SmartRent, Inc. · NYSE:SMRT
SmartRent — SPAC Merger (April 2021)
39 slides from SmartRent's SPAC merger presentation, April 2021
Slide 1: Fifth Wall Acquisition Corp I
Fifth Wall Acquisition Corp I
Slide 2: Disclaimer
Disclaimer Important Information for Investors and Stockholders This document relates to the proposed merger involving Fifth Wall Acquisition Corp. I (“FWAA”) and SmartRent.com, Inc. (“SmartRent”). FWAA intends to file a registration statement on Form S-4 with the Securities and Exchange Commission
Slide 3: Disclaimer
Disclaimer Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in FWAA’s most recent reports on Form 8-K, which are available, free of charge, at the SEC’s website at www.sec.gov, and will also be provided
Slide 4: Fifth Wall is the preeminent PropTech investor
Fifth Wall is the preeminent PropTech investor Largest, most active PropTech VC who pioneered institutional PropTech investing 1 • • $2.5B of AUM; over 5x larger than our closest competitor Early, “kingmaker” investor in the most iconic, category-leading businesses in Proptech over last 5 years 2016
Slide 5: Combination with FWAA further cements SmartRent as a category leader
Combination with FWAA further cements SmartRent as a category leader Why we chose FWAA? Why we chose SmartRent? Strong alignment with new investors The PropTech validator Category leader Principals personally invested in deal Unparalleled access to potential customers Substantial synergies with LP n
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS 01
Slide 7: Key investment highlights
Key investment highlights 1 Leading solution provider for owners / operators & residents 2 SmartRent is a category leader 3 Highly visible pipeline of demand 4 Large addressable market 5 Significant growth opportunity 6 Experienced team with deep industry expertise 7 Attractive financial profile
Slide 8: We are an enterprise software company, providing fully-integrated solutions to the real estate industry
Leading solution provider for owners / operators & residents We are an enterprise software company, providing fully-integrated solutions to the real estate industry We are hardware agnostic and deeply integrated into most Property Management Systems We have meaningful ongoing customer relationships
Slide 9: Proven land-and-expand model that will continue to fuel our growth
Leading solution provider for owners / operators & residents Proven land-and-expand model that will continue to fuel our growth Every product can be an entry point with switching costs exponentially increasing over time Community WiFi Building (2020) Smart Access Control Apartments (2020) Video Resi
Slide 10: SmartRent delivers undeniable value to owners / operators
Leading solution provider for owners / operators & residents SmartRent delivers undeniable value to owners / operators 50% 3 Return on Year payback investment1 period1 20-30% $25-100/month Operating Savings on utilities Rent increase / unit Expenses • Maximize resident engagement • Higher rent • Ful
Slide 11: Powerful network effect is driving demand for our solutions
Leading solution provider for owners / operators & residents Powerful network effect is driving demand for our solutions Smart Home Owners / Operators Device Companies Need to meet residents’ growing demand for Continued product innovation to meet demand digital amenities, while improving profitabil
Slide 12: Re-defining the next generation resident experience
Leading solution provider for owners / operators & residents Re-defining the next generation resident experience A single user app brings the smart home experience to rental communities Remote Access Guest Access Building Access Climate Comfort Video 12
Slide 13: We built the right foundation for our business
SmartRent is a category leader We built the right foundation for our business Industry-leading holistic solution Most owner / operator-friendly provider Ability to serve any building anywhere In-house installation yields quality 100+ W2 employees in implementation, Enterprise Hardware Resident Hardw
