Worst IPOs #4: Tremor Video (TRMR)
Since going public in late June, it seems the only place Tremor Video (TRMR) has found success is attracting shareholder lawsuits. Other deals in the online adtech market have performed poorly, but TRMR has been the worst.
The company has had lots of trouble meeting Wall Street expectations. In the latest quarter, TRMR stock plunged 49% on its dismal report. Revenues increased by only 17% to $35.3 million, and the net loss came to 5 cents per share. But the consensus estimate was for revenues of $36.26 million and a loss of only 2 cents per share. The guidance was also weak, with revenues projected at $29.5 million to $30.5 million — way beneath the Street’s estimates of $38.56 million.
In quick fashion, TRMR has gone from a hot growth company to a value play. After all, the can on the balance sheet is $96 million while the market cap is a mere $208 million. But any time you drop more than 50%, you’re a good bet for the worst IPOs list.