The numbers
$68.5 million: MNTN’s whole income for the second quarter, up 25% year-over-year.
Practically 4,000: The variety of advertisers presently utilizing MNTN’s expertise, in line with CEO Mark Douglas. “That fee is rising at over 1,000 1 / 4,” he added.
97%: The proportion of MNTN’s new (as of 2025) prospects that had by no means marketed on TV earlier than utilizing the platform.
$69.5-70.5 million: How a lot the corporate expects to make within the third quarter.
77%: MNTN’s gross margin, up from 70% in Q2 of 2024. That represents a 700 foundation level enchancment, the corporate mentioned, largely attributable to MNTN’s determination to spin off Ryan Reynolds’ inventive company, Most Effort.
The watercooler speak
Forward of its first earnings name, MNTN noticed a spike in inventory value that took it to nearly double the $16-per-share worth it debuted at on Could 21, dropping solely barely after yesterday’s earnings name.
Whereas Douglas didn’t provide an evidence for the dip, he pointed to the general constructive development of the corporate’s inventory costs as proof of traders’ confidence in MNTN’s proposition: to provide small- and midsized companies entry to performance-based CTV promoting.
Douglas additionally claimed that the expansion MNTN noticed this quarter—85% uptick in energetic efficiency TV prospects—is sustainable for the foreseeable future.
“There are only a vital variety of small- [and] midsized companies,” he advised ADWEEK. “We’re bringing them into the TV realm, and the speed at that are doing that’s accelerating—we expect it’s truly sustainable for fairly some time.”
He pointed to Meta, which made $46.6 billion in advert income in Q2 from tens of millions of advertisers.
The corporate can be piloting generative AI instruments that assist advertisers create TV advertisements, Douglas mentioned.
“We’re already producing 1000’s of AI-generated advertisements—over 1,000 customer-facing and 18,000 take a look at advertisements,” he mentioned. MNTN plans to formally launch the product later this 12 months, which Douglas expects will make it simpler for smaller advertisers to create 30-second TV spots at a considerably cheaper fee.
The important thing quote
MNTN expects to have the ability to proceed to extend its gross margin following a major leap prior to now 12 months, focusing on progress between 75-80% in future quarters.
“We’re sitting at 77% for the quarter, and that’s 1 / 4 wherein we didn’t have [Maximum Effort] and the inventive prices, in order that that’s a major discount,” Patrick Pohlen, MNTN’s chief monetary officer, advised traders in the course of the name. By reducing internet hosting and media prices over the subsequent few quarters, Pohlen expects MNTN will proceed to enhance on gross margin, he mentioned.
