Programmatic video ad platform TubeMogul beat its Q3 2014 estimates by reporting $27.4 million in revenue on the quarter, ahead of an expected $20 million to $22 million. The revenue generated is more than double (up 112%) what TubeMogul saw in Q3 2013.
At press time, shares of TubeMogul (“TUBE” on NASDAQ) had jumped over 14% after hours.
The company said marketers spent a total of $62.5 million through its platform last quarter, up 144% compared to the same quarter one year ago. Gross profit for the quarter was $19.2 million. These figures also beat estimates, as TubeMogul anticipated spend to be between $46 million and $48 million and gross profit to fall between $13 million and $15 million.
TubeMogul is one of the newer public ad tech firms, but the company has thus far bucked the post-IPO blues that have plagued other companies in the programmatic sector that have gone public. Granted, TubeMogul hasn’t even been public for half a year yet, but the first few months have been promising.
Unlike some of its gone-public ad tech predecessors, TubeMogul’s IPO did not make as much of a splash as the company had initially hoped. However, TubeMogul has seen its share price steadily increase since going public, aided at first by strong Q2 results and now again by a strong third quarter. It's also possible that Yahoo's purchase of BrightRoll made TubeMogul more attractive to investors, as TubeMogul is now one the last few large independent demand-side platforms (DSP).
Once again, TubeMogul relied on self-serve advertisers and marketers’ growing interest to be directly involved with the use of ad tech. The company reported that 76% of the total spend on its platform last quarter, or $47.2 million, came from self-serve advertisers. That’s up from 72% in Q2 and 68% from one year ago. The number of clients using its platform on a direct basis increased to 308, up from 283 in Q2 and 165 on year ago.
While not a massive piece of the pie -- yet -- mobile continues to grow within TubeMogul. The company reported that 9% of the spend on its platform in Q3 quarter came from mobile video, almost double what it accounted for in Q2.
“The shift of TV ad dollars into digital, the rapid adoption of software-based buying, and the desire by advertisers to gain more control and transparency over their ad spend by using self-serve platforms have all contributed to the growth of our business and we believe will create a market opportunity of considerable magnitude for the foreseeable future," stated Brett Wilson, CEO of TubeMogul.
TubeMogul has raised its full-year 2014 guidance to $109 million to $111 million in expected revenue, with $30 million to $32 million in revenue expected in Q4. That’s up from the previous full-year guidance of $98 million to $102 million.