Why Are OneConnect Shares Falling Today - OneConnect Financial Tech (NYSE:OCFT)

OneConnect Financial Technology Co., Ltd. OCFT shares are falling Monday morning after reporting the first quarter of FY23 results.
The company reported Q1 sales of $135.33 million, missing the consensus estimate of $143.91 million.
The China-based cloud-platform Fintech solutions registered a GAAP EPADS loss of $0.439, beating the analyst consensus of a $0.530 loss.
Sales were impacted by a decline in transaction-based and support revenue and reduced customized projects with low margins in Q1.
Revenues in the Digital Banking segment fell 33.2% Y/Y, the Digital Insurance segment fell 4%, the Gamma Platform segment rose 7.5%, and the Virtual Bank Business segment rose 51.6%.
The company's strategy of focusing less on low-margin projects, coupled with disciplined execution of cost control and improved marketing efficiency, boosted margins in the quarter under review.
"Our overseas business continued its growth momentum at the beginning of 2023; virtual banks in Hong Kong recorded a 51.6% year-over-year revenue increase in business in the first quarter," said CEO Shen Chongfeng.
"We will continue to capture the growing overseas demand for digital transformation and seize the opportunities that arise."
Price Action: OCFT shares fell by 6.63% to $4.51 on the last check Monday.