PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results
PubMatic (PUBM) reported strong financial results for FY 2024, with revenue reaching $291.3 million, up 9% from 2023. The company achieved net income of $12.5 million (4% margin) and adjusted EBITDA of $92.3 million (32% margin), up 23% year-over-year.
Notable highlights include CTV revenue doubling in Q4, representing 20% of total revenue. Supply Path Optimization reached 53% of total platform activity. The company repurchased 4.3 million shares, representing 7.9% of fully diluted shares.
Key financial metrics include gross profit of $190.2 million (65% margin), omnichannel video growth of 37%, and net dollar-based retention of 107%. The company maintains a strong balance sheet with $140.6 million in cash and no debt.
PubMatic (PUBM) ha riportato risultati finanziari solidi per l'anno fiscale 2024, con un fatturato che ha raggiunto 291,3 milioni di dollari, in aumento del 9% rispetto al 2023. L'azienda ha ottenuto un utile netto di 12,5 milioni di dollari (margine del 4%) e un EBITDA rettificato di 92,3 milioni di dollari (margine del 32%), in crescita del 23% rispetto all'anno precedente.
Tra i punti salienti, si segnala il raddoppio del fatturato CTV nel quarto trimestre, che rappresenta il 20% del fatturato totale. L'ottimizzazione del percorso di fornitura ha raggiunto il 53% dell'attività totale della piattaforma. L'azienda ha riacquistato 4,3 milioni di azioni, pari al 7,9% delle azioni completamente diluite.
I principali indicatori finanziari includono un utile lordo di 190,2 milioni di dollari (margine del 65%), una crescita video omnichannel del 37% e una retention netta basata sui dollari del 107%. L'azienda mantiene un solido bilancio con 140,6 milioni di dollari in contante e senza debiti.
PubMatic (PUBM) reportó resultados financieros sólidos para el año fiscal 2024, con ingresos alcanzando 291.3 millones de dólares, un aumento del 9% en comparación con 2023. La compañía logró un ingreso neto de 12.5 millones de dólares (margen del 4%) y un EBITDA ajustado de 92.3 millones de dólares (margen del 32%), un incremento del 23% interanual.
Entre los aspectos destacados se incluye el duplicado de ingresos de CTV en el cuarto trimestre, representando el 20% de los ingresos totales. La Optimización del Camino de Suministro alcanzó el 53% de la actividad total de la plataforma. La compañía recompró 4.3 millones de acciones, que representan el 7.9% de las acciones totalmente diluidas.
Los principales métricas financieras incluyen una ganancia bruta de 190.2 millones de dólares (margen del 65%), un crecimiento de video omnicanal del 37% y una retención neta basada en dólares del 107%. La empresa mantiene un balance sólido con 140.6 millones de dólares en efectivo y sin deudas.
PubMatic (PUBM)는 2024 회계연도에 강력한 재무 결과를 보고했으며, 수익은 2억 9130만 달러에 도달하여 2023년 대비 9% 증가했습니다. 이 회사는 1250만 달러의 순이익을 달성했으며(4% 마진), 조정된 EBITDA는 9230만 달러에 달해(32% 마진) 전년 대비 23% 증가했습니다.
주요 하이라이트로는 CTV 수익이 4분기 동안 두 배로 증가하여 전체 수익의 20%를 차지했습니다. 공급 경로 최적화는 전체 플랫폼 활동의 53%에 도달했습니다. 이 회사는 430만 주를 재매입했으며, 이는 완전 희석 주식의 7.9%에 해당합니다.
주요 재무 지표에는 1억 9020만 달러의 총 이익(65% 마진), 37%의 옴니채널 비디오 성장, 107%의 순 달러 기반 유지율이 포함됩니다. 이 회사는 1억 4060만 달러의 현금을 보유하고 있으며 부채가 없습니다.
PubMatic (PUBM) a annoncé des résultats financiers solides pour l'exercice 2024, avec des revenus atteignant 291,3 millions de dollars, en hausse de 9 % par rapport à 2023. L'entreprise a réalisé un revenu net de 12,5 millions de dollars (marge de 4 %) et un EBITDA ajusté de 92,3 millions de dollars (marge de 32 %), en hausse de 23 % d'une année sur l'autre.
