Overview
- The company set Q3 revenue at a minimum of $650 million and projected adjusted EBITDA around $160 million, a outlook that implies roughly a 10-percentage-point margin contraction from Q2.
- Shares fell about 22% after the guidance, with trading volumes spiking and the stock hitting new lows as investors reassessed near-term earnings prospects.
- Q2 revenue slowed to $715 million, up about 3% year over year, and results missed the firm’s prior internal targets for the quarter.
- A wave of analyst downgrades and price-target cuts followed the disclosure, with brokers citing weaker demand, pricing pressure, and execution concerns.
- Management notes customer retention above 95% and a strong cash position with over $1.1 billion in cash and short-term investments, but investors now want evidence of renewed revenue growth or stabilizing ad spend patterns.