Why Is Troika Media (TRKA) Stock Down 20% Today?


  • Troika Media (TRKA) stock is falling on Monday alongside its latest earnings release.
  • That’s due to its revenue and gross profit dropping year-over-year (YOY).
  • Investors in TRKA stock aren’t happy about these results.
TRKA Stock - Why Is Troika Media (TRKA) Stock Down 20% Today?

Source: SFIO CRACHO / Shutterstock.com

Troika Media (NASDAQ:TRKA) stock is taking a beating on Monday after the company released its latest earnings report.

That earnings report starts with the company bringing in revenue of $58.7 million for the three months ended June 30, 2023. Unfortunately for TRKA stockholders, that’s a 31% decrease year-over-year (YOY) compared to $85.38 million.

According to Troika Media, that drop in revenue was partially the result of decreased spending from its insurance clients. That resulted in a lower managed services revenue stream. The company also saw a drop in performance solutions revenue due to decreased media spend.

Low Gross Profit Drops TRKA Stock

Investors will also note that Troika Media reported a gross profit of $5.7 million in its latest earnings update. That’s another drop, with its gross profit decreasing by 67% from the $17.41 million reported in the same period of the year prior.

Here’s what the company said about this in its earnings report:

“The gross profit declines are primarily attributable to the disproportionate revenue and costs associated with the performance solutions revenue stream in the legal and home services sectors. The Company faced increased competition to acquire leads on a cost per lead basis and reduced response rates to certain media campaigns, which resulted in decreased revenue.”

TRKA stock is down 20% as of Monday morning.

There’s even more stock market stories traders are going to want to read about below!

We’ve got all of the hottest stock market news that traders need to know about on Monday! A few examples include why shares of Akumin (NASDAQ:AKU) and LumiraDx (NASDAQ:LMDX) stock are up, as well as the biggest pre-market stock movers this morning. You can find more of this news at the following links!

More Monday Stock Market News

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risk.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, William White did not have (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 InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/10/why-is-troika-media-trka-stock-down-20-today/.

©2024 InvestorPlace Media, LLC