Telaria (TLRA) added to its streak of accelerating revenue growth on Tuesday. The company, which provides a software platform for premium TV publishers to monetize their ad inventory programmatically, said revenue surged 47% year over year in its second quarter -- up from 42% growth in Q1. This marked Telaria's third consecutive quarter of accelerating revenue growth. In addition, this growth rate trounced analysts' average forecast for revenue to rise about 29% during the period.
The strong top-line growth of the video-management platform specialist -- and its achievement of positive second-quarter adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first time -- highlight powerful tailwinds and prudent execution.
Here's a closer look at the quarter's results.
Telaria CEO Mark Zagorski. Image source: Telaria.
Rapid growth
Telaria's jump in revenue -- from $12.4 million in the year-ago quarter to $18.2 million -- was primarily driven by momentum from connected TV (CTV) ads served through the company's video management platform.
"Our strong second quarter results reflect the successful execution of our strategy to build the leading technology platform for programmatic CTV," said Telaria CEO Mark Zagorski in the second-quarter earnings release. The CEO pointed out that CTV revenue soared 133% year over year during the quarter to $7.1 million. This meant CTV comprised 39% of total revenue, up from 24% of revenue in the year-ago quarter.
Telaria's profitability is improving as well. Gross profit increased 31% year over year to $14.7 million, giving the company a gross margin of 81%. Its adjusted EBITDA during the period was $1 million, up from negative $1.1 million in the year-ago quarter. Finally, Telaria's loss per share narrowed from $0.06 in the year-ago quarter to $0.03.
Looking ahead
Reflecting the company's substantial top-line momentum during the quarter, management lifted its outlook for full-year revenue. Telaria now expects total revenue in 2019 to be between $68 million and $72 million. This compares to a previous forecast for revenue between $66 million and $70 million.
In addition, management reiterated guidance for full-year adjusted EBITDA to be between $2 million and $5 million, up significantly from negative $0.4 million in 2018.
"[W]e signed numerous premium partners during the quarter and enhanced our technology to take advantage of the growing addressable opportunities in CTV," Zagorski concluded in the company's earnings release. "As programmatic CTV continues to scale, we believe we are well-positioned to take advantage of this growth."
