Q1 Earnings Roundup: PubMatic (NASDAQ:PUBM) And The Rest Of The Advertising Software Segment
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As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the advertising software industry, including PubMatic (NASDAQ:PUBM) and its peers.
The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.
The 7 advertising software stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was 1.3% below.
Luckily, advertising software stocks have performed well with share prices up 10.5% on average since the latest earnings results.
PubMatic (NASDAQ:PUBM)
Founded in 2006 as an online ad platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.
PubMatic reported revenues of $63.83 million, down 4.3% year on year. This print exceeded analysts’ expectations by 2.8%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“We are pleased with our Q1 performance, exceeding guidance on both the top and bottom line driven by the secular growth areas in our business. Ongoing investments in product innovation and go to market teams drove 21% year over year growth in our underlying business, with momentum carrying into April,” said Rajeev Goel, co-founder and CEO at PubMatic.
PubMatic delivered the slowest revenue growth of the whole group. The stock is up 10.5% since reporting and currently trades at $12.14.
Is now the time to buy PubMatic? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $616 million, up 25.4% year on year, outperforming analysts’ expectations by 7%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $74.70.
Is now the time to buy The Trade Desk? Access our full analysis of the earnings results here, it’s free.
LiveRamp (NYSE:RAMP)
Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) is a software-as-a-service provider that helps companies better target their marketing by merging offline and online data about their customers.