Engage XR Holdings PLC (AIM:EXR) shares slumped by more than 30% on Monday morning as the metaverse-focussed technology company issued a profit warning.
In a statement, the company reported what it described as “a positive year in terms of revenue growth but slower than expected conversion of its business pipeline”.
The firm told investors that it now expects to fall behind market consensus for revenue and its EBITDA loss for 2022 - the former is now anticipated between €3.5mln and €4.0mln, whilst the latter is expected at between €5.6mln and €5.9mln.
Engage XR chief executive David Whelan noted that purchasing cycles have lengthened significantly in the final quarter of the year, and said the company is taking steps to cut costs and preserve its balance sheet.
He said that the group's pipeline remains encouraging, which gives the company some optimism for its long-term prospects.
In London, meanwhile, ENGAGE XR shares lost 4.23p or 32% in early deals to change hands at 8.77p.