TORONTO—Mobile-commerce company 724 Solutions Inc. announced earnings in line with its revised guidance, but the news didn’t do much to bolster investor confidence. The company’s stock dropped from about $2.30 per share to just over $2 following the news.
The company’s revenue for the fourth quarter, ended Dec. 31, was $5.8 million, down from the $8.1 million the company earned in the same quarter last year. 724 Solutions’ pro forma net loss was $14.1 million, up from the $10.3 million loss in the same quarter last year.
CIBC World Markets downgraded the company following the news, and BMO Nesbitt Burns said the company’s future remains cloudy. However, the research firm said the company continues to be a leader in the m-commerce market.
Separately, 724 Solutions said it will offer a voluntary stock option exchange program for the majority of its employees.
