But analysts weren't too hard on the company, despite the investor reaction.
Shares of the Cambridge, Massachusetts-based company weere downgraded to neutral from buy by analysts at BTIG, who are concerned about the company’s 2020 revenue guidance between $664 million and $776 million. That suggests growth between 12% and 14% when Wall Street was looking for 20.5% growth.
The soft guidance, according to BTIG, is due to the company’s decision to reduce ad load to improve user experience and a more thoughtful approach to raising unit pricing.
Aalysts at Consumer Edge also called the company’s guidance disappointing but the firm maintained its overweight rating and $40 price target.
Analysts at Benchmark lowered the stock's price target to $42 from $51, though suggested investors buy into the stock’s weakness as there is still a clear path for margin improvement.
The company reported fourth-quarter net income of $13.2 million, or 17 cents a share, up from 12 cents a year earlier, on revenue that rose to $158.2 million from $126.1 million. Analysts were expecting earnings of 13 cents a share on revenue of $154.6 million.
“Our U.S. marketplace saw continued traffic and lead growth in the fourth quarter, and for the full-year 2019 we generated over 65 million connections and over 38 million leads, supporting what we believe is industry-leading ROI for our paying dealers,” said CEO Langley Steinert in a statement.