Top 5 Gainers on Wednesday

4. ironSource Ltd. (NYSE:IS)

Number of Hedge Fund Holders: 36

ironSource Ltd. (NYSE:IS) beat profit expectations for the second quarter, sending its shares up more than 8 percent in the mid-day trading session today. The Israel-based software firm reported adjusted earnings of 6 cents per share, up from 4 cents per share in the year-ago period.

Revenue for the quarter rallied 35 percent on a year-over-year basis to $182.785 million. Analysts expected ironSource Ltd. (NYSE:IS) to report earnings of 2 cents per share on revenue of $183.33 million.

Earlier this year, ironSource Ltd. (NYSE:IS) appeared in the first-quarter 2022 investor letter of investment management firm Argosy Investors. Here’s what the firm said:

“I purchased IronSource early in the quarter and have seen IS decline in value nearly 32% through the end of the quarter, and further after the quarter. IronSource is a platform that helps game publishers maximize the financial success of their games and earns a cut of the revenues generated using its technology. They have grown extremely quickly in recent years, as gaming has become an increasingly popular outlet for free time. They grew 46% last quarter to over $150 million in quarterly revenue, at an operating margin of 18%. They expect to generate $800 million in revenue this year, and likely $0.15 per share of free cash flow in 2022, with the potential for $0.25 a few years from now. I believe that IS has a very profitable business model with the potential for a long runway of growth. At the same time, I could have chosen a better purchase price to make the investment, and that has become clear quite quickly. At current prices below $4 per share, returns from here can be attractive over the course of a few years.”