We anticipate that financial disclosures will continue to evolve as our business evolves, but we remain committed to providing the right key performance indicators that allow you to assess company performance. In this regard, I’d like to encourage listeners to review the fluctuation analysis included in the MD&A section of our Form 10-K. Each of the three revenue streams, hardware, professional services and hosted services include both rate and volume data. Also note that because of the divergence between new unit deployment and revenue growth, we do not believe that our historically disclosed committed unit metric will continue to be an effective indicator of performance as it’s not contractually binding. Thus, we have not included it in this quarter’s disclosures and do not plan to disclose it in future periods.
During calendar year 2023, our total cash balance decreased just $2 million from approximately $218 million at the end of 2022. On a sequential basis, our cash balance increased to $216 million from approximately $211 million at the end of Q3. The increase in cash this quarter is not a result of the ADI arrangement, but is primarily due to improved inventory management and better demand forecasting to reduce inventory levels as we gradually transition to ADI over the next year. Our strong cash and balance sheet position allow us to deploy cash prudently to generate highly attractive returns for shareholders while maintaining sufficient liquidity for ample financial flexibility. Today, we announced the stock buyback program that allows us to repurchase as much as $50 million of common stock.
Additionally, as Lucas mentioned, we are investing to enhance community WiFi and accelerate our ability to realize significant untapped opportunities from existing and potential new customers. Because of the strong customer demand we’re seeing for community WiFi in which we are addressing with our planned investment, growth and profitability may be affected in the first half of this year. Additionally, because of the synergies between community WiFi and core IoT products, we’ve decided with several clients to defer planned first quarter IoT implementations until the installation of IoT can be completed alongside community WiFi deployments. These decisions move the deployment of more than 10,000 units from the first quarter into later quarters this year.
While community WiFi sales cycles and deployments are significantly longer than our traditional offerings, we are confident that growth and profitability will rebound in the second half of the year. We will continue to closely monitor demand for community WiFi and carefully evaluate necessary investments to expand our offering and enhance long-term growth. Accordingly, guidance for Q1 and full year 2024 are as follows: Q1 guidance for revenue of $47 million to $53 million and adjusted EBITDA of a loss of $1 million to positive $250,000. Full year 2024 guidance for revenue is $260 million to $290 million and adjusted EBITDA profit of $5 million to $8 million. I’ll now pass the call back to Lucas for closing remarks.
Lucas Haldeman: Thank you, Daryl. The fourth quarter marked the achievement of adjusted EBITDA profitability for the first time in the company’s history through a combination of our team’s hard work and dedication and leveraging our three unique differentiators. From 2020 to the end of 2023, SMRT’s competitive positioning has strengthened as evidenced by the growth in the metrics we report. We’ve increased total revenue from $53 million to $237 million, a 46% compounded annual growth rate. ARR grew from $5 million to $46 million over the same time, a 75% CAGR. SaaS ARPU grew from $2.94 in Q4 2020 to $5.50 in Q4 2023. We grew total units deployed from 155,000 in 2020 with less than 150 customers to 720,000 with nearly 600 customers at the end of 2023.
In addition to our investment in community WiFi and $50 million stock repurchase program, in 2024, we will remain focused on assessing additional opportunities to add enhanced value for prospects and existing clients, improved gross margins and expense control and optimize ongoing operations. We believe SmartRent will continue to lead the rental housing industry as our SmartHome solutions not only address the needs of customers, but anticipate where the industry is headed. Our mark leading position has been built on our first-mover advantage, scale and customer trust and will continue to be strengthened by innovative products and customer focus. We look forward to all that’s on the horizon this year and beyond. Thank you for participating on the quarterly — call.
We would now like to open the call for your questions.
Operator: [Operator Instructions] We’ll go first just Soham Bhonsle at BTIG.
Soham Bhonsle: So I guess the first one, I wanted to understand a little bit sort of what’s embedded in the guidance range here. So it looks like you’re guiding to a 20% decline in revenue in the first quarter sort of breakeven profitability. But then your full year revenue and EBITDA guide would suggest sort of a steep ramp here past the first quarter. So if you could maybe just provide some detail on the cadence of revenue and EBITDA and how you expect that to play out over the next few quarters? And just what gives you confidence in sort of hitting the full year guide, that would be great.
Daryl Stemm: This is Daryl. And I’d say there are two primary reasons that give us confidence in the back half of the year, one being our confidence in the WiFi demand. As we’ve pointed out, to have a relatively — these projects have a relatively long life sales cycle as well as implementation time line. One of the issues, if you will, that we’re faced with on these projects is getting the fiber to the community, and there’s often a couple of month delay between the signing of the contract when we can even begin the project. So that would be a confidence builder number one. Confidence builder number two is the upgrade cycle that we’re beginning to experience. We shipped about 29,000 hubs in Q4 that were related to upgrades and we believe that in the second half of the year, we should have at least 50,000 upgrade hubs available for shipment and deployment. Those would be the two primary drivers for increased revenue and profitability on the back half of the year.
Soham Bhonsle: I guess on the WiFi piece, is there any way to sort of — you noted that there’s some deferral going on, but there’s also perhaps some CapEx or spend going on. Is there any way to size what the guidance would have been if you didn’t push for WiFi at this point?
Daryl Stemm: Well, we do know, as we stated just a moment ago that we’ve moved about a little over 10,000 units out of Q1 into later quarters of the year. So that would be the approximate point.
