NEW YORK (TheStreet) -- ServiceSource International (SREV) was plummeting 33.6% to $4.15 after missing analysts' estimates for earnings and revenue in the first quarter, and a downgrade from analyst firm CLSA.
For the first quarter ServiceSource posted a loss of -7 cents a share, missing the Capital IQ Consensus Estimates of -5 cents a share by 2 cents. Revenue grew 10.2% year-over-year to $67.36 million in the quarter, but still missed analysts' estimates of $68.56 million.
Revenue this quarter came in below our expectations and we are moving aggressively to implement operational changes that will better align us with our customers," chairman and CEO Mike Smerklo said in a statement. "Our market opportunity and value proposition remain strong, as shown by several significant expansions in the quarter. To strengthen execution in each of our businesses, we will implement measures to better align our go-to-market engine and increase the effectiveness of our internal operations."
Following the disappointing results analyst firm CLSA downgraded ServiceSource to "underperform" from "buy."
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TheStreet Ratings team rates SERVICESOURCE INTL INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SERVICESOURCE INTL INC (SREV) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow."