Advertising technology companies posted solid revenue growth through August, buoyed by CTV and platform monetisation, but market reactions introduced substantial volatility. The Trade Desk showed near 20% year-over-year revenue growth yet triggered sector-wide concern with a near 40% share-price decline. Magnite reported 6% revenue growth with CTV Contribution ex-TAC up 14% YoY, while AppLovin delivered AI-driven growth but experienced post-reporting volatility. Roku's Platform segment grew 18% and drove strong revenue. Big tech is buoyed by AI expectations, digital-native publishers benefit, legacy cable plateaus, and agency performance diverges between WPP and Publicis.
With Autumn and ATS London on the horizon, ExchangeWire research lead Mat Broughton takes stock (if you'll pardon the pun) of company financials across the media and marketing ecosystem. Key themes Ad tech flying up until August, before the falling tide of The Trade Desk sinks many ships Big tech soaring off of AI promise, a brave new world or bubble ready to pop? Digital-savvy publishers seeing strong gains, whilst legacy cable companies continue to plateau WPP flounders, whilst Publicis remains the darling
The Trade Desk Mixed results created sector-wide concerns. Despite nearly hitting 20% year-over-year revenue gains, concerns over future growth emerged, causing a decline in share price of near 40%. Magnite Solid revenue growth driven by CTV. Total revenue reached USD$173.3m (£128.3m), a 6% year-over-year increase. CTV, a cornerstone of Magnite's strategy, generated USD$71.5m (£53.0m) in Contribution ex-TAC, up 14% YoY. Despite this, Magnite stock fell 10% on August 19th, potentially as a result of volatility across the ad tech sector along with increased short activity.
AppLovin Exceptional "AI-driven" growth with some volatility. AppLovin's second quarter was marked by a positive market response initially, despite revenue slightly missing Wall Street expectations, however has since fallen ~6% following insider sales. Roku Strong platform growth and profitability surprise. Overall, Roku reported Q2 revenue of USD$1.11bn (£822m). Roku's Platform segment, which includes ad sales, content sales and subscription-revenue sharing, grew 18% to USD$976m (£723m).
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