Home Digital TV and Video Telaria Revises Guidance Downward, Loses One-Third Of Its Value

Telaria Revises Guidance Downward, Loses One-Third Of Its Value


Telaria revised both its third quarter and full year earnings guidance downward Thursday, causing its stock price to drop 35%.

The supply-side platform formerly known as Tremor Video expects its Q3 revenue to be “between $13.0 million and $13.5 million, and adjusted EBITDA between a loss of $0.5 million,” its release states. The company also projects full year revenue will be between $50 million and $52 million, with a EBITDA between a loss of $5 million to $3 million.

This time last year, Telaria celebrated its Q3 2017 – and first-ever earnings call – with a 67% YoY growth rate. If its new projections are accurate, its growth rate between Q3 2017 and Q3 2018 will be between 2% and 6%.

Telaria CEO Mark Zagorski told AdExchanger in an email the dip came from a “strategic decision” to remove some desktop publishers from its platform in order to devote more resources to premium video content. Unfortunately, buyers did not shift spend toward that premium content.

“The removal of these publishers had a negative impact on our results, as we saw a slower than expected shift in buyers’ spending patterns towards the premium inventory,” Zagorski said. “We believe this is more of a timing issue than a structural issue with our business.”

To rectify the situation, Zagorski said the company will hire more salespeople, focus the organization on brands and agencies, build out relationships with publishers, continue investing in connected TV and further promote its premium inventory.

“We feel very confident that our strategic decision to focus entirely on premium inventory, and our firm commitment to transparency and quality is a strong foundation from which to take advantage of the shift toward TV-like digital content,” he said.

Over the last year, Telaria’s stock has lost about 50% of its value on the NYSE.

Must Read

Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Marketecture Buys AdTechGod (No, Really)

Marketecture has acquired AdTechGod – an anonymous ad tech Twitter poster turned one-man content studio – and the AdTech Forum, an information resource hosted by AdTechGod and Jeremy Bloom.

Why The False Advertising Lawsuit Against Poppi Is Bad News For RMNs

This week’s dispatch explores the new trend of false advertising class-action suits in the food and CPG industry and how the evolution of online, data-driven retail media could exacerbate the problem.

Seedtag Acquires Beachfront For Deeper Roots In TV And Streaming

Contextual ad platform Seedtag acquires Beachfront, a supply-side platform that specializes in TV and video.