Good evening, and welcome to the SmartRent, Inc. Q1 2022 earnings call. At this time, all participants are in listen-only mode. A question-and-answer session will follow management's presentation. As a reminder, this conference call is being recorded. I would now like to turn the call over to your host, Evelyn Infurna, Senior Vice President of Investor Relations. Thank you, Evelyn. You may begin.
Thank you. Hello, everyone, and thank you for joining us today. Lucas Haldeman, Chairman and CEO, and Hiroshi Okamoto, our recently appointed Chief Financial Officer, are with me and will be taking you through our results for the Q1 of 2022, as well as guidance for the Q2 . After today's market close, we issued an earnings release and filed our 10-Q for March 31st, 2022, both of which are available on our investor relations section of our website, smartrent.com. Before I turn the call over to Lucas, I'd like to remind everyone that the discussion today may contain statements related to our business that may be considered forward-looking.
Including statements concerning our plans to execute on our growth strategy, our ability to maintain existing and acquire new customers, the benefits of strategic acquisitions, including our acquisition of SightPlan, expected financial results, product portfolio enhancements, expansion plans and opportunities, expectations regarding key operational metrics, and other statements regarding our plans and prospects. Forward-looking statements are often identified with words such as "we expect," "we anticipate," "we believe," or similar expressions. These statements reflect our view only as of today, May 11th, 2022, and should not be considered our views as of any subsequent date. We do not undertake any obligation to update or revise any forward-looking statements. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations.
For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our most recent annual report on Form 10-K filed with the SEC on March 24th, 2022, along with our quarterly report on Form 10-Q, an earnings release, and current report on Form 8-K filed with the SEC today, all of which are publicly available on the investor relations section of our website at smartrent.com and on the SEC's website at sec.gov. Finally, during today's call, we will refer to certain non-GAAP financial measures. A discussion of these non-GAAP financial measures, along with a reconciliation to the most directly comparable GAAP measure, is included in today's earnings release. With that, let me turn the call over to Lucas to review our results. Lucas?
Thank you, Evelyn, and thank you to the investors and analysts on the call for your continued support and interest in SmartRent. We're excited to share our Q1 results and our outlook for the Q2 . SmartRent started 2022 with strong tailwinds from the groundwork laid in 2021. We had an extremely productive quarter focused on execution and expansion of our market share. This focus translated to record revenue of $37.4 million above our guidance and record units booked, indicating continued momentum into the Q2 . We also deployed over 51,000 units ahead of the top end of our units deployed guidance and expanded our customer base by 80% year-over-year to 290 customers. In addition, we made the strategic step of acquiring SightPlan, a leader in multifamily workflow management software.
Our powerful combination sets SmartRent even further apart from other real estate enterprise platforms, and we anticipate that the level of demand we are experiencing, which exceeds our expectations already, will only continue to build. We believe our progress in the Q1 has positioned SmartRent for another strong year. We now have over 390,000 total units deployed on our platform, up 108% from the Q1 of 2021. Our 290 customers own or control 5.1 million units, a 76% increase from a year ago. Our 760,000 committed units are up 26% year over year. Using our key performance metrics as a guide, units booked and bookings provide an assessment of the health and trajectory of our business on a unit and dollar value basis.
For the Q1 , our sales team delivered 101% growth in units booked, setting a company record of over 91,000 units, compared to 46,000 units a year ago. Our units booked typically convert to live units deployed in the subsequent quarter. The dollar value of units booked is represented by bookings, which provides a near-term estimate of the potential revenue generated by units booked. Bookings reflect the aggregate dollar value, net of any discounts, associated with a signed master services agreement or binding purchase orders executed during the period for all hardware, including SmartHubs and professional services, as well as the dollar value of the first year of software services included in the purchase order. For the quarter, bookings totaled $72 million as it compared to $32.4 million in the Q1 of 2021.
The dollar value of the first year of SaaS revenue for these bookings totaled $4.6 million, as compared to $2.2 million in the Q1 of last year. On a per unit basis, the SaaS bookings ARPU was $4.17 across all booked units and $7.44 for new customers. This compares favorably to the same metrics in the Q4 $3.69 and $6.72 for the overall average and new customers, respectively. At the time of our acquisition in late March, SightPlan's forecast for 2022 ARR was approximately $13 million. This translates to an increase in SmartRent SaaS ARR of approximately $10 million for the remainder of 2022. SightPlan generated a 60% compound annual growth rate on its revenue since its formation through the end of 2021.
