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Q2 Earnings Highlights: LiveRamp (NYSE:RAMP) Vs The Rest Of The Advertising Software Stocks

StockStory - Mon Oct 16, 2023

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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 LiveRamp (NYSE:RAMP).

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 a 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 on average next quarter revenue guidance was 0.08% under consensus. Investors abandoned cash-burning companies since higher interest rates make it harder to raise capital, but advertising software stocks held their ground better than others, with share prices down 2.93% on average since the previous earnings results.

LiveRamp (NYSE:RAMP)

Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) provides software-as-a service 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, beating analyst expectations by 4.82%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but decelerating customer growth.

LiveRamp Total Revenue

The stock is up 6.75% since the results and currently trades at $28.93.

Read our full report on LiveRamp 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 a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.

AppLovin reported revenues of $750.2 million, down 3.36% year on year, beating 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 29.6% since the results and currently trades at $38.15.

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

Weakest Q2: PubMatic (NASDAQ:PUBM)

Founded in 2006, as an online ad platform focused on 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, beating 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.

The stock is down 35.4% since the results and currently trades at $11.99.

Read our full analysis of PubMatic's results here.

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 $171.8 million, up 25.1% year on year, beating analyst expectations by 6.08%. It was a very strong quarter for the company, with accelerating growth in large customers.

Zeta achieved the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise among its peers. The company added 14 enterprise customers paying more than $100,000 annually to a total of 425. The stock is up 5.26% since the results and currently trades at $8.8.

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

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, beating 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 4.1% since the results and currently trades at $77.57.

Read our full, actionable report on The Trade Desk here, it's free.

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The author has no position in any of the stocks mentioned

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