Wyze Slowing Revenue Growth And Financial Challenges Analyzed
Over the last year, Wyze has cut jobs by as much as 20% as the company's revenue growth slowed far below the rate investors who put in $110 million in 2021 anticipated.
In this report, we examine the deceleration of Wyze's revenue, its continuing issues with gross margin and increasing competition, the impact of those factors on the company, and whether the trend can be reversed.
Revenue ********
****'* ******* *** $*** ******* ** 2022. **** ****** *** ** ***% from $** ******* ** ****, *** the **** ** ****** *** ****** each ****. *** ***** ***** ***** the *-**** ******* *****:
******* ****** ** ************ *******, ** the ***** ***** *****:
***** **** **** *** ********* ******** its ********* *********** ********, ** ********* its ********** ***** ***** ***** ******** *******'* ****** Market **** ** ****, ***** ** ******** ***** *******.
******* ****** ** ******* ******* ****** the **** ******, *** **** ** especially ********** ** **** **** ******* of *** *** ***** *******. *** company **** * **** *** ****** by ******* $** *******, ******* ************ **** ****. *** *********** ******* *** ****** for ****.
Margin ********
*** ******** *******, **** *** **, had * ***** ****** ** ~*%, and *** ******* *** ** ******* gross ****** ** **%.,**** ********** ********* ** ****
******** ******** ********* ***** **** *** margins, *** ********* ** *** ***** of ** ** **%, ********* **** are *******. **** *********** ***** **** low ******* ** ******* ** ******* greater ***** ******, *** **** ********* financial **********.
**** *** * ************ ****** ** just $** ** $** *******, ******** a ***** ****** ****** ******* **** 10 ** **%.
Operational ********
**** **** * *** ************ ******, Wyze ** ********** ** ***** *** overhead *** ***** ****. ******** ***** ~200 *********, ******** $***,*** *** ** per ********, **** ** $** ******* annually **** ***** *********** ********.
*******
******-****-******** ****** *** ******** ** ******* at ****. ******** *** ******* *** not ********* ******* ********, **** ***** posts ** ******** *** **** ****** site ***** ******* **** **** ******* that **** **** *** ***** **% of *** ***** ** ******** ****.
***** ** ******** **** **** ****** employees *** ************* ****** **** ********** **** *** ******* **** *** ~20% ** *** ***** ** ******** 2022. ***** **** ****, *** *******'* staffing ****** **** ******** ***** ****, according ** **** **** ********.
********, *** ******* *** **** *** hires **** ****, ** ***** ******** to ****/****:
CamPlus "***** *** *******"
**** ******** **** *** ************ ********** ****"********* ***** *** *******," ** ** email **** ** ********* **** ****, excerpted *****:
*** ************, ******* ***** $** ** $36 *** ****, *** ***** * million ***** * **** ***** ** was ********,*** *** ***** **** ** ******** in ****.
*** ******* **** ** *** ******* that "**** * ******* ****** **** upgraded" ** *** *******. * **** of *********** ****** ** *** ************ service ** *** **** **** *** Wyze, ***** ******** ******-****** ******** ** offset *** ********* ***-****** *******.
$110 ******* **********
** *** *** ******* ******* ***** since *** ******** ** ****,*** $*** ******* ******* ******* **** **** *** ***** ** more **** ***** ***** *** ***** previous *******. ******** ***-* *** *** endorsed ** ******** ****, ** ** there *** ***** **** ** *** agreed ** ** **, *** **** power ******* *** ********* *** ****-**-***** marketing.
Competitive ******
**** **** **** **** ** *** high ********** ** ******, ***** *** co-founders ********** ****** ****** ********* *** startup. **** ********, **** *** ***** competition ** *** ******** **** **** low-priced *********, ********* ******'* *** ***** cameras. ****** *** **** ******** ***** in ****** ******* ***** **** ******** the ********** ** ****. ****'* ******** did *** ****** ** *** ** the ***** ***** ******* ***** ** a ****** ****** ****** *** "** cameras." * **** ****** *** *** 22nd ****** ** * ****** ****** for "**** ******** *******." ******-****** ********* included *****, ****, ********, *** ****.
********* **** ******** *** *********** **** *** **** ******** *** business ***** ** ** **** ******* on ******-**-******** ***** ****** **** ***** dependent ** ******, ***** ** ****** was ************ **% ** ****'* *****.
Comparison ** ****
**** *** * ******* ****** **** trajectory ******** ** ********* ************ *** pivoting ** ****. *******, ****** **** ********, **** ******** Than ****,**** ***** ***** ***** ******* ******** Expectations ** ****, ******* ****** ** ****.
** *** **** **** *** ****, Arlo, ******* *** ******* *** *** a *******-****** *********, ****** **** **** more **** $* ******* **** **** first **** ******:
*******
** ******* **** **** ******* **** nor ****** ******** ***** ** *** behemoth ** ***** *** ****** ** be ** *** ***** ****. *** hardware ******* *** *** ***, *** the ***********, ********* **** ******, ** too *****. ***** ********* ******* **** that.
**** *** *********** *******, *** *** move ** ********* ******* ************* ** reasonable, ****** ********* ***** **** **** attracted ****************** ********* *** ***** ****** to ***** ***** ** ******* ** heavily ** *** *****.
*** *** ******** ** *** **** execute *** **** *** ******** ********** growth *** ** ****. **********, ** see **** ***** ********, ****** *** less **** *** ****** *******, ***** these *******, ** * ****** ******* that ***** ** *** ****** *****.