The SEEK Limited (ASX: SEK) share price is under pressure on Wednesday afternoon.
At the time of writing, the job listings giant's shares are down over 2% to $34.93.
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Why is the SEEK share price falling?
Investors have been selling down the SEEK share price today despite the release of a positive trading update at its annual general meeting.
That update reveals that trading conditions have remained favourable for SEEK in FY 2022. This has led to strong year to date ad volumes in Australia, Hong Kong, Singapore, and Malaysia.
As a result of this, management notes that its results financial year to date are tracking to the top end of its FY 2022 guidance for revenue, EBITDA and net profit after tax (NPAT) for continuing operations.
SEEK's guidance for FY 2022 (excluding significant items) is for revenue in the range of $950 million to $1 billion, EBITDA of $425 million to $450 million, and NPAT in the range of $190 million to $200 million.
The upper end, which SEEK is now expecting to hit, implies annual growth of 31.5%, 35.5%, and 90.6%, respectively, for its continuing operations.
What else?
Interestingly, SEEK could still outperform this guidance. It has advised that today's guidance assumes the usual seasonal volume decline in December and January.
If this seasonal decline doesn't occur because of the COVID recovery, management has suggested its results would track ahead of its guidance range. Though, it is already planning to reinvest these funds if this happens by accelerating some investments.
Why are its shares falling?
Judging by the performance of the SEEK share price, it appears as though the market was anticipating the company outperforming its guidance in FY 2022. Particularly given the strong trading conditions in the job market.
The SEEK share price is up 20% in 2021 even after today's gain.
