Q1 2025 Earnings Presentation May 8, 2025 S A F E H A R B O R This presentation contains forward-looking statements regarding our future business expectations, including but not limited to our guidance relating to our revenue, adjusted EBITDA, and adjusted EBITDA margin for the second quarter of 2025 and capex for the full year 2025, our expectations regarding our free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth and our ability to gain market share. The ...

Financial Data and Key Metrics Changes - The company exceeded guidance in Q1 with a year-over-year revenue growth of 21%, up from 17% in the second half of the previous year, excluding the impact from a large DSP buyer and political advertising [5][27] - Adjusted EBITDA for Q1 was $8.5 million, representing a 13% margin, marking the thirty-sixth consecutive quarter of adjusted EBITDA profitability [32][34] - The company reported a GAAP net loss of $9.5 million, or -$0.20 per diluted share [34] Business Line Data and Key Metrics Changes - Omnichannel video revenues grew 20% year-over-year, accounting for 40% of total revenues, driven by strong CTV revenues which increased over 50% year-over-year [28] - Emerging revenue streams more than doubled year-over-year, with the Connect business continuing its rapid growth trajectory [29] - Display revenue declined 10% year-over-year, but excluding the large DSP buyer, all other display revenues grew over 20% year-over-year [29] Market Data and Key Metrics Changes - Ad spend for the top 10 ad verticals grew in the mid-single-digit percentages year-over-year, with health and fitness, food and drink, and style and fashion increasing over 10% [31] - The Americas and EMEA regions saw slight declines, while APAC grew over 8% year-over-year [32] Company Strategy and Development Direction - The company is focused on three guiding principles: anticipating shifts in advertising growth, closely managing costs, and aligning investments towards high-growth opportunities [11] - The company plans to leverage the anticipated shift from linear TV to streaming and expects increased spend consolidation as marketers seek greater efficiencies [12][14] - Investments in AI and generative AI are expected to drive growth and create efficiencies, with the launch of an end-to-end AI-powered platform [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic uncertainty, believing that digital advertising will emerge stronger post-recession [10][36] - The company anticipates continued growth in the second half of the year, with expectations of 15% plus growth in underlying business [39][40] - Management noted that advertisers are not currently pulling back on ad spend, and trends indicate a shift towards programmatic advertising [64][70] Other Important Information - The board of directors expanded the share repurchase plan by an additional $100 million, reflecting confidence in the company's strategy and financial profile [26] - The company has generated nearly $350 million in net cash from operations over the last four years, with $15.6 million in net cash provided by operating activities in the quarter [35] Q&A Session Summary Question: Update on Google antitrust ruling and its impact - Management indicated that the DOJ is assessing potential remedies, and the ruling has created opportunities for the company to gain market share as advertisers seek alternatives to Google [44][46] Question: Future of Supply Path Optimization (SPO) - Management believes SPO could reach as high as 75% of the business in the long term, with significant growth opportunities from existing relationships and new advertisers [48][49] Question: Trends with key DSP partner - Management noted stability in volumes with the key DSP partner, with expectations for solid performance in the second half of the year as they lap the impact of the DSP change [52][53] Question: Macro environment and ad spend outlook - Management observed that advertisers are scenario planning but are not pulling back on ad spend, with expectations for continued growth in CTV and other high-engagement formats [63][70] Question: Future roadmap for driving ROAS - Management outlined three key drivers for improving ROAS: leveraging first-party data, enhancing supply chain efficiency, and building performance solutions [84][87] Question: Breakdown of growth expectations - Management clarified that the anticipated 15% plus growth excludes the impact from the large DSP buyer and political advertising, with expectations for strong momentum in the second half of the year [89][90]

Financial Data and Key Metrics Changes - The company exceeded guidance in Q1 2025 on both revenue and adjusted EBITDA, with year-over-year revenue growth accelerating to 21%, up from 17% in the second half of the previous year [5][27] - Adjusted EBITDA for Q1 was $8.5 million, representing a 13% margin, marking the thirty-sixth consecutive quarter of adjusted EBITDA profitability [31] - The company reported a GAAP net loss of $9.5 million, or -$0.20 per diluted share [34] Business Line Data and Key Metrics Changes - Omnichannel video revenues grew 20% year over year, accounting for 40% of total revenues, driven by strong CTV revenues which increased over 50% year over year [28] - Emerging revenue streams more than doubled year over year, with the curation and data business, Connect, continuing its rapid growth trajectory [28][22] - Display revenue declined 10% year over year, but excluding the impact of a large DSP buyer, all other display revenues grew over 20% year over year [29] Market Data and Key Metrics Changes - Ad spend for the top 10 ad verticals grew in the mid-single-digit percentages year over year, with health and fitness, food and drink, and style and fashion increasing over 10% [30] - The Americas and EMEA regions saw slight declines, while APAC grew over 8% year over year [30] Company Strategy and Development Direction - The company is focused on three guiding principles: anticipating advertising growth shifts, closely managing costs, and aligning investments towards high-growth opportunities [10] - The company plans to leverage the anticipated shift from linear TV to streaming and the increased reliance on programmatic advertising [11][12] - Investments in AI and generative AI are expected to drive growth and create efficiencies, with the launch of a GenAI powered end-to-end platform [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic uncertainty, believing it creates opportunities for growth in digital advertising [9][36] - The company anticipates continued growth in the second half of the year, with expectations of 15% plus growth in underlying business [39] - Management highlighted the importance of maintaining strong relationships with customers and adapting to changes in ad spend behavior [9][66] Other Important Information - The board of directors expanded the share repurchase plan by an additional $100 million, reflecting confidence in the company's strategy and financial profile [26] - The company has generated nearly $350 million in net cash from operations over the last four years, with $15.6 million in net cash provided by operating activities in the quarter [35] Q&A Session Summary Question: Update on Google antitrust ruling and its impact - Management noted that the DOJ is assessing potential remedies and that the ruling has created a more competitive environment, allowing for potential market share gains for the company [43][45] Question: Future of Supply Path Optimization (SPO) - Management believes SPO could reach as high as 75% of the business in the long term, with significant growth opportunities from existing relationships and new advertisers [47][48] Question: Trends with key DSP partner - Management indicated stability with the key DSP partner, with expectations for solid performance in the second half of the year as they lap the impact of changes made last year [51][52] Question: Macro environment and ad spend outlook - Management observed that advertisers are scenario planning but are not currently pulling back on ad spend, with expectations for continued growth in CTV and other high-engagement formats [61][66] Question: Future roadmap for curation and data products - Management outlined three key drivers for improving return on ad spend: leveraging first-party data, enhancing supply chain efficiency, and building performance solutions [80][82]

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)

EXHIBIT 99.1 Delivered revenue and adjusted EBITDA ahead of guidance; PubMatic Announces First Quarter 2025 Financial Results; Board of Directors Authorizes $100M Expansion of Share Repurchase Program Supply Path Optimization represented a record 55%+ of total activity NO-HEADQUARTERS/REDWOOD CITY, Calif., May 8, 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 ...

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]

NO-HEADQUARTERS/REDWOOD CITY, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today announced that it will release its financial results for the first quarter ended March 31, 2025 after market close on May 8, 2025. On that day, PubMatic will host a webcast at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the company’s financial results. Webcast Details What: PubMatic’s Firs ...

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 ...