Shares of digital marketing company MaxPoint Interactive fell 31 percent Thursday after it reported second-quarter results that were a mixed bag.
The Morrisville-based company’s net revenue, after excluding certain costs, totaled $21.3 million, which was up 40 percent from a year ago. But it fell $900,000 short of Wall Street’s estimates.
Meanwhile, the company’s adjusted net loss was $25.9 million, or 15 cents per share, better than the loss of 22 cents per share anticipated by analysts. A year ago the company’s adjusted net loss was $18.7 million.
Similarly, MaxPoint boosted its guidance for EBITDA – earnings before interest, taxes, depreciation and amortization – for the full year. But it lowered revenue expectations.
“We’ve been a public company for five months and I’m pleased with how the company is progressing,” co-founder and CEO Joe Epperson said during a conference call with analysts. He also noted that “we continue to drive towards profitability.”
The second-quarter performance and outlook prompted analyst Evan Wilson of Pacific Crest Securities to lower his rating on the stock from the equivalent of a buy to a hold. But Needham & Co. analyst Kerry Rice maintained his buy rating.
“We remain positive on MaxPoint’s position in the local advertising market,” Rice wrote in a research note.
MaxPoint went public in March at $11.50 per share but hasn’t traded at that level since then. Thursday its shares closed at $6.13, down $2.77. The company issued its second-quarter results, and held its earnings conference call, Wednesday after the markets closed.
The company’s software enables national brands to target neighborhoods where consumers are likely to buy a particular product – based on factors such as demographics and income levels – and then deliver online ads to them. Those ads can be used to point consumers to local stores that carry the product.
“At our core, we provide a connection between online and offline,” Epperson said.
MaxPoint had 601 “enterprise customers” that spent more than $10,000 over the past 12 months at the end of the quarter, up 59 percent from a year ago.
The company added 72 enterprise customers during the quarter.
“It was more than expected,” said Chief Financial Officer Brad Schomber. “We aren’t forecasting that number moving forward.”
MaxPoint ended the quarter with $57.9 million in cash.
David Ranii: 919-829-4877, @dranii
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