One year after its initial public offering, video advertising company YuMe has reported losses as part its second quarter 2014 financial filing.
Net losses increased from $1.1 million in Q2 2013 to $2.6 million in Q2 2014, while adjusted earnings before interest, taxes, depreciation, and amortisation dropped from $0.7 million to a loss of $0.1 million.
The poor performance led YuMe to reduce its outlook for full-year 2014 revenue by $10 million to the $180-$190 million range. It also reined in expectations for adjusted EBITDA, with an estimate of $0-$4 million for the same period.
Advertisers spending less
Revenue climbed to $40.4 million this year, an 18% increase from Q2 2013, however average revenue per advertising customer was down 17% from $112,000 in Q2 2013 to $93,000.
Despite its struggles, Jayant Kadambi, CEO of YuMe described the second quarter as a “successful” one that featured a “solid financial performance”, a trend that is set to continue for the rest of the year.
“Given our strengths in brand safety, ad viewability and multi-screen campaigns, we remain confident in extending our leadership as a major digital video aggregation solution for TV brand advertisers,” he said.
There was also a rise in gross margin from 45.6% in Q2 2013 to 48.8% in the most recent quarter and, according to YuMe’s report, the business is sitting on $67.9 million in cash, cash equivalents and marketable securities as of June 30, 2014.