SmartRent Shares Plunge 21% Premarket Following CEO Resignation and Suspension of Full-Year Guidance

SmartRent (NYSE:SMRT) shares plunged over 21% intra-day today following significant leadership changes and the suspension of its full-year guidance.

The company announced that founder and CEO Lucas Haldeman has stepped down from his role and resigned from the Board of Directors, effective July 29, 2024. John Dorman, the lead independent director of the Board, has been appointed Chairman. Additionally, a Management Committee comprising current executives has been formed to navigate the company through this transitional period. SmartRent has initiated a search for a new CEO with the help of an executive search firm.

Alongside these leadership changes, SmartRent has suspended its previously issued guidance for the full-year 2024. This decision is attributed to the CEO transition, a reduction in its channel partner program, and ongoing market challenges. The company advised investors not to rely on the previous guidance.

Preliminary second-quarter results were also reported, showing total revenue of $48.5 million, marking a 9% decline from the previous year and falling short of the guidance range of $49 million to $55 million. However, the company expects adjusted EBITDA to be $0.9 million for the quarter, which is above the guidance range of $(0.5) million to $0.5 million.