Millennial Media: When 68% Growth Isn't Enough
After the close on Tuesday, Millennial Media (MM) reported Q4 2012 earnings that greatly disappointed the market due to substantially lower revenue than expected. While the company reported earnings in line with expectations based on solid margins, it failed to predict the shortfall in several large brand deals sending the stock down over 25% in after-hours.
The company is the leading independent mobile ad network provider. Its technology, tools, and services help developers maximize their advertising revenue, acquire users for their apps, and gain insight about their users. The company has a platform that enables advertisers powerful Mobile Audience Solutions (MAS) that use the significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results.
The article (see Buy Millennial Media Prior To Q4 Earnings) had suggested buying the stock prior to this earnings release as all data pointed towards huge numbers. Even with the missed revenue numbers, the company still reported nearly 68% growth. The results are similarly disappointing as those of fellow mobile advertising firm Velti (VELT) that continuously disappoints even in the midst of a surging market.
Read the full article at Seeking Alpha.
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