Shares of Linklogis (HKG:9959) plummeted 6.96% in intraday trading following the release of the company's full-year 2024 financial results. The sharp decline comes as investors digest the news of widening losses despite revenue growth.

Linklogis reported a 19% year-over-year increase in revenue, reaching CN¥1.03 billion for 2024. However, the company's bottom line painted a grimmer picture. Net loss expanded by 89% to CN¥835.4 million, with loss per share deteriorating to CN¥0.41 from CN¥0.21 in the previous year. Notably, while revenues exceeded analyst estimates by 5.7%, earnings per share (EPS) fell short of expectations by 28%.

The market's negative reaction reflects concerns over Linklogis' profitability and growth trajectory. Despite the company's revenue forecast to grow at an average of 11% per annum over the next three years, this falls short of the 23% growth projected for the Hong Kong Software industry. As Linklogis continues to face challenges in translating top-line growth into profitability, investors may be reassessing the company's long-term prospects in a competitive market landscape.