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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.
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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.
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