Troika Media Group Sees 26% Stock Drop to $0.81 Following Q2 2023 Financial Report
Troika Media Group (TMG) witnessed a significant decline in its stock value, plummeting by 26% to $0.81 on Monday, in the wake of the company’s Q2 2023 financial results release. The report detailed the performance for the quarter ending June 30, 2023.
At the time of this publication, Troika Media Group Inc stock (TRKA) has witnessed a decline.
Troika Media Group Inc
Current Price: $0.80
Change : -0.30
Change (%): (-27.25%)
Volume: 470.7K
Source: Tomorrow Events Market Data
According to the financial statement, revenues for the three-month period concluding on June 30, 2023, totaled around $58.7 million. This figure marked a substantial decline of approximately $26.7 million compared to the corresponding period in the previous year. The primary contributing factor to this decline was diminished spending by TMG’s insurance clients within the managed services revenue stream. Additionally, performance solutions revenue experienced a noteworthy drop, primarily attributed to reduced media expenditures and declining response rates to media campaigns for legal services and home services clients when compared to the preceding year. The absence of $5.2 million in other revenues, related to the legacy Troika and Mission businesses, also played a role in this downturn.
The financial report also disclosed that for the six months ending June 30, 2023, TMG generated approximately $117.7 million in revenues. This represented an upswing of about $16.7 million in comparison to the corresponding period in the prior year. The increase in managed services and performance solutions revenue was primarily driven by the timing of the Converge Acquisition, which took place on March 21, 2022, in the previous year. However, this boost was partially offset by a decrease in reimbursable revenue in the managed services revenue stream stemming from TMG’s insurance sector customers. Moreover, the absence of $10.8 million in other revenues related to the legacy Troika and Mission entities further influenced these results.
Gross profit for TMG during the three months ending June 30, 2023, stood at $5.7 million, marking a substantial decrease of $11.7 million compared to the corresponding period in the previous year. Looking at the six-month period ending June 30, 2023, gross profit showed a decrease of $6.9 million, reaching $14.5 million, in comparison to the prior year period.
The stock market’s reaction to the Q2 2023 financial report of Troika Media Group highlights the significance of these financial results for investors and stakeholders. The company will likely be closely scrutinized in the coming weeks as industry experts and analysts examine the factors that contributed to this downturn and assess the potential for future recovery.
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