Sizmek Inc. (NASDAQ: SZMK) was perhaps the biggest mover in Wednesday’s premarket after the company reported its second-quarter financial results. These results were ultimately driven by a huge push from the company’s core products, although this was hampered only slightly from a drop off in flash.
The company posted a net loss of $0.04 per share on $48.9 million in revenue. Thomson Reuters consensus estimates had called for a net loss of $0.14 per share on $44.8 million in revenue. In the same period of last year, a net loss of $0.27 per share on revenue of $40.22 million was posted.
During the quarter, flash-based rich media continues to trend out of the business, with revenues declining 89% from the second quarter of 2015 and now contributing less than 2% of total revenues.
Core product revenues, including mobile, video, data driven products and programmatic solutions, grew 47% compared to the second quarter from last year:
- Mobile product revenues (including HTML5 formats) increased 317%.
- Data driven product revenue, including Peer39, dynamic creative optimization, verification and viewability, grew 21%.
- In stream video revenue increased 20%.
- Programmatic revenue (PBU) grew 138% with self-service representing 18% of the revenues.
Neil Nguyen, CEO of Sizmek, commented on earnings:
We are encouraged by the second consecutive quarter of solid progress on our growth objectives, with a 22% increase in revenue driving significantly improved profitability. We are executing on our operating plan with better monetization of our investments along with a strict focus on cost optimization, which is fulfilling our commitment to drive profitable growth across our product portfolio, especially in programmatic, mobile and analytics.
On the books, Sizmek’s cash and cash equivalents totaled $36.8 million at the end of the quarter, versus $42.05 million at the end of 2015.
Shares of Sizmek closed Tuesday down 3.3% at $2.66, with a consensus analyst price target of $3.00 and a 52-week trading range of $2.09 to $7.74. Following the release of the earnings report, the stock was up over 45% at $3.87 in early trading indications on Wednesday.