PART I - FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents PubMatic, Inc.'s unaudited interim financial statements for Q1 2025, highlighting a decrease in total assets, an increased net loss of $9.5 million, and reduced operating cash flow Condensed Consolidated Balance Sheets (Unaudited) | | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $505,267 | $575,546 | | **Total Assets** | $668,602 | $739,519 | | **Total Current Liabilities** | $350,161 | $418,810 | | **Total Liabilities** | $393,001 | $462,256 | | **Total Stockholders' Equity** | $275,601 | $277,263 | Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $63,825 | $66,701 | | **Gross Profit** | $38,237 | $41,277 | | **Operating Loss** | $(11,903) | $(5,525) | | **Net Loss** | $(9,486) | $(2,454) | | **Diluted Net Loss Per Share** | $(0.20) | $(0.05) | Condensed Consolidated Statements of Cash Flows (Unaudited) | | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $15,621 | $24,294 | | **Net cash used in investing activities** | $(10,069) | $(3,868) | | **Net cash used in financing activities** | $(4,472) | $(18,741) | - As of March 31, 2025, two buyers accounted for **46% and 12% of accounts receivable**, respectively, indicating a concentration of credit risk[28](index=28&type=chunk) - The company operates as a **single reporting segment**, as determined by its Chief Executive Officer, who is the chief operating decision maker (CODM)[73](index=73&type=chunk)[74](index=74&type=chunk) - On May 7, 2025, the Board of Directors authorized an additional **$100 million** for the share repurchase program, bringing the total available for repurchases to **$130.8 million** as of May 5, 2025. The program was extended to December 31, 2026[81](index=81&type=chunk) [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 discusses Q1 2025 results, reporting a 4% revenue decrease to $63.8 million and increased losses, while highlighting strategic progress in SPO and a 102% net dollar-based retention rate Key Financial Metrics | Financial Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Revenue | $63,825 | $66,701 | (4)% | | Gross Profit | $38,237 | $41,277 | (7)% | | Operating Loss | $(11,903) | $(5,525) | 115% | | Adjusted EBITDA | $8,457 | $15,056 | (44)% | - The net dollar-based retention rate was **102%** for the trailing twelve months ended March 31, 2025, compared to 106% for the same period in 2024, indicating continued publisher satisfaction and platform usage[98](index=98&type=chunk) - Supply Path Optimization (SPO) continues to be a major growth driver, representing over **55% of total activity** for the three months ended March 31, 2025[99](index=99&type=chunk) - The company's platform processed approximately **842 billion ad impressions daily** in March 2025[102](index=102&type=chunk) - Revenue decline was primarily attributed to **bidding methodology changes** implemented by one of the company's buyers in 2024[117](index=117&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies interest rate, currency exchange, and inflation as primary market risks, with low interest rate sensitivity and potential operating loss impacts from currency fluctuations in India and the UK - The company's portfolio of cash, cash equivalents, and marketable securities (**$144.1 million** as of March 31, 2025) has a relatively short maturity, making its fair value insensitive to interest rate changes[135](index=135&type=chunk)[152](index=152&type=chunk) - A hypothetical **10% change** in the U.S. Dollar to Indian Rupee exchange rate could change the operating loss by **$0.6 million** for Q1 2025[153](index=153&type=chunk) - A hypothetical **10% change** in the U.S. Dollar to British Pound exchange rate could change the operating loss by **$0.5 million** for Q1 2025[153](index=153&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting identified during the quarter - As of March 31, 2025, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective at a reasonable assurance level**[155](index=155&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended March 31, 2025, that materially affected, or are reasonably likely to materially affect, the company's internal controls[156](index=156&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=40&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, financial condition, or cash flows - The company is not presently a party to any legal proceedings that management believes would have a **material adverse effect** on its business, operating results, financial condition, or cash flows[159](index=159&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section updates key business risks, including high dependency on advertising demand, evolving data privacy laws, and potential impacts from the share repurchase program - The business is highly dependent on overall advertising demand, which can be adversely affected by **macroeconomic factors** like economic volatility, recession fears, inflation, and volatile interest rates[161](index=161&type=chunk) - The company's share repurchase program, extended to **$275.0 million** through December 2026, is not guaranteed to be fully consummated and could increase stock price volatility and diminish cash reserves[164](index=164&type=chunk) - The company faces significant risks from constantly evolving **data privacy laws globally**, such as the CCPA in California, GDPR in Europe, and new state-level laws, which could increase compliance costs and legal exposure[165](index=165&type=chunk)[171](index=171&type=chunk)[176](index=176&type=chunk) - A growing number of lawsuits based on the California Invasion of Privacy Act (CIPA) target ad-tech intermediaries, creating **legal uncertainty and risk of significant statutory damages**[174](index=174&type=chunk) - New health data privacy laws, like Washington's My Health My Data Act (MHMD), create heightened compliance risks due to **broad definitions of "consumer health data"** and private rights of action[182](index=182&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=46&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for Q1 2025, including the repurchase of 339,000 shares for $3.6 million, with $36.8 million remaining available Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid Per Share | Value of Shares that May Yet Be Purchased (End of Period) (in thousands) | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | $40,400,785 | | Feb 2025 | — | $— | $40,400,785 | | Mar 2025 | 339,000 | $10.66 | $36,787,667 | | **Total Q1 2025** | **339,000** | **$10.66** | **$36,787,667** | [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) This section discloses that CEO Rajeev Goel and President of Engineering Mukul Kumar adopted Rule 10b5-1 trading plans in Q1 2025 for future stock sales - In Q1 2025, CEO Rajeev Goel adopted a Rule 10b5-1 trading plan to sell up to **1,100,000 shares**, expiring June 12, 2026[189](index=189&type=chunk) - In Q1 2025, President of Engineering Mukul Kumar adopted a Rule 10b5-1 trading plan to sell up to **104,000 shares**, expiring July 17, 2026[189](index=189&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files for financial reporting - The exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer as required by the **Sarbanes-Oxley Act of 2002**[193](index=193&type=chunk) - The filing includes **Inline XBRL documents**, which embed financial data tags directly within the report for automated processing and analysis[193](index=193&type=chunk)

