MARK - Remark Holdings stock drops on weak results

Remark Holdings ( NASDAQ: MARK ) stock dropped as much as 23% on Tuesday after the firm posted weak Q2 results , hurt by lower revenue from U.S. businesses and COVID-lockdowns in China.

Q2 EPS of -$0.12 vs. -$0.02 in Q2 2021, while revenue fell 36.3% Y/Y to $2.56M.

Revenue from MARK's U.S. businesses fell ~$2.5M due to $2.3M of revenue recorded on an AI data intelligence services project for a daily fantasy sports client in Q2 2021 that was not repeated in the quarter under review.

Revenue from China grew $1M to $2.5M due to completion of larger projects, offset by COVID-related lockdowns in China.

MARK installed Smart Campus solutions in over 60 more schools in Q2 and expects to see even more growth in this field as China reopens.

In Q2, MARK completed deployment of 73 resident communities and expects 2K resident communities to start once lockdowns are lifted.

MARK deployed smart construction solutions at 14 construction sites, while 30+ installations are underway.

Overall gross margin was 27.8% vs. 43.9% in Q2 2021.

"... we are building a pipeline of opportunities across the U.S. with our SSP-based products with a new streaming fee model and are continuing to advance our deployment activities in China," said CEO Kai-Shing Tao.

Shares of MARK, which posted a 3-day gaining streak prior to results, declined 55.3% YTD.

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