TLRA Stock: Fast Mover in Small-Cap Sector, but Does that Mean Go?

Small-cap shares are often more volatile than their larger counterparts. However, this doesn’t mean that growth prospects are completely null and void in this band. Far from it. There are a host of quality lower-priced shares out there, and today we are looking at TLRA stock.

Shares in software are always intriguing, so what is Telaria Inc (NYSE:TLRA) bringing to the table?

TLRA Stock: One to Watch with Impressive Growth

Shares in Telaria have grown impressively in 2019. Year-to-date, TLRA stock has packed on 170%. With gains that massive, you might think this company has already peaked, but there’s likely more to come.

This is because the company operates in the center of one of the fastest-growing areas of digital advertising and already counts giants such as Hulu as a customer. It provides a software platform for video publishers to optimize and monetize their video advertising inventory, with a strong focus on connected TV (CTV) and programmatic advertising.

With a market capitalization of $344 million, Telaria is still a small company, but that hasn’t stopped it returning big numbers.

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TLRA Stock: Crunching Numbers

First-quarter revenue rose 42% year-over-year to $13.6 million. This was an improvement from Q4, which reported revenue of 31% at the time.

The growth is coming from the increase in revenue made from connected TV ads that are monetized through its platform.

According to analyst Daniel Sparks: “Telaria’s connected TV revenue increased 169% year over year to $5.2 million in Q1, accounting for 38% of revenue, up from 33% of revenue in Q4.”

This is a company that is doing big business but is still unprofitable. This fact might scare investors, but it’s important to consider Telaria’s size and the fact that we are in the early days of CTV.

As SeekingAlpha puts it:

“The company is driven by hyper-growth in its CTV business, where it is very well-positioned as a programmatic demand platform […] Since we’re only in the early innings in CTV, this has much further to run.”

So despite TLRA stock already tripling this year, SeekingAlpha still does not consider the company “overvalued.” For this reason, investors should keep a close eye on Telaria.

Shares are currently trading for $7.61 USD on the NYSE, up 0.66% at the time of writing.

What are your thoughts?

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