Let’s take a look at the relative performance of The Trade Desk (NASDAQ:TTD) and its peers as we unravel the now-completed third-quarter earnings season for advertising software.
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.
In light of this news, the companies’ share prices have remained stable as they have risen an average of 2.3% since the last earnings results.
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. This print exceeded analyst expectations by 1.2%. Despite the revenue increase, it was still a mixed quarter for the company, with a narrow increase in analyst EBITDA estimates but a slight increase in analyst billing estimates.
“The Trade Desk delivered a strong performance in the third quarter, with revenues of $628 million, accelerating growth to 27%. This achievement underscores the value advertisers place on precision and transparency as they work with us to maximize the impact of their campaigns,” said Jeff Green, co-founder and CEO of The Trade Desk.
Unsurprisingly, the stock is down 5.9% since reporting and is currently trading at $124.70.
Is Now the Time to Buy The Trade Desk? 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 achieved the fastest revenue growth and the highest full-year guidance increase among its peers. While it had a good quarter compared to its peers, the market seems unhappy with the results as the stock is down 50% since reporting. It is currently trading at $18.39.
Is Now the Time to Buy Zeta? See our full analysis of earnings results here. It’s free.
When Oren Netzer saw a digital ad for US-based Target while sitting in his Tel Aviv apartment, he knew there was an unsolved problem, so he started DoubleVerify (NYSE:DV), an enterprise advertising solutions provider that helps with ad verification , fraud prevention and brand safety.
DoubleVerify reported revenue of $169.6 million, up 17.8% year over year, in line with analyst expectations. It was a mixed quarter, as it delivered an impressively better result than analysts’ EBITDA estimates, but revenue expectations for the next quarter fell significantly short of analyst expectations.
DoubleVerify delivered the weakest performance against analyst estimates and the weakest full-year guidance update in the group. Interestingly, the stock is up 1.9% since the results and is currently trading at $19.95.
Read our full analysis of DoubleVerify’s results here.
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 result exceeded analyst expectations by 8.7%. Zooming out, it was a satisfying quarter as it also delivered an impressive return on analyst EBITDA estimates, but EBITDA guidance for the next quarter fell significantly short of analyst expectations.
PubMatic scored the highest earnings forecast from analysts, but had the slowest revenue growth among its peers. The stock is down 5% since reporting and is currently trading at $15.60.
Read our full, actionable report on PubMatic here. It’s free.
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%. It was a strong quarter as it also showed impressive improvement over analyst EBITDA estimates and meaningful improvement in net revenue retention rate.
The company has added 10 enterprise customers paying more than $1 million annually, bringing the total to 125. The stock is up 8.1% since reporting and is currently trading at $28.45.
Read our full, actionable report on LiveRamp here. It’s free.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually declining from its post-pandemic peak and moving closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashy recession signals. This is the much-desired soft landing that many investors were hoping for. The recent interest rate cuts (0.5% in September and 0.25% in November 2024) have boosted the stock market, making 2024 a strong year for equities. Donald Trump’s presidential victory in November fueled additional market gains, sending indexes to record highs in the days following his victory. However, debates over possible corporate tax rates and adjustments continue, raising questions about economic stability in 2025.
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