TRMR - Why Tremor International Stock Got Smashed Today
2023-08-17 13:16:13 ET
Advertisers and agencies aren't spending money as expected, and shares of advertising technology (adtech) company Tremor International (NASDAQ: TRMR) are getting smashed today as a result. As of 12:15 p.m. ET, Tremor stock was down a painful 30% and had touched all-time lows during the session after the company announced its earnings results for the second quarter.
Tremor International is both a demand-side and supply-side adtech platform with a focus on connected TV (CTV) -- most adtech companies pick one side or the other. While the company did enjoy 13% year-over-year revenue growth in the second quarter of 2023, revenue (excluding traffic acquisition costs -- a common adtech adjustment) of $84.2 million was well short of Wall Street's expectations of about $97 million.
Also disappointing investors today were Tremor's net losses. In Q2, the company had a $3.6 million loss compared with a profit of $2.4 million in the prior-year quarter. This is partially because it acquired rival Amobee in September 2022, a company that was losing money at the time.
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Why Tremor International Stock Got Smashed Today