Tremor Stock Gains On Solid Q2 Revenue Growth

Video and Connected TV (CTV) advertising company Tremor International Ltd TRMR reported second-quarter FY21 revenue growth of 128% year-on-year to $81.4 million beating the analyst consensus of $69.9 million.
Segments: Programmatic Revenues grew 196% Y/Y to $67.5 million, driven by continued strong performance in CTV. CTV Revenue increased by 280% Y/Y to $20.9 million.
The non-IFRS contribution ex-TAC grew 159% Y/Y to $73.7 million.
Margin: Adjusted EBITDA climbed from $1.2 million to $37.3 million, and the margin jumped from 4% to 51%.
The non-IFRS EPS of $0.23 beat the analyst consensus of $0.09.
Tremor held $275.5 million in cash and equivalents.
It generated $76.8 million in operating cash flow during the six months ended Jun. 30.
The performance reflects increased client spending on programmatic advertising.
Outlook: Tremor sees Q3 contribution ex-TAC of at least $75 million.
The company sees an adjusted EBITDA of $37 million.
Price Action: TRMR shares traded higher by 7.90% at $21.45 in the premarket session on the last check Thursday.