Parmi les points forts, on note le doublement des revenus CTV au quatrième trimestre, représentant 20 % des revenus totaux. L'optimisation du chemin d'approvisionnement a atteint 53 % de l'activité totale de la plateforme. L'entreprise a racheté 4,3 millions d'actions, représentant 7,9 % des actions entièrement diluées.
Les principaux indicateurs financiers incluent un bénéfice brut de 190,2 millions de dollars (marge de 65 %), une croissance vidéo omnicanal de 37 % et une rétention nette basée sur le dollar de 107 %. L'entreprise maintient un bilan solide avec 140,6 millions de dollars en liquidités et sans dettes.
PubMatic (PUBM) hat starke finanzielle Ergebnisse für das Geschäftsjahr 2024 gemeldet, mit einem Umsatz von 291,3 Millionen Dollar, was einem Anstieg von 9% im Vergleich zu 2023 entspricht. Das Unternehmen erzielte einen Nettoertrag von 12,5 Millionen Dollar (4% Marge) und ein bereinigtes EBITDA von 92,3 Millionen Dollar (32% Marge), was einem Anstieg von 23% im Jahresvergleich entspricht.
Zu den bemerkenswerten Höhepunkten gehört die Verdopplung der CTV-Umsätze im vierten Quartal, die 20% des Gesamtumsatzes ausmacht. Die Optimierung des Lieferpfades erreichte 53% der gesamten Plattformaktivität. Das Unternehmen hat 4,3 Millionen Aktien zurückgekauft, was 7,9% der vollständig verwässerten Aktien entspricht.
Wichtige Finanzkennzahlen umfassen einen Bruttogewinn von 190,2 Millionen Dollar (65% Marge), ein Wachstum des omnichannel Videos von 37% und eine Netto-Dollar-Basis-Retention von 107%. Das Unternehmen weist eine starke Bilanz mit 140,6 Millionen Dollar in bar und ohne Schulden auf.
- Revenue grew 9% to $291.3M in FY2024
- CTV revenue doubled YoY in Q4, reaching 20% of total revenue
- Adjusted EBITDA increased 23% to $92.3M
- Omnichannel video revenue grew 37%
- Net dollar-based retention at 107%
- Strong balance sheet with $140.6M cash and no debt
- Free cash flow declined 34% YoY
- Cash position decreased 20% YoY
- Q4 revenue growth slowed to 1% YoY
- Q4 GAAP net income margin declined to 16% from 22% YoY
Insights
PubMatic's FY 2024 results demonstrate the company's successful evolution toward higher-value digital advertising segments, with revenue reaching $291.3 million (up 9% YoY) and adjusted EBITDA of $92.3 million (32% margin, up 23% YoY). The standout story is the dramatic shift in revenue mix, with CTV more than doubling in Q4 to represent 20% of total revenue, positioning PubMatic to capture more premium advertising budgets.
The company's infrastructure optimization is yielding significant efficiency gains, processing 25% more impressions while reducing per-impression costs by 18%. This operational leverage helped expand adjusted EBITDA margins by 400 basis points year-over-year despite ongoing investments in growth initiatives.
However, Q4 results reveal concerning near-term headwinds. Revenue growth decelerated sharply to just 1% YoY, primarily due to a major DSP buyer that changed its auction approach in May 2024. This single relationship appears to be masking otherwise healthy growth in PubMatic's underlying business. Management's Q1 2025 guidance ($61-63 million revenue) implies a substantial 27-29% sequential decline from Q4, suggesting this DSP issue may have a more significant impact than initially anticipated.
The company's capital allocation strategy heavily favors share repurchases, with $134.6 million used to buy back 8.3 million shares through year-end 2024. While this reduced share count by nearly 8% in 2024 alone, it contributed to a 20% YoY reduction in cash reserves. Meanwhile, free cash flow declined 34% YoY despite EBITDA growth, raising questions about the sustainability of both aggressive buybacks and necessary growth investments.
Looking ahead, management's projection of 15%+ growth in the underlying business (excluding the impacted DSP and political advertising) in 2025 suggests confidence in their strategic positioning. The expansion beyond traditional ad monetization into data curation, CTV marketplaces, and commerce media networks has effectively doubled PubMatic's addressable market to $120+ billion, providing multiple avenues for long-term growth once the DSP headwind subsides after Q2 2025.
