NEW YORK, March 12, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of AutoWeb, Inc. ("AutoWeb or the "Company") (NASDAQ:AUTO), formerly Autobytel, Inc. Investors who purchased AutoWeb common stock may be affected.
On November 2, 2017 after the market closed, AutoWeb issued a press release reporting its financial results for the third quarter ending September 30, 2017. In the press release, Jeff Coats ("Coats"), the Company's President and Chief Executive Officer, stated "[o]ur third quarter was highlighted by the continued strong growth of our clicks business, which was up more than 15% from Q2 and 35% from the year-ago quarter for record revenues of $7.4 million" and "[w]e also made progress implementing solutions to improve our traffic acquisition, as we work to continue to rebuild our original high-quality traffic streams from quarters past." The Company also maintained its previously issued guidance projecting 2017 revenue between $144.0 million and $148.0 million and non-GAAP EPS between $0.78 and $0.82 on 13.3 million shares.
On November 3, 2017, the first trading day following issuance of the November 2, 2017 press release, shares of AutoWeb increased in price by $0.74 per share, or about 11%, to close at $7.50 per share.
On March 8, 2018 post-market, AutoWeb reported its fourth quarter and full year 2017 financial results, significantly missing its November 2, 2017 guidance. Total revenues for 2017 were only $142.1 million, less than the low end ($144 million) of its prior revenue guidance. AutoWeb also reported non-GAAP income of only $8.5 million, or $0.64 per share, significantly below the low end ($0.78) of the Company's prior non-GAAP EPS guidance. With respect to the dismal financial results for the quarter and year, Coats stated "demand for leads and clicks from our customers remained strong in Q4. However, we were unable to fully meet this demand due to higher traffic acquisition costs. Though our Q4 results certainly weren't acceptable to us, we believe we have been taking the appropriate actions to address these traffic issues and mitigate the impact to profitability. Just last month, we realigned our headcount and expect it to reduce operating expenses by $2 million on an annual basis."
On March 8, AutoWeb also announced that both CEO Coats and the Company's Chief Financial Officer would be stepping down as part of an executive succession process initiated by the Company's Board of Directors.
On March 9, 2018, following the March 8, 2018 disclosures, AutoWeb's shares plummeted by $2.82 per share, or 41.6%, to close at 3.96 per share.
If you are an investor in AutoWeb, and would like to discuss our investigation, please contact us by emailing [email protected] or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: [email protected]
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: [email protected]
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SOURCE Kaplan Fox & Kilsheimer LLP
