Let’s dig into the relative performance of Zeta Global (NYSE: ZETA) and its peers as we unravel the now-completed Q3 advertising software earnings season.
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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 1.1% below.
Thankfully, share prices of the companies have been resilient as they are up 6.3% on average since the latest earnings results.
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 $337.2 million, up 25.7% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Zeta Global pulled off the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 21.9% since reporting and currently trades at $20.42.
Best Q3: 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 $1.41 billion, up 17.3% year on year, outperforming analysts’ expectations by 4.5%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 9.9% since reporting. It currently trades at $671.44.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $188.6 million, up 11.2% year on year, falling short of analysts’ expectations by 0.8%. It was a slower quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations and a slight miss of analysts’ revenue estimates.
DoubleVerify delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 5.7% since the results and currently trades at $11.59.
Read our full analysis of DoubleVerify’s results here.
LiveRamp (NYSE: RAMP)
Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE: RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.
LiveRamp reported revenues of $199.8 million, up 7.7% year on year. This print surpassed analysts’ expectations by 1%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ annual recurring revenue estimates.
LiveRamp pulled off the highest full-year guidance raise among its peers. The company added 5 enterprise customers paying more than $1 million annually to reach a total of 132. The stock is up 7.2% since reporting and currently trades at $29.40.
Read our full, actionable report on LiveRamp here, it’s free for active Edge members.
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 $67.96 million, down 5.3% year on year. This result topped analysts’ expectations by 6.1%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
PubMatic scored the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 16.1% since reporting and currently trades at $8.88.
Read our full, actionable report on PubMatic here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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