PubMatic's 2024 results reveal a company successfully executing a strategic pivot toward high-growth, premium advertising channels. The standout achievement is their breakthrough in CTV, where revenue more than doubled year-over-year to represent 20% of Q4 revenue. This positions PubMatic as a significant player in the fastest-growing segment of digital advertising, where CPMs are typically 3-5x higher than traditional display formats.
The company has strategically expanded its streaming publisher relationships to include 80% of the top 30 streaming publishers including Roku, Disney+ Hotstar, and Dish Media. This inventory quality advantage is critical as advertisers increasingly prioritize premium, brand-safe environments amid growing concerns about fraud and viewability in the open web.
PubMatic's technology stack has evolved beyond traditional SSP functionality into a comprehensive platform serving four distinct stakeholder groups. Their Activate platform (growing 6x YoY in customer count) enables curated marketplaces that package inventory with data for easier buying, while Connect now offers 190 data sets for improved targeting. These innovations directly address the industry's shift toward curated supply paths and first-party data solutions as third-party cookies phase out.
The company's AI investments are delivering tangible results, with engineering productivity increasing 15%+ through generative AI tools. Their Creative Category Manager solution proved particularly valuable during the political advertising season, enabling precise creative classification that unlocked significant CTV political ad revenue that would have otherwise been inaccessible.
The headwind from a major DSP revising its auction approach warrants careful monitoring. While management frames this as temporary, it potentially signals a broader industry shift in how demand platforms approach supply partnerships. The fact that this single relationship can materially impact overall growth highlights both a concentration risk and the importance of PubMatic's strategy to diversify revenue streams.
Looking ahead, PubMatic's expansion into commerce media networks positions them to capitalize on retail media's explosive growth. By offering the infrastructure for retailers to build their own ad platforms, PubMatic can tap into high-margin advertising budgets that are increasingly shifting toward point-of-purchase environments where conversion intent is highest.
FY Revenue of
Delivered FY 2024 net income of
FY adjusted EBITDA increased
Revenue in Q4 from CTV more than doubled year over year and represented
Supply Path Optimization represented
Repurchased 4.3 million shares in 2024, representing
NO-HEADQUARTERS/REDWOOD CITY, Calif., Feb. 27, 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 fourth quarter and fiscal year ended December 31, 2024.
“Revenue growth in the year more than doubled over 2023, driven by strength in CTV, emerging revenue streams, and marquee customers choosing PubMatic to build and scale their ad businesses. Our revenue mix is evolving; in the fourth quarter, CTV more than doubled to
Fiscal Year 2024 Financial Highlights
- Revenue for the full year 2024 was
$291.3 million , an increase of9% over$267.0 million in 2023; - Gross profit was
$190.2 million , or65% margin, an improvement of 250 basis points over 2023; - Revenue from omnichannel video in 2024 grew
37% over the same period last year; - Net dollar-based retention1 was
107% for the year ended December 31, 2024; - GAAP net income was
$12.5 million with a margin of4% , or$0.23 per diluted share in 2024, an increase over net income2 of$8.9 million with a margin of3% , or$0.16 per diluted share in 2023; - Adjusted EBITDA was
$92.3 million , or32% margin, an increase over adjusted EBITDA of$75.3 million , or28% margin, in 2023; - Non-GAAP net income was
$42.5 million , or$0.78 per non-GAAP diluted share in 2024, an increase over non-GAAP net income of$32.0 million , or$0.57 per non-GAAP diluted share in 2023; - Net cash provided by operating activities in 2024 was
$73.4 million , compared to$81.1 million in the full year 2023; - Generated free cash flow of
$34.9 million in 2024, down34% over 2023; - Ended 2024 with total cash, cash equivalents, and marketable securities of
$140.6 million with no debt, a decrease of20% over the full year 2023; and - Through December 31, 2024, used
$134.6 million in cash to repurchase 8.3 million shares of Class A common stock with$40.4 million available from the 2024 repurchase program.
