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What: Shares of Bitauto (NYSE:BITA) have plunged today by as much as 18% after the company reported first-quarter earnings.
So what: Revenue in the first quarter added up to $38.6 million, which translated into non-GAAP profits of $3.7 million. The top and bottom lines were up 34.6% and 29.1% relative to a year ago, but investors were still left wanting more. The results were in line with Bitauto's guidance.
Now what: The company has shifted to a new reporting structure with four distinct segments. The bitauto.com advertising business is the biggest moneymaker, growing 57% during the quarter. CEO William Li said the company is focusing on boosting awareness of its brand, enhancing its platform, and investing in the used-car business. Second-quarter sales are expected in the range of $52.3 million to $53.9 million.
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