Financial Performance - Revenue for Q3 2025 was $67.96 million, a decrease of 5.0% compared to $71.79 million in Q3 2024[93] - Operating loss for Q3 2025 was $8.42 million, compared to an operating loss of $1.37 million in Q3 2024[93] - Net loss for Q3 2025 was $6.45 million, compared to a net loss of $0.91 million in Q3 2024[93] - Adjusted EBITDA for Q3 2025 was $11.15 million, down 40.0% from $18.55 million in Q3 2024[93] - Gross profit for the three months ended September 30, 2025 was $42.56 million, down from $46.28 million in 2024, reflecting an 8% decrease[118] - The gross margin for the three months ended September 30, 2025 was 63%, a decrease from 64% in the same period of 2024[123] - Adjusted EBITDA for the three months ended September 30, 2025 was $11,152 thousand, compared to $18,546 thousand in 2024[137] Cash Flow and Investments - Net cash provided by operating activities for Q3 2025 was $32.37 million, an increase of 69.0% from $19.14 million in Q3 2024[93] - Net cash provided by operating activities for the nine months ended September 30, 2025 was $62,900 thousand, an increase from $55,377 thousand in 2024[144] - Net cash provided by investing activities for the nine months ended September 30, 2025 was $17,379 thousand, compared to $9,645 thousand in 2024[144] - Net cash used in financing activities for the nine months ended September 30, 2025 was $(44,903) thousand, a decrease from $(64,617) thousand in 2024[144] - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $136.5 million[140] - As of September 30, 2025, the company had cash and cash equivalents totaling $136.5 million, primarily consisting of bank deposits, money market accounts, and time deposits[158] - The company repurchased 4,036,242 shares of Class A common stock for an aggregate purchase price of $46.0 million during the nine months ended September 30, 2025[141] Expenses - Technology and development expenses for the three months ended September 30, 2025 increased by 9% to $9.62 million, compared to $8.81 million in 2024[125] - Sales and marketing expenses for the three months ended September 30, 2025 rose by 9% to $25.73 million, driven by increased personnel costs[127] - General and administrative expenses for the three months ended September 30, 2025 increased by 3% to $15.63 million, compared to $15.13 million in 2024[129] - Interest income for the three months ended September 30, 2025 decreased by 39% to $1.20 million, down from $1.97 million in 2024[131] Market and Operational Insights - Net dollar-based retention rate was 98% for the trailing twelve months ended September 30, 2025, down from 112% for the same period in 2024[98] - Supply Path Optimization (SPO) accounted for over 55% of total activity for Q3 2025[99] - The platform processed approximately 980 billion ad impressions daily in September 2025[102] - The company launched new products, Activate and Convert, in 2023 to enhance buyer capabilities[103] - The digital advertising ecosystem is experiencing rapid changes, including increased demand for transparency and control from both buyers and publishers[90] - The company expects revenues to be negatively impacted in the near term by recent platform changes implemented by a large DSP buyer[120] Tax and Other Income - Other income (expense), net for the three months ended September 30, 2025 was $(937) thousand, reflecting a 1% increase compared to $(930) thousand in the same period of 2024[132] - For the nine months ended September 30, 2025, other income (expense), net was $(3,939) thousand, a decrease of 217% from $3,356 thousand in 2024, primarily due to foreign exchange losses[132] - The provision for (benefit from) income taxes for the three months ended September 30, 2025 was $(1,706) thousand, a decrease of 391% from $586 thousand in 2024[133] - For the nine months ended September 30, 2025, the provision for (benefit from) income taxes was $(4,406) thousand, a decrease of 688% from $749 thousand in 2024[134] Economic Factors - The company does not expect a 100 basis points change in interest rates to materially affect its operating results or financial condition[158] - A hypothetical 10% change in the U.S. Dollar to Indian Rupee exchange rate could result in a $1.7 million change in operating loss for the nine months ended September 30, 2025[159] - A hypothetical 10% change in the U.S. Dollar to British Pound exchange rate could also result in a $1.7 million change in operating loss for the nine months ended September 30, 2025[159] - The company does not believe inflation has had a material effect on its business or financial condition[160] - Significant inflationary pressures in regions like India could adversely affect the company's ability to offset higher costs through price increases[160]

