Scottsdale-based real estate tech firm SmartRent has undertaken a major overhaul of its sales team, as it shifts focus towards a sustainable business model centered on software-as-a-service (SaaS). This pivot comes in the wake of disappointing fourth quarter results. The company's revenue dropped by over 40% from the previous year's quarter, at $35.4 million, missing projections of $39.3 million, ABC 15 outlined.

Amid these challenges, SmartRent has seen a silver lining in its SaaS revenue, which increased 19% year-over-year in the fourth quarter, reaching $13.6 million. This growth seems to affirm the strategic shift emphasized by Shane Paladin, the CEO of SmartRent, who described 2024 as "a challenging — but I believe — pivotal year for our company as we execute on our strategic transformation," according to the Phoenix Business Journal . Paladin asserts the firm is making substantial progress despite the hurdles.

The restructuring effort was spearheaded partly by the newly appointed Chief Revenue Officer, Natalie Cariola, who joined in September. Additionally, there have been four major appointments to bolster its sales, and client services teams made in January. "We've had a very significant restructuring of our sales team, beginning with adding Natalie as our new CRO in September and she's rebuilding her direct sales team," Daryl Stemm, SmartRent’s chief financial officer said, as reported by the Phoenix Business Journal .

SmartRent aims to reinforce its financial stance through "targeted cash reductions," set to begin in the second quarter, and is currently maintaining a strong balance sheet with $143 million in cash and cash equivalents and no debt to its name. The company also has access to a $75 million undrawn credit facility. Despite this, the company has opted not to provide financial guidance for Q2 or the rest of 2025, due to ongoing uncertainties, per the Phoenix Business Journal .