Core Insights - PubMatic, Inc. reported quarterly earnings of $0.05 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.04 per share a year ago, resulting in an earnings surprise of +150.00% [1] - The company achieved revenues of $71.1 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.18% and increasing from $67.27 million year-over-year [2] - PubMatic has consistently surpassed consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $71.6 million, and for the current fiscal year, it is $0.42 on revenues of $294.78 million [7] - The estimate revisions trend for PubMatic was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Internet - Software industry, to which PubMatic belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The company reported a revenue growth of 6% year over year, with underlying business revenue (excluding affected DSP and political advertising) growing 19% year over year [6][29] - Adjusted EBITDA margin was 20%, marking the 37th consecutive quarter of adjusted EBITDA profitability [6][34] - The company generated $14.9 million in net operating cash flows and $9.3 million in free cash flow during the second quarter [36] Business Line Data and Key Metrics Changes - CTV revenue grew over 50% year over year, representing approximately 20% of total revenue [29][15] - Emerging revenue streams more than doubled year over year, accounting for 8% of total revenue [29] - Display revenue was flat year over year, a significant improvement from a 10% decline in Q1 [30] Market Data and Key Metrics Changes - EMEA and APAC revenues grew 187%, while Americas revenue declined by 1% [32] - Ad spend from performance marketers and mid-tier DSPs grew over 20% year over year [12][32] - The top 10 ad verticals grew in the mid-single digits year over year, with health and fitness, technology, and travel each increasing over 20% [31] Company Strategy and Development Direction - The company is focusing on diversifying its DSP mix and accelerating investment on the buy side, particularly in CTV and emerging revenue streams [10][11] - The integration of AI across the tech stack is a priority to enhance campaign performance and operational efficiency [21][23] - The company anticipates significant market share expansion due to recent antitrust rulings affecting Google, estimating that a 1% market share shift could represent $50 to $75 million in net revenue [24][25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a recent headwind from a top DSP partner that shifted clients to a new platform, impacting revenue in July but stabilizing in August [38][45] - The company remains confident in its strategy to diversify demand and revenue streams, despite the challenges faced [25][41] - The outlook for Q3 is conservative, with expected revenue in the range of $61 to $66 million, factoring in the impact from the DSP changes [40] Other Important Information - The company has a healthy balance sheet with $117.6 million in cash and marketable securities and zero debt [36] - The company has repurchased $178.2 million worth of Class A common shares since February 2023 [36] Q&A Session Summary Question: Can you provide details about the changes from the DSP? - Management explained that a top DSP shifted clients to a new platform that evaluates inventory differently, leading to a notable drop in spend in July, which has since stabilized in August [45][46] Question: How has the conversation with advertisers evolved with the rise of SPO? - Conversations have deepened around solving advertisers' challenges, particularly in transitioning away from cookies and focusing on performance-based solutions [53][54] Question: What is the company's view on the evolution of the industry regarding DSPs and SSPs? - The company believes the lines between DSPs and SSPs are blurring, with a shift towards end-to-end platforms driven by performance and transparency [58][60] Question: What is the current concentration of DSPs? - The top two DSPs represent about half of overall spending, with efforts ongoing to diversify the DSP mix [63]

