Pod Point Group Holdings’ shares fell on Thursday after the company revised its 2023 guidance due to market volatility and product issues.
Share Price Decline
As of 1523 GMT, the company’s shares were down 28% at 34.0 pence, a decrease of 13.5 pence.
Revised Revenue and Loss Estimates
Pod Point now expects its 2023 revenue to reach at least £60 million ($77.7 million). The adjusted loss before interest, taxes, depreciation, and amortization (EBITDA), which excludes exceptional and one-off items, is forecasted to be no greater than £17 million.
This is a downgrade from the previous guidance of full-year revenue between £85 million to £90 million, with adjusted losses before interest, taxes, depreciation, and amortization in the mid-single digit millions.
Factors Behind the Guidance Cut
The revised guidance reflects lower revenues and approximately £5 million in costs associated with transformation initiatives and growth investments.
The company attributes the cut to market volatility within the industry and delays in product and app launches. Additionally, some sales channels are experiencing slower conversion to revenue.
Robust Balance Sheet
Despite the challenges, Pod Point emphasizes that its balance sheet remains strong. As of June 30, the company had a net cash position of £58.8 million.
