Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Zeta, and the best and worst performers in the advertising software group.
This article was originally published on Stock Story
The digital advertising market is large, growing and becoming more diverse, both in terms of audiences and media. This as a result drives 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. Technology stocks have been hit hard on fears of higher interest rates as investors search for near-term cash flows , but advertising software stocks held their ground better than others, with share prices down 1.38% since the previous earnings results, on average.
Zeta (NYSE:ZETA)
Co-Founded by former Apple (NASDAQ:AAPL) CEO, John Scully, Zeta Global provides software and data analytics tools that help companies market their products to billions of customers.
Zeta (NYSE: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 and a solid beat of analysts' revenue estimates.
Zeta pulled off the strongest analyst estimates beat, fastest revenue growth, and highest full year guidance raise of the whole group. The company added 14 enterprise customers paying more than $100,000 annually to a total of 425. The stock is up 3.35% since the results and currently trades at $8.64.
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 is a provider of marketing and monetization tools for mobile app developers and also operates a portfolio of mobile games.
AppLovin (NASDAQ:APP) 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 had the slowest revenue growth among its peers. The stock is up 38.6% since the results and currently trades at $40.75.
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 33.4% since the results and currently trades at $12.35.
DoubleVerify (NYSE:DV)
When Oren Netzer saw a digital ad for US-based Target (NYSE:TGT) 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 among the peers. The stock is down 32.4% since the results and currently trades at $28.44.
The Trade Desk (NASDAQ:TTD)
Founded by former Microsoft (NASDAQ:MSFT) engineers Jeff Green and Dave Pickles, The Trade Desk offers cloud-based software that uses data to help advertisers better plan, place and target their online ads.
The Trade Desk (NASDAQ:TTD) 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 and a decent beat of analysts' revenue estimates. It was also good to see that the company raised its revenue and EBITDA guidance for the next quarter, topping Wall Street's estimates.
The stock is up 5.09% since the results and currently trades at $85.