Third Quarter Earnings: LiveRamp (NYSE:RAMP) in the context of other advertising software stocks
As we look back at ad software stocks’ third-quarter earnings results, we examine this quarter’s best and worst performers, including LiveRamp ( NYSE:RAMP ) and its peers.
The digital advertising market is large, growing and becoming increasingly diverse, both in terms of audience and media. As a result, there is a growing need for software that allows advertisers to use data to automate and optimize ad placements.
The six ad software stocks we track reported a strong third quarter. As a group, revenues exceeded analyst consensus expectations by 4.6%, while revenue expectations for the next quarter were 0.9% above.
Fortunately, advertising software stocks have performed well, with share prices up an average of 14.3% since the last earnings results.
Founded in 2011 as a spinout 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 revenue of $185.5 million, up 16% year over year. This print exceeded analyst expectations by 5.3%. Overall, it was a strong quarter for the company with solid improvement in analyst EBITDA estimates and meaningful improvement in net revenue retention rate.
Total revenue LiveRamp
Interestingly, the stock is up 16.7% since reporting and is currently trading at $30.71.
Is Now the Time to Buy LiveRamp? See our full analysis of earnings results here. It’s free.
Zeta Global (NYSE:ZETA), co-founded by former Apple CEO John Scully, provides software and data analytics tools that help companies sell their products to billions of customers.
Zeta reported revenue of $268.3 million, up 42% year over year, and beat analyst expectations by 6.3%. The company had a stunning quarter with a solid improvement in analyst expectations and next quarter EBITDA guidance that exceeded analyst expectations.
Zeta total turnover
Zeta scored the fastest revenue growth and the highest full-year guidance increase among its peers. Although it has had a good quarter compared to its peers, the market seems unhappy with the results as the stock has fallen 37.1% since reporting. It is currently trading at $23.14.
Is Now the Time to Buy Zeta? See our full analysis of earnings results here. It’s free.
The Trade Desk (NASDAQ:TTD), founded by former Microsoft engineers Jeff Green and Dave Pickles, offers cloud-based software that uses data to help advertisers better plan, place and target their online ads.
The Trade Desk reported revenue of $628 million, up 27.3% year over year, beating analyst expectations by 1.2%. Still, it was a mixed quarter as analyst expectations were slightly missed.
As expected, the stock is down 1.4% since the results and is currently trading at $130.70.
Read our full analysis of The Trade Desk results here.
Co-founded by Adam Foroughi, who was frustrated because he couldn’t find a good solution to launch his own dating app, AppLovin (NASDAQ:APP) is both a mobile gaming studio and a provider of marketing and revenue streams for mobile developers. apps.
AppLovin reported revenue of $1.20 billion, up 38.6% year over year. This result exceeded analyst expectations by 5.9%. It was an exceptional quarter as it also delivered an impressive profit versus analysts’ EBITDA estimates.
The stock is up 102% since reporting and is currently trading at $340.67.
Read our full, actionable report on AppLovin here. It’s free.
Founded in 2006 as an online advertising platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.
PubMatic reported revenue of $71.79 million, up 12.7% year over year. This number exceeded analyst expectations by 8.7%. Zooming out, it was a satisfying quarter as it also showed an impressive improvement in analyst EBITDA estimates.
PubMatic achieved the highest expectations from analysts, but had the slowest revenue growth among its peers. The stock is up 2.9% since reporting and is currently trading at $16.89.
Read our full, actionable report on PubMatic here. It’s free.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has fallen from its frothy post-pandemic levels. Overall price growth for goods and services has been trending toward the Fed’s 2% target lately, which is good news. The higher interest rates that combated inflation also did not slow economic activity enough to catalyze a recession. A soft landing so far. This, combined with recent interest rate cuts (half a percent in September 2024 and a quarter percent in November 2024) has led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the US presidential election in 2024. in early November, sending the major indices to record highs in the week after the election. Still, debates persist about the health of the economy and the impact of potential rate cuts and corporate tax cuts. In other words: around 2025 there is still a lot of uncertainty.
Do you want to invest in winners with rock-solid fundamentals? Check out our Top 5 High Quality Compounder Stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
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