MNTN Posts Strong Q2 Earnings, Highlights New AI-Driven Creative Tools
MNTN reported solid growth in its second-quarter earnings, fueled by a surge in active performance TV customers and promising advances in generative AI for ad creation. The company is rapidly expanding its footprint among small- and midsized businesses looking to break into connected TV (CTV) advertising.
Key Financial Highlights
- $68.5 million: Total revenue in Q2, a 25% increase year-over-year.
- Nearly 4,000: Advertisers currently using MNTN’s platform, with growth accelerating by over 1,000 each quarter, according to CEO Mark Douglas.
- 97%: Percentage of new customers in 2025 who had never advertised on TV before using MNTN.
- $69.5-70.5 million: Revenue guidance for Q3.
- 77%: Gross margin in Q2, up from 70% a year earlier, boosted by spinning off Maximum Effort, Ryan Reynolds’ creative agency.
What’s Driving Growth
MNTN’s 85% increase in active performance TV customers shows strong demand from smaller advertisers entering the TV space. CEO Mark Douglas emphasized that this trend is sustainable, citing the large number of small- and midsized businesses ready to adopt performance-based CTV advertising.
Douglas compared MNTN’s growth potential to platforms like Meta, which generated $46.6 billion in ad revenue in Q2 from millions of advertisers. This highlights the untapped opportunity for TV advertising among smaller advertisers.
AI Tools Simplify TV Ad Creation
MNTN is piloting generative AI tools that make creating TV ads faster and more affordable. According to Douglas, the company has already generated thousands of AI-based ads—over 1,000 for customers and 18,000 test ads. The official launch is planned for later this year.
This AI-driven approach aims to lower barriers for smaller advertisers by streamlining the production of 30-second TV spots, cutting both time and cost.
Improving Margins and Efficiency
MNTN’s CFO, Patrick Pohlen, highlighted the company’s focus on increasing gross margins, which reached 77% this quarter. This improvement came largely from reducing creative costs after spinning off Maximum Effort.
Moving forward, Pohlen expects further margin gains through cuts to hosting and media expenses, targeting a gross margin between 75-80% in upcoming quarters.
For creatives interested in the intersection of AI and advertising, exploring generative AI tools offers a glimpse into how content creation workflows may evolve. To learn more about AI-driven creative tools and training, consider visiting Complete AI Training.
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