Shares of digital marketing company MaxPoint Interactive were trading more than 15 percent higher Thursday after the company announced a stock buyback program and posted fourth-quarter results deemed solid by one analyst.
Needham & Co. analyst Kerry Rice noted that in addition to posting “upside results” in the fourth quarter, the company’s guidance for 2016 revenue was in-line with expectations and its guidance for EBITDA – earnings before interest, tax, depreciation and amortization – exceeded expectations. He rates the stock a “hold.”
The Morrisville-based company announced after the markets closed Wednesday that its adjusted revenue rose 17 percent to $25.2 million in the fourth quarter. The company’s net loss 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, better than analysts had expected.
However, analysts rolled back their expectations in November after the company lowered its guidance – a move that sent the stock tumbling 56 percent.
Company executives told analysts during a conference call that it expects to reach “profitability” – based on adjusted EBITDA – in 2017. For the full year 2015, the company posted an adjusted EBITDA loss of $10.4 million.
Chief Financial Officer Brad Schomber said that the company’s “cost discipline” includes a forecast of $10 million in capital expenditures for 2016, down $5 million from last year. The company also plans to dial back hiring this year.
Last year the company added 88 employees, giving it a total of 395 in the U.S. and 406 overall, according to documents filed with the Securities and Exchange Commission. The company declined to say how many employees are based at its Morrisville headquarters.
Of last year’s new hires, 31 were in research and development, boosting the R&D department to 145 workers.
“While we will continue to invest in engineering, the pace of our hiring this year will be much more moderate,” Schomber said.
MaxPoint shares were trading at $2.14 Thursday morning, up 35 cents. The company went public at $11.50 per share a year ago.
The company’s board of directors has approved buying back up to $4 million of its shares.