Shares of China-based mobile applications company CooTek (CTK) were slammed on Tuesday. As of 11:30 a.m. EST, the stock was down about 33%.
The tech stock's decline follows the company's third-quarter results. Though CooTek demonstrated strong year-over-year growth, quarterly results were worse than analysts were expecting.
Total third-quarter revenue was $105.7 million, up 238% year over year. This was below analysts' average forecast for revenue of $112 million. In addition, this top-line figure was down 16% from revenue of $126.4 million in the second quarter.
The company's net loss was $22 million -- wider than a net loss of $16.2 million in the year-ago quarter.
CooTek chairman Karl Zhang was "pleased" with the quarter, noting in the company's third-quarter earnings release that CooTek has recently upgraded and enhanced its core products, "aiming at delivering the sustainable business growth."
Looking to the fourth quarter, management expects revenue of approximately $106 million. This is in line with the company's Q3 2020 revenue, but would represent 54% year-over-year growth -- a significant deceleration compared to the 238% growth CooTek demonstrated in Q3.