TubeMogul shares plummeted more than 20% in late trading on Monday after the company's disappointing Q2 earnings report and forecast came in much lower than Wall Street expectations.
Shares were
trading at $12.64. TubeMogul reported second quarter revenues increased 22% year-over-year to $55.4 million, which fell short of analyst expectations of $58.2 million.
Analysts, on average, had projected annual revenue of $229 million and total spend of $579.4 million, according to FactSet.
In the second quarter, all data was lower than expected.
TubeMogul reported a loss of $3.8 million, or 11 cents a share, on sales of $55.4 million, with total advertising spend on its platform reaching $139.3 million. Analysts, on average, forecast a loss
of 8 cents a share on revenue of $58.2 million and total spend of $146.2 million, according to FactSet. For Q3, TubeMogul reduced its annual forecast to sales of $217 million to $221 million and total
spend of $558 million to $562 million.
TubeMogul CEO Brett Wilson stated: “Total spend in Q2 came in slightly below our expectations. The transition in ad
spending from desktop to mobile is accelerating, and while this impacted our results, this is precisely the trend we anticipated, and we are well-positioned over the long-term as brands require
multi-screen solutions. In particular, the investments we have made in our mobile offering over the last two years evidence our leadership. In Q2, mobile spend through our platform grew 146% and now
makes up nearly 30% of our spend. In addition, Programmatic TV spend grew 143% year over year to over $20 million, nearly twice the level of PTV spend in Q1 2016. Cross-screen platform
spend now accounts for 48% of total spend as mobile and programmatic TV growth accelerates."
The company said it saw growth in non-desktop pre-roll channels, as brands increasingly turn
to software that enables them to gain incremental reach with audiences beyond traditional TV.