Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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<ul><li>1Q23 revenue of $32.7 million above the midpoint of guidance of $32 million. Challenging advertising market conditions have continued but adjusted gross profit of $20.9 million was slightly above the midpoint of guidance of $20.8 million.</li><li>AdTheorent (which has no debt) generated $2.9 million in FCF in the quarter (up Y/Y) and reaffirmed its full-year guidance. The stock was flat in the aftermarket.</li><li>The company’s number of Active Customers grew by 31 or 10% Y/Y to 346.</li></ul>

1Q23 revenue of $32.7 million above the midpoint of guidance of $32 million. Challenging advertising market conditions have continued but adjusted gross profit of $20.9 million was slightly above the midpoint of guidance of $20.8 million.AdTheorent (which has no debt) generated $2.9 million in FCF in the quarter (up Y/Y) and reaffirmed its full-year guidance. The stock was flat in the aftermarket.The company’s number of Active Customers grew by 31 or 10% Y/Y to 346.

Adtheorent Holding Company, Inc. -1Q23 Earnings at the High End of Guidance