According to MarketWatch, Telaria Inc.’s share price fell 35% almost reaching the lowest it has been in the last 14 months after the company shared its preliminary third quarter 2018 results and also lowered its full year guidance. The company’s share price is now at level with some of the worst decliners on the New York Stock Exchange is closed yesterday’s trading at $2.40 per share.
Telaria is a video advertising software company, a complete software platform targeted at publishers to help them manage premium video advertising. The company announced its preliminary quarterly results are expected to be lower than forecast.
The company stated that revenue was expected to be in the region of $13.0 million to $13.5 million, with an adjusted EBITDA of between losses of $0.5 million and break even. According to the previous forecast, the company’s revenue had been expected to be around $15 million to $17 million.
Telaria also lowered its full year’s guidance, with the whole year’s revenue expected to be around $50 million to $52 million. EBITDA will show a loss of between $5 million and $3 million. The previous revenue guidance had been at $58 million to $62 million.
According to the press release on Businesswire, the software company also added an addendum that the results were subject to change once the company’s completed its final quarter-end review. Telaria stated that its final 3rd quarter results would be released on November 8 this year, and that a separate press release and conference call details would be issued in the near future.
Telaria gave reasons for the altered guidance. It said this had been done because the company was taking the decision to take off certain video publishers for desktop computers from its software platform, and would focus exclusively on premium video advertising content. This had led to an overall decrease in the company’s revenues.
Other decisions that impacted the company’s guidance was the slower-than-expected move of customers’ spends on premium software; the company was expecting buyer patterns to shift to the premium products segment faster than it actually had. Another factor that impacted the company’s revenues was its company’s struggle to scale its work force it has needed.
The company stated that by expanding as well as restructuring their sales organization, the company would be able to increase its coverage with agencies as well as brands so that ad spend on premium products would increase.
Telaria also made a separate announcement that the company’s board of directors had approved a new 18-month, stock buyback program to the tune of $20 million. This purchase will be of the company’s common stock and the share buyback program started on October 2 this week.
The Chief Executive Officer of Telaria, Mark Zagorski stated that the company’s board of directors as well as executive team were very confident about its growth prospects as well as long-term strategy. Zagorski added that the team at Telaria also strongly believed that their company’s common stock was undervalued and that it represented a strong investment opportunity.
Zagorski stated that the company had a strong cash position as well as a clean balance sheet and that they could return value to the company’s stakeholders, while at the same time continuing its investments in the growth and development of the business.
In the last 18 months that ended in June this year, the company had already bought back about $4.8 million worth of stock from its shareholders.
In the last 12 months, Telaria’s stocks have lost more than 50% of their value, vis-à-vis the S&P 500 Index, which has gained 14% in the same time period.