TubeMogul Inc (NASDAQ:TUBE), a leading enterprise software company for brand advertising, today reported financial results for its third quarter ended September 30, 2015.
Third Quarter 2015 Financial Highlights:
- Total Spend1 was $103.4 million, an increase of 65% compared to $62.5 million in the third quarter of 2014.
- Revenue was $46.5 million, an increase of 70% compared to $27.4 million in the third quarter of 2014.
- Gross profit was $31.1 million, an increase of 63% compared to $19.2 million in the third quarter of 2014.
- Operating loss was $(3.0) million, compared to operating loss of $(0.5) million in the third quarter of 2014.
- Net loss was $(3.8) million, compared to net loss of $(1.7) million in the third quarter of 2014.
- Adjusted EBITDA2 was $0.8 million, an increase of 80% compared to Adjusted EBITDA of $0.5 million in the third 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 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.
“We had a tremendous quarter, and for the fifth consecutive time since becoming a public company, exceeded our guidance across all metrics, and we are raising our full year guidance once again. Our focus on cross-screen advertising continued to resonate with brand advertisers in the third quarter,” said Brett Wilson, CEO of TubeMogul. “Our mix of spend from non-desktop sources increased over the second quarter and we expect demand for cross-screen campaigns to continue into Q4 and 2016.”
Third Quarter and Recent Business Highlights include:
- Notable client announcements:
- L’Oréal USA – the ninth-largest advertiser in the United States (“U.S.”), with U.S. ad spend topping $2.2 billion in 2014 according toAdAge Data Center/Kantar Media – appointed TubeMogul its preferred partner for video advertising. TubeMogul’s independent, buy-side position in the market was key in cementing the partnership, in addition to the company’s transparency and ability to centralize measurement.
- Dannon named TubeMogul its preferred partner for video advertising in the U.S., citing “improved transparency” and “targeting abilities” as key drivers in the deal.
- TubeMogul client Empower MediaMarketing announced that it is leveraging its partnership with TubeMogul to buy full-episode player video ads programmatically for Caleres Inc. (Famous Footwear, Dr. Scholl’s).
- Launched Cross-Screen Planning Solution: The first-of-its-kind software allows marketers to plan campaigns that deduplicate their target audience across both traditional TV as well as digital channels, significantly improving upon previous solutions that only accounted for audiences on digital-only desktop and mobile devices. The cross-screen planning software ingests a marketer’s existing TV plan, and a combination of data sets, to determine optimal inventory mix and budget allocations, and provide the specific networks, sites and mobile applications necessary for a more efficient campaign.
- Launched Select Access: New private inventory capability simplifies direct deals between advertisers and premium publishers. Initial partners include A+E Networks, Discovery Communications and Univision. Over 10 clients have already tested or committed to use Select Access, including 3M, Lenovo, Empower MediaMarketing and Trilia Media.
- Growth in Cross-Screen Spend: Spend in mobile, Programmatic TV and display represented over 27% of global Q3 Total Spend.
- Bolstering of Executive Ranks with Key Hires:
- Pattie Money, who is leading global human resources initiatives as the company’s first Chief People Officer, has been tasked with unifyingTubeMogul’s human resources operations and recruiting into an organized global human resources strategy, including talent acquisition, learning and development curriculum, identification and succession planning, and leadership development.
- Phil Cowlishaw, appointed to the newly created role of VP Strategy, will lead a team responsible for identifying, developing and implementing customized solutions to help clients fully utilize TubeMogul’s software platform.
- Todd Gordon, appointed to the newly created role of GM, Programmatic TV, brings a wealth of experience to the role. As SVP, U.S. Director at Magna Global, Gordon guided media negotiations for IPG Mediabrands, which manages and invests $37 billion in global media on the behalf of its clients. Gordon also steered the group’s mission to automate half of all media investments by the end of 2015, pioneering several pilot projects with major broadcasters.
- Matthew Dybwad, our new Head of Political and Public Affairs in Washington DC. Matthew brings over 15 years of experience as a digital media executive in political and public affairs advertising.
The Company is issuing Q4 guidance and raising 2015 guidance as follows:
Fourth Quarter 2015
- Total Spend in the range of $126 million to $128 million
- Revenue in the range of $51 million to $53 million
- Gross profit in the range of $34 million to $36 million
- Adjusted EBITDA in the range of $(2) million to $0 million
Full Year 2015
- Total Spend in the range of $406 million to $408 million
- Revenue in the range of $173 million to $175 million
- Gross profit in the range of $117 million to $119 million
- Adjusted EBITDA in the range of $(3) million to $(1) million (Original Source)
Shares of TubeMogul are up 5.38% to $13.13 in after-hours trading. TUBE has a 1-year high of $23.83 and a 1-year low of $9.11. The stock’s 50-day moving average is $11.48 and its 200-day moving average is $13.37.
On the ratings front, TubeMogul has been the subject of a number of recent research reports. In a report issued on October 7, Stephens Inc analyst Brett Huff initiated coverage with a Buy rating on TUBE and a price target of $20, which represents a potential upside of 57.0% from where the stock is currently trading. Separately, on August 11, RBC’s Rohit Kulkarni reiterated a Buy rating on the stock and has a price target of $18.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Brett Huff and Rohit Kulkarni have a total average return of 8.9% and 3.2% respectively. Huff has a success rate of 85.7% and is ranked #1679 out of 3829 analysts, while Kulkarni has a success rate of 46.3% and is ranked #1286.
Overall, one research analyst has assigned a Hold rating and 3 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 $18.00 which is 41.3% 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.