Revenue Performance - Revenue for Q3 2025 was $68.0 million, down from $71.8 million in Q3 2024, which included $5.0 million from political advertising[6] - Revenue for Q3 2025 was $67,960,000, a decrease of 5.1% compared to $71,786,000 in Q3 2024[31] - The company estimates Q4 2025 revenue to be between $73 million to $77 million[17] Profitability Metrics - Adjusted EBITDA was $11.2 million, representing a 16% margin, down from $18.5 million and a 26% margin in the same period of 2024[6] - Adjusted EBITDA for Q3 2025 was $11,152,000, with an adjusted EBITDA margin of 16%[37] - Adjusted EBITDA for Q4 2025 is expected to be in the range of $19 million to $21 million, representing approximately a 27% margin at the midpoint[19] - Operating loss for Q3 2025 was $8,419,000, compared to a loss of $1,365,000 in Q3 2024[31] - Net loss for Q3 2025 was $6,452,000, compared to a net loss of $912,000 in Q3 2024[31] Cash and Liquidity - Total cash and cash equivalents were $136.5 million as of September 30, 2025, with no debt[8] - Cash and cash equivalents increased to $136,548,000 as of September 30, 2025, from $100,452,000 at the beginning of the period[35] - Net cash provided by operating activities for Q3 2025 was $32,374,000, compared to $19,139,000 in Q3 2024, representing a year-over-year increase of 69.5%[39] - Free cash flow for the nine months ended September 30, 2025, was $39,351,000, up from $26,041,000 in the same period of 2024, reflecting a growth of 51.1%[39] - The total cash flow from operating activities for the nine months ended September 30, 2025, was $62,900,000, compared to $55,377,000 in 2024, marking an increase of 13.7%[39] Asset and Liability Management - Total assets decreased to $676,188,000 as of September 30, 2025, down from $739,519,000 at the end of 2024[29] - Total liabilities decreased to $431,128,000 as of September 30, 2025, compared to $462,256,000 at the end of 2024[29] Operational Efficiency - AI-powered platform reduced campaign setup time by 87% and sped up issue resolution by 70%[3] - Supply Path Optimization represented over 55% of total activity on the platform in Q3 2025, up from 50% a year ago[18] - CTV revenue grew over 50% year-over-year excluding political ad spend, while omnichannel video revenue grew 21% year-over-year[12] - Emerging revenues grew 80% year-over-year, including curation, commerce media, and other non-SSP revenues[18] Stock and Compensation - Stock-based compensation expense for Q3 2025 was $9,511,000, slightly up from $9,457,000 in Q3 2024[33] - The company reported a basic and diluted net loss per share of $0.14 for Q3 2025, compared to a loss of $0.02 in Q3 2024[37] Capital Expenditures - Purchases of property and equipment decreased from $11,731,000 in Q3 2024 to $4,674,000 in Q3 2025, indicating a reduction of 60.1%[39] - Capitalized software development costs remained relatively stable, with $4,914,000 in Q3 2025 compared to $4,542,000 in Q3 2024, showing an increase of 8.2%[39]

Core Insights - PubMatic is set to announce its earnings results, with analysts expecting a significant year-on-year revenue decline of 10.8% to $64.02 million, contrasting with a 12.7% increase in the same quarter last year [2] - The company previously reported revenues of $71.1 million, which was a 5.7% increase year-on-year, but missed revenue guidance for the next quarter [1][3] - Analysts have generally maintained their estimates for PubMatic, indicating expectations for stability despite the company having missed Wall Street's revenue estimates twice in the past two years [3] Revenue and Earnings Expectations - Analysts anticipate an adjusted loss of -$0.01 per share for the upcoming quarter [2] - The revenue guidance for the next quarter has significantly missed analysts' expectations, indicating potential challenges ahead [1] Peer Performance - In the advertising software segment, peers like AppLovin and Integral Ad Science reported strong year-on-year revenue growth of 17.3% and 15.6%, respectively, both exceeding analysts' expectations [4] - Despite the positive performance of peers, PubMatic's stock has declined by 5.6% over the past month, while the average analyst price target for PubMatic stands at $11.28 compared to its current share price of $7.54 [5]

Core Insights - The Trade Desk (TTD) and PubMatic (PUBM) are key players in the programmatic advertising ecosystem, with TTD focusing on demand-side platform (DSP) services and PUBM on sell-side platform services [1][8] - Both companies are significantly exposed to the growing Connected TV (CTV) and retail media trends, making them interesting for investors in the expanding digital ad market [2] Group 1: The Trade Desk (TTD) - TTD is cautious about the impact of macroeconomic conditions on large global brands, which may pressure revenue growth due to reduced programmatic demand [3] - The competitive landscape is intensifying, with major players like Google and Amazon dominating the DSP space, posing challenges for TTD [4] - Despite challenges, TTD's expanding CTV presence is a strong advantage, as CTV is the fastest-growing segment in digital advertising [5] - TTD has established partnerships with major companies like Disney, NBCU, and Roku, focusing on live sports streaming as a key part of its CTV strategy [6] - The AI-powered Kokai platform is enhancing TTD's competitive edge, with over 70% client adoption expected to be completed this year [7] Group 2: PubMatic (PUBM) - PubMatic is diversifying its DSP mix and investing in CTV and emerging revenue streams, with CTV revenues accounting for nearly 20% of total revenues [8][9] - The company has expanded partnerships with 26 of the top 30 global streamers, indicating its ability to secure premium inventory [9] - PubMatic's revenues from emerging streams have more than doubled year over year, representing 8% of total second-quarter revenues [10] - The Activate platform is becoming a significant growth driver, with buying activity more than doubling as advertisers seek better control and transparency [11] - PubMatic expects third-quarter revenues of $61-$66 million, down from $71.8 million year-over-year, due to a revised bidding approach from a major client [12] Group 3: Share Performance and Valuation - Year-to-date, PUBM and TTD have experienced losses of 43.3% and 55.3%, respectively, amid macroeconomic uncertainties [13] - Valuation metrics indicate TTD is overvalued with a price/book ratio of 9.52X, while PUBM has a more favorable ratio of 1.56X [15] - PUBM currently holds a Zacks Rank 3 (Hold), while TTD has a Zacks Rank 4 (Sell), suggesting PUBM may be a better investment choice at this time [18]

Core Insights - PubMatic has announced a multi-year integration of Nvidia technology to enhance its infrastructure, enabling AI processing to be five times faster than traditional systems [1] - Following this announcement, PubMatic's stock rose 7.5% intraday on October 8 [1] Company Overview - PubMatic is a technology company based in Redwood City, California, founded in 2006, that provides a cloud-based platform for digital publishers and advertisers [1][2] - The company processes billions of ad impressions daily and supports various digital channels, including desktop, mobile, video, and connected TV [2] - PubMatic's market capitalization is currently $363.5 million [2] Financial Performance - In Q2 of fiscal 2025, PubMatic reported a revenue increase of 6% year-over-year to $71.1 million [5] - The company's CTV revenue grew more than 50% year-over-year, while omnichannel video revenue, including CTV, grew 34% year-over-year, accounting for 41% of total revenue [5] - PubMatic's net dollar-based retention rate was 102% for the trailing 12 months ended June 30 [5] Stock Performance - PUBM stock has faced challenges, declining 45% over the past 52 weeks and 43% year-to-date [3] - The stock reached a 52-week low of $7.01 in August but has since increased by 19% from that level [3] - Over the past five days, PUBM stock is up 1.5% [3] Valuation Metrics - As of the latest data, PubMatic has a price-to-sales ratio of 1.25 times, which is slightly lower than the industry average [4]

Core Viewpoint - A class action lawsuit has been filed against PubMatic, Inc. regarding allegations of securities fraud and unlawful business practices [2]. Group 1: Class Action Details - Investors are encouraged to contact Pomerantz LLP if they purchased PubMatic securities during the Class Period, with a deadline to apply as Lead Plaintiff by October 20, 2025 [2]. - A copy of the Complaint related to the class action can be obtained from Pomerantz's website [2]. Group 2: Financial Performance and Impact - On August 11, 2025, PubMatic reported a reduction in ad spend from a top demand side platform (DSP) partner, which negatively impacted its financial outlook [4]. - The CEO of PubMatic indicated that a significant number of clients had shifted to a new platform, creating challenges for the company [4]. - Following the announcement, PubMatic's stock price dropped by $2.23, or 21.1%, closing at $8.34 per share on August 12, 2025 [4].

