Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at PubMatic (NASDAQ:PUBM), and the best and worst performers in the advertising software group.
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 weaker Q3; on average, revenues beat analyst consensus estimates by 1.6%, while on average next quarter revenue guidance was 5.21% under consensus. Tech stocks have been under pressure as inflation makes their long-dated profits less valuable, but advertising software stocks held their ground better than others, with the share prices up 5.79% since the previous earnings results, on average.
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 $64.5 million, up 11% year on year, missing analyst expectations by 3.71%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
“Our role in the ecosystem is only getting stronger, providing publishers with the critical tools and levers they need to control how their inventory and audiences are accessed,” said Rajeev Goel, co-founder and CEO at PubMatic.
PubMatic delivered the weakest performance against analyst estimates and weakest full year guidance update of the whole group. The stock is down 12.8% since the results and currently trades at $14.12.
Is now the time to buy PubMatic? Access our full analysis of the earnings results here, it's free.
Best Q3: 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 $152.2 million, up 32.2% year on year, beating analyst expectations by 7.94%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and solid top line growth.
Zeta scored the strongest analyst estimates beat and highest full year guidance raise among its peers. The stock is up 3.09% since the results and currently trades at $8.65.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it's free.
Slowest Q3: 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 $713 million, down 1.9% year on year, missing analyst expectations by 2.07%. It was a weak quarter for the company, with full year guidance missing analysts' expectations.
AppLovin had the slowest revenue growth in the group. The stock is down 20.8% since the results and currently trades at $10.87.
Read our full analysis of AppLovin'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 $112.2 million, up 35% year on year, beating analyst expectations by 2.73%. It was a decent quarter for the company, with exceptional revenue growth.
DoubleVerify delivered the fastest revenue growth among the peers. The stock is up 0.63% since the results and currently trades at $23.61.
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 $147 million, up 15.5% year on year, beating analyst expectations by 2.6%. It was a decent quarter for the company, with accelerating customer growth but a decline in net revenue retention rate.
The company added 2 enterprise customers paying more than $1m annually to a total of 92. The stock is up 54.8% since the results and currently trades at $24.16.
Read our full, actionable report on LiveRamp here, it's free.
The author has no position in any of the stocks mentioned