This how the company broke the news.
While it is some solace for shareholders that the “core” Saas and VAS businesses are performing in line with expected growth. The content marketing division although only representing 7% of EBITDA in 2016 it has managed somehow to drag the first half below last years result.
Lets not forget it was only a few short months ago the company was expecting solid double digit growth.
While the company has put in place actions to resolve the situation there is no guarantees, as such I believe investors should wait to see proof before making a decision either way.
Tip for new investors.
When a well known stock falls by 30% such as iSentia has done, it is important to reconsider the fundamentals of the company and not to panic sell on the first day. You will often find (nothing is 100% guaranteed) such companies will often rebound strongly with other investors rushing in to buy what they believe is now a bargain price. This will allow you time to check the fundamentals overnight and allow you to receive a better exit price if you wish to sell.
Note: This rebound is not applicable to small illiquid stocks which can tend to head lower over time.