Digital marketing company MaxPoint Interactive posted better-than-expected third-quarter results that included a 42 percent jump in revenue.
Revenue after excluding certain costs totaled $23 million, up from $16.3 million a year ago and ahead of the $22.3 million anticipated by analysts, according to Bloomberg News.
“We continue to experience solid growth at MaxPoint,” Brad Schomber, the company’s chief financial officer, said during a conference call.
The Morrisville-based company’s net loss totaled $4.8 million, versus $4.1 million a year ago. Its net loss after excluding stock-based compensation expenses amounted to 14 cents per share, better than the 20 cents expected by analysts.
However, MaxPoint projected that revenue in the fourth quarter would range between $20 million and $24 million, well below the $29.8 million analysts have been forecasting.
“The fourth quarter has gotten off to a slower start than we have experienced before,” Schomber said.
The big issue, he said, is that customers are reducing the promotional spending “for budgetary and other internal reasons.”
“Our customers are being very cautious” with regard to spending, added CEO Joe Epperson.
MaxPoint’s software enables manufacturers and retailers to use targeted online advertising to generate sales in brick-and-mortar stores.
MaxPoint released its quarterly results Thursday after the markets closed. Earlier in the day, its shares closed at $4.97, up 10 cents.
Maxpoint went public at $11.50 per share in March but its shares never exceeded the IPO price once they started trading.