We believe that there is potential to improve upon initial expectations as SightPlan is fully integrated with us and our combined sales team begins to market the SightPlan product suites along our IoT enterprise platform. Our longer-term indicator of organic growth is committed units, another of our key operating metrics. As of March 31st, 2022, committed units totaled 760,000, up 26% from 604,000 committed units at the end of the Q1 of 2021. As a reminder, committed units represent the aggregate number of SmartHubs that are subject to binding purchase orders together with units under a master services agreement that are expected to be deployed within the next two years. Our future prospects are even more compelling with the addition of SightPlan to our real estate enterprise platform.
The acquisition of SightPlan affords us the opportunity to significantly advance our product roadmap, specifically resident engagement through an online app, resident CRM, and a robust work order application, while also offering property inspection and audit applications. Like SmartRent, SightPlan is constantly enhancing its product suite by implementing features and developing new products. There are a number of these initiatives in the works that we believe will add incremental value to our investment. We look forward to sharing more information about these new features and products in the coming quarters. SightPlan is rolling out its real estate enterprise solutions across larger customer portfolios. They are currently deployed in approximately 1.3 million units with an additional 200,000-unit pipeline. These rollouts can occur relatively quickly, and since this is software, deployment is not subject to supply chain headwinds.
We believe that the opportunity for the combined platform is vast, and that our unified real estate enterprise platform will significantly improve the way properties are operated and managed. We also believe that the resident experience will be greatly enhanced. This translates to operating efficiencies, increased asset value for our customers, and satisfied residents who are more likely to renew their leases, all of which are increasingly important in the current economic backdrop. We acquired SightPlan for $135 million in an all-cash transaction. As of March 31st, 2022, we had approximately $286 million of cash on our balance sheet and full access to our $75 million revolving line of credit. We have been and will continue to be disciplined with the use of our capital.
We are focused on integrating and maximizing returns on our recent acquisitions and remain confident that our liquidity position supports our internal growth initiatives. I am pleased with the gains we are making on top-line growth, as well as across our key performance metrics. The continuing rollout of our solutions throughout the portfolios of our large legacy customers, as well as our ability to increasingly attract property owners and managers in the long tail, is testimony to the value that our real estate enterprise platform delivers. The majority of our new units deployed in 2022 will come from our current 290 customers that collectively own or control over 5.1 million units. In what has been an arguably volatile macro environment, our ability to advance our footprint by harvesting organic growth gives us confidence in our ability to deliver on our expectations.
We accomplished a great deal in the Q1 and over the last several years. During this time, our team has evolved and grown. After quarter end, we welcome the newest members of the SmartRent executive team, Hiroshi Okamoto, our Chief Financial Officer, and Robyn Young, our Chief Marketing Officer. Hiroshi and Robyn bring depth of experience and fresh perspective that will further strengthen our executive team, and we look forward to their contributions. As we welcome Hiroshi and Robyn, we are also saying farewell and thank you to Jonathan Wolter, our outgoing CFO. John was instrumental in structuring our financial processes and procedures, and he played a critical role as we navigated the listing process. We appreciate John's service over the last two years and wish him great success in his future endeavors.
While he will not be participating on today's call, John will continue to work with us through the end of this month to ensure a smooth transition. With that, I'm gonna turn the call over to Hiroshi to discuss our financial results. Following Hiroshi's remarks, I will share an update on the supply chain and our operational outlook before opening the call for questions. Hiroshi.
Thank you, Lucas, and thank you all for joining today. I am excited to be on the SmartRent team and look forward to meeting our investors and analysts over the coming weeks and months. Now, let's turn to our financials. SmartRent's strong execution in the Q2 resulted in a number of financial and operational records. Total revenue for the Q1 increased 95% to $37.4 million as compared to $19.2 million in the Q1 of 2021. This growth in revenue reflects the increased volume of our deployments of our smart home hardware devices and the growth in the number of recurring software subscriptions, which included a full quarter of contribution from iQuue and a contribution from SightPlan for nine days in March.
