• by Tyler Loechner  @mp_tyler, August 10, 2015

TubeMogul, a programmatic ad platform that specializes in video advertising, on Monday released its second quarter 2015 earnings report, revealing revenue of $45.4 million during the quarter, an increase of 58% year-over-year. The company also reported a gross profit of $30.1 million, up 54% year-over-year.

The $45.4 million revenue report easily beat the expected $38 million to $40 million, and the $30.1 million gross profit topped the expected $26 million to $28 million.

Brett Wilson, CEO of TubeMogul, attributed the “outperformance” to revenue gained from the company’s programmatic TV offering. 

The favorable report came at an ideal time for TubeMogul. Prior to the earnings release, BMO Capital Markets downgraded TubeMogul from “Outperform” to “Market Perform” and sliced its price target from $22 down to $15. The move on BMO’s part caused shares of TubeMogul to bleed nearly 15% on the day, down to $11.39.

However, immediately following the earnings report, TubeMogul gained the ground it had lost during the day and then some -- shooting up nearly 20% (at press time) in after-hours trading, to $13.50.

If nothing else, the whirlwind day depicts the mutability of ad tech stocks.

BMO had downgraded TubeMogul because of “changes in the competitive environment,” Street Insider reported BMO analyst Daniel Salmon as saying. Specifically highlighted by BMO was Google’s recent announcement that it will remove YouTube inventory from the DoubleClick Ad Exchange by the end of this year, and AppNexus’ foray into video. The stiffened competition and shifting landscape is what led BMO to temper expectations, per Salmon.

It’s possible TubeMogul saw this as an issue as well, as the company recently diversified its portfolio by adding display advertising to its platform. The move allows TubeMogul to pitch itself as more than just a programmatic video platform, removing themselves from a pigeonhole that, as BMO notes, is transforming.

Total spend on TubeMogul’s platform during the second quarter of 2015 was $105 million, an increase of 72% over this time last year. Of that spend, 20% was directed toward mobile, programatic TV and the company’s new display offering.

During the third quarter of 2015, TubeMogul expects revenue in the range of $39 million and $41 million, with gross profit in the range of $26 million to $28 million. 

Additionally, the company has upped its full year estimates and now expects revenue in the range of $164 million and $170 million (up from $149 million to $157 million). TubeMogul also anticipates 2015 gross profit to be in the range of $111 million and $117 million.