Business
YuMe Profits Rise (HITS)
Story Highlights
Multiscreen ad tech company YuMe posted a fourth-quarter profit of Net income of $2.8 million on revenue of $45.6 million, with company seeing solid growth among top 20 ad customers. Revenue from YuMe’s biggest advertising customers hit $23.8 million, while mobile, tablet and connected TV impressions accounted for 54% of quarterly revenue. Meanwhile, programmatic revenue for the company was $13.3 million.
“As in prior quarters, our advertisers continued to find our connected television differentiation particularly compelling, as more audiences migrate from linear television to over-the-top video offerings,” YuMe CEO Paul Porrini said in a call with investors. “Part of the story on our healthy gross margins continues to be the use of our [software developer kit]. We continue to succeed in monetizing impressions where our SDK is embedded and in Q4 more than three-quarters of our ad impressions were run on our SDK.
“Our SDK-enabled inventory provides us with unique data signals and targeting information that we use in our data management platform. This helps to drive better audience campaign performance for our advertisers, better monetization for our media partners and better gross margins for YuMe.”
The company helped its results by lowering its sales and marketing expenses by 20% in the quarter, and lowering research and development spending by more than 10%.
Overall, the company worked with more than 450 advertisers in the quarter, and 846 for the full year.
