SmartRent Terminates CRO, Cuts Guidance
SmartRent, which went public last year with a massive half-billion fundraise, has terminated its CRO and significantly cut its guidance, resulting in a sharp stock price drop.
SmartRent's main publicly traded competitor, Latch has experienced even more significant problems including Latch Now Cuts 50%+ of Employees and Latch Admits Audit Investigation.
Inside this note, we examine the problems for SmartRent.
**********
*** *********'* ************ ** *** **** IPVM ****** ******* ****:
Chief ******* ******* **********
********* **** *-* ******,*********** "**" ********** ********** **** ********* ***** * two-and-a-half-year **** ** *** *** ** July:
** **** **, ****, *********** *** Edmonds ***terminated **** *** ******** ** ***** ******* ******* of SmartRent, Inc. (the“Company”). In connection with his termination, Mr. Edmonds will be entitled to receive any accrued but unpaid base salary and reimbursement for any unreimbursed business expenses, in each case through the date of his termination, plus any benefits to which he is entitled under the terms of any Company benefit plan or arrangement. [emphasis added]
********* ******* ******* ********* *** ********** *** *********** * ******* **** ********* *************** ** **** *** $*** *******.
Claims ******* *********
***** ***** ****, ********* ********** *** guidance ******* ** ** ******* ********,** *** ** **** ********'* ****:
*** ** ********** ****** ***** **********, our ******* *** *** ******* ***** record-breaking **** ***** ** *** ************ and ******* * ******** ** ******** for *** ********* ** ****...
*** * ***** **'** ******* ******** from *** ******** **** **'* ** [2022] **** ** [****] ****** ****** getting * ****** ******. *****'* **** of * **** **** ****** **. And **** **** ********** ********** **** of ******** *** ** ****.
Missed ** ******* *** *****
*** *** **** ********* ** ****, SmartRent ****** ** **** ******* *** units *** *********** **** **** * few ****** ******* ****** *** ******* (*** *** **** ***** *******).
******* *** ********* ** $** ** $55 ******* *** **** ********* $**.* million, * **** ** **.*% **** the ******** ** ***** ********** ** the ****** ** **** *******.
***** **** ********* ** **,*** ** 75,000 *** **** ********* **,***, * miss ** **.*% **** *** ******** of ***** ********** ** *** ****** of **** *******.
Guidance **** ~**% *** ****
***** ****-**** ******** *** **** ********** by ~**% *** ******* (*.*., "***** Revenue ** $*** ** $*** ******* from ***** ******** ** $*** ** $250 *******") *** ***** ** **.*% (i.e., "***** ******** ** ***,*** ** 220,000 **** ***** ******** ** ***,*** to ***,***").
**** ******* **** ****** **** ******* and ***** **** ** *** ***** than **** ********** *********.
Compared ** *****
***** ********* *** *** *** *** increasing ********, *** *******, ****, *** market ************** (*.*., ********* ** ~$*** million ** ***** ** ~$*** *******) all *** ****** *****.
Outlook *** *********
*** **** ******** / ******* ** how **** ** ***** ******** *** truly *** ***** ** ******* ********* versus *** ********* ******* ** ******* the ******* **** **** ********* **** could *******. **** **** ** * critical **** *** ********* ** *** explanation ** ******* ********* *** **** last *** ** ****.