Financial Performance - Revenue for Q1 2025 was $63.8 million, a decrease from $66.7 million in Q1 2024[5] - Total revenue for Q1 2025 was $63,825,000, a decrease of 4.0% from $66,701,000 in Q1 2024[26] - Gross profit for Q1 2025 was $38,237,000, down 7.4% from $41,277,000 in Q1 2024[26] - GAAP net loss was $(9.5) million, or $(0.20) per diluted share, compared to a loss of $(2.5) million, or $(0.05) per diluted share in Q1 2024[5] - Net loss for Q1 2025 was $9,486,000, compared to a net loss of $2,454,000 in Q1 2024, representing a significant increase in losses[26] - Operating loss increased to $11,903,000 in Q1 2025 compared to a loss of $5,525,000 in Q1 2024[26] - Adjusted EBITDA was $8.5 million, representing a 13% margin, down from $15.1 million, or a 23% margin in the same period of 2024[5] - Adjusted EBITDA for Q1 2025 was $8,457,000, with an adjusted EBITDA margin of 13%, down from 23% in Q1 2024[32] - Free cash flow for Q1 2025 was $7,300,000, down from $16,262,000 in Q1 2024[34] Cash and Assets - Total cash, cash equivalents, and marketable securities were $144.1 million as of March 31, 2025, with no debt[7] - Cash and cash equivalents at the end of Q1 2025 were $101,811,000, an increase from $100,452,000 at the end of Q4 2024[30] - Net cash provided by operating activities was $15,621,000 in Q1 2025, a decrease from $24,294,000 in Q1 2024[30] - Total assets decreased to $668,602,000 in Q1 2025 from $739,519,000 in Q4 2024[24] - Total liabilities decreased to $393,001,000 in Q1 2025 from $462,256,000 in Q4 2024[24] Revenue Growth and Projections - CTV revenue grew over 50% year-over-year, with omnichannel video revenue increasing 20% and accounting for 40% of total revenue[11] - The company expects revenue for Q2 2025 to be between $66 million and $70 million, with adjusted EBITDA projected to be in the range of $9 million to $12 million[16] Strategic Initiatives - Supply Path Optimization represented over 55% of total activity on the platform in Q1 2025, up from 50% a year ago[11] - The upgraded Gen AI buyer platform was launched to enhance operational efficiencies and drive revenue growth[9] Shareholder Actions - The Board of Directors authorized a $100 million expansion of the share repurchase program through 2026[1] Retention Metrics - Net dollar-based retention rate was 102% for the trailing twelve months ended March 31, 2025, down from 106% a year ago[5]

