Stock Update (NASDAQ:TUBE): TubeMogul Inc Reports Record Financial Results for 2Q:15 and Raises Full Year ’15 Guidance


TubeMogul Inc (NASDAQ:TUBE), a leading enterprise software company for brand advertising, reported financial results for its second quarter ended June 30, 2015.

Second Quarter 2015 Financial Highlights:

  • Total Spend1 was $105.0 million, an increase of 72% compared to $61.1 million in the second quarter of 2014.
  • Revenue was $45.4 million, an increase of 58% compared to $28.7 million in the second quarter of 2014.
  • Gross profit was $30.1 million, an increase of 54% compared to $19.6 million in the second quarter of 2014.
  • Operating loss was $(1.5) million, compared to operating income of $1.7 million in the second quarter of 2014.
  • Net loss was $(1.3) million, compared to net income of $2.1 million in the second quarter of 2014.
  • Adjusted EBITDA2 was $1.8 million, compared to Adjusted EBITDA of $2.4 million in the second quarter of 2014.

1 Total Spend is a non-GAAP financial measure. Please see the discussion below under the heading “Use of Non-GAAP Measures” and the reconciliation at the end of this release.

2 Adjusted EBITDA income (loss) is a non-GAAP financial measure. Please see the discussion below under the heading “Use of Non-GAAP Measures” and the reconciliation at the end of this release.

“Our strong Q2 results were driven by our unwavering focus on brand advertisers and the tools they need to transform their media planning, buying and measurement,” said Brett Wilson, CEO of TubeMogul. “Revenue from our expansion into Programmatic TV contributed to our outperformance in Q2 and we are excited to begin offering brand advertisers cross-screen planning and buying, with TV as the centerpiece of this effort.”

Second Quarter Business Highlights include:

  • Notable client announcements include:
    • MyWebGrocer, the digital agency of record for Safeway and Albertsons, announced that they are consolidating their video advertising onto TubeMogul’s platform and will use a custom data integration to link digital ads to offline sales.
    • Corby Spirit and Wine Limited, a leading Canadian marketer majority-owned by Pernod Ricard, named TubeMogul its partner for video advertising and announced the partnership will extend to other Pernod Ricard markets, including Brazil, the U.K. and France.
    • New client Nickelodeon was the first to beta test a newly implemented attribution solution partnership struck with SambaTV. Through the test, Nickelodeon was able to verify that nearly one-third of viewers that saw commercials advertising the upcoming Kids’ Choice Awards on digital devices actually tuned in to the event.
    • Our investment in client training continues – over 250 marketers have been certified, including professionals from Lenovo EMEA and Ubisoft Entertainment, Inc – Ubisoft Canada. In post-training surveys, over 98% of attendees reported that they “would recommend this program to others in the industry.”
    • Lenovo, in partnership with TubeMogul, won “Most Effective Programmatic Media Partnership” at The Drum’s Digital Trading Awards. The honor was awarded for our work on Lenovo’s “Spread the Holiday Cheer” campaign.
  • Growth in media channels beyond desktop pre-roll: Spend in mobile, Programmatic TV and display represented over 20% of global Q2 Total Spend.
  • Partnership with placemedia for Programmatic TV: TubeMogul and placemedia, the fully automated supply side platform for linear TV, are creating a fully automated integration between TubeMogul’s demand-side platform and placemedia’s supply-side platform. The partnership leverages both companies’ platforms to deliver automation, scale and targeted audiences across multiple screens, reaching more than 96 million television households nationwide.
  • Pricing of successful follow-on offering: Raised $52.2 million in cash, net of underwriters’ discounts and commissions, and before deducting transaction costs, to further strengthen our balance sheet and support our growth. In July 2015, in connection with the underwriters’ partial exercise of the over-allotment option from the follow-on offering, raised an additional $7.0 million in cash, net of underwriters’ discounts and commissions, and before deducting transaction costs.
  • Launched Brand-Centric Display offering: Brand advertisers can now increase their reach by supplementing video campaigns with high-impact display executions. Over 40 brands and agencies have already utilized our display offering within their campaigns, including 3M, Clorox Canada, Corby Spirit and Wine Limited, hello products, Klick Inc., Skyscanner and Quiznos.

Forward Outlook:

The Company is issuing Q3 guidance and raising 2015 guidance as follows:

Third Quarter 2015

  • Total Spend in the range of $94 million to $96 million
  • Revenue in the range of $39 million to $41 million
  • Gross profit in the range of $26 million to $28 million
  • Adjusted EBITDA loss in the range of $(5) million to $(3) million

Full Year 2015

  • Total Spend in the range of $395 million to $401 million
  • Revenue in the range of $164 million to $170 million
  • Gross profit in the range of $111 million to $117 million
  • Adjusted EBITDA loss in the range of $(9) million to $(3) million (Original Source)

Following the earnings release, shares of TubeMogul are trading at $13, down $0.34 or 2.55% in after-hours. TUBE has a 1-year high of $23.83 and a 1-year low of $8.94. The stock’s 50-day moving average is $14.52 and its 200-day moving average is $14.87.

On the ratings front, TubeMogul has been the subject of a number of recent research reports. In a report released today, BMO analyst Daniel Salmon downgraded TUBE to Hold, with a price target of $15, which implies an upside of 14.8% from current levels. Separately, on July 9, J.P. Morgan’s Doug Anmuth initiated coverage with a Buy rating on the stock and has a price target of $20.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Daniel Salmon and Doug Anmuth have a total average return of 9.5% and 23.5% respectively. Salmon has a success rate of 68.9% and is ranked #760 out of 3728 analysts, while Anmuth has a success rate of 65.1% and is ranked #16.

Overall, 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $22.33 which is 70.8% above where the stock opened today.

TubeMogul Inc is an enterprise software company for digital branding. The Company’s platform enables advertisers to gain control of digital video advertising spend and achieve brand advertising objectives.