Q2 Rundown: LiveRamp (NYSE:RAMP) Vs Other Advertising Software Stocks

Let’s dig into the relative performance of LiveRamp (NYSE:RAMP) and its peers as we unravel the now-completed Q2 advertising software earnings season.

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 satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was in line.

While some advertising software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.1% since the latest earnings results.

LiveRamp (NYSE:RAMP)

Serving as the digital middleman in an increasingly privacy-conscious world, LiveRamp (NYSE:RAMP) provides technology that helps companies securely share and connect their customer data with trusted partners while maintaining privacy compliance.

LiveRamp reported revenues of $194.8 million, up 10.7% year on year. This print exceeded analysts’ expectations by 1.9%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

Unsurprisingly, the stock is down 15.4% since reporting and currently trades at $27.55.

Read our full report on LiveRamp here, it’s free for active Edge members.

Best Q2: Zeta Global (NYSE:ZETA)

Powered by an AI engine that processes over one trillion consumer signals monthly, Zeta Global (NYSE:ZETA) operates a data-driven cloud platform that helps companies target, connect, and engage with consumers through personalized marketing across channels like email, social media, and video.

Zeta Global reported revenues of $308.4 million, up 35.4% year on year, outperforming analysts’ expectations by 3.9%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Zeta Global delivered the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 17.4% since reporting. It currently trades at $18.65.

Is now the time to buy Zeta Global? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q2: PubMatic (NASDAQ:PUBM)

Powering billions of daily ad impressions across the open internet, PubMatic (NASDAQ:PUBM) operates a technology platform that helps publishers maximize revenue from their digital advertising inventory while giving advertisers more control and transparency.

PubMatic reported revenues of $71.1 million, up 5.7% year on year, exceeding analysts’ expectations by 4.4%. Still, it was a slower quarter as it posted revenue and EBITDA guidance for next quarter missing analysts’ expectations.

PubMatic delivered the slowest revenue growth in the group. As expected, the stock is down 20.5% since the results and currently trades at $8.40.

Read our full analysis of PubMatic’s results here.

The Trade Desk (NASDAQ:TTD)

Built as an alternative to "walled garden" advertising ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based platform that helps advertisers and agencies plan, manage, and optimize digital advertising campaigns across multiple channels and devices.

The Trade Desk reported revenues of $694 million, up 18.7% year on year. This result surpassed analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also logged a solid beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.

The stock is down 42.3% since reporting and currently trades at $50.97.

Read our full, actionable report on The Trade Desk here, it’s free for active Edge members.

DoubleVerify (NYSE:DV)

Using advanced analytics to evaluate over 17 billion digital ad transactions daily, DoubleVerify (NYSE:DV) provides AI-powered technology that verifies digital ads are viewable, fraud-free, brand-suitable, and displayed in the intended geographic location.

DoubleVerify reported revenues of $189 million, up 21.3% year on year. This number beat analysts’ expectations by 4.5%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

DoubleVerify delivered the biggest analyst estimates beat among its peers. The stock is down 28.9% since reporting and currently trades at $11.01.

Read our full, actionable report on DoubleVerify here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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