By Carly Forster
Enterprise software company TubeMogul Inc (NASDAQ:TUBE) posted second quarter 2015 earnings results on August 10 and beat the Street’s estimates. The stock has increased over 12% since.
Highlights from the report include $45.4 million in revenue, marking a 58% year-over-year increase and $6 million above the analysts consensus. The company posted a net loss of ($0.04) per share, beating the Street’s expectations by $0.13. The company’s total spend for the second quarter was $105 million, marking a 72% increase from the same quarter last year.
CEO Brett Wilson said of the earnings beat, “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. 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.”
TubeMogul has forecast revenue between $39 million and $41 million for the third quarter and a range between $164 million and $170 million for the full year. The Street currently estimates that the company will post $36.6 million in revenue for the third quarter and $154 million in revenue for the full year.
Piper Jaffray analyst Gene Munster maintained an Overweight rating on TubeMogul with a price target of $25 on August 10 following the company’s Q2 earnings results. The analyst noted that the company’s “Q2 beat and Q3 raise leave[s] [him] comfortable in [his] view that the company remains one of the strongest public adtech plays given the company’s self-serve model that has elements of higher visibility than typical I/O driven online ad sales models.”
Furthermore, the analyst feels “the company’s vision to create a platform where video buyers can manage all video related inventory, including TV, is key to generating larger digital video ad budgets as the largest portion of the ad dollars remain with TV.”
Overall, Gene Munster has a 64% success rate recommending stocks and a +23.4% average return per recommendation when measured over a one-year horizon and no benchmark.
Similarly on August 11, Citigroup analyst Mark May reiterated a Buy rating on TubeMogul with a price target of $21, citing the company’s “continued efficiency in the sales force and general operating leverage.” As such, the analyst raised his 2015 estimates for the company to $397.4 million in total client spend, $168.5 million in revenue, and a ($0.74) loss per share. That’s up from his previous estimates of $376.9 million in total client spend, $153 million in revenue, and an ($0.82) loss per share.
On average, Mark May has a 57% success rate recommending stocks and a +8.6% average return per recommendation when measured over a one-year horizon and no benchmark.
Out of 6 analysts polled by TipRanks within the past 3 months, 5 analysts are bullish on TubeMogul and 1 is neutral. The average 12-month price target for TubeMogul is $20, marking a 55.76% upside from where the stock last closed. On average, the all-analyst consensus for TubeMogul is Moderate Buy.
Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com
