While “total spend” -- the aggregate media spending transacted through Tremor platforms -- climbed 26% in the first quarter versus the same period a year ago to $51.2 million, Tremor Video’s revenue was down 9% to $34.6 million.
Tremor Video also posted a net loss of $11.1 million -- expanding its loss by 61% from the $6.9 million in the first quarter of 2015. Tremor had gross profit, up slightly, of $16.2 million and negative cash flow of $4.2 million.
Tremor Video says its programmatic total spend dealing rose threefold to $26.1 million. Non-programmatic “higher function” products (performance-based) rose 2% to $20 million with non-programmatic spending at media networks (traditional media buys not through DSP or SSP systems) sank 62% to $5.1 million.
Tremor says this revenue change for its non-programmatic media networks accelerated a faster rate than expected.
For the full year 2016, Tremor expects to pull in $255 million to $265 million in total spend, $180 million to $190 million in revenue. It hope to have a adjusted cash flow -- earnings before interest, taxes, depreciation, and amortization -- between breakeven and $5 million.
Overall, the entire digital video marketplace continues to expand rapidly; estimates are the market could soar to $9.9 billion in 2016, and $13.6 billion in 2017, according to eMarketer.
Tremor Video’s stock inched up on Thursday, adding 1% to close at $1.98. Last June, Tremor had a 52-week high of $3.22.
Concerning upfront dealings for programmatic video deals, Bill Day, president/CEO of Tremor Video, said during its earning call that programmatic video deals “is a component of what happens. I don’t assume it is going to be the majority component for the industry -- never mind for us.”
Day adds: “Our focus is in programmatic video. Certainly, we have upfront commitments with some of our partners... But we have never represented it to be a large chunk of how we operate.”