Skip to main content

Applovin Corp Cl A(APP-Q)
NASDAQ

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

Reflecting On Advertising Software Stocks’ Q3 Earnings: The Trade Desk (NASDAQ:TTD)

StockStory - Thu Jan 11, 2:48AM CST

TTD Cover Image

Looking back on advertising software stocks' Q3 earnings, we examine this quarter's best and worst performers, including The Trade Desk (NASDAQ:TTD) 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 6 advertising software stocks we track reported a solid Q3; on average, revenues beat analyst consensus estimates by 5.2% while next quarter's revenue guidance was in line with consensus. Stocks have faced challenges as investors prioritize near-term cash flows, but advertising software stocks held their ground better than others, with the share prices up 12.8% on average since the previous earnings results.

Weakest Q3: 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 $493.3 million, up 24.9% year on year, topping analyst expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue and adjusted EBITDA guidance for the next quarter.

“Q3 was a strong quarter for The Trade Desk as we delivered revenue of $493 million, accelerating growth to 25%. This performance underlines the premium that advertisers are placing on precision, agility and transparency as they seek to maximize returns from their campaigns,” said Jeff Green, Co-founder and CEO of The Trade Desk.

The Trade Desk Total Revenue

The Trade Desk delivered the weakest performance against analyst estimates of the whole group. The stock is down 10.9% since the results and currently trades at $68.49.

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

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

AppLovin reported revenues of $864.3 million, up 21.2% year on year, outperforming analyst expectations by 8.5%. It was a stunning quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' revenue estimates.

AppLovin Total Revenue

AppLovin scored the biggest analyst estimates beat among its peers. The stock is down 2.6% since the results and currently trades at $39.12.

Is now the time to buy AppLovin? 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.

LiveRamp reported revenues of $159.9 million, up 8.7% year on year, exceeding analyst expectations by 4.9%. It was a mixed quarter for the company, with a significant improvement in its gross margin but decelerating customer growth.

LiveRamp scored the highest full-year guidance raise in the group. The company added 3 enterprise customers paying more than $1m annually to reach a total of 99. The stock is up 17.9% since the results and currently trades at $35.32.

Read our full analysis of LiveRamp's results here.

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 $63.68 million, down 1.3% year on year, surpassing analyst expectations by 7.1%. It was a very strong quarter for the company, with optimistic revenue guidance for the next quarter and a solid beat of analysts' revenue estimates.

PubMatic had the slowest revenue growth among its peers. The stock is up 23.8% since the results and currently trades at $14.98.

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

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 $189 million, up 24.1% year on year, surpassing analyst expectations by 5.7%. It was a decent quarter for the company, with a solid beat of analysts' revenue estimates but a decline in its gross margin.

The company added 15 enterprise customers paying more than $100,000 annually to reach a total of 440. The stock is up 10.7% since the results and currently trades at $8.55.

Read our full, actionable report on Zeta 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

watchlist
25 stocks most added to Watchlists