Fourth Quarter 2024 Financial Highlights
- Revenue in the fourth quarter of 2024 was
$85.5 million , an increase of1% over$84.6 million in the same period of 2023; - GAAP net income was
$13.9 million with a margin of16% , or$0.26 per diluted share in the fourth quarter, compared to GAAP net income of$18.7 million with a margin of22% , or$0.34 per diluted share in the same period of 2023; - Adjusted EBITDA was
$37.6 million , or44% margin, compared to$38.9 million , or46% margin in the same period of 2023; - Non-GAAP net income was
$21.4 million , or$0.41 per non-GAAP diluted share in the fourth quarter, compared to non-GAAP net income of$24.4 million , or$0.45 per non-GAAP diluted share in the same period of 2023; and - Net cash provided by operating activities was
$18.0 million , compared to$28.7 million in the same period of 2023.
The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.
“In 2024, we delivered record share of revenue for CTV, mobile app and emerging revenues, and achieved an all-time high of Supply Path Optimization activity. We also significantly expanded our margins, once again, demonstrating the strength of our durable model and our strategic commitment to steward both operational excellence and targeted investments for growth,” said Steve Pantelick, CFO at PubMatic. “In Q4, strong growth in the underlying business helped offset softer spending from the large DSP buyer we previously called out mid year. Going forward, we are taking a conservative approach as it relates to this buyer, and expect total revenues to grow year over year in the second half of the year once we lap this impact at the end of Q2 2025. Our underlying business, which excludes revenue from this DSP and political, is targeted to grow
Business Highlights
Omnichannel platform drives revenue in key secular growth areas
- Full year revenue from high value formats and channels, mobile and omnichannel video3, grew
17% over 2023. - In Q4, revenue from omnichannel video, which includes CTV, grew
37% year-over-year. - CTV reached scale, and was
20% of revenue in the fourth quarter, driven by growing inventory supply, SPO relationships, and strength in political advertising. - Revenue from mobile app grew
16% over 2023 as we scaled to over 900 mobile app publishers.
High consumer engagement channels fuel ad demand and sell-side data curation
- New and expanded partnerships announced in 2024 with premium streaming brands including Roku, Dish Media, Disney+ Hotstar, TCL and Xumo. We now work with
80% of the top 30 streaming publishers. - The number of Activate customers grew nearly 6x over 2023.
- Supply Path Optimization represented
53% of total activity on our platform in 2024, up from45% in 2023. - Connect drives more performant, targeted ad campaigns across the open internet, offering 190 data sets to ad buyers on PubMatic. Connect is a leading platform for data providers and curators to integrate first-party data, package inventory, sell to, and optimize outcomes for ad buyers.
Focused investments drive long-term growth opportunities
- More than doubled total addressable market to over
$120 billion via products that address four key stakeholders across the digital advertising ecosystem: publishers, media buyers, curators and data providers, and commerce media networks. - Contribution from emerging revenue streams, which expand beyond ad monetization services, doubled from 2023.
Recent product launches
- Launched CTV Marketplaces, offering ad buyers pre-curated CTV inventory available only on PubMatic, built directly from our sell side technology. CTV Marketplaces allows publishers to unlock more value from their inventory and provides ad buyers off-the-shelf, easy to buy premium content and targeted audiences, including curated live sports inventory.
- Launched Creative Category Manager, a generative AI solution that scans and classifies each video ad creative on granular criteria. First used to unlock millions of dollars in political ad spend, it drove significant CTV revenue. This gen AI solution will soon expand to other use cases and verticals.
- Launched PubMatic Assistant, a gen AI powered reporting tool that allows publishers to request any report or data using simple plain language text queries. As a result, publishers can streamline analytics, enhance productivity and unlock new growth opportunities by uncovering insights in big data. This powerful tool removes barriers to adoption and drives increased platform usage.
2024 operating priorities drove profitable growth
- Aligned with our growth investments, increased global headcount in 2024 by
11% over 2023, adding new team members across product management, engineering and go-to-market teams to accelerate long-term revenue growth. - Infrastructure optimization initiatives and investments drove nearly 263 trillion impressions processed in 2024, an increase of
25% over 2023. - Cost of revenue per million impressions processed decreased
18% on a trailing twelve month period, as compared to the prior period. - Scaled adoption of generative AI drove increased engineering productivity by
15% + which led to faster software development, testing and release processes.
