An expanding number of enterprise customers and a growing diversity of a surging revenue mix gives encouragement to MaxPoint CEO in the first quarter after the ecommerce and advertising firm went public. But don’t expect profits any time soon.
After the markets closed Wednesday, MaxPoint (NYSE: MXPT) reported an 87 percent in first-quarter revenue compared to a year ago, but its losses also increased.
However, maxPoint CEO Joe Epperson, who led the company to an IPO in March, hailed the results.
“We had a very solid quarter and start to the year,” Epperson said. “We continue to demonstrate our ability to advance our business and gain market share within our industry as evidenced by our growth in revenue and number of enterprise customers. We are as focused as ever on increasing shareholder value since our initial public offering in March of this year.”
MaxPoint revenues hit $28.7 million, nearly double the $15.4 million of one year ago.
Revenue topped Wall Street expectations by $1.02 million, according to financial news website SeekingAlpha.
Losses also climbed – up to $8.1 million from $3.1 million, and the adjusted loss-per-share jumped to 37 cents from 21 cents. But that figure also was better than expectations by 27 cents, SeekingAlpha noted.
But encouraging signs included a jump in enterprise customers to 529, up 62 percent from 2014’s first quarter.
The advertising mix also was more diversified with non-display dollars growing to 24 percent of revenue from 20 percent.
Meanwhile, MaxPoint continued to expand the reach of its proprietary Digital Zips technology, which helps clients find and deliver customers by neighborhood.
However, in its revenue forecast, MaxPoint did say it expects losses to continue this year.