Notably, we experienced a 205% increase year-over-year in the SaaS revenue to $4.1 million, of which $3.5 million was attributable to SmartRent, with contributions of $500,000 from iQuue and $200,000 from SightPlan. We expect SaaS revenue to grow significantly in Q2, both from organic growth driven primarily by the deployment of new units and from a full quarter of contribution from SightPlan's operations. As Lucas noted earlier, we believe that SightPlan will contribute approximately $10 million of SaaS revenue to our operations in 2022. Hosted services ARPU in the Q1 increased 27% to $7.79 per unit per month as compared to $6.15 in the Q1 of 2021.
The improvement in hosted service ARPU was driven primarily by an expanding customer base opting for more of our products, the upselling of legacy customers, the contributions from iQuue and SightPlan, and improved pricing for our SaaS subscriptions. SaaS ARR, which we define as the annualized value of our recurring SaaS revenue for the current quarter, was $16.3 million, as compared to $5.3 million in the Q1 of 2021. Moving now to expenses. Cost of revenue for the Q1 was $42.1 million, up from $19.6 million in the Q1 of 2021. The year-over-year change reflects the increased number of deployments, the impact of scaling our professional services team, and increased costs related to third-party contract labor.
While the growth of the professional services team continues to pressure our gross margin, we anticipate incremental improvement in our professional services margin over time as our deployment volume increases, as we realize efficiencies from a fully trained and seasoned team, and as we incorporate in-house productivity tools into our standard operating procedures. We believe that our gross margin should respond positively to price increases across all three of our revenue streams. As we shared on our Q4 call, we anticipate seeing incremental margin improvement in the H2 of the year as bookings from the first and Q2 reflecting new pricing are converted to deployed units. Operating expenses for the quarter were approximately $23.6 million, compared to $8.8 million for the Q1 of 2021, and $22.8 million for the Q4.
The year-over-year increase reflects our investment in the growth of our team and corporate infrastructure in response to demand for our real estate enterprise platform, as well as costs associated with being a public company as compared to the prior year. The sequential increase is primarily attributable to transaction costs related to our acquisitions included in G&A. Net loss for the Q1 was $23.4 million, as compared to the net loss of $9.3 million for the Q1 of 2021. Adjusted EBITDA loss for the Q1 was approximately $23.1 million, as compared to the loss of $8.4 million in the Q1 of 2021. Now let's move on to the balance sheet.
As of March 31, 2022, SmartRent's total deferred revenue, which provides us with near and medium-term revenue visibility, increased to $116.8 million as of March 31, 2022, from $64 million at the end of the Q1 of 2021. We expect to recognize approximately 50% of our total deferred revenue within the next 12 months. With respect to our available capital and liquidity as of March 31, 2022, SmartRent had approximately $286 million of cash and no outstanding debt. We believe that our liquidity position provides us with sufficient capital to advance our organic growth plans. As Lucas mentioned earlier, we are focused on the integration of SightPlan and maximizing the benefits of our investment while continuing to exercise discipline with respect to our capital and liquidity.
I will turn the call back to Lucas for additional perspective on our business and our outlook for the Q2 and the balance of 2022. Lucas?
Thank you, Hiroshi. SmartRent continues to make steady gains in expanding its footprint. Our Q1 new customer deployments went smoothly and we expect to see a seasonal acceleration in our deployments for the next two quarters, supply chain headwinds notwithstanding. We are continuing to increase on-hand inventory of our core smart home devices reflected in the increase on our balance sheet and took possession of our expanded 65,000 sq ft warehouse in April. We are seeing improved access to component parts for Alloy Access. That should improve the availability of Alloy Access devices later in the year, which will allow us to work through on-hold deployments that include this highly sought after smart access control. We continue to work closely with our suppliers to facilitate access to components and devices necessary to keep our deployments on schedule. With that said, the situation remains fluid.
We are carefully navigating and proactively responding to rapidly changing conditions. Despite supply chain headwinds, we are pleased with our competitive positioning and excited about our ability to continue to scale our operations and increase our market share. As I shared earlier, the demand we are seeing for our real estate enterprise platform continues to build and exceed our expectations. However, limits on access to the full set of hardware products remain a governor on the pace of our deployments. Before moving on to our outlook for the Q2 , I'd like to spend a few minutes discussing our margins for the Q1 . Our hardware margin was adversely impacted by the customer mix as well as by the swapping of Alloy and Fusion hubs that we discussed in our year-end call.
