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(Sharecast News) - Shares in Kooth fell sharply on Tuesday, after foreign exchange headwinds weighed heavily on the AIM-listed tech firm.
In the six months to 30 June, total revenues rose 1.3% on a constant currency basis.
However, on a reported basis, they fell 1.2% to 32.1m, and annual recurring revenues were 3.9% lower at 61.7m.
Adjusted earnings before interest, tax, depreciation and amortisation slumped nearly 80% to 1.6m, as Kooth ramped up investment, while pre-tax losses came in at 1.7m.
Last year, Kooth, a specialist in youth digital mental wellbeing services, posted pre-tax profits of 5m.
Kooth acknowledged cable had had a "significant" effect on the results, with around 73% of revenues and 55% of expenses dominated in US dollars.
Hit hard by Donald Trump's erratic trade and economic policies, the greenback has struggled against a number of currencies this year.
Sterling has further benefited from relatively high interest rates in the UK.
Looking to the full year, Kooth warned it expected the pound's strength to continue in the second half, hitting annual forecasts.
It now expects forex movements to reduce full-year consensus revenues of 66.8m by between 2% and 3%, and adjusted EBITDA of 10.2m by between 6% and 8%.
As at 1015 BST, shares in Kooth were down 9% at 136.1p.
However, chief executive Kate Newhouse, said: "The first half has been a period of significant investment, including ramping up engagement with our services in the US and ongoing product development.
"We are already seeing the benefits from this front-weighted investment, which will decrease in the second half.
"Alongside our strong cash position, we have solidified our position of market leadership, sustaining progress despite the impacts of foreign exchange headwinds."
Berenberg, which has a 'buy' rating on the stock, trimmed its full-year estimates following the update.
However, it noted: "The company's significant marketing investment has helped it register over 130,000 users in California for its Soluna platform. This leaves it on track to exceed the state's target of registering one in 44 of the relevant population by the end of 2025.
"The company plans to expand the scope of its services, including offering a variety of more intensive or personalised solutions to individuals in both public and private organisations.
"This should allow the company to access funding from a more diverse range of customers, drive more sustainable platform usage and provide it with a secure market position."