Tremor International Ltd (AIM:TRMR)’s U.S.-listed shares plunged by 30% as the end-to-end technology advertising platform provider slashed its profit and sales guidance for 2023.
It now expects full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the range of $85 to $90 million, down from its prior guidance range of $140 to $145 million.
It expects revenue excluding traffic acquisition costs (contribution ex-TAC) in the range of $320 to $330 million, below its prior expectation of $400 million.
Management said in a statement that it believes the challenging macroeconomic conditions that have driven reduced budget and advertising spending will continue in the second half of 2023.
It said its longer and more complex sales cycle and changing revenue mix shift will also result in weaker-than-anticipated full-year results.
The downward revision to its full-year guidance comes along with Tremor reporting disappointing second-quarter results.
Revenue was $84.2 million, up from $75.8 million in the same quarter in 2022 but below the Street estimate of $97.9 million, per Zacks Consensus Estimate.
Adjusted earnings per share were $0.06, down from $0.16 in the year-ago quarter and also fell short of the estimate of $0.22.
Tremor stock was down 30.1% at US$4.37 at noon on Thursday.
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