Heading into the new earnings season, here's a look back at some of the most exciting (and some less so) results from Q2. Today we are looking at the advertising software stocks, starting with Zeta (NYSE:ZETA).
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 2.91%, while on average next quarter revenue guidance was 0.55% above consensus. Investors abandoned cash burning companies since high interest rates will make it harder to raise capital and while some of the advertising software stocks have fared somewhat better that others, they have not been spared, with share prices declining 6.95% since the previous earnings results, on average.
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 $137.3 million, up 28.4% year on year, beating analyst expectations by 5.58%. It was a strong quarter for the company, with a solid beat of analyst estimates and a solid top line growth.
“Zeta delivered another strong quarter with accelerating revenue and profit growth along with robust cash generation,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta.
The stock is up 13.3% since the results and currently trades at $7.06.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it's free.
Best Q2: 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 $109.8 million, up 43.4% year on year, beating analyst expectations by 7.67%. It was a very strong quarter for the company, with an exceptional revenue growth and an impressive beat of analyst estimates.
DoubleVerify achieved the strongest analyst estimates beat and fastest revenue growth among its peers. The stock is up 24% since the results and currently trades at $29.64.
Is now the time to buy DoubleVerify? Access our full analysis of the earnings results here, it's free.
Weakest 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 $776.2 million, up 16% year on year, missing analyst expectations by 5.18%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a miss of the top line analyst estimates.
AppLovin had the weakest performance against analyst estimates, slowest revenue growth, and weakest full year guidance update in the group. The stock is down 54% since the results and currently trades at $18.61.
Read our full analysis of AppLovin's results here.
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 million, up 26.9% year on year, beating analyst expectations by 3.81%. It was a mixed quarter for the company, with an underwhelming revenue guidance for the next quarter.
PubMatic achieved the highest full year guidance raise among the peers. The stock is up 3.54% since the results and currently trades at $18.40.
Read our full, actionable report on PubMatic 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 $142.2 million, up 19.4% year on year, beating analyst expectations by 2.35%. It was a weaker quarter for the company, with a full year guidance missing analysts' expectations and decelerating customer growth.
The company added 3 enterprise customers paying more than $1m annually to a total of 90. The stock is down 34.7% since the results and currently trades at $18.28.
Read our full, actionable report on LiveRamp here, it's free.
The author has no position in any of the stocks mentioned