Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Magnite (NASDAQ: MGNI) and its peers.
The sector is on the precipice of both disruption and growth as AI, programmatic advertising, and data-driven marketing reshape how things are done. For example, the advent of the Internet broadly and programmatic advertising specifically means that brand building is not a relationship business anymore but instead one based on data and technology, which could hurt traditional ad agencies. On the other hand, the companies in the sector that beef up their tech chops by automating the buying of ad inventory or facilitating omnichannel marketing, for example, stand to benefit. With or without advances in digitization and AI, the sector is still highly levered to the macro, and economic uncertainty may lead to fluctuating ad spend, particularly in cyclical industries.
The 7 advertising & marketing services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.8% below.
In light of this news, share prices of the companies have held steady as they are up 3.4% on average since the latest earnings results.
Magnite (NASDAQ: MGNI)
Born from the 2020 merger of Rubicon Project and Telaria, Magnite (NASDAQ: MGNI) operates the world's largest independent sell-side advertising platform that automates the buying and selling of digital advertising inventory across all channels and formats.
Magnite reported revenues of $155.8 million, up 4.3% year on year. This print fell short of analysts’ expectations by 2.6%, but it was still a satisfactory quarter for the company with a solid beat of analysts’ EPS estimates.
“We beat the high end of our CTV and DV+ top line guidance in the first quarter, with significant outperformance in Adjusted EBITDA. Our performance has remained strong to start Q2. However, we have taken a more cautious approach to our outlook and guidance due to tariff-driven economic uncertainty. In CTV, we continue to see strong programmatic adoption and are very pleased with the growth of Netflix and their continued rollout of programmatic globally. On the DV+ side of the business, we applaud the monumental antitrust ruling against Google. This ruling and its ensuing remedies have the potential to radically transform the open internet and create a more level playing field, which could significantly increase our monetization opportunities and market share, possibly as soon as next year,” said Michael G. Barrett, CEO of Magnite.
Magnite delivered the weakest performance against analyst estimates of the whole group. The stock is up 31.1% since reporting and currently trades at $16.34.
Is now the time to buy Magnite? Access our full analysis of the earnings results here, it’s free.
Best Q1: Liberty Broadband (NASDAQ: LBRDK)
Operating across the United States, Liberty Broadband (NASDAQ: LBRDK) is a provider of high-speed internet, cable television, and telecommunications services across various markets.
Liberty Broadband reported revenues of $266 million, up 8.6% year on year, outperforming analysts’ expectations by 7.2%. The business had an incredible quarter.
Liberty Broadband achieved the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $93.80.
Is now the time to buy Liberty Broadband? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Omnicom Group (NYSE: OMC)
With a vast network of creative agencies that helped craft some of the most memorable ad campaigns in history, Omnicom Group (NYSE: OMC) is a strategic holding company that provides advertising, marketing, and communications services to many of the world's largest companies.
Omnicom Group reported revenues of $3.69 billion, up 1.6% year on year, falling short of analysts’ expectations by 0.6%. It was a mixed quarter as it posted a decent beat of analysts’ EPS estimates but organic revenue in line with analysts’ estimates.
As expected, the stock is down 6.7% since the results and currently trades at $71.75.
Read our full analysis of Omnicom Group’s results here.
QuinStreet (NASDAQ: QNST)
Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.
QuinStreet reported revenues of $269.8 million, up 60.1% year on year. This number was in line with analysts’ expectations. However, it was a mixed quarter as it failed to impress in some other areas of the business.
QuinStreet delivered the fastest revenue growth among its peers. The stock is down 12.6% since reporting and currently trades at $15.99.
Read our full, actionable report on QuinStreet here, it’s free.
Ibotta (NYSE: IBTA)
Originally launched as a way to make grocery shopping more rewarding for budget-conscious consumers, Ibotta (NYSE: IBTA) is a mobile shopping app that allows consumers to earn cash back on everyday purchases by completing tasks and submitting receipts.
Ibotta reported revenues of $84.57 million, up 2.7% year on year. This result surpassed analysts’ expectations by 3.1%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $49.99.
Read our full, actionable report on Ibotta here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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