Earnings results often give us a good indication of what direction the company will take in the months ahead. With Q2 now behind us, let’s have a look at The Trade Desk (NASDAQ:TTD) 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 3.77%, while on average next quarter revenue guidance was 0.08% under consensus. Increasing interest rates hurt growth companies as investors search for near-term cash flows, but advertising software stocks held their ground better than others, with share prices down 2.13% since the previous earnings results, on average.
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 $464.3 million, up 23.2% year on year, beating analyst expectations by 2.02%. It was a solid quarter for the company, with a significant improvement in its gross margin and a decent beat of analysts' revenue estimates. It was also good to see that the company raised its revenue and EBITDA guidance for the next quarter, topping Wall Street's estimates.
“Q2 marked another quarter of outstanding execution and share gains for The Trade Desk, delivering $464 million of revenue and 23% growth. With advances in areas such as CTV, retail and identity, we are helping the world’s largest brands buy media on the open internet with more precision and transparency than ever,” said Jeff Green, Co-founder and CEO of The Trade Desk.
The stock is up 2.63% since the results and currently trades at $83.01.Is now the time to buy The Trade Desk? Read our full report on The Trade Desk here.
Best 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 $750.2 million, down 3.36% year on year, beating analyst expectations by 3.57%. It was an impressive quarter for the company, with optimistic revenue guidance for the next quarter and a significant improvement in its gross margin.
AppLovin had the slowest revenue growth among its peers. The stock is up 45.3% since the results and currently trades at $42.74.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.
Weakest Q2: 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 $63.3 million, flat year on year, beating analyst expectations by 5.92%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and its net revenue retention rate in jeopardy.
The stock is down 31.2% since the results and currently trades at $12.75.
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 $154.1 million, up 8.31% year on year, beating analyst expectations by 4.82%. It was a mixed quarter for the company, with full-year revenue guidance coming in higher than Wall Street's estimates. On the other hand, its customer growth slowed.
The company added one enterprise customer paying more than $1m annually to a total of 96. The stock is up 8.08% since the results and currently trades at $29.29.
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 $133.7 million, up 21.8% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.
DoubleVerify had the weakest performance against analyst estimates and weakest full year guidance update among its peers. The stock is down 31.1% since the results and currently trades at $28.99.
The author has no position in any of the stocks mentioned