Financial Outlook
Q1 outlook includes the continued headwind from one of our top DSP buyers that revised its auction approach in late May 2024. Adjusted EBITDA expectation assumes a negative FX impact predominately from Euro and Pound Sterling expenses. It also assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.
Accordingly, we estimate the following:
For the first quarter of 2025, we expect the following:
- Revenue to be in the range of
$61 million to$63 million . - Adjusted EBITDA to be in the range of
$5 million to$7 million .
Although we provide guidance for adjusted EBITDA and free cash flow, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information.
Conference Call and Webcast details
PubMatic will host a conference call to discuss its financial results on Thursday, February 27, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income, net cash provided by operating activities, and net income, we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP earnings per share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income adjusted for stock-based compensation expense, depreciation and amortization, unrealized loss and impairment of equity investment, interest income, acquisition-related and other expenses, and provision for income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income as net income adjusted for unrealized loss on equity investments, stock-based compensation expense, acquisition-related and other expenses, and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs.
In addition to operating income and net income, we use adjusted EBITDA and non-GAAP net income as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons:
- Adjusted EBITDA and non-GAAP net income are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,
- Our management uses adjusted EBITDA and non-GAAP net income in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:
- Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) the potentially dilutive impact of stock-based compensation; or (c) tax payments that may represent a reduction in cash available to us;
- Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and
- Non-GAAP net income does not include: (a) unrealized losses resulting from our equity investment; (b) the potentially dilutive impact of stock-based compensation; (c) income tax effects for stock-based compensation and unrealized losses from our equity investment; or (d) acquisition-related and other expenses.
Because of these and other limitations, you should consider adjusted EBITDA and non-GAAP net income along with other GAAP-based financial performance measures, including net income and our GAAP financial results.
Forward Looking Statements
This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the first quarter of 2025, our expectations regarding our adjusted EBITDA, free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth, target revenue and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the resumption of conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation as well as fiscal tightening and volatile interest rates; public health crises, including the resulting global economic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on From 10-Q, copies of are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. All information in this press release is as of February 27, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
About PubMatic
PubMatic is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, PubMatic’s infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) | ||||||||
December 31, 2024 | December 31, 2023 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 100,452 | $ | 78,509 | ||||
Marketable securities | 40,135 | 96,835 | ||||||
Accounts receivable, net | 424,814 | 375,468 | ||||||
Prepaid expenses and other current assets | 10,145 | 11,143 | ||||||
Total current assets | 575,546 | 561,955 | ||||||
Property, equipment and software, net | 58,522 | 60,729 | ||||||
Operating lease right-of-use assets | 44,402 | 21,102 | ||||||
Acquisition-related intangible assets, net | 4,284 | 5,864 | ||||||
Goodwill | 29,577 | 29,577 | ||||||