Financial Performance - Revenue reached $71.1 million, a 6% year-over-year increase[8] - Adjusted EBITDA was $14.2 million, representing a 20% margin[8] - The company experienced a GAAP net loss of $(5.2) million[8] - Cash flow from operations amounted to $14.9 million[8] Growth Drivers - CTV revenue grew by over 50% year-over-year[22, 34] - Emerging revenues increased by over 100% year-over-year[31, 34] - Omnichannel video revenue increased 34% year-over-year[34] - Performance and mid-tier DSPs experienced a growth rate of over 20% year-over-year in Q2 2025[14] Operational Efficiency - Ad impressions processed increased by 28% year-over-year, reaching 78 trillion in Q2 2025, compared to 61 trillion in Q2 2024[37] - The cost of revenue increased to $27 million in Q2 2025 from $25 million in Q2 2024[37] Future Outlook - Q3 2025 revenue is projected to be between $61 million and $66 million, representing a year-over-year growth between -15% and -8%[52] - Q3 2025 adjusted EBITDA is expected to be between $7 million and $10 million, with a margin of 11% to 15%[52]

PART I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited Q2 2025 statements show 6% revenue growth, a widened net loss, decreased total assets, and lower operating cash flow [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $90,476 | $100,452 | | Accounts receivable, net | $383,403 | $424,814 | | Total current assets | $512,962 | $575,546 | | TOTAL ASSETS | $675,220 | $739,519 | | **Liabilities & Equity** | | | | Accounts payable | $361,369 | $386,602 | | Total current liabilities | $388,743 | $418,810 | | TOTAL LIABILITIES | $431,936 | $462,256 | | Retained earnings | $134,691 | $149,385 | | TOTAL STOCKHOLDERS' EQUITY | $243,284 | $277,263 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $71,095 | $67,267 | $134,920 | $133,968 | | Gross profit | $44,483 | $42,107 | $82,720 | $83,384 | | Operating loss | $(5,461) | $(3,985) | $(17,364) | $(9,510) | | Net income (loss) | $(5,208) | $1,971 | $(14,694) | $(483) | | Diluted EPS | $(0.11) | $0.04 | $(0.31) | $(0.01) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Six Months Ended June 30, Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,526 | $36,238 | | Net cash used in investing activities | $(128) | $(5,870) | | Net cash used in financing activities | $(41,188) | $(35,356) | | **Net decrease in cash and cash equivalents** | **$(10,790)** | **$(4,988)** | - Cash used in financing activities for the six months ended June 30, 2025, was primarily driven by **$43.6 million** in treasury stock purchases, partially offset by proceeds from stock option exercises and the ESPP[23](index=23&type=chunk)[150](index=150&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - As of June 30, 2025, two buyers accounted for **38%** and **12%** of the Company's accounts receivable, indicating significant customer concentration[31](index=31&type=chunk) - The Company has a **$110.0 million** revolving credit facility which remained undrawn as of June 30, 2025[47](index=47&type=chunk)[51](index=51&type=chunk) - The share repurchase program was extended to December 31, 2026, with an additional **$100 million** authorization in May 2025. As of June 30, 2025, **$96.8 million** remains available for repurchases[63](index=63&type=chunk) Revenue by Geographic Area (in thousands) | Region | H1 2025 | H1 2024 | | :--- | :--- | :--- | | United States | $77,487 | $80,391 | | EMEA | $42,877 | $40,478 | | APAC | $11,640 | $10,801 | | Rest of the world | $2,916 | $2,298 | | **Total** | **$134,920** | **$133,968** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports Q2 2025 revenue up 6%, but wider losses and declining Adjusted EBITDA due to increased expenses, focusing on SPO and customer retention [Business Highlights and Strategy](index=27&type=section&id=Business%20Highlights%20and%20Strategy) Key Financial Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $71,095 | $67,267 | $134,920 | $133,968 | | Operating loss | $(5,461) | $(3,985) | $(17,364) | $(9,510) | | Net income (loss) | $(5,208) | $1,971 | $(14,694) | $(483) | | Adjusted EBITDA | $14,213 | $21,078 | $22,670 | $36,134 | - The net dollar-based retention rate was **102%** for the trailing twelve months ended June 30, 2025, a decrease from 108% for the same period ended June 30, 2024[99](index=99&type=chunk) - Supply Path Optimization (SPO) continues to be a major growth driver, representing over **55%** of total activity for the three months ended June 30, 2025[100](index=100&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) - Revenue for Q2 2025 increased by **6%** YoY to **$71.1 million**, driven by impressions processed, new revenue streams, and customer growth. The number of publishers served increased to approximately **1,960** from **1,800** YoY[118](index=118&type=chunk)[119](index=119&type=chunk) - Cost of revenue per million impressions processed decreased by approximately **17%** in Q2 2025 compared to Q2 2024, despite an absolute increase in data center and depreciation costs[121](index=121&type=chunk) - Operating