Video Ad Tech Company YuMe's Stock Crashes By 11%
The stock was down more than 11% after reporting after reporting a loss of $2.6 million, which is bigger than a $1.1 million loss a year prior.
But taking a closer look, there's reason for optimism even though losses increased by $1.5 million.
YuMe revenue increased 18% from last quarter, up to $40.4 million. In the company's earnings call CEO Jayant Kadambi says this number was in line with projected goals.
YuMe also launched a programmatic, or automated, video platform in March, Video Reach. Kadambi says the programmatic platform recently joined forces with an trading desk and the two will be fully integrated very soon.
"We continue to be very bullish on Video Reach because YuMe's capabilities are in demand at the trading desks especially in light of the recent media coverage around brand safety, ad viewability, and exchange based traffic," Kadambi said on the earnings call.
He also mentioned that YuMe has 90 clients with $1 million lifetime spend, 31 at $3 million, and 16 with over $5 million of lifetime spend with them. YuMe worked with a total of 428 clients this quarter, up 42% from last year.