Key Highlights

  • Shares fell 42.14% pre-market today to $6.00 from Wednesday's close of $10.37.
  • Third-quarter Revenue grew 15% to $80.3 million but missed the company's own $86 million to $89 million guidance.
  • Full-year revenue guidance was cut to $311 million to $314 million from $347 million to $357 million.
  • Fourth-quarter revenue is guided to $75 million to $78 million, with adjusted EBITDA of $8 million to $10 million.
  • Tony Weisman was named CEO, succeeding Mark Douglas.

The stock behind the plunge is MNTN (NYSE:MNTN), which fell 42.14% in pre-market today to $6.00 after the connected TV Advertising platform missed its own third-quarter revenue guidance, cut its full-year outlook and named a new chief executive. It had closed Wednesday up 6.58% at $10.37, ahead of the report.

MNTN runs a self-serve performance TV platform that lets advertisers, mostly small and mid-sized businesses and first-time TV buyers, run connected TV campaigns and track conversions, revenue and site visits across premium streaming publishers. It earns usage-based fees tied to ad spend, plus creative and production fees, and has about 451 employees.

Revenue Miss Tied to Go-to-Market Disruption

Third-quarter revenue grew 15% to $80.3 million, below the company's $86 million to $89 million guidance and the roughly $87.7 million consensus. The CFO cited unforeseen execution problems in the go-to-market organization, and a sales compensation overhaul reportedly cost about 40% of experienced quota-carrying sellers.

Net income rose to $7.7 million from $6.4 million, and adjusted EBITDA grew 24% to $19.9 million, a 25% margin. Gross Margin was 79%.

Weisman Takes Over as Mark Douglas Exits

The board appointed Tony Weisman, a current board member and former chief executive of Digitas, as president and CEO, succeeding Mark Douglas. Weisman, who previously oversaw Marketing at Dunkin' U.S., said the company needs operational rigor and a culture of accountability. The chief operating officer has also reportedly departed.

Slashed Outlook and a Cash Cushion Define the Reset

Fourth-quarter revenue is guided to $75 million to $78 million, with adjusted EBITDA of $8 million to $10 million. Full-year revenue is now expected at $311 million to $314 million, about 8% growth on a GAAP basis, with adjusted EBITDA of $66 million to $68 million. The company ended the quarter with $252.3 million in cash and no borrowings, and active customers on its performance TV platform grew about 32% to 4,373.

MNTN has a market Capitalization of about $775.71 million, and the pre-market price sits below its 52-week low of $7.67. Investors will watch whether the sales reorganization stabilizes growth under new leadership.