What happened
Shares of Enfusion (ENFN -2.04%), a software-as-a-service company, were falling hard today after the company reported its fourth-quarter results. Enfusion beat Wall Street's consensus estimate for revenue in the quarter but missed analysts' earnings expectations.
The tech stock was down by 22.2% as of 11:46 a.m. ET.
So what
Enfusion reported revenue of $31.9 million for the fourth quarter, a 41% increase from the year-ago quarter and higher than the $30.4 million analysts were expecting.
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Additionally, Enfusion increased its full-year revenue by 40% compared to 2020, to $111.7 million. Enfusion CEO Thomas Kim said in a press release that the company "finished the year on a strong note, with growth across all our products and services."
But the company's loss per share of $2.26 missed Wall Street's consensus estimate by $0.02. Investors appeared to be focusing on the company's earnings miss today and sent Enfusion's share price tumbling.
Investors were also selling their shares after an analyst at Piper Sandler lowered his price target for Enfusion's stock today from $26 to $20.
Now what
Enfusion's share price has experienced significant declines recently and, with today's drop, is down 40% over the past six months.
Investors may want to be careful before buying shares of Enfusion right now. Missing analysts' consensus earnings estimates in one quarter isn't exactly a big deal, but with Enfusion's recent volatility it may be best to wait to see several more quarters of results before deciding on whether to buy this beleaguered tech stock.