expenses for Q2 2025 increased across all categories (Technology & Development, Sales & Marketing, General & Administrative) primarily due to higher personnel costs from increased headcount[126](index=126&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) - Other income (expense), net, decreased by **$6.0 million** in Q2 2025 compared to Q2 2024. The prior year period included **$4.0 million** in income from the Google Privacy Sandbox initiative, while the current period reflected a loss from foreign exchange rate fluctuations[133](index=133&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had **$117.6 million** in cash, cash equivalents, and marketable securities[139](index=139&type=chunk) - During the six months ended June 30, 2025, the company repurchased **3,853,342 shares** of Class A common stock for an aggregate price of **$43.6 million**[140](index=140&type=chunk) - Net cash provided by operating activities decreased to **$30.5 million** in H1 2025 from **$36.2 million** in H1 2024, influenced by a net loss and changes in working capital, particularly decreases in accounts receivable and accounts payable[143](index=143&type=chunk)[145](index=145&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are foreign currency fluctuations, particularly INR, with minimal exposure to interest rate and inflation risks - The company's primary market risks are related to foreign currency fluctuations, particularly with the Indian Rupee (INR), British Pound (GBP), and Euro (EUR)[158](index=158&type=chunk) - A hypothetical **10%** change in the U.S. Dollar to Indian Rupee exchange rate could result in a **$1.2 million** change in operating loss for the six months ended June 30, 2025[158](index=158&type=chunk) - Interest rate risk is considered minimal as the investment portfolio has a relatively short maturity. The company had no amounts outstanding under its variable-rate credit facility as of June 30, 2025[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[160](index=160&type=chunk) - No changes occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[161](index=161&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - As of the report date, the company is not involved in any legal proceedings that management believes would have a material adverse effect on the business[165](index=165&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) Key risk factors include high dependency on advertising demand, potential stock price volatility from share repurchases, and evolving global data privacy laws - The company's revenue is highly dependent on overall advertising demand, which can be adversely affected by macroeconomic factors like economic volatility, recession fears, and inflation[167](index=167&type=chunk) - The share repurchase program, extended to **$275.0 million** through December 2026, is not guaranteed to be completed and could increase stock price volatility or diminish cash reserves[170](index=170&type=chunk) - The company faces significant risks from a complex and evolving global regulatory framework for data privacy, including the CCPA in California, GDPR in Europe, and new state-level laws like Washington's My Health My Data Act, which could increase compliance costs and legal exposure[171](index=171&type=chunk)[177](index=177&type=chunk)[182](index=182&type=chunk)[188](index=188&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2025, the company repurchased 3,514,342 shares of Class A common stock under its publicly announced repurchase program at varying prices Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 299,300 | $10.00 | | May 2025 | 2,481,542 | $11.35 | | June 2025 | 733,500 | $12.06 | | **Total** | **3,514,342** | | [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) In Q2 2025, several executive officers adopted Rule 10b5-1 trading plans for future sales of company securities - During Q2 2025, **four executive officers** adopted Rule 10b5-1 trading plans to sell shares of common stock, primarily related to RSU vesting and ESPP shares[195](index=195&type=chunk)

