Investors reacted to the missed earnings targets by sending shares down to $26.91, extending a difficult year that has seen the stock price decline by 48%. While revenue climbed to $420.7 million from $384.5 million a year earlier, the performance fell short of the $427.4 million analysts had projected. Profitability also faced pressure, dropping to $13.3 million, or 8 cents a share, down from $30.1 million in the same period last year.

Management attributed the cooling demand to unprecedented shifts in the artificial intelligence market, which prompted clients to postpone purchasing decisions. This trend, the company warned, is likely to dampen annual contract value growth and cash flow generation for the remainder of the year. When excluding specific one-time items, adjusted earnings reached 35 cents a share, missing the 43-cent consensus forecast polled by FactSet.