Digital marketing company MaxPoint Interactive posted fourth-quarter results that exceeded the diminished expectations the company set when it significantly dialed back its guidance in November.
The Morrisville-based company also announced that it would buy back up to $4 million of its stock – more than 2 million shares based on Wednesday’s stock price, or about 10 percent of the company’s outstanding shares.
MaxPoint announced after the markets closed Wednesday that its adjusted revenue in the fourth quarter totaled $25.2 million, up 17 percent from a year earlier.
Analysts were projecting in November that fourth-quarter revenue would reach $29.8 million – until, that is, the company issued guidance that revenue would be between $20 million and $24 million. MaxPoint stock plummeted 56 percent on that news.
The net loss for the fourth quarter totaled $4.6 million, or 18 cents per share, versus a loss of $1.5 million a year ago. Adjusted net loss totaled 14 cents per share, compared to the loss of 24 cents per share anticipated by analysts polled by Bloomberg News.
Earlier Wednesday, MaxPoint shares closed at $1.79, down 2 cents. The company’s shares have failed to gain favor with investors since it went public at $11.50 per share a year ago. Investors have been disappointed at the company’s rate of growth.
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. Last month the company announced that it had expanded into France, Germany, Italy and Spain, where it has mapped more than 30,000 Digital Zips.
In a conference call with analysts, co-founder and CEO Joe Epperson said that revenue from mobile advertising on phones and tablets was “the fastest growing part of our business.” Mobile accounted for 32 percent of fourth-quarter revenue, up from 17 percent a year ago.
“2016 is about building on the foundation we established in 2015,” Epperson said.