STRY - Starry Group to cut 50% of workforce withdraws guidance

• Starry Group Holdings ( NYSE: STRY ) has decided to lay off about 50% of its workforce to bring down cash burn in what the company's calls "an extremely difficult economic climate and capital environment."
• The Massachusetts-based wireless broadband provider stated Thursday it is withdrawing its full year 2022 guidance alongside hiring freeze and exit from FCC’s RDOF program.
• "At present we don’t have the capital to fund our rapid growth. Because of that, we’re focusing our energies on our core business: serving multi-tenant buildings in our existing dense urban markets. Last week, we made the tough decision to withdraw from the FCC’s RDOF program," said Starry’s CEO Chet Kanojia.
• On operational-end, Starry has reported 18% Y/Y growth in homes serviceable to 5.96 million and customer relationships at 91,297, up 66% Y/Y, as at the end of Q3 2022.
• "We continue to expect customer relationships to be greater than 100,000 at the end of fiscal year ’22, reflecting growth of greater than 58% year-over-year," said the management highlighting guidance in the second quarter's earnings conference call .
• Ratings : While Wall Street analysts give a Buy to Starry ( STRY ), Seeking Alpha Quant System sets the stock analysis stand apart at Strong Sell.
• On Aug. 31, Seeking Alpha Quant Rating flagged a warning that STRY is at the high risk of performing badly due to decelerating momentum and inferior profitability when compared to other Communication Services stock.
• Starry shares have lost over 80% since its SPAC listing in March opening at $8.84. That takes the stock trading at $1.32 at pixel time on Thursday.

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