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 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 had a rocky start in 2022 and while some of the advertising software stocks have fared somewhat better, they have not been spared, with share price declining 19.2% since earnings, on average.
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 weaker quarter for the company, with a decline in gross margin compared to the previous year and revenue guidance for the next quarter below analysts' estimates.
“For the second consecutive year, we delivered an incredible combination of revenue growth and profitability. Organic revenue growth in 2021 was 53% over last year, reflecting significant market share gains in a large and rapidly growing market,” said Rajeev Goel, co-founder and CEO at PubMatic.
PubMatic delivered the weakest performance against analyst estimates of the whole group. The stock is down 21.9% since the results and currently trades at $23.89.
Is now the time to buy PubMatic? 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 stock is down 22.2% since the results and currently trades at $62.50.
Is now the time to buy The Trade Desk? Access our full analysis of the earnings results here, it's free.
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 mixed quarter for the company, with strong top line growth but full-year revenue guidance missing analysts' expectations.
AppLovin achieved the fastest revenue growth but had the weakest full year guidance update in the group. The stock is down 31.6% since the results and currently trades at $47.
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.
DoubleVerify scored the strongest analyst estimates beat and highest full year guidance raise among the peers. The stock is down 0.25% since the results and currently trades at $23.62.
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 19.8% since the results and currently trades at $35.59.
The author has no position in any of the stocks mentioned