Digital marketing company Maxpoint Interactive posted a narrower loss in the third quarter and reported cost-cutting efforts that included job cuts.
Chief Financial Officer Brad Schomber said the company was “continuing to improve efficiencies” in its research-and-development efforts, including automating “certain processes.”
As a result, the Morrisville-based company reduced its R&D workforce to 130, a reduction of 15 employees during the quarter and 22 fewer than a year ago.
At the same time, however, Maxpoint is continuing to hire. The company’s website lists about three dozen job openings in Morrisville and Texas.
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“We are currently recruiting for over 30 positions,” Lynn Vitello, vice president of marketing, said in a statement. “We continue to actively participate in job fairs and are already identifying interns and making offers for next summer.”
Vitello also noted that the company launched two new products during the quarter and announced a new partnership with Oracle that will help the company “to dramatically expand our universe of customers.”
The company’s overall workforce, according to documents filed with the Securities and Exchange Commission, totaled 380 at the end of the third quarter, down 23 from the end of June.
The Morrisville company reported a net loss of $2.9 million, or 44 cents per share, versus a loss of $4.8 million a year ago. The company’s adjusted net loss, which excludes stock-based compensation, totaled $1.9 million, or 29 cents per share, versus a loss of $3.75 million a year ago.
Adjusted revenue totaled $24.9 million, up 8 percent.
CEO Joe Epperson said the company made “solid progress” during the quarter, “giving us increased confidence in our plan to become EBITDA profitable in 2017.” The company’s adjusted EBITDA – earnings before interest, taxes, depreciation and amortization – was $900,000 in the third quarter versus a loss of $1.9 million a year ago.
In a research note issued Thursday, Needham & Co. analyst Kerry Rice wrote that “MaxPoint delivered solid Q3 results” with adjusted revenue in-line with expectations and with adjusted EBITDA much better than expected. The consensus among analysts, Rice said, was that the company’s adjusted EBITDA would reflect a loss of $2.1 million.
MaxPoint’s software enables manufacturers and retailers to use targeted online advertising to generate sales in brick-and-mortar stores. The company has created the digital equivalent of ZIP codes by dividing the nation into tens of thousands of neighborhoods, which it calls Digital Zips.
MaxPoint reported its quarterly results after the markets closed Thursday. Earlier in the day, its shares closed at $8.32, down 16 cents. Its shares were trading below $5 in February.