TubeMogul Inc (NASDAQ:TUBE)
TubeMogul, Inc. (TUBE), a company that markets software for digital branding yesterday reported their second quarter 2016 financial results. TubeMogul reported second quarter earnings of a loss of $0.11 per share which fell short of analyst expectations of a loss of $0.08 per share. TubeMogul reported second quarter revenues increased 22% year over year to $55.4 million which fell short of analyst expectations of $58.2 million.
TubeMogul, Inc. CEO’s Comments
“We saw very strong growth in our non-desktop pre-roll channels as brand clients are increasingly using our software to plan and buy campaigns across an array of inventory sources,” said Brett Wilson, CEO of TubeMogul. “As consumption of video becomes increasingly fragmented, brands are relying more heavily on software solutions that allow them to strategically reach incremental audiences beyond traditional TV. Our software enables brands to plan and execute campaigns that complement their TV buy with a high degree of control and transparency, making TubeMogul an essential part of our clients’ advertising workflow.”
“Total Spend in Q2 came in slightly below our expectations,” said Wilson. “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. We are confident that our strategy and unique cross-screen capabilities will make us the strategic platform of choice for brands.”
Wilson concluded, “We feel strongly that the investments we have made in PTV, mobile and social, along with the mix shift to these areas, positions us well to see strong topline growth in 2017. This growth will flow through to the bottom-line and should result in significantly improved operating leverage in 2017.” Globe Newswire
TUBE Technical Analysis
TUBE opened trading yesterday at $12.00 which was up from the previous days trading of $11.87. TUBE closed trading yesterday at $12.64 and crashed down after market to $9.79, equivalent to a 23% decrease from the closing price. Taking a look at the daily chart we can see the last time TUBE traded below these levels was on September 29th when it traded at $9.72. Taking a closer look at the daily chart we can see that TUBE has been in a downward trend dating back to April 15th when it traded at $14.41 . TUBE has a float of 20.32 million shares and traded 2.42 times the normal daily trading volume on Monday. For trading purposes, I would like to see TUBE open trading on Tuesday below $10.80 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap.
Company Profile
TubeMogul, Inc. designs, develops, and markets software for digital branding. It offers a cloud-based platform that enables advertisers to plan, buy, measure, and optimize video advertising spend from a single platform. The company provides its platform through two offerings, Platform Direct that allows advertisers to run campaigns through a self-serve model; and Platform Services, which allows advertisers to specify campaign objectives. TubeMogul, Inc. was founded in 2007 and is headquartered in Emeryville, California.