As Q2 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the advertising software stocks, including AppLovin (NASDAQ:APP) and its peers.
The digital advertising market is large, growing and becoming more diverse, both in terms of audiences and media. This as a result drives a growing need for a software that enables advertisers to use data to automate and optimize ad placements.
The 6 advertising software stocks we track reported a decent Q2; on average, revenues beat analyst consensus estimates by 2.91%, while on average next quarter revenue guidance was 0.55% above consensus. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows and while some of the advertising software stocks have fared somewhat better than others, they have not been spared, with share prices declining 6.78% since the previous earnings results, on average.
Weakest Q2: AppLovin (NASDAQ:APP)
Co-founded by Adam Foroughi who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.
AppLovin reported revenues of $776.2 million, up 16% year on year, missing analyst expectations by 5.18%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a miss of the top line analyst estimates.
![AppLovin Total Revenue](https://news-assets.stockstory.org/chart-images/AppLovin-Total-Revenue_2022-10-25-065306_lrrl.png)
AppLovin delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full year guidance update of the whole group. The stock is down 56.2% since the results and currently trades at $17.72.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.
Best Q2: DoubleVerify (NYSE:DV)
When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE: DV), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.
DoubleVerify reported revenues of $109.8 million, up 43.4% year on year, beating analyst expectations by 7.67%. It was a very strong quarter for the company, with exceptional revenue growth and an impressive beat of analyst estimates.
![DoubleVerify Total Revenue](https://news-assets.stockstory.org/chart-images/DoubleVerify-Total-Revenue_2022-10-25-065310_xfag.png)
DoubleVerify achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is up 25.5% since the results and currently trades at $29.99.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
LiveRamp (NYSE:RAMP)
Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) provides software as a service that helps companies better target their marketing by merging offline and online data about their customers.
LiveRamp reported revenues of $142.2 million, up 19.4% year on year, beating analyst expectations by 2.35%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and decelerating customer growth.
The stock is down 36.9% since the results and currently trades at $17.65.
Read our full analysis of LiveRamp's results here.
The Trade Desk (NASDAQ:TTD)
Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place and target their online ads.
The Trade Desk reported revenues of $376.9 million, up 34.6% year on year, beating analyst expectations by 3.22%. It was a strong quarter for the company, with a meaningful improvement in gross margin.
The stock is up 2.16% since the results and currently trades at $55.67.
Read our full, actionable report on The Trade Desk here, it's free.
Zeta (NYSE:ZETA)
Co-Founded by former Apple CEO, John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Zeta reported revenues of $137.3 million, up 28.4% year on year, beating analyst expectations by 5.58%. It was a strong quarter for the company, with a solid beat of analyst estimates.
The company added 14 enterprise customers paying more than $100,000 annually to a total of 373. The stock is up 22.6% since the results and currently trades at $7.64.
Read our full, actionable report on Zeta here, it's free.
The author has no position in any of the stocks mentioned