Shares of Fang Holdings Ltd. (NYSE:SFUN) were down 9.6% as of 3:00 p.m. EDT Tuesday after the company announced weaker-than-expected first-quarter 2017 results.
Quarterly revenue fell 46.3% year over year to $109.8 million, which translated to an adjusted net loss of $10.5 million, or $0.03 per American depositary share. Analysts, on average, were expecting a narrower net loss of $0.01 per share on higher revenue of $120.5 million.
Within Fang Holdings' top line, revenue from e-commerce services declined 69.5% to $39.9 million, driven by lower transaction volume thanks to a downsized self-owned and operated brokerage team. Marketing services revenue also declined 10.2% to $27.3 million, driven by tightened government policies in the real estate market. Finally, listing services' revenue climbed 41.3% to $34 million, thanks to an increased number of paying members.
Fang Holdings opted not to provide specific forward financial guidance, primarily as it's "undergoing adjustments to its transformations and is returning to open-platform strategy." Recall shares skyrocketed earlier this year after the company initially made its shift in strategy known.
In the end, given Fang Holdings' disappointing performance and no evidence yet of success from its transformations, it's no surprise to see investors taking a step back today.