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]

PubMatic's (NASDAQ: PUBM ) stock has struggled over the past year, which is the result of a high starting valuation and weakness caused by a change in bidding logic by a DSP. Outside of this headwind, PubMatic continues to have success in areas likeRichard Durant is the leader of Narweena, an asset manager focused on finding market dislocations that are the result of a poor understanding of a businesses long-term prospects. Narweena believes that excess risk adjusted returns can be achieved by identifying b ...

Core Insights - PubMatic achieved 9% revenue growth for the full year 2024 despite challenges from a major demand-side platform (DSP) partner changing its bidding approach [1] - The company is successfully diversifying its revenue streams, particularly in high-growth areas like connected TV (CTV) and mobile applications [2][4] Revenue Growth and Diversification - CTV revenue more than doubled in 2024, reaching 20% of total revenue in Q4, while mobile app revenue increased by 16%, also representing 20% of total revenue [2] - Excluding revenue from the major DSP and political advertising, Q4 revenue was up 16% year over year, indicating strong underlying growth [4] Supply Path Optimization (SPO) - PubMatic's SPO strategy is gaining traction, with 53% of platform activity transacted via SPO, up from one-third two years ago, reflecting industry adoption of efficient advertising supply chains [6] - The consolidation of major advertising agencies on the platform is creating a flywheel effect, attracting premium publishers and valuable data providers [5] Future Outlook - Management expressed confidence in the company's strategic position and growth strategies, despite near-term challenges with the specific DSP partner [7] - Focused investments in CTV, mobile app, commerce media, and data curation, along with operational efficiency from generative artificial intelligence, position the company for sustainable growth [8]

PubMatic (PUBM -23.91%) stock got hit with big sell-offs in Friday's trading. The advertising-technologies company's share price closed out the daily session down 23.9%. The S&P 500 index closed out the day up 1.5%, and the Nasdaq Composite ended the session up 1.6%.PubMatic reported its fourth-quarter results after the market closed, and posted earnings that beat the market's expectations. On the other hand, sales missed Wall Street's guidance -- and the company's forward guidance raised a big red flag.Pub ...

Financial Data and Key Metrics Changes - Revenue growth for 2024 was 9% over 2023, more than doubling the previous year's growth rate [10][45] - Adjusted EBITDA margins expanded to 32%, marking a return to the "Rule of 40" benchmark [11][46] - Q4 revenue, excluding a specific DSP impact and political advertising, increased by 16% year-over-year [12][39] - Full-year net income was $12.5 million, or $0.23 per diluted share [56] Business Line Data and Key Metrics Changes - Connected TV (CTV) revenue more than doubled in 2024, reaching 20% of total revenue in Q4 [45][50] - Mobile app business grew 16% year-over-year, also representing 20% of total revenue [45] - Emerging revenue streams doubled in 2024, with Connect, the curation and data business, growing 140% year-over-year [53][95] Market Data and Key Metrics Changes - Omni-channel video revenue reached over 40% in Q4, with CTV accounting for half of that [20] - The company now works with 80% of the top 30 global streamers, up from 70% a quarter ago [21][103] - Supply Path Optimization (SPO) represented 53% of all platform activity, up from a third two years ago [25][46] Company Strategy and Development Direction - The company is focusing on high consumer engagement channels such as CTV, mobile app, and commerce media to drive growth [14][40] - Investments in product innovation and generative AI are expected to enhance operational efficiency and customer-facing products [18][36] - The company aims to diversify revenue streams and increase exposure to secular growth areas, targeting 15%+ year-over-year growth in 2025 [40][64] Management's Comments on Operating Environment and Future Outlook - Management noted a significant headwind from a single DSP partner affecting desktop display revenue, but overall growth in other areas remained strong [11][50] - The company anticipates a transition through lower year-over-year spend levels from the DSP buyer until mid-2025, with a focus on high-growth areas [61][72] - Management expressed confidence in the company's ability to execute its growth strategy despite near-term challenges [72] Other Important Information - The company ended the year with $141 million in cash and marketable securities and no debt [48][60] - A share repurchase program resulted in an 8% reduction in fully diluted shares outstanding [48][60] - The company has generated over $330 million in net cash from operating activities since going public [58] Q&A Session Summary Question: Can you talk about month-on-month trends and overall CPM trends? - Management noted that the softness in Q4 was primarily due to one DSP's bidding changes, while CPMs were positive throughout the year [76][78] Question: Why is the impact limited to display, and is there a need to address the relationship with the DSP? - The impact is due to a structural change in the DSP's bidding approach, which has stabilized, and the relationship remains strong [84][86] Question: What are the secular shifts in the industry driving the data opportunity? - The industry is shifting towards sell-side targeting due to the decline of cookies and the strength of first-party data on the sell side [90][92] Question: Can you discuss the success and growth of Activate? - Activate has seen 6x growth year-over-year, simplifying the digital advertising supply chain and driving performance [112][114] Question: What is the outlook for the CTV ecosystem? - The CTV ecosystem is transitioning towards programmatic buying, with opportunities for auction packages and managing demand effectively [134][136]

