What happened
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.
Image source: Getty Images.
So what
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."
Now what
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.
