Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at AppLovin (NASDAQ: APP) and the best and worst performers in the advertising software industry.
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 6 advertising software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was 1.1% below.
Thankfully, share prices of the companies have been resilient as they are up 7.9% on average since the latest earnings results.
Best Q3: AppLovin (NASDAQ: APP)
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ: APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenues of $1.41 billion, up 17.3% year on year. This print exceeded analysts’ expectations by 4.5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
Interestingly, the stock is up 6.1% since reporting and currently trades at $648.25.
Zeta Global (NYSE: ZETA)
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE: ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Zeta Global reported revenues of $337.2 million, up 25.7% year on year, outperforming analysts’ expectations by 2.7%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Zeta Global delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 47% since reporting. It currently trades at $24.65.
Is now the time to buy Zeta Global? Access our full analysis of the earnings results here, it’s free.
Weakest Q3: DoubleVerify (NYSE: DV)
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE: DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
DoubleVerify reported revenues of $188.6 million, up 11.2% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations and a slight miss of analysts’ revenue estimates.
DoubleVerify delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.4% since the results and currently trades at $11.12.
Read our full analysis of DoubleVerify’s results here.
The Trade Desk (NASDAQ: TTD)
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.
The Trade Desk reported revenues of $739.4 million, up 17.7% year on year. This result topped analysts’ expectations by 2.8%. It was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter topping analysts’ expectations.
The stock is down 19% since reporting and currently trades at $37.28.
Read our full, actionable report on The Trade Desk here, it’s free.
PubMatic (NASDAQ: PUBM)
Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ: PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.
PubMatic reported revenues of $67.96 million, down 5.3% year on year. This print surpassed analysts’ expectations by 6.1%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
PubMatic scored the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 9.6% since reporting and currently trades at $8.39.
Read our full, actionable report on PubMatic here, it’s free.
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