In addition to the hub swap, units deployed in the Q1 were heavily weighted toward legacy customers with preferential pricing. We anticipate a similar amount of drag on our hardware margin for the Q2 as we work through additional legacy customer bookings. We believe our hardware margins will be improved in the H2 of the year, reflecting updated pricing implemented in the Q1 . With respect to professional services, we anticipate an improvement in margin in the second and Q3 , primarily driven by a higher volume of deployments. Our hosted services margin for the Q1 was 39%, expanding year-over-year and on a sequential quarter basis, driven primarily by the increased contribution of SaaS revenue from our iQuue and SightPlan acquisitions.
We expect further improvement in our SaaS margin for the remainder of 2022 as total units deployed grow and as new pricing takes hold for bookings and deployments for the remainder of 2022. We believe the hosted services and SaaS margins will also benefit from the increased revenue contribution from SightPlan. From an organizational perspective, we are pleased to have completed the build-out of our executive team with the recent hiring of Hiroshi and Robyn. As we welcome our 78 SightPlan team members, we anticipate carefully integrating our combined team to take advantage of potential synergies. We believe we are well positioned from both a product and people perspective to meet our business objectives. Before turning to guidance, there are three key takeaways from the quarter that bear repeating. Demand for our platform is strong, as evidenced by record revenue and record bookings.
The acquisition of SightPlan has accelerated our product roadmap. It advanced the breadth of our product offering and is expected to add $10 million to our SaaS revenue this year. With a fully built-out executive team and the addition of our SightPlan team members, we have the ability to advance our business plan and ensure our place as the market leader in the real estate enterprise technology arena. The successes and headwinds we experienced in the Q1 and this quarter to date influence our outlook for the remainder of 2022, and we are leaving our full year 2022 guidance unchanged. For the Q2 , we are providing total revenue guidance of $47 million-$55 million and units deployed guidance between 64,000 and 75,000, which reflects our seasonal deployment increase and our current assessment of potential supply chain headwinds.
Our guidance includes our expectations for the SaaS contribution from SightPlan for the Q2 and does not consider additional acquisitions for capital markets activities. We began 2022 on a strong footing, and we anticipate a solid year ahead as we continue executing against our business plan. Operator, please open the call for questions.
Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press star and then one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and then two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your headset before pressing the star keys. One moment please while we poll for questions. Our first question is from Rod Hall of Goldman Sachs. Please go ahead.
Yes. Hi, this is Max Gamperl on for Rod. Thank you for taking our questions. First question would be on deployed units. Just wondering if you could elaborate on what helped you exceed the high end of the guidance for Q1. Is it more of a factor of the timing of deployments for your new customers, or did you see better than expected demand in the quarter? How should we think about this in regards to your reiterated deployed units guidance in fiscal year 2022? I have a follow-up. Thank you.
Yeah. Hey, Max, it's Lucas. Thanks for the question. Yeah, you know, we were able to get a little additional supply in Q1 than we originally anticipated. That's how we came in at the top end. Again, kind of like last quarter, just reiterating it, that the demand remains incredibly strong. What we're fighting is supply headwinds. The plus and minus isn't really around customers or demand. That's there. It's can we get it in? We were able to get more hardware in than we originally anticipated.
Got it. That better than expected supply in Q1 that is incorporated, I guess, in your 2022 guidance. Or do you think it's a little. This guidance would be more on the conservative end given those recent supply trends you're seeing?
No, I think, Max, I think we gave a broad range in guidance because of that. You know, that we have a delta there of low and high because of the supply chain. So we feel good about reiterating our guidance. It's still a fluid situation. I know I've seen some of your other reports and other analysts that everyone is kind of dealing with choppy water still in supply chain. So I think we're all feeling cautiously optimistic, but still every day is a dog fight.
Got it. Yeah. Thanks for confirming, Lucas. Then one more question. I believe your adjusted EBITDA guidance for the year implies about -$20 million for the remainder of the year at the midpoint of your guidance. You talked about this on the call, but wondering if you could walk us through just one more time how you plan on getting there throughout the year, especially getting those negative gross margins and professional services and higher operating expenses. Yeah, I guess what factors should we consider for you to end up at the high end of the range versus the low end of the range for your adjusted EBITDA? Thank you.
