The company reported third-quarter revenue of $80.3 million, missing consensus estimates of $87.8 million. While net profit rose to $7.7 million from $6.4 million a year prior, the sales organization’s performance prompted an immediate leadership change. Board member Tony Weisman, formerly the marketing chief at Dunkin' U.S. and CEO of Digitas, will replace outgoing CEO Mark Douglas.
In section Market Quotes
MNTN Shares Slide 40% Following Leadership Shakeup and Revenue Miss
A 40% collapse in after-hours trading greeted investors Wednesday as MNTN slashed its full-year revenue outlook to a range of $311 million to $314 million. The sharp downward revision, falling well short of the $352.3 million expected by analysts, follows a quarter hampered by significant go-to-market execution failures.
CFO Patrick Pohlen attributed the shortfall to unforeseen operational hurdles. The company’s fourth-quarter guidance of $75 million to $78 million also trails market expectations of $108.5 million. Management is now initiating a realignment of the sales force to address these strategic deficiencies.
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