What happened

Shares of Quotient Technology (QUOT) were in the red to the tune of 25.1% at the midpoint of Friday's trading session after the company posted disappointing second-quarter results.

So what

It certainly could have been worse. The quarter's revenue of $123.9 million was 48% higher than the year-ago figure of $83.5 million, and topped expectations of $122.1 million. But the per-share loss of $0.18 was nearly twice the consensus loss of $0.10, with adjusted EBITDA of $4.33 million coming in slightly below the year-ago comp despite impressive revenue growth.

Greater scale doesn't appear to be doing the internet advertising outfit much good.

Man watching a falling stock chart on a computer screen.

Image source: Getty Images.

And it doesn't look like things are going to change much in the foreseeable future, either. Quotient Technology suggests it will drive sales of between $126 million and $133 million during the quarter now underway -- up from the year-earlier figure of $121.1 million -- converting between $2 million and $12 million of that into operating EBITDA. The analyst community's average sales forecast for the third quarter is $132.6 million, however, which is at the extreme high end of the company's guidance range. The oddly wide EBITDA guidance range also gives prospective buyers little to latch on to, so they're not even trying.

Now what

With Friday's 27% plunge, shares of Quotient Technology are now down more than 50% from May's highs; the stock cratered in early May as well, logging a similar response to its similarly disappointing first-quarter report.

And it's this detail that makes proverbial lemonade out of the lemons the market has handed out with this stock's steep sell-off. Quotient Technology might have concerning profitability problems, but revenue is growing. That's more important for a young company.

It's also arguable that this company is underestimating with its guidance in an effort to curb expectations. While continued volatility is almost assured, today's pullback is an entry opportunity for investors with an appetite for risk.