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ADTH Nasdaq· AdTheorent Holding Company Inc.
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ADTH Nasdaq· AdTheorent Holding Company Inc.
Earnings report Q3 2023

ADTH Reports 8.8% Increase in Revenue for Q3 2023

Segments of Revenue

ADTH reported total revenue of $40.89 million for the three months ended September 30, 2023, representing an increase of $3.3 million or 8.8% compared to the same period in 2022. The largest drivers of this increase were the healthcare/pharmaceutical, government/education/nonprofit, and consumer packaged goods (CPG) segments, which collectively increased by $5.4 million or 30.6%. This growth can be attributed to the increased adoption of ADTH's AdTheorent Health offering and the Health Audience solution launched in Q3 2022. However, there were decreases in the banking, financial services and insurance (BSFI), home improvement, and services verticals, which collectively decreased by approximately $2.2 million or 27.8%.

Strengths

ADTH's financial performance in the latest quarter demonstrates strong growth in revenue, primarily driven by increased adoption of their AdTheorent Health offering and the Health Audience solution. The healthcare/pharmaceutical, government/education/nonprofit, and consumer packaged goods segments were the main contributors to this growth. ADTH's management comments highlight the positive impact of these offerings on the company's revenue. Additionally, ADTH's ability to attract and retain active customers who spent over $5,000 during the previous twelve months is a key business metric that reflects their revenue performance.

Challenges

Despite the overall increase in revenue, ADTH faced challenges in certain verticals. The banking, financial services and insurance (BSFI), home improvement, and services segments experienced decreases in revenue, which can be attributed to negative macroeconomic conditions driven by higher interest rates. These challenges impacted ADTH's revenue performance for the nine months ended September 30, 2023, resulting in a decrease of $3.2 million or 2.8% compared to the same period in 2022.

Noteworthy

ADTH's revenue growth in the latest quarter was driven by the increased adoption of their AdTheorent Health offering and the Health Audience solution. These solutions cater to the healthcare/pharmaceutical, government/education/nonprofit, and consumer packaged goods segments, which collectively experienced significant growth. However, the company faced challenges in the BSFI, home improvement, and services verticals due to negative macroeconomic conditions driven by higher interest rates.

Summary

ADTH reported a strong performance in the latest quarter, with an 8.8% increase in revenue compared to the same period in the previous year. The growth was primarily driven by increased adoption of ADTH's AdTheorent Health offering and the Health Audience solution. However, challenges were faced in the BSFI, home improvement, and services verticals due to negative macroeconomic conditions. ADTH's ability to attract and retain active customers who spent over $5,000 during the previous twelve months is a positive indicator of their revenue performance. Overall, ADTH's revenue growth in the latest quarter reflects their strengths in certain segments and highlights the challenges they face in others.

Source documents

Form 10-Q  filed on Nov 07, 2023
12 pages scanned

Reference data

Company financials Q3 revenue 59.7M
Analyst estimates Q3 EPS beat by 1,116.00%
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