The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how PubMatic (NASDAQ:PUBM) and the rest of the advertising software stocks fared in Q2.
The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.
The 7 advertising software stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results.
PubMatic (NASDAQ:PUBM)
Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.
PubMatic reported revenues of $71.1 million, up 5.7% year on year. This print exceeded analysts’ expectations by 4.4%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates.
“We delivered a strong second quarter, with revenue and adjusted EBITDA exceeding expectations. We added new publishers, streamers and ad buyers to the platform, continued to scale Activate and commerce media, and saw significant growth in sell side targeting,” said Rajeev Goel, co-founder and CEO at PubMatic.
PubMatic delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 21.8% since reporting and currently trades at $8.26.
Read our full report on PubMatic here, it’s free.
Best Q2: Zeta Global (NYSE:ZETA)
Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.
Zeta Global reported revenues of $308.4 million, up 35.4% year on year, outperforming analysts’ expectations by 3.9%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Zeta Global pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 20.9% since reporting. It currently trades at $19.20.
Is now the time to buy Zeta Global? Access our full analysis of the earnings results here, it’s free.
AppLovin (NASDAQ:APP)
Sitting at the crossroads of the mobile advertising ecosystem with over 200 free-to-play games in its portfolio, AppLovin (NASDAQ:APP) provides software solutions that help mobile app developers market, monetize, and grow their apps through AI-powered advertising and analytics tools.
AppLovin reported revenues of $1.26 billion, up 16.5% year on year, falling short of analysts’ expectations by 1.2%. It was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
AppLovin delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 74.9% since the results and currently trades at $684.12.
Read our full analysis of AppLovin’s results here.
DoubleVerify (NYSE:DV)
Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.
DoubleVerify reported revenues of $189 million, up 21.3% year on year. This number topped analysts’ expectations by 4.5%. It was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter slightly topping analysts’ expectations.
DoubleVerify achieved the biggest analyst estimates beat among its peers. The stock is down 26.7% since reporting and currently trades at $11.34.
Read our full, actionable report on DoubleVerify here, it’s free.
Integral Ad Science (NASDAQ:IAS)
Processing over 280 billion digital ad interactions daily through its AI-powered technology, Integral Ad Science (NASDAQ:IAS) provides a cloud-based platform that measures and verifies digital advertising across devices, channels, and formats to ensure ads are viewable, fraud-free, and brand-safe.
Integral Ad Science reported revenues of $149.2 million, up 15.7% year on year. This result surpassed analysts’ expectations by 3.8%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance beating analysts’ expectations.
The stock is up 27.9% since reporting and currently trades at $10.16.
Read our full, actionable report on Integral Ad Science here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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