Yeah. I think a lot of it really comes down to you're gonna see, you know, we're moving into our high season of Q2 and Q3 for higher deployments, and that's really where we're gonna see that. Also, you know, we talked about this last quarter. We put some new pricing in effect, and you'll start to see that come in H2 of 2022. That's why we feel confident with that guidance.
Got it. Thank you so much.
Thanks, Max.
Our next question is from Tom White of D.A. Davidson. Please go ahead.
Great. Thanks guys. Good evening. Two, if I could, 1 just in the prepared remarks, Lucas. Your comments about SaaS ARPU for bookings and the difference there overall versus kinda new customers. Is that still mostly impact of mostly the result of newer customers kinda being, you know, longer tail where you guys have some pricing pressure? Is there something different there? Then I was hoping you could get an update on, you know, your ambitions kind of in the commercial space, and whether you guys might look to kind of how you might look to kinda leverage channel partners to kinda go after that market. Any color there would be helpful. Thanks.
Yeah. On the first side, yeah, you're right, Tom, on the expanded ARPU. It really is that long tail customer, you know, that is not subject to large bulk pricing and large legacy commitments. That's why we're sharing that metric to sort of try to give some of that clarity on this new sales team that we've invested heavily in is becoming productive not only in new deals, but in higher ARPU deals. In terms of commercial expansion, it's something we're always looking at. I think you're right to say it would likely be more through a channel partner. Today we're really focused on the 5.1 million multifamily units that just our current customers own and operate.
We feel like the organic growth is there for us to go harvest, and that's really the primary focus.
Great. Thanks for the color and nice execution this quarter, guys.
Thanks. Thanks, Tom.
Our next question is from Ryan Tomasello of KBW. Please go ahead.
Hi, everyone. Thanks for taking the questions. You know, really nice to see the ARPU above $7 for the new customers and appreciate that disclosure. I guess just following up on the other questions you already received. You know, is it possible to quantify how large those typical discounts are for legacy customers and larger clients? You alluded to the new pricing that you put in place. Maybe you can quantify the level of uplift that you're expecting there and if that's both on the software and hardware pieces of business. Then finally, you know, any color on your sense of these larger legacy clients' appetite, you know, to attach additional services and really drive stronger ARPU beyond just the pricing discounts over time? Thanks.
Yeah. Thanks, Ryan. I'll start with the last part and work my way backwards through your questions. I mean, in terms of larger legacy customers adding products, we have incredible demand among the larger legacy customers. We're still fighting supply chain around Alloy Access, and so a lot of that is actually on hold. If there's sort of a perfect supply ratio, you would actually already see that expansion happening. But certainly, you know, every large legacy customer we have is taking at least one additional product that we've brought to market, if not more. I think we're seeing a really positive trend there. It won't flow into the financials until we can actually go deploy. That's sort of why you're seeing some of that delta there.
In terms of the overall ARPU, you know, $744 versus $417, I think by disclosing those two numbers without going into detail of specific contracts, you can kind of see the variance. The price increase that we put into place is both on the software, hardware and professional services, so across the board. Really the price increase on professional services wasn't just an increase, but really reworking from a sort of one size fits all to a really lots of options for our customers. Seven different tiers of installation, all at better margin characteristics for us. In some cases you'll see our customers won't have an increase in the cost of deployment.
It'll stay flatter and maybe even go down, but we won't be incurring as much cost either. I think we're really excited about that. Again, it'll take time for that to flow in really into the H2 of 2022 before we see that really flowing through.
Got it. I guess on the profitability front, is there a framework that you could provide for bridging the path to cash flow breakeven, maybe, you know, at what level of ARR or maybe unit count, live unit count that would drive that? Is there any visibility you have today that you would be willing to, you know, discuss your, you know, that timeline being sometime maybe next year in terms of a breakeven point for Adjusted EBITDA?
Yeah, I mean, we're definitely reiterating. We feel that we're on track to cross into adjusted EBITDA positive in 2023. You know, we're not providing detailed guidance on that, but we feel that we're on track. It's certainly a combination of expanding SaaS revenue along with just increasing the unit counts and the hardware and professional services revenue that comes along with that.