PubMatic Q2 2025 Earnings Release [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) PubMatic's Q2 2025 revenue and adjusted EBITDA surpassed guidance, with revenue growing 6% to $71.1 million, despite a shift to GAAP net loss and a decline in adjusted EBITDA, supported by a strong cash position Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $71.1M | $67.3M | +6% | | GAAP Net Income (Loss) | $(5.2)M | $2.0M | N/A | | GAAP Diluted EPS | $(0.11) | $0.04 | N/A | | Adjusted EBITDA | $14.2M | $21.1M | -33% | | Adjusted EBITDA Margin | 20% | 31% | -11 pts | | Non-GAAP Net Income | $2.5M | $9.7M | -74% | | Non-GAAP Diluted EPS | $0.05 | $0.17 | -71% | - Net dollar-based retention was **102%** for the trailing twelve months ending June 30, 2025, compared to **108%** in the prior year period, indicating slightly lower growth from existing publishers[5](index=5&type=chunk) - The company repurchased **3.5 million shares** in Q2 2025, and since the program's inception, PubMatic has used **$178.2 million** to repurchase **12.2 million shares**, representing **24%** of fully diluted shares[1](index=1&type=chunk)[7](index=7&type=chunk) - As of June 30, 2025, the company held **$117.6 million** in total cash, cash equivalents, and marketable securities with no debt[7](index=7&type=chunk) [Business Highlights](index=3&type=section&id=Business%20Highlights) PubMatic achieved strong growth in omnichannel video, with CTV revenue up over 50%, increased SPO activity to over 55%, diversified its DSP mix, and launched new AI-powered platform capabilities - Significant growth in video and CTV: CTV revenue grew **over 50%** year-over-year, and omnichannel video revenue (including CTV) grew **34%** year-over-year, representing **41%** of total revenue[1](index=1&type=chunk)[11](index=11&type=chunk) - Supply Path Optimization (SPO) represented **over 55%** of total platform activity, up from **51%** a year ago, driven by products like Activate and CTV Marketplaces[1](index=1&type=chunk)[11](index=11&type=chunk) - Customer adoption and diversification highlights: Buying activity on Activate **more than doubled** sequentially, and ad spend from performance marketers and mid-tier DSPs grew **over 20%** year-over-year, diversifying the DSP mix[11](index=11&type=chunk) - Launched new AI-powered capabilities, including an enhanced PubMatic Assistant for analytics, predictive diagnostics for yield anomalies, and a dynamic floor yield module to optimize pricing[9](index=9&type=chunk)[11](index=11&type=chunk) - Infrastructure optimization led to processing nearly **78 trillion impressions** in Q2 2025, a **28%** YoY increase, while the cost of revenue per million impressions decreased by **20%** on a trailing twelve-month basis[11](index=11&type=chunk) [Financial Outlook](index=4&type=section&id=Financial%20Outlook) PubMatic forecasts Q3 2025 revenue between $61 million and $66 million, with adjusted EBITDA of $7 million to $10 million, reflecting a 13% margin at midpoint and an impact from reduced ad spend by a top DSP partner Q3 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | Revenue | $61 million - $66 million | | Adjusted EBITDA | $7 million - $10 million | | Adjusted EBITDA Margin (at midpoint) | ~13% | - The outlook incorporates an expected reduction in ad spend from one of the company's top DSP partners[12](index=12&type=chunk)[16](index=16&type=chunk) - Guidance for GAAP net income was not provided, as reconciling it from adjusted EBITDA is impractical due to the unpredictability of items like stock-based compensation[13](index=13&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents PubMatic's unaudited condensed consolidated financial statements as of June 30, 2025, encompassing Balance Sheets, Statements of Operations, and Cash Flows [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, PubMatic reported total assets of $675.2 million, a decrease from year-end 2024, with total liabilities at $431.9 million and stockholders' equity at $243.3 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $90,476 | $100,452 | | Total current assets | $512,962 | $575,546 | | **TOTAL ASSETS** | **$675,220** | **$739,519** | | Accounts payable | $361,369 | $386,602 | | Total current liabilities | $388,743 | $418,810 | | **TOTAL LIABILITIES** | **$431,936** | **$462,256** | | **TOTAL STOCKHOLDERS' EQUITY** | **$243,284** | **$277,263** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, PubMatic reported $71.1 million in revenue, a 6% increase, but higher operating expenses led to an operating loss of $(5.5) million and a net loss of $(5.2) million, reversing Q2 2024's net income Statement of Operations Summary (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $71,095 | $67,267 | | Gross profit | $44,483 | $42,107 | | Total operating expenses | $49,944 | $46,092 | | Operating loss | $(5,461) | $(3,985) | | **Net income (loss)** | **$(5,208)** | **$1,971** | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash from operating activities was $30.5 million, with $41.2 million used in financing, largely for share