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Q4 Earnings Outperformers: AppLovin (NASDAQ:APP) And The Rest Of The Advertising Software Stocks


Adam Hejl /
2022/04/06 7:21 am EDT
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As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q4. Today we are looking at the advertising software stocks, starting with AppLovin (NASDAQ:APP).

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 5 advertising software stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 1.89%, while on average next quarter revenue guidance was 0.38% above consensus. Tech stocks have been under pressure since the end of last year, but advertising software stocks held their ground better than others, with share price down 9.39% since earnings, on average.

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 $793.4 million, up 55.6% year on year, beating analyst expectations by 2.2%. It was a slower quarter for the company, with a full year guidance missing analysts' expectations.

“We continue to execute on our mission to build and grow the largest, most-effective platform for advertisers and publishers in the digital world,” said Adam Foroughi, CEO and co-founder of AppLovin.

AppLovin Total Revenue

AppLovin pulled off the fastest revenue growth but had the weakest full year guidance update of the whole group. The stock is down 20% since the results and currently trades at $54.95.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.

Best Q4: 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 $395.5 million, up 23.6% year on year, beating analyst expectations by 1.52%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a decent beat of analyst estimates.

The Trade Desk Total Revenue

The stock is down 11.2% since the results and currently trades at $71.42.

Is now the time to buy The Trade Desk? Access our full analysis of the earnings results here, it's free.

Weakest Q4: PubMatic (NASDAQ:PUBM)

Founded in 2006, as an online ad platform focused on ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.

PubMatic reported revenues of $75.5 million, up 34.3% year on year, in line with analyst expectations. It was a weak quarter for the company, with a deceleration in net revenue retention rate and guidance for the next quarter missing analysts' estimates.

PubMatic had the weakest performance against analyst estimates in the group. The stock is down 8.46% since the results and currently trades at $28.

Read our full analysis of PubMatic's results here.

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 $105.5 million, up 34.1% year on year, beating analyst expectations by 4.54%. It was a solid quarter for the company, with a strong top line growth and guidance for the next quarter above analysts' estimates.

DoubleVerify delivered the strongest analyst estimates beat and highest full year guidance raise among the peers. The stock is up 5.57% since the results and currently trades at $25.

Read our full, actionable report on DoubleVerify 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 $140.6 million, up 17.4% year on year, beating analyst expectations by 1.08%. It was a mixed quarter for the company, with accelerating customer growth but an underwhelming revenue guidance for the next quarter.

LiveRamp had the slowest revenue growth among the peers. The company added 6 enterprise customers paying more than $1m annually to a total of 86. The stock is down 12.7% since the results and currently trades at $38.77.

Read our full, actionable report on LiveRamp here, it's free.

The author has no position in any of the stocks mentioned