Looking back on advertising software stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Integral Ad Science (NASDAQ: IAS) and its peers.

The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.

The 7 advertising software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 9.9% on average since the latest earnings results.

Weakest Q3: Integral Ad Science (NASDAQ: IAS)

Founded in 2009, Integral Ad Science (NASDAQ: IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices.

Integral Ad Science reported revenues of $133.5 million, up 11% year on year. This print fell short of analysts’ expectations by 3.1%. Overall, it was a slower quarter for the company: its full-year revenue guidance missed significantly and its revenue guidance for next quarter fell short of Wall Street’s estimates.

"We increased revenue at a double-digit rate in the third quarter, driven by our industry-leading products and the contribution from new customers, with strong adjusted EBITDA performance," said Lisa Utzschneider, CEO of IAS.

Integral Ad Science delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. The stock is down 16.8% since reporting and currently trades at $10.50.

Is now the time to buy Integral Ad Science? Access our full analysis of the earnings results here, it’s free.

Best Q3: AppLovin (NASDAQ: APP)

Co-founded by Adam Foroughi, who was frustrated with not being able to find a good solution to market his own dating app, AppLovin (NASDAQ: APP) is both a mobile game studio and provider of marketing and monetization tools for mobile app developers.

AppLovin reported revenues of $1.20 billion, up 38.6% year on year, outperforming analysts’ expectations by 6%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 118% since reporting. It currently trades at $367.

Is now the time to buy AppLovin? Access our full analysis of the earnings results here, it’s free.

The Trade Desk (NASDAQ: TTD)

Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ: TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.

The Trade Desk reported revenues of $628 million, up 27.3% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a slower quarter as it posted revenue guidance for next quarter in line with analysts’ expectations and a slight miss of analysts’ billings estimates.

As expected, the stock is down 9.2% since the results and currently trades at $120.31.

Read our full analysis of The Trade Desk’s results here.

LiveRamp (NYSE: RAMP)

Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE: RAMP) is a software-as-a-service provider that helps companies better target their marketing by merging offline and online data about their customers.

LiveRamp reported revenues of $185.5 million, up 16% year on year. This number topped analysts’ expectations by 4.7%. It was a strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a meaningful improvement in its net revenue retention rate.

The company added 10 enterprise customers paying more than $1 million annually to reach a total of 125. The stock is up 30.9% since reporting and currently trades at $34.44.

Read our full, actionable report on LiveRamp here, it’s free.

PubMatic (NASDAQ: PUBM)

Founded in 2006 as an online ad platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform.

PubMatic reported revenues of $71.79 million, up 12.7% year on year. This result beat analysts’ expectations by 8.5%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a significant improvement in its net revenue retention rate.

PubMatic achieved the biggest analyst estimates beat among its peers. The stock is down 8.4% since reporting and currently trades at $15.04.

Read our full, actionable report on PubMatic here, it’s free.

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