Just to clarify, when you say cross EBITDA breakeven in 2023, do you mean on a full year basis or, you know, intra year at a certain quarter?
Yeah, it's a good question, so I wanna make sure we're really clear in communicating that it's intra-year. You know, we're not anticipating a full year adjusted EBITDA positive year for 2023, but that we will move into an intra-year adjusted EBITDA positive in 2023.
Great. Thanks for clarifying.
Yeah. Thanks, Ryan.
Our next question is from Sidney Ho of Deutsche Bank. Please go ahead.
Great. Thanks for taking my question. A couple of them. On the first one, if you guys can reaffirm the revenue guidance of $220-$250 for the year, but there are a lot of changes at the macro level. I know we talked about supply constraints, but there's inflation, there's consumer spending, a lot of different things happening. I understand there's a lot of moving parts in the revenue guidance, but curious from your perspective, anything has changed since your original guide, in March in terms of number of units you're thinking you can deploy, the product mix, the maybe demand trajectory or even ARPU expectations compared to just a month and a half ago?
No, I mean, Sidney, thanks for the question and good to talk to you. We did just report rather late on our Q4 and FY of our full year, so no, nothing's really changed since that point. When we laid out the revised unit count for the full year of 2022, you know, we took into account the supply chain headwinds that we were experiencing. So we feel like we factored that in. In terms of demand, the only thing happening with demand is it's continuing to increase. I think especially as we see inflation kicking in and we see a tighter labor market, you know, those are actually catalysts for our business.
Those are positive indicators for our business in terms of helping our customers reduce costs and reduce complexity. If anything, we're seeing demand growing. Again, you know, we're fighting the supply chain headwinds. That's where we feel good about the guidance that we've issued, and we feel like we're on track.
Okay, that's helpful. Maybe a follow-up to that is, despite all the supply chain issues in the past or it's still going on, the one area that you guys seem to be consistently delivering is the booking units and the number of units booked. How do you think about bookings this year compared to what you think in the past? I know this may be an old document, but in the S-1, you guys talk about growing booking units 150% year over year in 2022. Is that still the right way to think about it? Are there seasonality for units booked we should be thinking about as we go through the rest of the year?
Yeah, it's a good question. We don't see a lot of seasonality. We see a little bit of seasonality in terms of we set budgets in late Q3, early Q4 typically in multifamily. Sometimes we'll see a bump there. Really what we're seeing is the demand is so great it's sort of muting any seasonality that we'd be seeing. We still feel like, you know, this is the highest demand we've ever seen for this product in the existence of this company. All of the macro indicators remain incredibly positive. Yeah, I mean, I think bookings. You're right, Sidney. Bookings is a good number to sort of key in, and that goes to demand. We're seeing incredibly strong bookings.
We're seeing incredibly strong new customers coming to the platform. Those to me are the really positive long-term indicators. As we sort of work our way through the near-term supply chain constraints, that's what we're gonna be harvesting in the future.
Okay, great. Thank you.
Our next question is from Erik Woodring of Morgan Stanley. Please go ahead.
Hi, this is Patrick on for Erik. Kinda going off the last comment you made in regards to new customers. You did add, you know, 41 new customers in the Q1 , which was strong, similar to Q4. You know, kind of by our math, new committed units fell to 69,000 from 107,000 in Q4. The question here is, are you seeing any hesitation from property owners to commit to new units with rates rising and the macro getting more challenging?
No, we're not seeing any of that. Remember, the committed units you also have to factor in when we install that unit, it comes out of committed and becomes revenue producing. If you think about that, you know, you got to factor that in as well. No, we're really happy with where we've been and where we continue to see strong demand. We've had no one, not a single customer backing off on slowing down or hitting pause. Haven't seen it at all.
That's good to know. Then, you know, kind of on another subject here, you know, per your comments, you obviously have some new members of the executive team adding a CFO and CMO. Could you just maybe talk about what, you know, drove you to choose each leader and some of the top priorities for them over the next 12 months or so?
