Objective assessment of the APX business

I have been watching this business with admiration for a year and surprised to see the big drop.

I did read a few things about the business that are worth considering in a valuation:

1. They have great customers like Google, but these companies may want to reduce dependence on businesses like this.
2. I read that there is long term margin pressure on their business model. ie. those they pay to review and classify images are going up in cost gradually - ie. has the CEO a plan to manage this?
3. The general purchasing trends are on the downside as mentioned by the CEO

The second point above is the more concerning thing to me that limits the scope of growth.

I like the simplicity of their business model and think the business is perhaps better than the selloff indicates, but the CEO and management team have not answered the above with strategy. In that instance, the share prices reflect these truths.

It would be good to hear from others with a deeper understanding of this business model as opposed to ranting and ravings.