2Q23 Beats EPS and Revenue Consensus and Reaffirms Full-Year Guidance for Growth
2Q23 revenue of $37.6 million was above consensus of $36.4 million. The challenging advertising market conditions have continued but EPS of $0.09 was significantly ahead of consensus of a loss of $0.01. The company (which has no debt) has more than $73 million in cash and reaffirmed its full-year guidance. CEO Jim Lawson said management was confident in meaningful sustainable revenue growth in 2H23. Lawson said that this confidence is driven by “strong quartertodate bookings, growing late-stage pipeline, and impressive results across each of our strategic investments including self-service (or Direct Access), CTV, AdTheorent predictive (ID-free) audience products, and AdTheorent Health.” The company’s self-service (or Direct Access) platform saw revenue grow 75% sequentially, up from +19% sequentially last quarter... For a comp group, we have used similar-growth, similar margin ad software companies. These comps have a median forward P/E of 8.4x, while ADTH is trading at 1.8x, a significant decrease; similarly, ADTH is trading at a discount on PEG and P/E as well.
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