The S&P/ASX 200 Index (ASX: XJO) was out of form during a very volatile April. The benchmark index lost 0.9% of its value during the month to end it at 7,435 points.
Although a good number of shares dropped with the market, some fell more than most. Here's why these were the worst performers on the ASX 200 in April:
EML Payments Ltd (ASX: EML)
The EML Payments share price was the worst performer on the ASX 200 in April with a massive 47% decline. The catalyst for this was the release of the payments company's trading update. During the third quarter, EML saw its net profit drop 22% on the prior corresponding period. This was driven by a poor performance from its European prepaid business and higher costs. And with management expecting the fourth quarter to be just as challenging, it was forced to downgrade its full year guidance.
Megaport Ltd (ASX: MP1)
The Megaport share price was sold off in April and sank 37.5% during the month. This was driven by weakness in the tech sector and the release of a disappointing third quarter update from the network as a service provider. In respect to the latter, for the three months ended 31 March, Megaport reported modest quarter on quarter revenue growth of 5% to $27.9 million. This was well short of the market's expectations and led to consensus estimate downgrades.
Life360 Inc (ASX: 360)
The Life360 share price had a month to forget and sank 32% over the period. The majority of this decline came towards the end of the month following the release of the location technology company's quarterly update. This was despite that update revealing a 129% increase in revenue to US$52.7 million and a 73% jump in annualised monthly revenue to US$166.1 million. Weaker than expected cash flows and news that Life360 is scrapping its US dual listing plans appeared to overshadow its strong top line growth.
Zip Co Ltd (ASX: ZIP)
The Zip share price continued its slide during April and dropped a further 26.2%. This means the Zip share price is now down 86% over the last 12 months. Investors were selling the buy now pay later provider's shares after its third quarter update disappointed the market. This saw a number of brokers take an axe to their valuations. For example, the team at Jefferies retained their underperform rating and slashed their price target by 46% to $1.00.
