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 Q1. Today we are looking at the advertising software stocks, starting with DoubleVerify (NYSE:DV).
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 Q1; on average, revenues beat analyst consensus estimates by 4.12%, while on average next quarter revenue guidance was 1.87% above consensus. There has been a stampede out of high valuation technology stocks as raising interest rates encourage investors to value profits over growth again , but advertising software stocks held their ground better than others, with the share prices up 20% since the previous earnings results, on average.
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 $122.6 million, up 26.7% year on year, beating analyst expectations by 3.78%. It was a decent quarter for the company, with a beat of analysts' revenue estimates but a decline in gross margin.
“DV has once again delivered a powerful combination of strong revenue growth and profitability that has exceeded expectations,” said Mark Zagorski, CEO of DoubleVerify.
DoubleVerify scored the fastest revenue growth of the whole group. The stock is up 32% since the results and currently trades at $36.76.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
Best Q1: 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 $715.4 million, up 14.4% year on year, beating analyst expectations by 3.08%. It was a very strong quarter for the company, with a significant improvement in gross margin and very optimistic guidance for the next quarter.
The stock is up 26.4% since the results and currently trades at $22.5.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.
Weakest Q1: 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 $148.6 million, up 4.87% year on year, missing analyst expectations by 0.67%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations.
LiveRamp had the weakest performance against analyst estimates and weakest full year guidance update in the group. The company added one enterprise customer paying more than $1m annually to a total of 95. The stock is down 3.92% since the results and currently trades at $25.71.
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 $157.6 million, up 24.8% year on year, beating analyst expectations by 4.89%. It was a mixed quarter for the company, with a significant improvement in gross margin but decelerating growth in large customers.
Zeta scored the highest full year guidance raise among the peers. The company added eight enterprise customers paying more than $100,000 annually to a total of 411. The stock is down 1.63% since the results and currently trades at $9.03.
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 $382.8 million, up 21.4% year on year, beating analyst expectations by 5.09%. It was a solid quarter for the company, with a decent beat of analyst estimates and strong sales guidance for the next quarter.
The stock is up 17.2% since the results and currently trades at $76.15.
The author has no position in any of the stocks mentioned