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Advertising Software Q1 Earnings: AppLovin (NASDAQ:APP) Simply the Best

APP Cover Image
Advertising Software Q1 Earnings: AppLovin (NASDAQ:APP) Simply the Best

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the advertising software stocks, including AppLovin (NASDAQ:APP) and its peers.

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 6 advertising software stocks we track reported a solid Q1; on average, revenues beat analyst consensus estimates by 5.2%. while next quarter's revenue guidance was 1.6% above consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but advertising software stocks have shown resilience, with share prices up 5.6% on average since the previous earnings results.

Best Q1: AppLovin (NASDAQ:APP)

Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ:APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.

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AppLovin reported revenues of $1.06 billion, up 47.9% year on year, topping analysts' expectations by 8.6%. It was an exceptional quarter for the company, with an impressive beat of analysts' revenue estimates and an improvement in its gross margin.

AppLovin Total Revenue
AppLovin Total Revenue

AppLovin scored the biggest analyst estimates beat and fastest revenue growth of the whole group. The stock is up 12% since the results and currently trades at $82.97.

We think AppLovin is a good business, but is it a buy today? Read our full report here, it's free.

PubMatic (NASDAQ:PUBM)

Founded in 2006 as an online ad platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.

PubMatic reported revenues of $66.7 million, up 20.4% year on year, outperforming analysts' expectations by 7.3%. It was a very strong quarter for the company, with a significant improvement in its net revenue retention rate and a solid beat of analysts' revenue estimates.

PubMatic Total Revenue
PubMatic Total Revenue

The stock is down 2.9% since the results and currently trades at $23.34.

Is now the time to buy PubMatic? Access our full analysis of the earnings results here, it's free.

Weakest Q1: DoubleVerify (NYSE:DV)

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), a provider of advertising solutions to businesses that helps with ad verification, fraud prevention, and brand safety.

DoubleVerify reported revenues of $140.8 million, up 14.8% year on year, exceeding analysts' expectations by 1.8%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and underwhelming revenue guidance for the next quarter.

DoubleVerify had the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. The stock is down 37.6% since the results and currently trades at $19.09.

Read our full analysis of DoubleVerify's results here.

The Trade Desk (NASDAQ:TTD)

Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.

The Trade Desk reported revenues of $491.3 million, up 28.3% year on year, surpassing analysts' expectations by 2.2%. It was a strong quarter for the company, with an impressive beat of analysts' billings estimates and strong sales guidance for the next quarter.

The stock is up 10.9% since the results and currently trades at $95.41.

Read our full, actionable report on The Trade Desk here, it's free.

LiveRamp (NYSE:RAMP)

Started in 2011 as a spin-out 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 revenues of $171.9 million, up 15.6% year on year, surpassing analysts' expectations by 7%. It was a very strong quarter for the company, with a solid beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter.

The company added 10 enterprise customers paying more than $1m annually to reach a total of 115. The stock is up 19.4% since the results and currently trades at $38.59.

Read our full, actionable report on LiveRamp here, it's free.

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