Tremor Buys Australian TV Ad Tech Firm TVN; Programmatic Now 30% Of Revenue

Capping a busy day, video ad tech firm Tremor Video on Thursday released its financial results for the second quarter of 2015. The company reported revenue of $46.1 million during the quarter, up 5.4% during the same time period one year ago.

It was a busy day because in addition to its earnings report, Tremor announced its acquisition of TVN -- an Australian-based supply-side platform (SSP) for television -- and the appointment of John Rego as chief financial officer. Rego is currently CFO of Virgin Galactic and will officially join Tremor on September 8, 2015, per a release.

The TVN acquisition is focused on the Asia-Pacific (APAC) region. It marks the first time Tremor has made a move in APAC. TVN works with publishers including Foxtel, Network 10, MCN and others. Per a release, TVN helps those networks programmatically sell inventory by connecting to demand-side platforms (DSPs) and trading desks.

“TVN is a dominant player in APAC, and like Tremor Video, has focused squarely on video so this is a natural fit," stated Bill Day, CEO of Tremor.

Terms of the deal were not disclosed.

Tremor launched its own SSP earlier this year -- focused on digital video -- and claimed in June that over 100 publishers were using the platform, including Bonnier Corp., USA Today Sports and Publisher Clearing House. 

Tremor began focusing on programmatic ad technologies over the past 18 months, and reported at the end of the first quarter 2015 that programmatic accounted for 18% of the company’s revenue.

Programmatic now represents 30% of the company’s revenue, according to its second quarter 2015 earnings report. This indicates that ad tech continues to grow in importance within the company. The acquisition of TVN serves to suggest that Tremor is now looking to expand its offering (and its footprint).

The company reported gross profit of $18 million during the second quarter, up from $14.8 million during the same quarter in 2014. Tremor anticipates third quarter revenue to be in the range of $49 million and $52 million.

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