PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results

Core Insights - PubMatic reported FY 2024 revenue of $291.3 million, a 9% increase from$ 267.0 million in FY 2023, with a net income of $12.5 million, representing a 4% margin [1][5] - The company achieved an adjusted EBITDA of$ 92.3 million, reflecting a 23% increase over the previous year, with a margin of 32% [1][5] - In Q4 2024, revenue from Connected TV (CTV) more than doubled year-over-year, accounting for 20% of total revenue [1][2] Financial Performance - FY 2024 gross profit was $190.2 million, yielding a 65% margin, an improvement of 250 basis points from FY 2023 [5] - Q4 2024 revenue was$ 85.5 million, a slight increase of 1% from $84.6 million in Q4 2023 [5] - GAAP net income for Q4 2024 was$ 13.9 million, with a margin of 16%, compared to $18.7 million and a margin of 22% in Q4 2023 [5][11] Business Highlights - The revenue mix is evolving, with CTV revenue growing significantly, indicating a shift towards high consumer engagement channels [2][12] - Supply Path Optimization (SPO) accounted for 53% of total activity in 2024, up from 45% in 2023 [1][12] - The company expanded its partnerships with major streaming brands, now collaborating with 80% of the top 30 streaming publishers [12] Strategic Initiatives - PubMatic launched several new products, including CTV Marketplaces and Creative Category Manager, aimed at enhancing ad buying efficiency and targeting [12][13] - The company increased its global headcount by 11% in 2024 to support long-term growth initiatives [18] - Generative AI adoption improved engineering productivity by over 15%, facilitating faster software development and release processes [18] Market Outlook - The company anticipates continued growth in 2025, with expectations of a 15%+ increase in underlying business revenue, excluding certain buyers [7][15] - The total addressable market has been expanded to over$ 120 billion, targeting key stakeholders in the digital advertising ecosystem [12]