As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the advertising software industry, including The Trade Desk (NASDAQ: TTD) 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 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.
The Trade Desk (NASDAQ: TTD)
Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ: TTD) provides 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 revenues of $694 million, up 18.7% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.
“Q2 was a strong quarter for The Trade Desk, with revenue growing to $694 million, up 19% year-over-year, as we continue to outpace the digital advertising market,” said Jeff Green, CEO and Co-Founder, The Trade Desk.
Unsurprisingly, the stock is down 42.3% since reporting and currently trades at $50.95.
Is now the time to buy The Trade Desk? Access our full analysis of the earnings results 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 an impressive 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.
Slowest Q2: 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 result topped analysts’ expectations by 4.5%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
DoubleVerify delivered 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 number beat 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
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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