Core Viewpoint - A class action lawsuit has been filed against PubMatic, Inc. for allegedly making materially false and misleading statements regarding its business operations and financial outlook during the Class Period from February 27, 2025, to August 11, 2025 [6]. Allegation Details - The lawsuit claims that PubMatic failed to disclose significant adverse facts, including a top Demand-Side Platform (DSP) buyer shifting clients to a new platform, resulting in reduced ad spend and revenue for PubMatic [6]. - The complaint highlights that the positive statements made by PubMatic regarding its business were misleading and lacked a reasonable basis due to these undisclosed issues [6]. Financial Impact - Following the release of its second quarter 2025 financial report on August 11, 2025, which revealed a reduction in ad spend from a top DSP partner, PubMatic's stock price dropped by $2.23, or 21.1%, closing at $8.34 per share on August 12, 2025 [6].

Group 1: Weave Communications - Weave Communications has a market value of just over $500 million and specializes in communication software for small to medium-sized businesses, generating recurring revenue through industry-specific SaaS [2][3] - The company reported a 16% year-over-year revenue increase to nearly $59 million, exceeding estimates, and improved free cash flow to $3.4 million in the first half of the year [2][3] - A recent acquisition of TrueLark, which provides AI scheduling and customer service software, is expected to enhance Weave's offerings, particularly in its fast-growing medical business segment [3][4] - Analysts estimate a potential upside of nearly 130% for Weave shares, despite risks such as lack of profitability and competition from larger firms like Salesforce [4] Group 2: PubMatic - PubMatic operates as a supply-side advertising platform, enabling publishers to monetize digital content, and has achieved consistent profitability for ten years [5][6] - The company experienced a 19% year-over-year revenue growth, although shares are down approximately 45% year-to-date due to platform changes from a DSP partner [6][8] - PubMatic's ownership of its infrastructure allows it to maintain strong free cash flow and profitability, distinguishing it from larger ad-tech competitors [7][8] - Analysts project over 53% upside potential for PubMatic shares, indicating a possible recovery despite cyclical ad spending and economic factors [8] Group 3: Zeta Global - Zeta Global is a marketing technology firm leveraging AI for data processing and personalized outreach, with a total addressable market that is rapidly expanding [9][10] - The company reported a 35% year-over-year revenue increase to $308 million and generated net cash of $42 million from operating activities, reflecting a 35% year-over-year growth [10][11] - Zeta Global's free cash flow improved by 69% year-over-year to $34 million, prompting the company to raise its revenue and adjusted EBITDA guidance [11] - Despite challenges in profitability and regulatory concerns regarding data privacy, analysts see a 58% upside potential for Zeta shares, making it appealing to investors [12]

Core Points - Rosen Law Firm is reminding investors who purchased PubMatic, Inc. securities between February 27, 2025, and August 11, 2025, of the lead plaintiff deadline on October 20, 2025 [1] - Investors may be entitled to compensation through a contingency fee arrangement without any out-of-pocket costs [1] Class Action Details - A class action lawsuit has been filed against PubMatic, and investors wishing to serve as lead plaintiff must act by October 20, 2025 [2] - The Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions [3] Case Allegations - The lawsuit alleges that during the Class Period, PubMatic made false and misleading statements regarding its business operations, specifically related to a top demand side platform buyer shifting clients to a new platform, leading to reduced ad spend and revenue [4]

Core Viewpoint - A class action lawsuit has been filed against PubMatic, Inc. for allegedly making materially false and misleading statements regarding its business operations and financial outlook during the class period from February 27, 2025, to August 11, 2025 [6]. Allegation Details - The lawsuit claims that PubMatic failed to disclose significant adverse facts, including a major demand-side platform (DSP) buyer shifting clients to a new platform, resulting in reduced ad spend and revenue for PubMatic [6]. - The complaint highlights that the positive statements made by the company regarding its business were misleading and lacked a reasonable basis due to these undisclosed issues [6]. Financial Impact - Following the release of its second quarter 2025 financial report on August 11, 2025, which revealed a reduction in ad spend from a top DSP partner, PubMatic's stock price dropped by $2.23, or 21.1%, closing at $8.34 per share on August 12, 2025 [6].