Why Velti Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Velti (Nasdaq: VELT  ) have tumbled today by as much as 28% after the company reported earnings.

So what: First-quarter revenue grew 75% to $51.8 million, which generated an adjusted net loss of $1.1 million, or $0.02 per share. CEO Alex Moukas said the company continues to build its mobile marketing business and that 2012 should be a strong year. Velti also increased its full-year guidance.

Now what: During the quarter, Velti completed the acquisition of the remaining equity ownership interest of the parent company of CASEE, a mobile ad exchange and network in China. Next quarter should see revenue between $55 million-$59 million, and Velti raised its full-year revenue outlook to a range of $283 million-$296 million. It's not entirely clear what investors are so disappointed with, and Needham & Company is reiterating its "buy" rating and $20 price target, citing strong performance across all geographies.

Interested in more info on Velti? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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