Reflecting on Ad Software Stocks’ Q3 Gains: Zeta Global (NYSE:ZETA)

Let’s take a look at the relative performance of Zeta Global ( NYSE:ZETA ) and its peers as we unpack the now-completed third-quarter ad software earnings season.

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 seven ad software stocks we track reported a strong third quarter. As a group, revenues exceeded analyst consensus expectations by 2.8%, while revenue expectations for the next quarter were 1.1% below that.

Fortunately, the companies’ share prices have been resilient, having risen an average of 6.3% since the last earnings results.

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 $337.2 million, up 25.7% year over year. This print exceeded analyst expectations by 2.7%. Overall, it was a very strong quarter for the company, with a solid gain in analyst EBITDA estimates and full-year EBITDA guidance exceeding analyst expectations.

Zeta Global delivered the fastest revenue growth, but had the weakest full-year guidance update of the entire group. Unsurprisingly, the stock is up 21.9% since reporting and is currently trading at $20.42.

Learn why we think Zeta Global is one of the best advertising software stocks; our full report is 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 $1.41 billion, up 17.3% year over year, beating analyst expectations by 4.5%. The company had an exceptional quarter with an impressive return on analyst EBITDA estimates and a solid improvement in analyst revenue estimates.

The market seems pleased with the results, as the stock is up 9.9% since reporting. It is currently trading at $671.44.

Is Now the Time to Buy AppLovin? See our full analysis of the revenue results here. This is free for active Edge members.

Using advanced analytics to evaluate more than 17 billion digital advertising transactions every day, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies that digital advertising is viewable, fraud-free, brand-appropriate, and served in the targeted geographic location.

DoubleVerify reported revenue of $188.6 million, up 11.2% year over year, falling 0.8% short of analyst expectations. It was a slower quarter as revenue expectations for the next quarter fell slightly short of analyst expectations and revenue estimates fell slightly short of analyst revenue estimates.

DoubleVerify had the weakest performance compared to analyst estimates in the group. Interestingly, the stock is up 5.7% since the results and is currently trading at $11.59.

Read our full analysis of DoubleVerify’s results here.

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 $199.8 million, up 7.7% year over year. This print exceeded analyst expectations by 1%. Overall, it was a strong quarter, as it also saw a solid improvement in analyst EBITDA estimates and a narrow gain in analyst annual recurring revenue estimates.

LiveRamp achieved the highest full-year forecast increase among its peers. The company has added five enterprise customers paying more than $1 million annually, bringing the total to 132. The stock is up 7.2% since reporting and is currently trading at $29.40.

Read our full, actionable report on LiveRamp here, it’s free for active Edge members.

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 $67.96 million, down 5.3% year over year. This result exceeded analyst expectations by 6.1%. It was a strong quarter as it also showed a solid gain in analyst EBITDA estimates and an impressive gain in analyst revenue estimates.

PubMatic scored the highest earnings forecast from analysts, but had the slowest revenue growth among its peers. The stock is up 16.1% since reporting and is currently trading at $8.88.

Read our full, actionable report on PubMatic here. It’s free for active Edge members.

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady downward trend and has returned to the sweet spot of 2%. Fortunately (miraculously for some) all this tightening hasn’t sent the economy into recession, so here we are, cautiously celebrating a soft landing. The icing on the cake? Recent rate cuts (half a point in September 2024, a quarter in November) have kept markets afloat, especially after Trump’s victory in November lit a fire under the major indices and sent them to record highs. There’s still plenty to think about, though: tariffs, corporate tax cuts and what 2025 could mean for the economy.

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