TRKA Stock Alert: 5 Key Takeaways From Troika’s Results


  • Troika Media (TRKA) brought in revenue of $59 million during the quarter, up by 276% year-over-year.
  • The company expects revenue and margins to improve later on in the year before a slowdown in Q4.
  • TRKA stock is up by over 115% year to date.
TRKA stock - TRKA Stock Alert: 5 Key Takeaways From Troika’s Results


Shares of Troika Media (NASDAQ:TRKA) are surging higher today. This comes after the company reported earnings for the three months ended March 31. Revenue was approximately $59 million, up by 276% year-over-year (YOY). This marked the fifth consecutive quarter of record revenues. Meanwhile, gross profit was $8.8 million, improving from $3.94 million a year ago.

“The revenue in our quarter ended March 31, 2023, is reflective of the seasonality in the business which is driven by our sector and revenue stream mix where we see lower customer acquisition investments (in relative terms) by our clients in Q1 and Q4,” said CFO Erica Naidrich. “We are well positioned to take advantage of the work that has been done over the past year as we enter into our strongest revenue generating quarters which are the key drivers for our business.”

TRKA Stock: 5 Key Takeaways From Troika’s Results

Revenue was driven by a full quarter of performance in the current year from the acquisition of Converge its subsidiaries. Since the acquisition in March 2022, new revenue streams have added over $300 million in sales.

While revenue increased, selling, general, and administrative costs decreased by 35% to $11.2 million. This was a result of a $7 million decrease in employee salaries and reduced stock-based compensation, among other factors.

Still, profitability remains a major goal. Net loss for the quarter totaled $7.9 million, an improvement from a loss of $14.38 million a year ago. In addition, adjusted EBITDA was $1.5 million, up by 227% YOY.

Guidance was not explicitly provided, although Troika expects to report stronger revenue and margins later on in the year that will eventually “soften” during Q4. The company noted that the results for the period ending March 31 are not useful as a forecasting tool for the rest of the year due to seasonality.

Based on data from Koyfin, analysts expect 2023 revenue of $350 million. That would signify impressive growth of 200.66%. Analysts have also forecasted 2023 GAAP EPS of 4 cents and adjusted EBITDA of $20 million. At the time of writing, TRKA had a market capitalization of less than $100 million.

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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. 

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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