PubMatic, Inc. (NASDAQ:PUBM) Q1 2022 Earnings Conference Call May 9, 2022 5:00 PM ET Company Participants Stacie Clements - Investor Relations, The Blueshirt Group Rajeev Goel - Co-Founder & Chief Executive Officer Steve Pantelick - Chief Financial Officer Conference Call Participants Shweta Khajuria - Evercore Brent Thill - Jefferies Justin Patterson - KeyBanc Matt Swanson - RBC Andrew Marok - Raymond James Andrew Boone - JMP Jason Helfstein - Oppenheimer Vasily Karasyov - Cannonball Operator Hello everyon ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended March 31, 2022, show total assets of $497.6 million, a decrease from $550.2 million at the end of 2021, with revenue at $54.6 million and net income at $4.8 million Condensed Consolidated Balance Sheet Data (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $74,467 | $82,505 | | Accounts receivable - net | $218,359 | $286,916 | | Total Current Assets | $404,874 | $460,749 | | TOTAL ASSETS | $497,609 | $550,215 | | Accounts payable | $186,012 | $244,321 | | Total Current Liabilities | $200,557 | $266,965 | | TOTAL LIABILITIES | $229,903 | $293,035 | | TOTAL STOCKHOLDERS' EQUITY | $267,706 | $257,180 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Revenue | $54,552 | $43,608 | | Gross profit | $36,560 | $31,308 | | Operating income | $4,581 | $6,642 | | Net income | $4,779 | $4,918 | | Diluted EPS | $0.08 | $0.09 | Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,314 | $12,687 | | Net cash used in investing activities | ($27,805) | ($16,848) | | Net cash provided by (used in) financing activities | $453 | ($381) | - For the three months ended March 31, 2022, one publisher represented **14% of the Company's revenue**, a decrease from 20% in the same period of 2021[28](index=28&type=chunk) - As of March 31, 2022, two buyers accounted for **29% and 20% of accounts receivable**, respectively, showing significant concentration[28](index=28&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports a 25% year-over-year revenue increase to $54.6 million for Q1 2022, driven by more impressions processed, with a strong net dollar-based retention rate of 140% - The company processed approximately **32.6 trillion ad impressions** for the three months ended March 31, 2022, a **76% increase** from 18.5 trillion in the same period of 2021[82](index=82&type=chunk) - The net dollar-based retention rate was **140%** for the trailing twelve months ended March 31, 2022, up from 130% for the trailing twelve months ended March 31, 2021[75](index=75&type=chunk)[86](index=86&type=chunk) - For Q1 2022, revenue from mobile and video (including OTT/CTV) combined comprised approximately **67% of total revenue**[78](index=78&type=chunk) Financial Highlights (in thousands) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Revenue | $54,552 | $43,608 | | Operating income | $4,581 | $6,642 | | Net income | $4,779 | $4,918 | | Adjusted EBITDA | $17,006 | $14,494 | Revenue and Gross Profit Comparison (in thousands) | Metric | Q1 2022 | Q1 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $54,552 | $43,608 | $10,944 | 25% | | Cost of revenue | $17,992 | $12,300 | $5,692 | 46% | | Gross profit | $36,560 | $31,308 | $5,252 | 17% | | Gross profit margin | 67% | 72% | | | - Operating expenses increased year-over-year primarily due to higher personnel costs from increased headcount: Technology and Development (**+28%**), Sales and Marketing (**+29%**), and General and Administrative (**+32%**)[118](index=118&type=chunk)[120](index=120&type=chunk)[122](index=122&type=chunk) - As of March 31, 2022, the company had cash, cash equivalents, and marketable securities of **$174.7 million** and net working capital of **$204.3 million**[126](index=126&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks primarily from interest rates, foreign currency exchange rates, and inflation, though interest rate risk is considered low - The company does not believe a **100 basis point change** in interest rates would materially affect its financial condition[153](index=153&type=chunk) - A hypothetical **10% change** in the U.S. Dollar to Indian Rupee exchange rate could change operating income by **$0.4 million** for Q1 2022[154](index=154&type=chunk) - A hypothetical **10% change** in the U.S. Dollar to British Pound exchange rate could change operating income by **$0.3 million** for Q1 2022[154](index=154&type=chunk) [Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that as of March 31, 2022, the company's disclosure controls and procedures were **effective**[156](index=156&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2022, that materially affected, or are reasonably likely to materially affect, internal controls[158](index=158&type=chunk) [PART II - OTHER INFORMATION](index=36&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings that would have a material adverse effect on its business, financial condition, or cash flows - As of the filing date, the company is not a party to any legal proceedings that management believes would have a material adverse effect on the business[162](index=162&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including dependency on advertising demand, the need to retain customers, operational fluctuations, data privacy regulations, and corporate governance issues - **Business & Operational Risks:** - Revenue is highly dependent on overall advertising demand - Failure to attract/retain customers or expand into emerging channels could harm growth - The business is subject to seasonal fluctuations, with higher spending in Q4 and lower in Q1 - Platform outages, security breaches, or failure to prevent fraud could damage reputation and business[164](index=164&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk)[175](index=175&type=chunk) - **Data & Regulatory Risks:** - Rejection of third-party cookies, ad-blocking technologies, and evolving data privacy laws (CCPA, GDPR) threaten the ability to collect and use data, which is critical to the business - Failure to comply with complex and evolving data privacy laws could result in significant fines and liability[168](index=168&type=chunk)[169](index=169&type=chunk)[178](index=178&type=chunk) - **Financial & Corporate Risks:** - Insiders have substantial control due to the dual-class stock structure, limiting the influence of Class A stockholders - The company received a notice of delisting from Nasdaq for failing to have a minimum of three independent directors on its audit committee, following the death of a director, and has a cure period to regain compliance[179](index=179&type=chunk)[283](index=283&type=chunk)[288](index=288&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the reporting period - Not applicable[293](index=293&type=chunk) [Defaults Upon Senior Securities](index=63&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the reporting period - Not applicable[294](index=294&type=chunk) [Mine Safety Disclosures](index=63&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period - Not applicable[295](index=295&type=chunk) [Other Information](index=63&type=section&id=Item%205.%20Other%20Information) This item is not applicable for the reporting period - Not applicable[296](index=296&type=chunk) [Exhibits](index=64&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 documents - Exhibits filed include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and various Inline XBRL documents for interactive data[298](index=298&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------------------------------------------------------------------------------------------|-----------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | PubMatic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R E D W O O D NIE WILLY ORIKE AM UNIC HIST A MISITE RIDIA MICH L O N D O N | Investor Presentation | | | | | | | | 「 O K Y O F U E L I N G A D V E R T I S I N G I N N O V A T I O N March 2022 | ...