Deferred tax assets | 24,864 | 13,880 | ||||||
Other assets, non-current | 2,324 | 2,136 | ||||||
TOTAL ASSETS | $ | 739,519 | $ | 695,243 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 386,602 | $ | 347,673 | ||||
Accrued liabilities | 26,365 | 25,684 | ||||||
Operating lease liabilities, current | 5,843 | 6,236 | ||||||
Total current liabilities | 418,810 | 379,593 | ||||||
Operating lease liabilities, non-current | 39,538 | 15,607 | ||||||
Other liabilities, non-current | 3,908 | 3,844 | ||||||
TOTAL LIABILITIES | 462,256 | 399,044 | ||||||
Stockholders' Equity | ||||||||
Common stock | 6 | 6 | ||||||
Treasury stock | (146,796 | ) | (71,103 | ) | ||||
Additional paid-in capital | 275,304 | 230,419 | ||||||
Accumulated other comprehensive loss | (636 | ) | (4 | ) | ||||
Retained earnings | 149,385 | 136,881 | ||||||
TOTAL STOCKHOLDERS’ EQUITY | 277,263 | 296,199 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 739,519 | $ | 695,243 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenue | $ | 85,502 | $ | 84,600 | $ | 291,256 | $ | 267,014 | ||||
Cost of revenue(1) | 24,935 | 24,208 | 101,027 | 99,229 | ||||||||
Gross profit | 60,567 | 60,392 | 190,229 | 167,785 | ||||||||
Operating expenses:(1) | ||||||||||||
Technology and development | 7,831 | 6,846 | 33,263 | 26,727 | ||||||||
Sales and marketing | 23,763 | 20,353 | 95,369 | 82,803 | ||||||||
General and administrative(2) | 14,171 | 12,780 | 57,670 | 56,219 | ||||||||
Total operating expenses | 45,765 | 39,979 | 186,302 | 165,749 | ||||||||
Operating income | 14,802 | 20,413 | 3,927 | 2,036 | ||||||||
Total other income, net | 3,618 | 2,632 | 13,847 | 8,469 | ||||||||
Income before income taxes | 18,420 | 23,045 | 17,774 | 10,505 | ||||||||
Provision for income taxes | 4,521 | 4,343 | 5,270 | 1,624 | ||||||||
Net income | $ | 13,899 | $ | 18,702 | $ | 12,504 | $ | 8,881 | ||||
Net income per share attributable to common stockholders: | ||||||||||||
Basic | $ | 0.29 | $ | 0.37 | $ | 0.25 | $ | 0.17 | ||||
Diluted | $ | 0.26 | $ | 0.34 | $ | 0.23 | $ | 0.16 | ||||
Weighted-average shares used to compute net income per share attributable to common stockholders: | ||||||||||||
Basic | 47,993 | 50,659 | 49,213 | 51,760 | ||||||||
Diluted | 52,623 | 54,940 | 54,294 | 56,027 | ||||||||
(1)Stock-based compensation expense includes the following: | ||||||||||||
STOCK BASED COMPENSATION EXPENSE (In thousands) (unaudited) | ||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Cost of revenue | $ | 438 | $ | 383 | $ | 1,855 | $ | 1,472 | ||||
Technology and development | 1,625 | 1,137 | 6,313 | 4,346 | ||||||||
Sales and marketing | 3,247 | 2,589 | 13,407 | 10,462 | ||||||||
General and administrative | 4,099 | 3,228 | 16,101 | 12,582 | ||||||||
Total stock-based compensation | $ | 9,409 | $ | 7,337 | $ | 37,676 | $ | 28,862 | ||||
(2)On June 30, 2023, a Demand Side Platform buyer of our platform filed for Chapter 11 bankruptcy. As a result of this bankruptcy, we recorded incremental bad debt expense of
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) (unaudited) | ||||||||
December 31, | ||||||||
2024 | 2023 | |||||||
CASH FLOW FROM OPERATING ACTIVITIES: | ||||||||
Net Income | $ | 12,504 | $ | 8,881 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 45,352 | 44,770 | ||||||
Stock-based compensation | 37,676 | 28,862 | ||||||
Provision for doubtful accounts | — | 5,675 | ||||||
Deferred income taxes | (10,984 | ) | (13,406 | ) | ||||
Accretion of discount on marketable securities | (4,117 | ) | (4,093 | ) | ||||
Non-cash lease expense | 6,801 | 6,145 | ||||||
Other | (25 | ) | 45 | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (49,345 | ) | (75,716 | ) | ||||
Prepaid expenses and other current assets | (5,826 | ) | 3,918 | |||||
Accounts payable | 38,096 | 79,687 | ||||||
Accrued liabilities | 9,627 | 3,035 | ||||||
Operating lease liabilities | (6,531 | ) | (5,789 | ) | ||||
Other liabilities, non-current | 197 | (893 | ) | |||||
Net cash provided by operating activities | 73,425 | 81,121 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of and deposits on property and equipment | (17,592 | ) | (10,601 | ) | ||||