Financial Data and Key Metrics Changes - Revenue growth for 2024 was 9% over 2023, more than doubling the previous year's growth rate [10][45] - Adjusted EBITDA margins expanded to 32%, marking a return to the "Rule of 40" benchmark [11][46] - Q4 revenue, excluding a specific DSP impact and political advertising, increased by 16% year-over-year [12][39] - Full-year net income was $12.5 million, or $0.23 per diluted share [56] Business Line Data and Key Metrics Changes - CTV revenue more than doubled in 2024, representing 20% of total revenue in Q4 [45][52] - Mobile app business grew 16% year-over-year, also accounting for 20% of total revenue [45] - Emerging revenue streams doubled in 2024, with Connect, the curation and data business, growing 140% year-over-year [53][96] Market Data and Key Metrics Changes - Omni-channel video revenue reached over 40% in Q4, with half coming from CTV [20] - The company now works with 80% of the top 30 global streamers, up from 70% a quarter ago [21][103] - Political advertising contributed approximately 6% of total revenue in 2024 [68] Company Strategy and Development Direction - The company is focusing on high consumer engagement channels such as CTV, mobile app, and commerce media to drive growth [14][40] - Investments in product innovation and generative AI are expected to enhance operational efficiency and customer engagement [17][36] - The strategy includes diversifying revenue streams and increasing the value of ad impressions through data curation [34][95] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2025 due to a DSP headwind but expects underlying business growth of 15%+ year-over-year [61][72] - The company is confident in its ability to execute its growth strategy and deliver healthy margins [72] - The shift towards sell-side targeting is seen as a significant opportunity, driven by the decline of third-party cookies [90][92] Other Important Information - The company ended 2024 with $141 million in cash and marketable securities and no debt [48][60] - A share repurchase program has resulted in an 8% reduction in fully diluted shares outstanding [48][60] - The company is targeting a full-year adjusted EBITDA margin in the high 20% range for 2025 [70] Q&A Session Summary Question: Can you talk about month-on-month trends and overall CPM trends? - Management noted that the softness in Q4 was primarily due to one DSP's bidding changes, while CPMs were positive throughout the year [76][78] Question: Why is the impact limited to display, and is there a need to address the relationship with the DSP? - The impact is due to a structural change in the DSP's bidding approach, which has historically affected display formats [84][86] Question: What are the secular shifts in the industry driving the data opportunity? - The industry is shifting towards sell-side targeting due to the decline of cookies and the strength of first-party data [90][92] Question: Can you discuss the success and growth of Activate? - Activate has seen 6x growth year-over-year, simplifying the digital advertising supply chain and driving performance [112][114] Question: What is the outlook for CTV and its evolution? - CTV is transitioning towards programmatic buying, with significant opportunities in auction packages and managing yield for publishers [134][136]

Q4 and FY 2024 Earnings Presentation February 27, 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 first quarter of 2025, our expectations regarding our adjusted EBITDA for the full year 2025, free cash flow, capital expenditures, future hiring, future revenue growth, future market growth, target revenue, our long-ter ...

Earnings Performance - PubMatic, Inc. reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.37 per share, and up from $0.34 per share a year ago, representing an earnings surprise of 10.81% [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] - The company posted revenues of $85.5 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 3.42%, compared to year-ago revenues of $84.6 million [2] Stock Performance and Outlook - PubMatic shares have declined about 2% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The future performance of the stock will depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $66.43 million, and $0.70 on revenues of $317.69 million for the current fiscal year [7] - The Zacks Industry Rank for Internet - Software is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - PubMatic exceeded earnings expectations with a Non-GAAP EPS of $0.41, surpassing analyst estimates of $0.23, but reported revenue of $85.5 million, which fell short of both analyst estimates of $88 million and management's guidance of $86 million to $90 million [2][6] Financial Performance - Non-GAAP EPS for Q4 2024 was $0.41, down 8.9% year-over-year from $0.45 in Q4 2023 [3][6] - Revenue increased by 1.1% year-over-year, reaching $85.5 million compared to $84.6 million in Q4 2023 [3][6] - Adjusted EBITDA margin was 44%, a decrease of 2 percentage points from the previous year [3][7] - Net cash provided by operating activities was $18.0 million, down 37.1% from $28.7 million in Q4 2023 [3] Business Overview - PubMatic operates a cloud infrastructure platform that facilitates digital advertising transactions, providing cost savings and adaptability compared to competitors using public cloud systems [4] - The company is focusing on expanding its presence in connected television (CTV) and mobile app channels, with key success factors including technological efficiency and strategic partnerships [4][5] Recent Developments - Partnerships with major brands like Roku and Disney+ Hotstar have been established, and the company is innovating with AI-driven products to enhance ad placement [5] - The Supply Path Optimization (SPO) initiative has expanded, with 53% of total activities connected to SPO, up from 45% the previous year [8] Challenges and Outlook - Revenue from CTV more than doubled, accounting for 20% of total revenue, but overall revenue was impacted by reduced spending from a major DSP buyer [6][7] - Management has issued a conservative outlook for Q1 2025, expecting revenue between $61 million and $63 million and adjusted EBITDA between $5 million and $7 million [9] - The company anticipates growth in areas unaffected by DSP dynamics to exceed 15% [9] Future Focus - Investors should monitor developments in strategic partnerships and technological advancements, particularly in AI-driven advertising solutions [10] - Management is committed to addressing ongoing DSP issues and ensuring compliance with privacy regulations to improve financial performance in the latter half of 2025 [11]