Daryl Stemm: Thank you, Lucas. In March 2022, we stated on our earnings call the plan to become adjusted EBITDA profitable by the end of 2023. Since then, we have incrementally improved quarterly operating results by delivering revenue growth, expanded margins and tightly controlling operating expenses. Q4 marked another quarter of continued strong execution. And as Lucas pointed out, we achieved adjusted EBITDA profitability. Total revenue for the quarter was $60.3 million, up 4% from Q3 and up 49% from Q4 of last year. This was the second highest quarter of revenue in the company’s history following Q1 of 2023. Revenue for calendar year 2023 totaled $237 million, up 41% from $168 million for 2022. By revenue stream, hardware revenue was $36.5 million, professional services was $6.7 million and hosted services was $17.1 million for Q4 of 2023.
ARR increased to $46.2 million in Q4 from $43.3 million in Q3 and $32.3 million in Q4 of 2022. This was an increase of 7% sequentially and a 43% increase year-over-year that primarily resulted from increasing total units deployed to 720,000 and our expanded product line. SaaS ARPU was $5.50 in Q4, a 7% increase year-over-year. As an integrated hardware and software company, the composition of revenue continues to evolve as our expanded product line is increasingly adopted. Hardware ARPU continues on an upward path and increased 28% sequentially in Q4 from Q3 to $730 per unit shipped. We believe the significant increase is sustainable in the long run as it includes the shipment of hardware attributable to 6 WiFi projects. However, we caution that we may experience short-term fluctuations in hardware ARPU until WiFi deployments contribute more consistently to revenue.
For calendar year 2023, hardware ARPU increased 39% and professional services ARPU increased 32% year-over-year. Unit ship totaled 50,000 in Q4 and total units deployed increased to 720,000 with 37,000 units being deployed in the fourth quarter. Historically, units shipped and units deployed have tracked relatively closely. There are three primary reasons for the divergence we saw between units shipped and units deployed in 2023. First, single-family rental customers tend to purchase hardware in a nonlinear manner, stocking up inventory and then deploying the units over a longer period of time. Second, certain customers buy hardware in advance of deployment to beat price increases. And third, as Lucas previously stated, some customers have commenced upgrade cycles.
Hubs that are shipped to these customers are not counted as new units deployed as these hubs do not represent a net increase to the installed customer base. In other words, units deployed represent active units that are contributing to recurring SaaS revenue. In Q4, we shipped approximately 29,000 hubs for upgrades. We’ve deployed more than 700,000 units over the last 5 years and believe that our shipment of units for upgrades will comprise a higher proportion of future business. Bookings for the quarter were approximately $40 million, and there were approximately 42,000 new units booked, down 20% and 10%, respectively, from the previous quarter. The reduction in bookings is primarily attributable to two factors. First, we’re working through backlog and believe that those customers will commence purchasing again when their backlog is exhausted.
Second, we are seeing some deferrals as certain customers are planning to purchase IoT concurrently with community WiFi. We remain encouraged by bookings ARR being above $5 million for the second quarter in a row and bookings ARR ARPU exceeding $8 for the third consecutive quarter. Since SaaS ARPU was $5.50 for the fourth quarter, we can expect SaaS ARPU to continue to increase as we deploy these booked units. Additionally, we experienced net revenue retention for 2023 of 105%. These metrics demonstrate, however, to cross-sell and upsell our suite of products are starting to flow through to the P&L, which we expect to drive our path to the expansion of SaaS revenue and ultimately, greater shareholder value. We’re pleased with the level of interest that rental operators are expressing in connection with our community WiFi. But we expect the WiFi projects will have both longer sales cycles and longer project implementation time lines.
As I mentioned earlier, in the fourth quarter, we shipped hardware for 6 new WiFi projects that we believe will be completed in the first half of 2024. Operational improvements continued to drive gross margin expansion for hardware and hosted services. For the fourth quarter, total gross profit was $17 million compared to $13.5 million last quarter and $3.9 million a year ago. Hardware margin increased to 27%, up from 23% last quarter and 15% a year ago and contributed $9.8 million of gross profit. Efficiencies in manufacturing, logistics and distribution continue to drive expanded margins and hardware. Posted services contributed $11.4 million of gross profit and hosted services margin increased to 67%, up from 64% last quarter and 60% a year ago.
SaaS margins, a part of hosted services improved to 76%, an increase from 71% a year ago. For the calendar year 2023, total gross profit increased to $49.5 million from $1.3 million in 2022 and total gross margin improved to 21% from 1%. Professional services gross margin increased in Q4 as a direct result of the investment in technology initiatives over the past several quarters that have allowed our teams to be more efficient with installations and transform professional services to a more variable cost model. We reduced losses in professional services by $1 million versus the third quarter and reduced losses by nearly $3 million compared to the same period a year ago. As we evolve the professional services model, we believe that we will have continued improvement throughout 2024 and anticipate reaching breakeven on a professional services margin basis by the end of 2024.
As a reminder, in the first quarter of 2022, we had an adjusted EBITDA loss of $23.1 million. Adjusted EBITDA for the quarter was a positive $743,000, an improvement from a loss of $5 million in Q3 and a loss of $14.1 million a year ago. Total operating expenses were $22.8 million, a decrease of 3% from $23.5 million in Q3 and a decrease of 13% from $26.2 million a year ago. Put another way, we’ve reduced total operating expenses from 63% of revenue in Q1 of 2022 to 38% of revenue in the fourth quarter of 2023. We provide important information related to business operations in the form of periodic SEC filings, earnings releases, these earnings calls and investor presentations on our website. For example, we’ve added new disclosures for net revenue retention, revenue by solution and a forward-looking table disclosing estimated revenue from amortization of nondistinct hub revenue.
