Sinch shares fall after Q1 miss

Sinch AB (publ)

07/05/2024 09:19

** Shares in Sinch  SINCH.ST  drop 13% to November 2023 lows
after the Swedish cloud computing services provider posted
weaker-than-expected Q1 results
    ** Adjusted EBITDA landed at SEK 794 million, which fell
short by 4.3% to the SEK 829.4 million seen in an analyst poll
compiled by LSEG
    ** ABG Sundal Colier analyst Daniel Thorsson says the
decrease in the company's earnings can be attributed to two
major factors: higher-than-planned costs and a substantial
one-time expense from the previous year
    ** While Sinch has set ambitious targets for future growth
rates, Thorsson adds that there is uncertainty about when this
improved growth will occur, and its potential impact on the
stock remains uncertain
    ** Including Tuesday's fall, the stock has dropped by 42%
YTD
    ** If losses hold, it will see its worst day since July 2023
    
    

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))