Yeah, I mean, I think it's great to have the full executive team built out and be through that. We definitely spent a good amount of time finding what we thought was the perfect CFO. I couldn't be happier to have Hiroshi joining the team for a variety of reasons. I think, you know, we'll see a continued focus on the pricing and the pricing strategy going forward over the next 12 months. Robyn, on the chief marketing officer side, you know, this is the first time as a company we've had a chief marketing officer, and so I think you'll see us be much more active in the marketplace and more promotional.
Great. Thank you, and congrats on the quarter.
Thanks. Thanks, Patrick.
Ladies and gentlemen, just a reminder, if anyone would like to ask a question, you're welcome to press star and then one. Our next question is from Ben Sherlund of Cantor Fitzgerald. Please go ahead.
Hey, guys. Thanks for taking my questions. How should we think about the pace of fulfilling the backlog once inventory comes back? Are there any bottlenecks to deployment other than getting hardware in stock? Is there any sense you can offer on kind of the mix of bookings that are ready to go once inventory is here versus, you know, targeting a deployment down the road?
Yeah. Hey, Ben. Thanks for the question. I mean, I wanna make sure we're clear on this too, which is we have a good supply of a lot of our hardware that we're able to fulfill a lot of new customer contracts. It's sort of on the margin where we're having trouble with specific SKUs or specific products, and especially around, as we've talked about before, around access control, and around some of the semi-custom lock sets. A lot of the new bookings that are coming in aren't actually subject to supply chain headwinds. We're able to go ahead and fulfill them and feel really good about that. You know, typically our bookings number that we share lags about a quarter to deployment, and that's still true.
Sometimes earlier in the year, you may see that it's a little bit longer than a quarter, but certainly the Q1 we're looking at those deployments in Q2 and maybe some into Q3. I think the other great thing is we still, you know, while no one's excited to be delayed because of supply chain issues, it is just a delay. We've had no one say they're not gonna move forward or they're gonna go with a different supplier. To me, that's overall really positive.
Okay. Yeah. Sorry, I guess I was meaning kind of the 761,000 committed units rather than the bookings. You know, is there a large percentage of them that you'd think, you know, if you had the specific SKUs in stock, you could just go in there and, you know, fulfill them relatively quickly or is that gonna be kind of a more evenly spread out kind of longer process to fulfill those?
Yeah. Oh, thanks for the clarification. Yeah, it's a more evenly spread out. You know, the committed units is a rolling forecast of the next two years. Just so because of that definition, it's always sort of gonna be a rolling look at it. In terms of sort of the other part of your question just to answer, say, let's say we waved our magic wand and we had no supply constraints, we had a warehouse full, you know, we wouldn't then be able to just double or triple our monthly installs.
We have a high touch white glove installation experience, and that's part of why you see the pressure on professional services margin as we're growing that as quickly as we can and growing it ahead of the demand that we're seeing come in. But that is another constraint on the business. We're able to grow. Every month we can grow nicely, but we couldn't do three or four times the number of units we did in one month, the next month if we had all the hardware that we needed.
Okay, great. Yeah, that's really helpful. Maybe one more. Is there any color you can provide on some of the plans to roll out some of these resident experiences, such as payments or marketplaces or moving services, that I know you previously mentioned in 2021? Maybe what would it take to see, you know, meaningful incremental revenue from some of these initiatives?
Yeah. Those are underway. You know, it's not something we're ready to report on or talk about, but I think if you look also at the acquisition of SightPlan, it was a clear move in that direction out of just the IoT world and into the more of the complete resident experience and moving down that chain. I think those are all in the works and continue to be long-term growth drivers. Again, it's sort of I love thinking about that and I love the opportunity that it brings over time. Our marketplace is live. You mentioned the marketplace, so we do have the live marketplace already that will continue to expand and continue to contribute.
But really our focus is just continuing to go after these 5.1 million units that our current customers own and deploy. It is land and expand. We feel like if we can land on the current products we have, you know, we'll be able to upsell those over time as we bring new products to market.
Okay, great. Thanks for the color, guys.
Thanks, Ben.
Ladies and gentlemen, we have reached the end of the question and answer session, and I would like to hand the call back to Lucas Haldeman. Please go ahead, sir.
Thanks, Irene, and thank you all for joining us today. Really appreciate your time, your continued support. Look forward to speaking soon. Have a great night.
That concludes today's conference. Thank you for joining us. You may now disconnect your lines. Goodbye.