Velti Plc Earnings: Here’s Why Investors are Not Happy Now
Velti Plc (NASDAQ:VELT) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 14.50%.
Velti Plc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.27 in the quarter versus EPS of $-0.02 in the year-earlier quarter.
Revenue: Decreased 20.81% to $41.01 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Velti Plc reported adjusted EPS loss of $0.27 per share. By that measure, the company beat the mean analyst estimate of $-0.33. It missed the average revenue estimate of $42.14 million.
Quoting Management: “During the first quarter, we continued to take the necessary steps to improve Velti’s financial position and drive long-term growth,” said Alex Moukas, chief executive officer. “We believe that through a host of significant operational changes made to our business, including a reduction of more than 20 percent in headcount, as well as more stringent cost controls throughout our organization, we have further strengthened our ability to generate improved free cash flow and adjusted EBITDA for the year.
Key Stats (on next page)…