Delivered revenue and adjusted EBITDA ahead of guidance; Revenue from omnichannel video, including CTV, grew 20% and was 40% of total revenue; CTV revenue grew over 50% year-over-year; and Supply Path Optimization represented a record 55%+ of total activity NO-HEADQUARTERS/REDWOOD CITY, Calif., May 08, 2025 (GLOBE NEWSWIRE) -- PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the first quarter en ...

Core Insights - PubMatic has launched an upgraded buyer platform powered by generative AI, enhancing the media buying process from audience discovery to performance optimization [1][3] - The platform offers unique supply-path transparency and combines proprietary supply-side intelligence with AI-driven tools, addressing buyer demands for control and visibility [2][3] New Capabilities of the Upgraded Platform - AI-Driven Efficiency: Buyers can use natural language to describe campaign goals, leading to faster deal creation and optimized performance through built-in forecasting tools [4] - Unified Activation & Insights: The platform allows seamless activation of curated deals while providing real-time supply insights [4] - Omnichannel Scale: Access to premium inventory across various channels, enriched with audience data for better targeting [4] - Real-Time Optimization: Continuous monitoring of campaign performance with actionable insights to meet delivery goals [4] - Privacy-First Approach: Ensures compliance with privacy regulations while utilizing first-party data for targeted advertising [5] Industry Impact - The upgraded platform marks a significant evolution for PubMatic, transitioning from a traditional SSP to a comprehensive technology company in programmatic advertising [3] - Early adopters, such as GroupM, have reported significant improvements in campaign efficiency and ROI, indicating strong industry support for the new platform [5] - The platform also benefits publishers by maximizing yield and maintaining control over inventory quality, thus driving incremental revenue [5][6] Future Vision - PubMatic's buyer platform is positioned as a critical nexus for scaling partnerships and AI-driven innovation, enhancing collaboration across the advertising ecosystem [6] - The integration of real-time transaction data into deal workflows allows for precise targeting and measurement of business outcomes, representing the future of programmatic advertising [6]

Core Insights - PubMatic, Inc. will release its financial results for Q1 2025 on May 8, 2025, after market close [1] - A webcast to discuss the financial results will be held at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day [1][3] Company Overview - PubMatic is an independent technology company focused on maximizing customer value in the digital advertising supply chain [2] - The company's sell-side platform enables digital content creators to control inventory access and enhance monetization [2] - Since its inception in 2006, PubMatic has utilized an infrastructure-driven approach for real-time data processing and utilization [2]

Core Insights - PubMatic, Inc. will release its financial results for Q1 2025 on May 8, 2025, after market close [1] - A webcast to discuss the financial results will be held at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day [1][3] Company Overview - PubMatic is an independent technology company focused on maximizing customer value in the digital advertising supply chain [2] - The company provides a sell-side platform that empowers digital content creators to control inventory access and enhance monetization [2] - Since its inception in 2006, PubMatic has utilized an infrastructure-driven approach for real-time data processing and utilization [2]

REDWOOD CITY, Calif. and NEW YORK, April 09, 2025 (GLOBE NEWSWIRE) -- PubMatic (Nasdaq: PUBM), an independent technology company delivering digital advertising's supply chain of the future and Spectrum Reach, the advertising sales business of Charter Communications, today announced a new partnership that will bring increased demand and efficient buying to Spectrum Reach's advertising inventory while strengthening PubMatic's curated packages with local news and live sports offered through its Connected TV (C ...

