Skip to main content

Applovin Corp Cl A(APP-Q)
NASDAQ

Today's Change
Real-Time Last Update Last Sale Cboe BZX Real-Time

A Look Back at Advertising Software Stocks' Q2 Earnings: PubMatic (NASDAQ:PUBM) Vs The Rest Of The Pack

StockStory - Wed Oct 18, 2023

PUBM Cover Image

As the craze of earnings season draws to a close, 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 PubMatic (NASDAQ:PUBM).

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 decent Q2; on average, revenues beat analyst consensus estimates by 3.77% while next quarter's revenue guidance was 0.08% below consensus. There has been a stampede out of expensive technology stocks as higher interest rates encourage investors to value profits over growth, but advertising software stocks held their ground better than others, with share prices down 2.99% on average since the previous earnings results.

Weakest Q2: 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 $63.3 million, flat year on year, topping analyst expectations by 5.92%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and its net revenue retention rate in jeopardy.

“Our deep customer relationships, alongside the strength and value of the PubMatic platform, drove revenue out-performance in the second quarter. As the market consolidates, we are in a strong position despite macro headwinds,” said Rajeev Goel, co-founder and CEO at PubMatic.

PubMatic Total Revenue

The stock is down 31.6% since the results and currently trades at $12.68.

Read our full report on PubMatic here, it's free.

Best 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 both a mobile game studio and provider of marketing and monetization tools for mobile app developers.

AppLovin reported revenues of $750.2 million, down 3.36% year on year, outperforming analyst expectations by 3.57%. It was an impressive quarter for the company, with optimistic revenue guidance for the next quarter and a significant improvement in its gross margin.

AppLovin Total Revenue

AppLovin had the slowest revenue growth among its peers. The stock is up 34.4% since the results and currently trades at $39.59.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it's free.

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 $133.7 million, up 21.8% year on year, in line with analyst expectations. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.

DoubleVerify had the weakest performance against analyst estimates and weakest full-year guidance update in the group. The stock is down 32.1% since the results and currently trades at $28.58.

Read our full analysis of DoubleVerify's results here.

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 $464.3 million, up 23.2% year on year, surpassing analyst expectations by 2.02%. It was a solid quarter for the company, with a significant improvement in its gross margin.

The stock is down 2.34% since the results and currently trades at $79.07.

Read our full, actionable report on The Trade Desk 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.

LiveRamp reported revenues of $154.1 million, up 8.31% year on year, surpassing analyst expectations by 4.82%. It was a mixed quarter for the company, with decelerating customer growth.

The company added 1 enterprise customers paying more than $1m annually to a total of 96. The stock is up 8.38% since the results and currently trades at $29.37.

Read our full, actionable report on LiveRamp here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.

The author has no position in any of the stocks mentioned

More from The Globe