MNTN, Inc Class A (MNTN) AI Stock Analysis

• Market Cap: $1.48B
• Dividend Yield: N/A
• Average Volume (3M): 747.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.46
• Revenue Growth: 34.66%
• EPS Growth: -17.04%
• Country: US
• Employees: 499
• Sector: Technology
• Sector Strength: 87
• Industry: Advertising Agencies
• EPS (TTM): -0.28
• Shares Outstanding: 43,620,580
• 10 Day Avg. Volume: 600,018
• 30 Day Avg. Volume: 747,442
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 6.96
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: -36.74
• 1Y Price Target: $31.00
• Price Target Upside: 51.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 47 Neutral
• Price Target: $25.00 ▲(22.49% Upside)

MNTN's overall stock score is primarily impacted by its financial instability, characterized by negative equity and profitability metrics. While the company benefits from strong revenue growth and positive operating cash flow, these are overshadowed by significant financial challenges. Technical analysis provides some support with short-term bullish signals, but valuation remains unattractive due to negative earnings.

Positive Factors

AI Innovation

MNTN’s competitive advantage in CTV advertising is driven by its advanced AI-driven targeting capabilities, real-time performance measurement, and user-friendly self-serve platform, which collectively enable advertisers to efficiently reach specific audiences and optimize campaigns for measurable business outcomes.

Market Opportunity

MNTN targets a $60-$120 billion market opportunity as performance-driven connected TV ad spending continues to grow significantly, outpacing traditional TV and digital channels.

Strategic Partnerships

The strategic partnership between MNTN and ZoomInfo Technologies unlocks a major opportunity in the B2B connected TV advertising market.

Negative Factors

Market Risks

Given more limited visibility and macro challenges, the rating is initiated with a Neutral / High Risk.

MNTN, Inc Class A Business Overview & Revenue Model

Company Description

MNTN, Inc., a performance TV software company, provides performance advertising services in the United States. The company offers Performance TV software platform, enables marketers to target audiences through MNTN Matched technology and then directly attribute each view to a purchase or other action. Its platform provides segmentation tools, intelligent campaign planning, advance audience targeting, prospecting, creative ad builder, and data analytics reporting. MNTN, Inc. was formerly known as Steel House, Inc. and changed its name to MNTN, Inc. in June 2021. The company was incorporated in 2009 and is headquartered in Austin, Texas.

How the Company Makes Money

MNTN generates revenue primarily through its advertising services, charging clients based on performance metrics such as impressions, clicks, and conversions from their CTV advertising campaigns. The company employs a subscription-based model for its technology platform, offering different pricing tiers based on the level of service and features used by clients. Additionally, MNTN benefits from strategic partnerships with various media publishers and streaming services, which enhances its inventory and reach, ultimately attracting more advertisers. The combination of performance-based pricing and subscription fees constitutes the key revenue streams for MNTN, contributing to its financial growth.

MNTN, Inc Class A Financial Statement Overview

Summary

MNTN, Inc Class A is experiencing rapid revenue growth, but this is overshadowed by persistent profitability challenges and a weak balance sheet. The negative equity and profitability metrics indicate financial instability, while the positive operating cash flow is a bright spot. The company must address its cost structure and financial leverage to improve its financial health and sustain growth.

Income Statement

MNTN, Inc Class A has shown impressive revenue growth of 364.55% in the latest year, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit margins (-14.58%) and EBIT margins (-8.94%). The gross profit margin is relatively healthy at 71.60%, suggesting efficient cost management at the gross level, but significant losses at the net level highlight challenges in managing operating expenses and other costs.

Balance Sheet

The balance sheet reveals a concerning financial structure with negative stockholders' equity, indicating potential financial distress. The debt-to-equity ratio is not meaningful due to negative equity, and the return on equity is also negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is not calculable, further underscoring the weak financial position.

Cash Flow

Cash flow analysis shows a significant improvement in operating cash flow, turning positive to $42.55 million, which is a positive sign. However, free cash flow growth is negative, and the free cash flow to net income ratio is not meaningful due to negative net income. The company needs to focus on sustaining positive cash flows to support its operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	202.78M	225.57M	176.30M	0.00	99.31M
Gross Profit	150.87M	161.52M	123.41M	72.42M	65.64M
EBITDA	-38.43M	-11.83M	-25.28M	-76.18M	-15.18M
Net Income	-51.36M	-32.88M	-10.04M	-94.47M	-427.00K
Balance Sheet
Total Assets	337.00M	238.74M	148.66M	178.66M	177.99M
Cash, Cash Equivalents and Short-Term Investments	175.16M	82.56M	103.98K	236.15K	1.45M
Total Debt	0.00	50.25M	2.75M	0.00	18.29K
Total Liabilities	98.08M	346.34M	19.36M	7.34M	6.83M
Stockholders Equity	238.92M	61.29M	129.30M	171.32M	171.16M
Cash Flow
Free Cash Flow	41.33M	32.60M	-3.05M	-1.43M	-633.41K
Operating Cash Flow	47.04M	42.55M	-3.05M	-1.43M	-633.41K
Investing Cash Flow	-18.50M	-9.95M	37.79M	375.87K	-175.95M
Financing Cash Flow	90.47M	-5.00M	-34.88M	-166.20K	178.04M

MNTN, Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.43B	7.71	-10.08%	1.88%	8.71%	-9.18%
VRAR	57 Neutral	$31.16M	―	-40.76%	―	-12.30%	76.19%
AIRG	53 Neutral	$50.47M	―	-21.97%	―	6.84%	49.74%
MNTN	47 Neutral	$1.48B	―		―	34.66%	-17.04%
MRIN	45 Neutral		―		―	-9.89%	47.46%
WLDS	42 Neutral	$1.10M	―	-167.89%	―	536.59%	-5.05%
PETXQ	40 Underperform	$338.79K	―		―	-29.08%	-45.89%