Market Overview - The stock market has experienced a downturn, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite losing 5.9%, 7.8%, and 11.3% respectively between February 19 and March 21 [1][2] - The Nasdaq Composite's decline has placed it in correction territory, prompting considerations for bargain hunting despite a historically pricey market [2] Valuation Concerns - Valuation remains a significant concern for the stock market, with the Shiller price-to-earnings (P/E) Ratio for the S&P 500 reaching 35.28, more than double its historical average of 17.22 since January 1871 [7][5] - Historical data indicates that when the Shiller P/E exceeds 30, it has often been followed by declines of at least 20% in the S&P 500 [8][9] Company Spotlight: PubMatic - PubMatic is a cloud-based programmatic ad platform focused on digital advertising, including video, mobile, and connected TV [11] - The company faced a temporary setback due to its first-quarter guidance and full-year outlook not meeting analyst expectations, primarily influenced by changes in Google's bidding algorithm [12][13] - Despite this, PubMatic's digital ad segments, particularly connected TV (CTV), are experiencing significant growth, with CTV revenue more than doubling year-over-year and accounting for 20% of total sales [14] Financial Strength - PubMatic has maintained positive cash flow from operations for 10 consecutive years, ending 2024 with $140.6 million in cash and no debt, equating to nearly $3 per share in cash [16] - The company has actively repurchased stock, reducing its outstanding share count by over 8% since initiating buybacks two years ago, which positively impacts earnings per share (EPS) [17] Investment Appeal - PubMatic is currently valued at 12.7 times forward-year EPS, or below 9 when excluding its cash position, presenting an attractive investment opportunity given its potential for sustained double-digit growth [18]

NO-HEADQUARTERS/REDWOOD CITY, Calif., March 20, 2025 (GLOBE NEWSWIRE) -- PubMatic, an independent technology company delivering digital advertising's supply chain of the future, today announces the success and impact of its Connect platform in driving incremental revenue and efficiency for publishers and advertisers through curated programmatic advertising deals. Curated programmatic deals are emerging as the future of efficient, privacy-first digital marketing. Recognizing this shift five years ago, PubMat ...

Core Insights - PubMatic's Connect platform is successfully driving incremental revenue and efficiency for publishers and advertisers through curated programmatic advertising deals [1][2] - The platform integrates with Activate, enhancing the supply path and unlocking new efficiencies and revenue streams [2][3] Publisher Achievements - Minute Media reported an increase in eCPMs for inventory discovered through curated auction packages, highlighting the value of curation in accessing incremental budgets [4] - Publishers using PubMatic's curation tools have experienced up to 5% daily deal revenue uplift, with some achieving over 10% [6] - A 25%+ increase in eCPMs has been observed for curated deals compared to non-curated ones [6] Advertiser Benefits - Advertisers benefit from premium inventory enhanced with valuable data sets, leading to improved targeting precision and cost efficiency [4] - Campaigns utilizing data via Connect have seen a 37% improvement in CPM compared to those applying the same data on the buy-side [4] Industry Trends - The shift towards curated programmatic deals is recognized as a future trend in efficient, privacy-first digital marketing [2] - PubMatic's Connect platform is positioned as a central player in bridging media buyers, premium publishers, and curated audiences [5] Data Insights - The platform boasts over 190 premium data partners and integrates insights from leading commerce media networks, enhancing campaign optimization [3] - There has been a 14 percentage point increase in spending from a broader range of buyers, indicating a more diverse demand landscape [6]