Why SmartRent Shares Are Moving Lower Tuesday

SmartRent, Inc. SMRT stock is moving lower Tuesday after the company’s CEO resigned and the company suspended its 2024 fiscal year outlook.

What Happened: Effective July 29, Lucas Haldemen resigned from his position as CEO and from the company’s Board of Directors. John Dorman has been appointed chairman of the Board and the Board has started its search for a new CEO.

The Board has formed a Management Committee consisting of current executives to guide the company through the transition period. The Board created an Operating Committee too which will serve under the direction of the Board and oversee the company’s operations. 

Due to the upcoming CEO transition, cutbacks in the company’s channel partner program, ongoing market challenges and expected delays in customer spending, SmartRent halted its 2024 fiscal year guidance.

Separately, SmartRent has released preliminary financial earnings for the 2024 fiscal year second quarter. The company expects revenue of $48.5 million. The estimated revenue figure represents a 9% year-over-year decrease and it falls slightly below the company’s second quarter guidance of $49 million to $55 million.

In addition, the company expects adjusted EBITDA of $0.9 million and a net loss of $4.6 million. The estimated net loss figure represents a 55% year-over-year improvement.

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SMRT Price Action: SmartRent stock is trading 17.9% lower at $1.97 as of Tuesday morning per data from Benzinga Pro.

Image: 3196481 from Pixabay.