As fourth-quarter earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the ad software industry, 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 satisfying fourth quarter. As a group, revenues exceeded analyst consensus expectations by 1.9%, while revenue expectations for the next quarter were in line.
Fortunately, advertising software stocks have done well, with share prices up an average of 18.3% since the last earnings results.
LiveRamp (NYSE:RAMP) serves as a digital intermediary in an increasingly privacy-conscious world, providing technology that allows companies to securely share and connect their customer data with trusted partners while maintaining privacy compliance.
LiveRamp reported revenue of $212.2 million, up 8.6% year over year. This print was in line with analyst expectations, but overall it was a slower quarter for the company, with next quarter revenue expectations slightly behind analyst expectations and full-year revenue expectations slightly behind analyst expectations.
LiveRamp achieved the highest full-year indication increase of the entire group. The company added 8 enterprise customers paying more than $1 million annually, bringing the total to 140. Unsurprisingly, the stock is up 32.5% since reporting and is currently trading at $29.71.
Read our full report on LiveRamp here, it’s free.
PubMatic (NASDAQ:PUBM) powers billions of daily ad impressions across the open internet and operates a technology platform that helps publishers maximize revenue from their digital ad inventory while giving advertisers greater control and transparency.
PubMatic reported revenue of $80.05 million, down 6.4% year over year, and beat analyst expectations by 6.2%. The company had an exceptional quarter with EBITDA guidance for next quarter exceeding analyst expectations and an impressive improvement in analyst EBITDA estimates.
PubMatic achieved the highest analyst expectations among its competitors. The market seems pleased with the results, as the stock is up 26.4% since reporting. It is currently trading at $8.94.
Is Now the Time to Buy PubMatic? See our full analysis of earnings results here. It’s free.
Built as an alternative to walled garden advertising ecosystems, The Trade Desk (NASDAQ:TTD) offers a cloud-based platform that helps advertisers and agencies plan, manage and optimize digital advertising campaigns across multiple channels and devices.
The Trade Desk reported revenue of $846.8 million, up 14.3% year over year, beating analyst expectations by 0.6%. Still, it was a softer quarter as revenue expectations for the next quarter fell slightly short of analyst expectations and the EBITDA outlook for the next quarter fell significantly short of analyst expectations.
Interestingly, the stock is up 13% since the results and is currently trading at $28.43.
Read our full analysis of The Trade Desk results here.
Powered by an AI engine that processes more than a trillion consumer signals every month, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that allows companies to target, connect and communicate with consumers through personalized marketing across channels such as email, social media and video.
Zeta Global reported revenue of $394.6 million, up 25.4% year over year. This result exceeded analyst expectations by 3.7%. Overall, it was a very strong quarter as it also delivered an impressive return on analyst expectations and full-year expectations of accelerating revenue growth.
Zeta Global had the weakest full-year guidance update among its peers. The stock is up 11.9% since reporting and is currently trading at $19.
Read our full, actionable report on Zeta Global here. It’s free.
Located at the crossroads of the mobile advertising ecosystem with more than 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) offers software solutions that enable mobile app developers to market, monetize and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenue of $1.66 billion, up 65.9% year over year. This figure exceeded analyst expectations by 2.2%. It was an exceptional quarter as EBITDA guidance for the next quarter also exceeded analyst expectations and solidly exceeded analyst EBITDA estimates.
AppLovin scored the fastest revenue growth among its competitors. The stock is up 12.7% since reporting and is currently trading at $515.00.
Read our full, actionable report on AppLovin here. It’s free.
Do you want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum stocks and add them to your watchlist. These companies are primed for growth regardless of the political or macroeconomic environment.
StockStory’s team of analysts, all seasoned professional investors, use quantitative analysis and automation to deliver market-based insights faster and with higher quality.
