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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 Zeta (NYSE:ZETA) and the rest of the advertising software stocks fared in Q1.
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 5.4% while next quarter’s revenue guidance was 3.4% below.
Luckily, advertising software stocks have performed well with share prices up 13.1% on average since the latest earnings results.
Weakest Q1: Zeta (NYSE:ZETA)
Co-founded by former Apple CEO John Sculley, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Zeta reported revenues of $264.4 million, up 35.6% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
Zeta achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 9.8% since reporting and currently trades at $14.87.
Is now the time to buy Zeta? Access our full analysis of the earnings results here, it’s free.
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.
AppLovin reported revenues of $1.48 billion, up 40.3% year on year, outperforming analysts’ expectations by 7.3%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations.
AppLovin delivered the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 21.8% since reporting. It currently trades at $370.
Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it’s free.
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 $616 million, up 25.4% year on year, exceeding analysts’ expectations by 7%. It was a good quarter as it locked in an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.