Tremor International, an advertising company, saw a decline in its stock value after reporting lower revenue in the second quarter than expected. The stock is down 28% at $4.53 in early trading, marking a 46% drop over the past year.
Revised Earnings Guidance
Tremor International announced on Thursday morning that its full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now projected to be between $85 million and $90 million. This is a significant decrease from the previous guidance of $140 million to $145 million.
Longer Than Anticipated Growth
According to Chief Executive Ofer Druker, the company's accelerated revenue growth has taken longer than initially anticipated. Druker attributed this delay to macroeconomic uncertainty impacting major advertisers' and agencies' budgets and willingness to spend during H2 2023. He also mentioned cautiousness in adopting new products and platforms during this period.
Challenges in Sales Cycle
Tremor International is currently facing a longer and more complex sales cycle due to its focus on driving larger enterprise deals with major advertisers and agencies. This has contributed to the company's difficulties in meeting revenue expectations.
Q2 Revenue Falls Short
Tremor's second-quarter revenue totaled $84.2 million, marking an 11% increase compared to last year. However, this figure fell below analyst forecasts of $89.1 million.