repurchases, ending with $90.5 million in cash and cash equivalents Cash Flow Summary (in thousands) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,526 | $36,238 | | Net cash used in investing activities | $(128) | $(5,870) | | Net cash used in financing activities | $(41,188) | $(35,356) | | **NET DECREASE IN CASH** | **$(10,790)** | **$(4,988)** | | **CASH - End of period** | **$90,476** | **$73,521** | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) This section details adjustments from GAAP to non-GAAP financial measures, including Adjusted EBITDA, Non-GAAP Net Income, and Free Cash Flow, primarily by removing non-cash expenses [Reconciliation of Net income (loss) to Adjusted EBITDA](index=10&type=section&id=Reconciliation%20of%20Net%20income%20(loss)%20to%20Adjusted%20EBITDA) PubMatic's Q2 2025 GAAP net loss of $(5.2) million reconciled to an Adjusted EBITDA of $14.2 million, down from $21.1 million in Q2 2024, with the margin decreasing to 20% from 31% Adjusted EBITDA Reconciliation (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(5,208) | $1,971 | | Stock-based compensation | $9,801 | $9,699 | | Depreciation and amortization | $11,861 | $11,336 | | Interest income | $(1,379) | $(2,340) | | Provision for (benefit from) income taxes | $(862) | $412 | | **Adjusted EBITDA** | **$14,213** | **$21,078** | [Reconciliation of Net income (loss) per share](index=10&type=section&id=Reconciliation%20of%20Net%20income%20(loss)%20per%20share) Q2 2025 GAAP net loss of $(5.2) million adjusted to a Non-GAAP net income of $2.5 million, or $0.05 per diluted share, a notable decrease from $9.7 million, or $0.17 per diluted share, in Q2 2024 Non-GAAP Net Income Reconciliation (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(5,208) | $1,971 | | Stock-based compensation | $9,801 | $9,699 | | Adjustment for income taxes | $(2,068) | $(1,999) | | **Non-GAAP net income** | **$2,525** | **$9,671** | [Computation of Free Cash Flow](index=11&type=section&id=COMPUTATION%20OF%20FREE%20CASH%20FLOW) For Q2 2025, PubMatic generated $9.3 million in free cash flow, derived from $14.9 million in operating cash flow, after accounting for capital expenditures and capitalized software development costs Free Cash Flow Computation (in thousands) | Line Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,905 | $11,944 | | Less: Purchases of property and equipment | $(1,340) | $(736) | | Less: Capitalized software development costs | $(4,300) | $(4,295) | | **Free cash flow** | **$9,265** | **$6,913** |

Core Insights - Company reported strong second quarter results with revenue and adjusted EBITDA exceeding expectations [3][4] - Revenue from omnichannel video, including CTV, grew 34% year-over-year, representing 41% of total revenue [8][6] - CTV revenue specifically grew over 50% year-over-year [6][8] - Supply Path Optimization accounted for over 55% of total activity on the platform, up from 51% a year ago [12] - Company repurchased 3.5 million shares in Q2 2025, representing 7% of fully diluted shares [1][7] Financial Performance - Revenue for Q2 2025 was $71.1 million, a 6% increase from $67.3 million in Q2 2024 [7] - Adjusted EBITDA was $14.2 million, with a margin of 20%, compared to $21.1 million and a 31% margin in the same period of 2024 [7][31] - GAAP net loss was $(5.2) million, or $(0.11) per diluted share, compared to a net income of $2.0 million, or $0.04 per diluted share in Q2 2024 [7][31] - Non-GAAP net income was $2.5 million, or $0.05 per diluted share, down from $9.7 million, or $0.17 per diluted share in Q2 2024 [7][31] - Net cash provided by operating activities was $14.9 million, an increase from $11.9 million in Q2 2024 [7] Business Highlights - Company added a major top 5 U.S. streamer, increasing market penetration to 26 of the top 30 global streamers, or 87% [6] - Buying activity on Activate more than doubled sequentially in Q2 2025 compared to Q1 2025, with over 90% of campaigns meeting or exceeding client KPIs [12] - Diversified DSP mix showed over 20% year-over-year growth in ad spend from performance marketers and mid-tier DSPs [12] - Enhanced AI-powered capabilities launched to improve publisher monetization and campaign performance [10][12] Market Outlook - Company expects revenue for Q3 2025 to be between $61 million to $66 million, factoring in a reduction in ad spend from a top DSP buyer [17] - Adjusted EBITDA for Q3 2025 is projected to be in the range of $7 million to $10 million, representing approximately a 13% margin at the midpoint [17] - Continued focus on diversifying DSP mix and investing in high-growth areas, particularly CTV and AI integration [11][12]

