3 days ago
BigBear.ai Stock Plummets on Uncertainty About Government Contracts
Key Takeaways
lowered its revenue guidance and withdrew its adjusted EBITDA outlook on government contract uncertainty.
The artificial intelligence data analytics company said it would be affected by changes in the Army's data architecture.
posted a bigger loss and lower revenue than expected in the second (BBAI) shares lost a quarter of their value Tuesday, a day after the artificial intelligence data analytics firm slashed its revenue outlook and withdrew its profit forecast on uncertainty about government contracts.
The company now anticipates full-year revenue in the range of $125 million to $140 million, down from its earlier estimate of $160 million to $180 million. Its previous guidance for adjusted EBITDA had been "in the negative single digit millions."
CEO Kevin McAleenan said while is optimistic about future investments and growth opportunities, "we have also seen disruptions in federal contracts from efficiency efforts this quarter, most notably in programs that support the U.S. Army, as they seek to consolidate and modernize their data architecture."
Along with questions about Army contracts, the company expects increased spending in the second half of the year.
In the second quarter, posted a loss of $0.71 per share, about 12 times more than analysts from Visible Alpha were looking for. Revenue slumped 18% year-over-year to $32.5 million, also well short of forecasts.
Shares of had entered Tuesday up nearly 60% this year.
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