Shares of advertising technology company Tremor International (TRMR) took a hit on Monday. The stock slid as much as 26.4% and was down about 25% as of 1:50 p.m. ET.
The tech stock's decline follows Tremor's third-quarter earnings report, which was released Monday morning. Investors may be disappointed in the company's double-digit revenue decline for the period.
Tremor reported third-quarter revenue of $70.9 million, down 19% year over year. This marked a significantly worse decline than the 7% year-over-year decrease it saw in its revenue in Q2.
Of course, investors should note that many advertising companies have been reporting worse-than-expected Q3 results. Tremor, therefore, is not alone in releasing a disappointing report for the period. An uncertain macroeconomic environment has caused marketers to limit their ad budgets, leading to lower spend on many advertising platforms than in the year-ago quarter.
A bright spot from the quarter was the marketing spend Tremor attracted for connected-TV (CTV) ad spots. CTV spend on its platform increased 45% year over year, management said.
Assuming the company can maintain its strong momentum in CTV, its revenue trends could improve going forward. Tremor noted in its third-quarter update that CTV spend on its platform accounted for 39% of total spend during the first nine months of the year. Further, management believes the company is poised to gain market share "within the CTV arena" going forward.
Tremor's aggressive share repurchase program suggests management is optimistic. The company recently completed a $75 million share repurchase program, and its board of directors approved an additional $20 million for share repurchases in September.