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TubeMogul reported fourth-quarter results on Feb. 29. The company is benefiting from the rapid adoption of both its self-serve and managed brand advertising offerings, which is boosting revenue and improving profitability.
TubeMogul results: The raw numbers
Data source: TubeMogul Q4 2015 earnings press release.
What happened with TubeMogul this quarter?Total spend -- essentially the amount that TubeMogul's customers spend through its platform, including the cost of media purchases and TubeMogul's fees -- jumped 63% year over year to $134.5 million.
Spend on Tube Mogul's Platform Direct offering, which allows advertisers to run campaigns through a self-serve model, grew 56% to $98.2 million, representing 73% of total spend. And spend on the company's Platform Services offering, which allows advertisers to specify objectives and have TubeMogul's team execute the campaign on their behalf, surged 83% to $36.3 million.
That strong rise in total spend helped drive a 62% year-over-year increase in revenue to$58.5 million.
Gross profit rose 52% to$39.2 million, with gross margin falling to 67%. That was down from 71% in the fourth quarter of 2014, mostly because of the out-performance of Platform Services, which has a lower gross margin than Platform Direct.
Operating loss was$0.7 million, compared with an operating loss of$2.4 millionin the fourth quarter of 2014. Net loss also narrowed, decreasing to $1.5 million from $4 millionin the year-ago period. Looking forward Tube Mogul expects first-quarter total spend in the range of $108 millionto$110 million, and revenue in the range of $40 millionto$42 million. In addition, the company anticipates first-quarter gross profit of$28 millionto$30 million, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of minus-$5 million to minus-$3 million. Management also issued its full-year 2016 outlook, which includes:
- Total spend in the range of$569 millionto$577 million.
- Revenue between $220 millionand$228 million.
- Gross profit of$152 millionto$160 million
- Adjusted EBITDA of$5 million.
"We finished 2015 with strong financial results overall, but more importantly our continuous innovation sets us up for another successful year in 2016," saidCEO Brett Wilson in a press release.
The article TubeMogul Inc. Revenue Surges on Strong Advertising Spending Growth originally appeared on Fool.com.
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