PubMatic(US:PUBM)2025-02-27 21:11Financial Performance - For the year ended December 31, 2024, the company's revenue was $291.3 million, representing an increase from $267.0 million in 2023, which is a growth of approximately 9.0%[357]. - The company's net income for 2024 was $12.5 million, compared to $8.9 million in 2023, reflecting a year-over-year increase of approximately 40.0%[364]. - Operating income for 2024 was $3.9 million, up from $2.0 million in 2023, indicating a significant improvement in operational efficiency[364]. - The company reported a gross profit of $190.2 million for 2024, up from $167.8 million in 2023, representing an increase of approximately 13.4%[364]. - The company's operating expenses totaled $186.3 million in 2024, compared to $165.7 million in 2023, reflecting an increase of about 12.4%[364]. - Total current assets increased to $575.5 million in 2024 from $562.0 million in 2023, marking a growth of about 2.7%[362]. - Total liabilities increased to $462.3 million in 2024 from $399.0 million in 2023, which is an increase of about 15.9%[362]. - The company reported total financial assets of $115.250 million as of December 31, 2024, compared to $151.489 million as of December 31, 2023, indicating a decrease of approximately 23.9%[429]. Cash and Liquidity - As of December 31, 2024, the company reported cash and cash equivalents of $100.5 million and marketable securities of $40.1 million[27]. - The company had no amounts outstanding under its credit facility as of December 31, 2024, indicating a strong liquidity position[27]. - Cash provided by operating activities for 2024 was $73,425,000, compared to $81,121,000 in 2023 and $87,212,000 in 2022[372]. - The company's cash and cash equivalents rose to $100.5 million in 2024, compared to $78.5 million in 2023, an increase of approximately 28.0%[362]. - The company repurchased treasury stock at a cost of $75,693,000 in 2024, compared to $59,617,000 in 2023[372]. Stock and Compensation - Stock-based compensation increased to $40,752,000 in 2024 from $31,324,000 in 2023 and $22,121,000 in 2022[372]. - Total stock-based compensation expense recognized for the year ended December 31, 2024, was $37.676 million, compared to $28.862 million in 2023[474]. - The intrinsic value of options exercised was $9.9 million, $7.5 million, and $6.4 million for the years ended December 31, 2024, 2023, and 2022, respectively[462]. - Unrecognized stock-based compensation related to unvested stock options as of December 31, 2024, amounted to $17.1 million, to be recognized over a weighted average period of 2.49 years[463]. - As of December 31, 2024, unrecognized stock-based compensation related to unvested RSUs was $57.0 million, to be recognized over a weighted average period of 2.50 years[469]. Acquisitions and Investments - Future acquisitions or strategic investments may be challenging to identify and integrate, potentially disrupting business operations[26]. - The Company acquired ConsultMates, Inc. for $30.8 million, with $23.3 million attributed to goodwill[447]. - Goodwill remained stable at $29.6 million as of December 31, 2024, with no accumulated impairment losses[448]. Market and Competition - The company operates in a highly competitive digital advertising industry, which could impact its revenue and financial condition[24]. - The company is focused on maintaining a consistent supply of quality advertising inventory to support growth and profitability[17]. - The company’s success depends on its ability to attract and retain publishers and expand the utilization of its buyers[17]. Legal and Regulatory - The company is subject to evolving legal and industry standards regarding data protection and consumer privacy, which could impact operations[17]. - The company has not entered into any hedging arrangements for foreign currency risk, which may expose it to fluctuations in exchange rates[344]. Taxation - The Company had a total provision for income taxes of $5.270 million for the year ended December 31, 2024, with an effective tax rate of 29.64%[478]. - The Company reported total deferred tax assets of $47,860 thousand as of December 31, 2024, an increase from $32,537 thousand in 2023[479]. - The net deferred income tax asset increased to $24,864 thousand in 2024 from $13,880 thousand in 2023[479]. - The Company recognized gross unrecognized income tax benefits of $4,695 thousand at the end of 2024, up from $4,381 thousand in 2023[483]. Assets and Liabilities - The Company’s property, equipment, and software, net totaled $58.522 million in 2024, a decrease from $60.729 million in 2023, reflecting a decline of approximately 3.6%[432]. - The total accounts payable increased to $386.602 million in 2024 from $347.673 million in 2023, representing an increase of approximately 11.2%[435]. - The Company’s accrued liabilities increased to $26.365 million in 2024 from $25.684 million in 2023, marking an increase of approximately 2.7%[436]. - The Company’s depreciation and amortization expense related to property, equipment, and software was $24.8 million in 2024, down from $28.5 million in 2023, indicating a decrease of approximately 13.0%[432]. Lease Obligations - Operating lease costs increased to $8,536,000 in 2024 from $7,468,000 in 2023, representing a 14.3% increase[443]. - Total lease costs rose to $8,722,000 in 2024 compared to $7,657,000 in 2023, marking an increase of 13.9%[443]. - Operating lease right-of-use assets increased to $44,402,000 in 2024 from $21,102,000 in 2023, a growth of 110%[445]. - Total operating lease liabilities rose to $45,381,000 in 2024, up from $21,843,000 in 2023, indicating a 107% increase[445]. Foreign Currency and Exchange Rates - A hypothetical 10% change in the U.S. Dollar to Indian Rupee exchange rate could result in a change of $2.2 million in operating income for the year ended December 31, 2024[344]. - The company recognized a net foreign currency loss of $1.5 million for the year ended December 31, 2023, compared to a gain of $1.1 million in 2024 and a gain of $0.7 million in 2022[417].