Slide 14: More units installed and states served than all of our competitors combined
SmartRent is a category leader More units installed and states served than all of our competitors combined Leading presence in all major MSAs 0 units < 1,000 units 1,001 – 10,000 units +10,000 units throughout the U.S. More sectors than any other competitor 28M 15M 6M Institutionally owned Single Fa
Slide 15: The industry leaders have chosen SmartRent
SmartRent is a category leader The industry leaders have chosen SmartRent… 2021 Rank Company Name Units Owned (K) SmartRent Client Multifamily 15 of the top 20 multifamily owners 1 MAA 100 are SmartRent clients 2 Morgan Properties 91 3 Starwood Capital Group 89 4 AvalonBay Communities 80 5 E
Slide 16: Highly visible pipeline of demand: early adopters case study
Highly visible pipeline of demand Close to full portfolio roll-out Case Study: 93% Early Adopters 82% 1 $13B 33K 7th Total market capitalization Apartments in 13 states Largest Multifamily REIT Close to full “And so when we think of SmartRent, using that as the example, over the last year, we put 30
Slide 17: From existing customers alone, SmartRent sees an opportunity to generate up to $1.5Bn in annual revenue
Highly visible pipeline of demand From existing customers alone, SmartRent sees an opportunity to generate up to $1.5Bn in annual revenue Number of Units 2.9M unit opportunity from existing customers alone $1.5B annual revenue opportunity from existing customers 4 2M 2.9M $624M Current booked revenu
Slide 18: Large addressable market opportunity
Large addressable market Large addressable market opportunity We are targeting a substantially larger market than our competitors ~$200B Global Expansion ~$80B New Products / Other Asset Classes 1 ~$30B Existing Residential Stock 2 ~$.03B Annual New Developments Source: NAREIT, John Burns Real Estat
Slide 19: Sector tailwinds are driving smart home penetration in rental communities
Large addressable market Sector tailwinds are driving smart home penetration in rental communities The same dynamics will apply to other asset classes and geographies …and owners / operators risk The rental industry is lagging… obsolescence if they do not evolve U.S. Smart home penetration Homes1 Re
Slide 20: Near-term product roadmap
Significant growth opportunity Near-term product roadmap Ongoing investment in technology for continued leadership Leasing Resident Experience Home IoT Building IoT Lease signing FUTURE Payments & wos FUTURE Video & security FUTURE Energy, water, air metering FUTURE Online app FUTURE Marketplace IN
Slide 21: Our solutions help owners / operators prepare for the future
Significant growth opportunity Our solutions help owners / operators prepare for the future Building data Green & analytics initiatives Our software provides owners / operators with By deploying our solutions, owners / operators are 1 predictive maintenance tools 1 able to substantially reduce energ
Slide 22: SmartRent has a compelling M&A pipeline and a proven ability to acquire and integrate companies
Significant growth opportunity SmartRent has a compelling M&A pipeline and a proven ability to acquire and integrate companies FWAA will supercharge SmartRent’s M&A pipeline Largest and most active VC in real estate tech Case Study • SmartRent acquired Zipato, a smart home PropTech Universe: 8,300+
Slide 23: Illustrative financial impact of capital raised
Significant growth opportunity Illustrative financial impact of capital raised Sales, marketing & administrative 36% For every $100M Investment 1.4M Units $220M Annual hosted service revenue opportunity Installation & services 64% Other potential uses of proceeds $900M Hardware and installation reve
Slide 24: Experienced team with deep industry expertise
Experienced team with deep industry expertise Experienced team with deep industry expertise Our team is why we win Lucas Haldeman CJ Edmonds Demetrios Bernes Jonathan Wolter Heather Auer Mitch Karren Chief Executive Officer Chief Revenue Officer Chief Operating Officer Chief Financial Officer Senior
Slide 25: Visible. Profitable. Repeatable.
