TRMR - Why Tremor International Stock Plummeted Today
Shares of advertising technology (adtech) platform Tremor International (NASDAQ: TRMR) plummeted on Tuesday after the company reported financial results for the second quarter. As of 12:15 p.m. ET today, Tremor stock was down 21%.
Tremor is a demand-side platform, like The Trade Desk , but it also has its Unruly platform, which functions as a supply-side platform, like Magnite . In the second quarter, Tremor generated revenue of $75.8 million, down 7% year over year.
For adtech companies like Tremor, there are traffic acquisition costs (TAC) that distort revenue. Therefore, looking at the contribution ex-TAC can be helpful. In the first quarter, Management guided for a second-quarter contribution ex-TAC of $75 million to $80 million. However, it came up short of this guidance with just $70.8 million, which partly explains the stock's drop today.
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Why Tremor International Stock Plummeted Today