Core Insights - PubMatic has launched an AI-powered Live Sports Marketplace that allows advertisers to target specific game moments in real-time across streaming platforms, enhancing the digital advertising supply chain for live sports [1][4][6] Group 1: Marketplace Launch and Partnerships - The Live Sports Marketplace has partnered with FanServ, providing access to premium inventory from major sports leagues including NBA, WNBA, MLB, NHL, and National Women's Soccer League, which is a significant step in expanding access to live sports inventory [2][4] - The partnership aims to redefine programmatic sports advertising by combining FanServ's sports expertise with PubMatic's event-level curation, enabling brands to engage fans at critical moments [3][4] Group 2: Market Demand and Performance - PubMatic's live sports activity has more than tripled in the first half of 2025 compared to the same period in 2024, indicating strong market demand for targeted live sports solutions [4] - The company has already surpassed its entire 2024 live sports activity within the first six months of 2025, positioning it to potentially double last year's performance [4] Group 3: Technological Innovations - The Live Sports Marketplace addresses issues in traditional programmatic sports buying, such as wasted impressions during low-engagement moments and the challenges of managing unpredictable viewership spikes [5][8] - The proprietary AI technology allows for event- and channel-level precision, enabling advertisers to target specific games and high-impact moments effectively [8] - The platform is designed for scalability and automation, providing flexibility for immediate manual adjustments and future automated processes [8] Group 4: Industry Trends - eMarketer projects that 114.1 million people will watch live sports digitally in 2025, compared to 82.0 million via traditional TV, highlighting the shift towards streaming and the need for precise ad delivery [7]

Core Insights - PubMatic, Inc. will release its financial results for Q2 2025 on August 11, 2025, after market close [1] - A webcast to discuss the financial results will be held at 1:30 p.m. Pacific Time [1][3] Company Overview - PubMatic is an independent technology company focused on enhancing customer value in the digital advertising supply chain [2] - The company provides a sell-side platform that empowers digital content creators to manage their inventory and increase monetization [2] - Since its inception in 2006, PubMatic has utilized an infrastructure-driven approach for real-time data processing and utilization [2]

Partnership Overview - Sojern and PubMatic have formed a partnership to enhance digital advertising in the hospitality sector by combining Sojern's travel data insights with PubMatic's premium inventory [1][3] - This collaboration aims to provide agencies and advertisers with tools to target travelers more accurately while ensuring privacy compliance [1][4] Advertising Strategy - The partnership focuses on creating personalized, targeted campaigns through a curation approach that allows for real-time optimization and measurement [2][3] - Advertisers can utilize a multi-ID approach to combine first-party data, Sojern's travel segments, and premium inventory for more effective targeting [2][3] Benefits of the Partnership - The integration of Sojern's travel data with PubMatic's curation and data solution, Connect, enables advertisers to activate real-time traveler insights for precise targeting [3] - This relationship enhances audience curation as a powerful tool for programmatic advertising, improving performance and transparency for marketers [3][4] Company Profiles - Sojern is a leading marketing platform for the hospitality industry, providing insights and services to over 10,000 travel marketers annually [6] - PubMatic is an independent technology company focused on maximizing customer value in digital advertising, offering a sell-side platform that enhances monetization for digital content creators [7]

Group 1 - Shares of PubMatic, Inc. have rebounded approximately 70% from their all-time low of $7.46 set on April 7, 2025, which marked a 90% decline from their all-time high [1] - The digital advertising landscape is evolving, potentially favoring supply-side platforms like PubMatic [1] - The Busted IPO Forum, led by Bret Jensen, focuses on stocks that have been public for 18 months to 6 years and are significantly under their offering price [1]