As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the advertising & marketing services industry, including Taboola (NASDAQ:TBLA) and its peers.
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was significantly above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.1% since the latest earnings results.
Taboola (NASDAQ:TBLA)
Often appearing as those "You May Also Like" or "Recommended For You" boxes at the bottom of news articles, Taboola (NASDAQ:TBLA) operates a digital platform that recommends personalized content to users across publisher websites, helping both publishers monetize their sites and advertisers reach target audiences.
Taboola reported revenues of $212.7 million, up 26.2% year on year. This print fell short of analysts’ expectations by 0.7%, but it was still a strong quarter for the company with a solid beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
“2024 proved to be a transformative year for Taboola,” said Adam Singolda, CEO of Taboola.
Taboola Total Revenue
Taboola delivered the weakest full-year guidance update of the whole group. The stock is down 22.9% since reporting and currently trades at $2.86.
Operating across the United States, Liberty Broadband (NASDAQ:LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Liberty Broadband reported revenues of $263 million, up 5.2% year on year, outperforming analysts’ expectations by 4.2%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates.
Liberty Broadband Total Revenue
The market seems content with the results as the stock is up 4.2% since reporting. It currently trades at $84.70.
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ:MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Magnite reported revenues of $194 million, up 3.8% year on year, falling short of analysts’ expectations by 6.1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Magnite delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 43% since the results and currently trades at $9.60.
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE:IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Ibotta reported revenues of $98.38 million, flat year on year. This number lagged analysts' expectations by 5.1%. It was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates.
The stock is down 30.2% since reporting and currently trades at $44.
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ:QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
QuinStreet reported revenues of $282.6 million, up 130% year on year. This result topped analysts’ expectations by 17.9%. It was a very strong quarter as it also put up full-year revenue guidance exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.
QuinStreet scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is down 38.3% since reporting and currently trades at $15.51.
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