Heading into the new earnings season, it’s time to take stock of this quarter's best and worst performers amongst the advertising software stocks in Q3, including Zeta (NYSE:ZETA) 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 weaker Q3; on average, revenues beat analyst consensus estimates by 1.6%, while on average next quarter revenue guidance was 5.21% under 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 13.2% since the previous earnings results, on average.
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.
“Our strong third quarter results were an incredible way to celebrate our 15-year anniversary,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta.
Zeta achieved the strongest analyst estimates beat and highest full year guidance raise of the whole group. The company added 16 enterprise customers paying more than $100,000 annually to a total of 389. The stock is up 5.48% since the results and currently trades at $8.85.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it's free.
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 scored the fastest revenue growth among its peers. The stock is up 15.5% since the results and currently trades at $27.1.
Is now the time to buy DoubleVerify? 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 a full year guidance missing analysts' expectations.
The stock is down 13.4% since the results and currently trades at $11.88.
Read our full analysis of AppLovin's results here.
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.
PubMatic had the weakest performance against analyst estimates and weakest full year guidance update among the peers. The stock is down 11.8% since the results and currently trades at $14.28.
Read our full, actionable report on PubMatic here, it's free.
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 $394.7 million, up 31.1% year on year, beating analyst expectations by 2.13%. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.
The stock is up 13.8% since the results and currently trades at $49.4.
Read our full, actionable report on The Trade Desk here, it's free.
The author has no position in any of the stocks mentioned