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Why Telaria Stock Popped Wednesday

By Daniel Sparks – Updated Apr 25, 2019 at 4:21PM

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The company beat analyst expectations for revenue, earnings per share, and guidance.

What happened

Telaria (TLRA), provider of a software platform to help publishers manage digital video advertising, saw its stock rise as much as 22.9% on Wednesday. Shares closed the trading day up 17.5%.

The stocks gain followed the company's fourth-quarter update. The results featured strong numbers across the board, with revenue handily surpassing analysts' average forecast for the metric.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Telaria reported fourth-quarter revenue of $19.7 million, up 31% year over year. Analysts, on average, had expected Telaria to report revenue of $15.7 million. Telaria's earnings per share were $0.03, up from a loss per share of $0.02 in the year-ago quarter. The consensus forecast for Telaria's earnings per share was a loss of $0.03.

"We ended the year on a strong note driven by growth in CTV [connected TV], which increased over threefold from last year and represented 33% of revenue for the quarter," said Telaria CEO Mark Zagorski.

Now what

Management guided for first-quarter revenue between $11.5 million and $12.5 million, ahead of a consensus analyst estimate for revenue of $10.4 million during the period.

For the full year, Telaria says it expects revenue between $63 million and $67 million, also ahead of analysts' average forecast for 2019 revenue of $60.9 million.

Check out the latest earnings call transcripts for companies we cover.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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