TubeMogul Inc (NASDAQ:TUBE) released its very first earnings report since going public and posted a big-time surprise. The company posted a profit, which is a very rare event for a technology company that’s newly public. Several of the company’s peers, including Rocket Fuel Inc (NASDAQ:FUEL), Tremor Video Inc (NYSE:TRMR) and YuMe Inc (NYSE:YUME) reported widening net losses for the second quarter, reports Business Insider.
TubeMogul revenue climbs 127%
In the quarter, TubeMogul reported $2.1 million in net income. In the same quarter a year ago, the video brand advertising network posted $2.6 million in losses. Earnings were 1 cent per share. The company’s revenue more than doubled year over year, climbing to $28.7 million. TubeMogul reported $61.1 million in total ad spending through its software, which was also more than double in the same quarter a year ago. Analysts had been expecting losses per share of 15 cents on $24.7million in revenue.
CEO Brett Wilson told analysts on the company’s earnings call that the quarter is only a preview of what the company’s long term future holds. However, he added that for now, their near term goal is to make investments in future growth while also gaining share of the ad market. TubeMogul also said its operating costs rose 71% to $17.9 million as it spent more on marketing, sales and technology in connection with its going public.
TubeMogul’s guidance is strong too
For the current quarter, the company expects revenue to be between $20 million and $22 million. The consensus estimate for TubeMogul’s third quarter revenue was $18.9 million. The consensus estimate for full year revenue was $91.7 million. For the full year, TubeMogul projects between $98 million and $102 million in revenue.
For total ad spending on it software platform, TubeMogul expects to see between $46 million and $48 million for the third quarter. For the full year, the projects between $218 million and $220 million in ad spend transacted through its platform.