What happened
Shares of Telos (TLS +2.02%) were tumbling today after the company reported its first-quarter 2021 results late yesterday. The tech stock was down by 10.5% as of 3:09 p.m. EDT.
So what
Investors were disappointed in the first-quarter results of the cybersecurity company, even though sales increased 43% from the year-ago quarter, beating the company's prior guidance, and adjusted non-GAAP earnings per share were flat, compared to analysts' consensus estimate of a loss of about $0.05 per share.
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"We surpassed our expectations on both the top and bottom line as we were able to execute on our customers' request to accelerate deliveries expected in the second quarter into the first quarter," Telos CEO John Wood said in a press release.
Additional highlights from the quarter include Microsoft expanding a contract with Telos, as well as the cities of Charlotte and Philadelphia contracting with the company.
But investors may have been disappointed that the company's net loss in the quarter was much larger than in the year-ago quarter. Telos' GAAP net loss in the first quarter was $14.8 million, down from a loss of $2.2 million in the year-ago quarter.
Now what
Telos' management issued guidance for its full year, saying that revenue will be in the range between $283 million to $295 million, which represents about a 61% year-over-year increase at the midpoint.
Additionally, the company says that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will be in the range between $33 million to $36 million, up 203% at the midpoint of guidance.
Telos' share price has been erratic since the beginning of this year, so it's not a big surprise that the stock is making big moves following the company's first-quarter earnings report today.
