SmartRent (SMRT) saw its shares plummet more than 21% in premarket trading today following the announcement of a major leadership change and the suspension of its full-year outlook.
The company revealed that Lucas Haldeman, the founder and CEO of SmartRent, has stepped down from his role and resigned from the Board of Directors, effective July 29, 2024.
John Dorman, the Board's lead independent director, has been appointed Chairman of the Board. A Management Committee comprising current executives has been established to steer the company through this transition.
The company said it has initiated a search for a new CEO with the assistance of an executive search firm.
"SmartRent is a market leader with an outstanding suite of products, technology, and services that provide enormous value to our customers," Dorman stated.
He acknowledged Haldeman's contributions and added: "As we scale and mature the Company into a new phase of growth, the Board decided that SmartRent will benefit from a CEO with a different skill set and fresh perspective."
The newly formed Management Committee includes Chief Financial Officer Daryl Stemm, who will serve as Principal Executive Officer on an interim basis, among other key executives. Additionally, an Operating Committee of the Board, chaired by Frank Martell, will oversee the company's operations.
In conjunction with this leadership shift, SmartRent has suspended its previous guidance for the full-year 2024 due to the CEO transition, a scaling back of its channel partner program, and ongoing market challenges.
SmartRent said investors should not rely on management's previous guidance.
The company also reported its preliminary second-quarter results, which showed total revenue of $48.5 million, a 9% decline from the previous year and below the guidance range of $49 million to $55 million.
The company said adjusted EBITDA is expected to be $0.9 million for the quarter, above the guidance range of $(0.5) million to $0.5 million.