Adaptive Medias Reports Q3 Results, Adjusted EBITDA Moves Into Positive Territory

Adaptive Medias Reports Q3 Results, Adjusted EBITDA Moves Into Positive Territory

By: Dylan Sikes - AllPennyStocks.com News

Thursday, November 12, 2015

In an article published on The Next Web, Internet entrepreneur Matthew Capala notes that in 2015, content monetization involves learning new ways to distribute and market content. The idea is to make content available to incremental buyers and leads using platforms that provide access to engaged users who are looking to buy premium digital content. Capala, who is also a SEO strategist, notes that it is difficult to convert site visitors into paying customers using past technology. He points to several ways to monetize content using unexploited content monetization engines.


Given the increasing need for monetizing content, companies such as Adaptive Medias Inc. (OTCQB:ADTM) could see significant growth going forward. Based in Irvine, California, ADTM is a programmatic audience and content monetization provider for website owners, app developers and video publishers who want to more effectively optimize content through advertising. The company offers a foundation for publishers and developers looking to engage brand advertisers through a multi-channel approach that delivers integrated, engaging and impactful ads across multiple devices.

This morning, ADTM announced its financial results for the third quarter of 2015. During the third quarter, Media Graph revenue accounted for nearly a quarter of revenues. Media Graph revenue also drove improvements in gross margin. John B. Strong, Chairman and CEO at Adaptive Medias, noted that the company’s Media Graph First higher-margined technology sales strategy is working. Strong further said that based on the current sales pipeline, the Company is targeting $1.33 million in revenues for the fourth quarter.

ADTM’s third-quarter revenue totaled $0.7 million, compared to $1.1 million reported in the previous quarter. Revenue was negatively impacted by the timing of new contracts as well as the phase out of Flash, which led to shakeups across the ad-tech space. Strong said that the issue affected many of ADTM’s partners who have had to deal with a rapid transition from Flash to HTML5. Strong added that the company is using its HTML5 player to solve the issue.

Adjusted EBITDA in the third quarter totaled $0.03 million after excluding stock compensation expense and one-time adjustments. This compares to an EBITDA loss of $1.7 million reported in the previous quarter. The improvement was primarily driven by lower expenses across the board, including sales and marketing, R&D expense, general, administrative, professional and legal costs.

ADTM’s gross profit for the quarter was $81,718, with gross margin at 11.6%. Gross margin in the previous quarter stood at 2.5%.

Strong said that Media Graph will grow to over half of the company’s sales in the current quarter and the company expects turning operating cash flow positive in the current quarter.

Investors look to be sharing the optimism in today’s revenue numbers, sending shares up almost 6% as the day winds down. That being said, shares are currently trading near their 52 week low, so the Company is clearly not out of the woods yet.

Copyright © 2015 AllPennyStocks.com. All rights reserved. Republication or redistribution of AllPennyStocks.com's content is expressly prohibited without the prior written consent of AllPennyStocks.com. AllPennyStocks.com shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Other Penny Stock Movers

Miner Scores with Acquisition of Promising Silver District in Mexico
Mixed Signals: Durable Goods Orders Up, But Not All Sectors Are Soaring
Biotech Steals The Show Following Pre-Clinical Data Announcement
Most Popular
5
FREE Newsletter


Back to Top