investors may want to take a bullish stance on this stock....
SmartRent: Profitability On The Horizon