Attractive financial profile Visible. Profitable. Repeatable. 1 Embedded pipeline expected to drive multi-year revenue visibility 80% of ’21-’22 units are committed 2 Decreasing CAC1 and increasing ARPU2 expected to drive margin expansion 74% 2024E hosted service3 gross margin 3 Long-term contracts
Slide 26: Financial Overview
FINANCIAL OVERVIEW 02
Slide 27: Financial performance highlights
Financial performance highlights Cumulative units (K) Total revenue ($M) % committed1 85% 75% 26% 4% $1,308 2,624 $782 1,476 $342 701 314 $119 155 $53 2020 2 2021E 2022E 2023E 2024E 2020 2 2021E 2022E 2023E 2024E Gross profit ($M) Adjusted EBITDA ($M) Margin: 12% 23% 27% 30% Margin: - 3% 10% 15% $39
Slide 28: Attractive projected recurring revenue model
Attractive projected recurring revenue model Key Highlights Revenue Build By Annual Cohort2 ($M) $1,592 0% churn to date 5-7 year contract life $1,004 633 397 $443 74% 75% 2024E hosted of customers prepay $158 160 607 959 50 283 service1 gross margin software contract 108 2021E 2022E 2023E 2024E Sal
Slide 29: Transaction summary
Transaction summary ($ Millions, except per share values) Key highlights Pro forma valuation calculation Valuation Pro forma enterprise value of $1.66B SmartRent illustrative share price $10.00 Capital Structure $513M pro forma cash held on balance sheet1 PIPE $155M of PIPE commitments Pro forma sha
Slide 30: Operating and valuation benchmarking
Operating and valuation benchmarking PropTech comps Smart home comps Integrated hardware and software comps 2022E Revenue Multiple 4.9x GAAP 15.5x 12.2x 13.3x 6.5x 6.5x 6.5x 8.0x 7.4x 3.9x Operational1 2 2020E - 2022E Revenue Growth3 154% 54% 74% 41% 31% 15% 11% 8% na 2 Source: Company estimates, co
Slide 31: Appendix
APPENDIX 03
Slide 32: Detailed financials
Detailed financials GAAP and Operational metrics ($ Millions) Projections 1 2020 2021 2022 2023 2024 Operational2 Total revenues $69.1 $146.4 $427.7 $993.0 $1,628.3 Cost of sales (62.4) (121.0) (302.7) (668.2) (1,061.7) Gross profit $6.7 $25.3 $125.0 $324.8 $566.6 Operational adjusted EBITDA3 ($14.1
Slide 33: Detailed financials (cont'd)
Detailed financials (cont’d) GAAP and Operational metrics ($ Millions) Projections 1 2020 2021 2022 2023 2024 Operational2 Hardware and installation Revenues $46.4 $98.2 $274.5 $610.7 $987.4 Cost of sales 48.9 94.5 236.7 522.3 831.9 Gross Profit ($2.5) $3.7 $37.8 $88.4 $155.5 % gross profit margin n
Slide 34: Reconciliation of non-GAAP metrics
Reconciliation of non-GAAP metrics ($ Millions) Projections 1 2020 2021 2022 2023 2024 GAAP net income (loss) ($35.7) ($24.1) $7.1 $74.8 $183.6 Less: Other income (expense)2 1.0 0.0 0.0 0.0 0.0 Plus: Interest expense, net 0.6 0.3 0.2 0.0 0.0 Plus: Provision for income taxes 0.0 0.0 0.2 2.0 4.9 Plus:
Slide 35: Case study: Illustrative building economics and ROI
Case study: Illustrative building economics and ROI Per unit (annually) 50% Traditional SmartRent Rental Building Building Owner / operator IRR Revenue $18.0K $18.8K from deploying SmartRent3 OpEx ($8.4K) ($8.2K) NOI $9.6K $10.6K 30% Projected cash on cash return3 NOI Margin 53% 59% Gross Value / Un
Slide 36: SmartRent helps its clients decarbonize while meaningfully reducing costs
SmartRent helps its clients decarbonize while meaningfully reducing costs 2,564 Residential real estate Water leaks prevented1 21% accounts for 21% of total U.S. energy consumption4 366K+ MWH electricity saved2 4% Reduction in U.S. energy consumption if all rental buildings Select Customers had Smar
Slide 37: REIT Customers testimonials
REIT Customers testimonials “. . . We're about 27,000 units in. We do think [residents] value it. We think it is part “This year, we intend to of what's helped drive our outsized renewal growth, so far this year. But the invest approximately primary purpose of doing it is some of the expense reducti
Slide 38: Key risks
Key risks In this section, all references to the “Company,” “we,” “us” or “our” refer to the business of SmartRent. The risks presented below are certain of the general risks related to the business of the Company, and such list is not exhaustive. You should carefully consider these risks and uncert
Slide 39: Key risks (cont'd)
Key risks (cont’d) • If we are unable to achieve or maintain profitability in the future, we may require additional capital to pursue our business objectives and to respond to business opportunities, challenges, or unforeseen circumstances. If capital is not available to us, our business, results of