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PubMatic, Inc. (NASDAQ:PUBM) Q4 2021 Earnings Conference Call February 28, 2022 5:00 PM ET Company Participants Rajeev Goel - Chief Executive Officer Stacie Clements - IR, The Blueshirt Group Steve Pantelick - Chief Financial Officer Conference Call Participants Shweta Khajuria - Evercore Brent Thill - Jefferies Justin Patterson - KeyBanc Matthew Swanson - RBC Andrew Boone - JMP Jason Helfstein - Oppenheimer Andrew Marok - Raymond James Operator Hello everyone, and welcome to PubMatic's Fourth quarter and f ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Commission File Number: 001-39748 PubMatic, Inc. Indicate by a check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 ...

Financial Data and Key Metrics Changes - The company reported record revenue of $58.1 million, representing a 54% organic growth year-over-year, and a significant acceleration from the previous year's 33% growth [10][36] - GAAP net income reached $13.5 million, reflecting a 117% increase year-over-year, with a net margin of 23% [10][47] - Adjusted EBITDA was $24.3 million, or a 42% margin, which is an 81% increase compared to the previous year [10][36] - Cash generated from operations was a record $26.4 million, with total cash and marketable securities at $136.7 million, up 12% from the previous quarter [10][48] Business Line Data and Key Metrics Changes - Revenue from mobile and omnichannel video grew 64% year-over-year, accounting for approximately two-thirds of total revenues [40] - CTV revenue increased over 7x year-over-year, with 154 publishers monetizing CTV inventory in Q3 [30][41] - Desktop business revenue, including display and online video, rose 49% year-over-year [42] Market Data and Key Metrics Changes - Ad spend on the platform was diversified across more than 20 verticals, with spending in most verticals up double or triple digits compared to Q3 2020 [40] - The top 10 ad verticals collectively accounted for over 70% year-over-year growth [40] Company Strategy and Development Direction - The company aims to grow its market share by 10x in the coming years through a Land and Expand approach and a usage-based revenue model [16][17] - The strategy includes continuous innovation and product development to enhance monetization for publishers and increase advertiser ROI [22][28] - The company is focused on expanding its presence in high-growth areas such as CTV, mobile, and online video, while also investing in supply path optimization [33][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite potential advertiser pullbacks due to supply chain concerns, citing a diversified revenue base [49][50] - The company raised its full-year revenue guidance to between $225 million and $227 million, indicating a year-over-year growth of 51% to 53% [54] - Management highlighted the importance of innovation and customer success as key drivers of future growth [66][110] Other Important Information - The company processed nearly 24 trillion impressions in Q3, more than double the amount from the same period last year [44] - The net dollar-based retention rate reached 157%, indicating strong publisher satisfaction and usage of the platform [31][44] Q&A Session Summary Question: What are the normalized retention rates expected to be? - Management expects normalized retention rates to be in the range of 120% to 130% as comparisons adjust from Q2 2020 [66] Question: How does the company view the impact of supply path optimization (SPO)? - SPO is seen as a significant growth driver, with management noting that it has been a key factor in increasing demand on the platform [66][87] Question: What is the company's strategy regarding identity solutions? - The company aims to integrate all viable identity solutions in the markets it operates, adapting to regional differences in identity preferences [126] Question: How does the company plan to drive further impression growth? - Management highlighted investment in innovation and capacity as key strategies to drive impression growth, particularly in high-growth sectors [91][112] Question: What is the company's perspective on M&A opportunities? - The company remains open to M&A opportunities that could accelerate its roadmap and enhance its product offerings, particularly in data-related areas [103]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|----------|-----------------------------------------------------------------------------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | PubMatic | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | R E D W O O D NIE WILL Y OR K SE MIUNIC HI CHAMIS TEER DAM SE L O N D O N Q3 2021 Earnings Presentation | | | | | | | | | | | 「 O K Y O F ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from________to________ Commission File Number: 001-39748 PUBMATIC, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-----------------------------------------------------------|------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | \| PubMatic | | | | | | | | | | R E D W O O D NEW YORK SEMUNICH AM STERDAM 【 ○ N D ○ N | Q2 2021 Earnings Presentatio | | | | | | | | | T O K Y O FUELING ADVERTISING INNOVATION August 10, 2021 | | | | | | SAFE HARBOR This presentation contains forward-looking statements. These s ...