TubeMogul, a software platform for brand advertising, reported Q3 earnings late Wednesday at the market close revealing that programmatic TV grew more than 250% annually, while non-desktop channels now represents 51% of revenue and 49% of total spend.
"We had a strong third quarter and are encouraged by the continued momentum we are seeing across the business," stated Brett Wilson, CEO of TubeMogul. "Our results exceeded the midpoint of our guidance across all key metrics, and we are particularly pleased with the improved operating leverage we demonstrated in the quarter. The company reported that programmatic TV spend on its platform nearly tripled year-over-year, while other cross-screen channels including social, display, and mobile continued to experience strong adoption."
Wilson stated: “As brand advertisers are increasingly seeking to consolidate their spend on a single platform, TubeMogul's focus on cross-screen planning and automating channels beyond video is positioning us well to win new brands globally."
Q3 2016 financial highlights:
--GAAP Revenue was $56.1 million, an increase of 21% compared to $46.5 million in the third quarter of 2015.
--Total spend was $138.3 million, an increase of 34% compared to $103.4 million in the third quarter of 2015.
--Gross profit was $36.8 million, an increase of 18% compared to $31.1 million in the third quarter of 2015.
--Operating loss was $(11.1) million, compared to $(3.0) million in the third quarter of 2015.
--GAAP Net loss was $(12.4) million, compared to $(3.8) million in the third quarter of 2015.Other Q3 business highlights include:
--Traction in programmatic TV (PTV) where spend grew 271% year over year, accelerating from 143% growth in Q2 2016, and totaling more than $21.1 million in spend.
--Continued strength in cross-screen spend—spend from non-desktop channels, including mobile, display, social, and PTV accounted for 49% of overall total spend.
--Improvements to the TubeMogul software platform, including the addition of native advertising formats for both display and video, across desktop and mobile devices. TubeMogul's integration with TripleLift, which enables marketers to incorporate native display and video ads into their cross-channel strategies.
--An overhaul of the software platform's interface, including a redesigned Placement Editor. The enhancements aim to simplify routine tasks, increase productivity, and improve results for clients.
--A revamp of the display offering through expanded partnerships and enhanced algorithms. The goal is to increase accountability and further improve effectiveness in cross-channel branding and performance campaigns.
--Launch of a cross-screen planning tool to Platform Direct clients, along with the addition of social and native inventory to the tool.
Notable client wins included:
--Pernod Ricard selected TubeMogul as its preferred programmatic platform partner for brand advertising in Australia.
--National Bank of Canada named TubeMogul one of its advertising software partners.