PubMatic(PUBM) - 2024 Q4 - Annual Results

Revenue and Growth - Fiscal Year 2024 revenue was $291.3 million, a 9% increase from $267.0 million in 2023[5] - Revenue from CTV in Q4 2024 more than doubled year-over-year, accounting for 20% of total revenue[2] - Revenue from omnichannel video grew 37% year-over-year in 2024[11] - Total revenue for Q4 2024 was $85,502, a slight increase from $84,600 in Q4 2023, while total revenue for the year reached $291,256, up from $267,014 in 2023, representing a year-over-year growth of 9%[30] - The company expects underlying business growth of over 15% in 2025, excluding revenue from a specific DSP buyer[8] Profitability and Income - Adjusted EBITDA for FY 2024 was $92.3 million, representing a 32% margin, up from $75.3 million and 28% margin in 2023[5] - GAAP net income for FY 2024 was $12.5 million, or $0.23 per diluted share, compared to $8.9 million, or $0.16 per diluted share in 2023[5] - Net income for Q4 2024 was $13,899, down from $18,702 in Q4 2023, with annual net income increasing to $12,504 from $8,881, reflecting a growth of 41% year-over-year[30] - Adjusted EBITDA for Q4 2024 was $37,646, compared to $38,906 in Q4 2023, with an adjusted EBITDA margin of 44% for Q4 2024, down from 46% in Q4 2023[35] - Non-GAAP net income for Q4 2024 was $21,443, down from $24,449 in Q4 2023, with non-GAAP diluted EPS at $0.41 compared to $0.45 in the prior year[35] Cash Flow and Liquidity - Free cash flow in 2024 was $34.9 million, a decrease of 34% compared to 2023[10] - Cash and cash equivalents increased to $100,452 as of December 31, 2024, from $78,509 at the end of 2023, indicating a significant improvement in liquidity[28] - Total cash flow from operating activities for the year ended December 31, 2024, was $73.425 million, compared to $81.121 million in 2023[37] - The company reported a decrease in free cash flow for the year, totaling $34.897 million compared to $52.833 million in 2023[37] Assets and Liabilities - Total cash, cash equivalents, and marketable securities at the end of 2024 were $140.6 million, down 20% from 2023[10] - Total assets rose to $739,519 in 2024 from $695,243 in 2023, while total liabilities increased to $462,256 from $399,044, resulting in a decrease in stockholders' equity from $296,199 to $277,263[28] Operational Efficiency - Supply Path Optimization represented 53% of total activity in 2024, an increase from 45% in 2023[16] - The company recorded a bad debt expense of $5.7 million due to a Chapter 11 bankruptcy filing by a Demand Side Platform buyer, impacting both GAAP net income and adjusted EBITDA results for the year[32] - Stock-based compensation expense for the year was $37,676, up from $28,862 in 2023, reflecting increased compensation costs associated with employee stock options[32] - The overall financial performance indicates a strategic shift towards optimizing operational costs and improving cash flow management[37] - The company is focusing on enhancing its integration capabilities with major platforms to drive future growth[37] Capital Expenditures - Purchases of property and equipment in Q4 2024 were $4.324 million, compared to $5.177 million in Q4 2023[37] - Capitalized software development costs for the year ended December 31, 2024, were $20.936 million, up from $17.687 million in 2023[37]