MNTN Reports Strong Q2 Earnings, Touts New AI Creative Tools

The numbers$68.5 million: MNTN’s complete income for the second quarter, up 25% year-over-year. Almost 4,000: The variety of advertisers at present utilizing MNTN’s expertise, based on CEO Mark Douglas. “That price 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 stated, largely attributable to MNTN’s determination to spin off Ryan Reynolds’ inventive company, Most Effort.The watercooler talkAhead of its first earnings name, MNTN noticed a spike in inventory value that took it to virtually double the $16-per-share worth it debuted at on Could 21, dropping solely barely after yesterday’s earnings name.Whereas Douglas didn’t supply 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 present small- and midsized companies entry to performance-based CTV promoting.Douglas additionally claimed that the expansion MNTN noticed this quarter—85% uptick in lively efficiency TV prospects—is sustainable for the foreseeable future. “There are only a important variety of small- [and] midsized companies,” he informed ADWEEK. “We’re bringing them into the TV realm, and the speed at that are doing that’s accelerating—we expect it’s really sustainable for fairly some time.”He pointed to Meta, which made $46.6 billion in advert income in Q2 from hundreds of thousands of advertisers.The corporate can be piloting generative AI instruments that assist advertisers create TV adverts, Douglas stated.“We’re already producing hundreds of AI-generated adverts—over 1,000 customer-facing and 18,000 check adverts,” he stated. 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 price.The important thing quoteMNTN expects to have the ability to proceed to extend its gross margin following a major soar prior to now 12 months, focusing on development between 75-80% in future quarters.“We’re sitting at 77% for the quarter, and that’s 1 / 4 through which 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, informed traders throughout the name. By reducing internet hosting and media prices over the following few quarters, Pohlen expects MNTN will proceed to enhance on gross margin, he stated.