Capitalized software development costs | (20,936 | ) | (17,687 | ) | ||||
Purchases of marketable securities | (142,016 | ) | (140,603 | ) | ||||
Proceeds from sales of marketable securities | — | 18,873 | ||||||
Proceeds from maturities of marketable securities | 202,858 | 111,000 | ||||||
Net cash provided by (used in) investing activities | 22,314 | (39,018 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Payment of business combination indemnification claims holdback | (2,148 | ) | — | |||||
Proceeds from issuance of common stock for employee stock purchase plan | 2,368 | 1,869 | ||||||
Proceeds from exercise of stock options | 1,765 | 1,549 | ||||||
Principal payments on finance lease obligations | (131 | ) | (126 | ) | ||||
Payments to acquire treasury stock | (75,332 | ) | (59,268 | ) | ||||
Net cash used in financing activities | (73,478 | ) | (55,976 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 22,261 | (13,873 | ) | |||||
Effect of foreign currency on cash | (318 | ) | — | |||||
CASH AND CASH EQUIVALENTS - Beginning of year | 78,509 | 92,382 | ||||||
CASH AND CASH EQUIVALENTS - End of year | $ | 100,452 | $ | 78,509 |
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA AND NON-GAAP NET INCOME (In thousands, except per share amounts) (unaudited) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Reconciliation of net income: | ||||||||||||||||
Net income | $ | 13,899 | $ | 18,702 | $ | 12,504 | $ | 8,881 | ||||||||
Add back (deduct): | ||||||||||||||||
Stock-based compensation | 9,409 | 7,337 | 37,676 | 28,862 | ||||||||||||
Depreciation and amortization | 11,421 | 11,039 | 45,352 | 44,770 | ||||||||||||
Interest income | (1,604 | ) | (2,515 | ) | (8,477 | ) | (8,828 | ) | ||||||||
Provision for income taxes | 4,521 | 4,343 | 5,270 | 1,624 | ||||||||||||
Adjusted EBITDA1 | $ | 37,646 | $ | 38,906 | $ | 92,325 | $ | 75,309 | ||||||||
Revenue | $ | 85,502 | $ | 84,600 | $ | 291,256 | $ | 267,014 | ||||||||
Adjusted EBITDA margin | 44 | % | 46 | % | 32 | % | 28 | % |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Reconciliation of net income per share: | ||||||||||||||||
Net income | $ | 13,899 | $ | 18,702 | $ | 12,504 | $ | 8,881 | ||||||||
Add back (deduct): | ||||||||||||||||
Stock-based compensation | 9,409 | 7,337 | 37,676 | 28,862 | ||||||||||||
Adjustment for income taxes | (1,865 | ) | (1,590 | ) | (7,728 | ) | (5,695 | ) | ||||||||
Non-GAAP net income1 | $ | 21,443 | $ | 24,449 | $ | 42,452 | $ | 32,048 | ||||||||
GAAP diluted EPS | $ | 0.26 | $ | 0.34 | $ | 0.23 | $ | 0.16 | ||||||||
Non-GAAP diluted EPS | $ | 0.41 | $ | 0.45 | $ | 0.78 | $ | 0.57 | ||||||||
GAAP weighted average shares outstanding—diluted | 52,623 | 54,940 | 54,294 | 56,027 | ||||||||||||
Non-GAAP weighted average shares outstanding—diluted | 52,623 | 54,940 | 54,294 | 56,027 |
SUPPLEMENTAL CASH FLOW INFORMATION COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE (In thousands) (unaudited) | ||||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Reconciliation of cash provided by operating activities: | ||||||||||||||||
Net cash provided by operating activities | $ | 18,048 | $ | 28,674 | $ | 73,425 | $ | 81,121 | ||||||||
Less: Purchases of property and equipment | (4,324 | ) | (5,177 | ) | (17,592 | ) | (10,601 | ) | ||||||||
Less: Capitalized software development costs | (4,868 | ) | (3,962 | ) | (20,936 | ) | (17,687 | ) | ||||||||
Free cash flow | $ | 8,856 | $ | 19,535 | $ | 34,897 | $ | 52,833 | ||||||||
1 Net income, Adjusted EBITDA, and Non-GAAP net income for the twelve months ended December 31, 2024 include other income of
1 Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended December 31, 2023 (“Prior Period Revenue”). We then calculate the revenue from these same publishers in the trailing twelve months ended December 31, 2024 (“Current Period Revenue”). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods.
2 Fiscal year 2023 GAAP net income includes approximately
3 Omnichannel video spans across desktop, mobile and CTV devices.
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FAQ
What was PubMatic's (PUBM) revenue growth in FY 2024?
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