Yesterday (3 August), amid news of their acquisition, Sizmek (NASDAQ:SZMK), reported financial results for the second quarter ended 30 June 30, 2016. Due to the earlier announcement that Vector Capital plans to acquire Sizmek, the call scheduled to discuss the Q2 results was cancelled.

Highlights

- Q2 revenue of USD$48.9m (£36.69m), a 22% Increase; core products revenue increases (including mobile, video, data driven products and programmatic solutions, excluding flash based rich media) 47%

- Q2 net loss improves 87% to USD$1.0m (£0.75m)

- Mobile product revenues (including HTML5 formats) increased 317%

- Data driven product revenue, including Peer39, dynamic creative optimisation, verification and viewability, grew 21%

- In stream video revenue increased 20%

- Programmatic revenue (PBU) grew 138% with self-service representing 18% of the revenues

all, grew 47% for the second quarter versus the second quarter of 2015 and comprised 98% of the business.

“We are encouraged by the second consecutive quarter of solid progress on our growth objectives, with a 22% increase in revenue driving significantly improved profitability,” said Neil Nguyen, CEO of Sizmek.  “We are executing on our operating plan with better monetisation of our investments along with a strict focus on cost optimisation, which is fulfilling our commitment to drive profitable growth across our product portfolio, especially in programmatic, mobile and analytics.”

It will be interesting to see how the acquisition unfolds.

Criteo - more than half of all revenues come from mobile

Yesterday (3 August) Criteo (NASDAQ:CRTO) also announced earnings for the quarter ended 30 June.

Highlights

- Revenue increased 36% (or 35% at constant currency) to USD$407m (£305.38m)

- Revenue excluding Traffic Acquisition Costs, or Revenue ex-TAC, grew 36% (or 35% at constant currency) to USD$166m (£124.55m), or 40.8% of revenue

- Net Income increased 240% to USD$13m (£9.75m)

- Adjusted Net Income per diluted share grew 106% to USD$0.33 (£0.25)

"Our performance marketing platform best positions us to offer advertisers the relevant, accountable and seamless marketing across all environments they are demanding," said Eric Eichmann, CEO.

"We deliver fast growth and expanding profitability," said Benoit Fouilland, CFO. "Our ability to deliver operating leverage while investing in innovation demonstrates the scalability of our model."

Criteo added more than 900 net new clients to their portfolio in the second quarter (a new record) they now have approaching 12,000 clients globally. Existing clients in Q2 2015 generated 14% more revenue excluding traffic acquisition costs (TAC), at constant currency in Q2 2016, in line with expectations and proving the company's ability to expand revenues within the existing client base

More than half the revenues generated come from mobile ads, reflecting the general consumer trend of increased time spent on mobile devices.

Criteo have also added Instagram as a channel for advertisers looking for greater social presence. in June, adding a new source of social inventory for advertisers. It has not been reported how many advertisers Criteo has live on Instagram.

Revenue ex-TAC

Revenue ex-TAC grew 36%, or 35% at constant currency, to $166 million (Q2 2015: $122 million). This increase was primarily driven by new technology innovation across all devices and platforms, the addition of a new record quarterly number of clients across regions and the continued expansion of our publisher relationships.

• In the Americas region, revenue ex-TAC grew 36%, or 38% at constant currency, to USD$60m (£45.09m)
• In the EMEA region, revenue ex-TAC grew 25%, or 25% at constant currency, to USD$67m (£50.35m) and represented 40% of total Revenue ex-TAC
• In the Asia-Pacific region, revenue ex-TAC grew 61%, or 50% at constant currency, to USD$39m (£29.31m) and represented 24% of total Revenue ex-TAC

Revenue ex-TAC margin as a percentage of revenue was 40.8% (Q2 2015: 40.8%), in line with previous quarters.