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PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results

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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.

Positive
  • 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
Negative
  • 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 $291.3 million, up 9% over 2023;

Delivered FY 2024 net income of $12.5 million or 4% margin;

FY adjusted EBITDA increased 23% over 2023 and was $92.3 million or 32% margin;

Revenue in Q4 from CTV more than doubled year over year and represented 20% of total revenue;

Supply Path Optimization represented 53% of total activity in 2024;

Repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024

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 20% of total revenue. These achievements mark an inflection point in our underlying business that highlights critical scale on our platform and a significant shift in ad buying toward channels with the highest consumer engagement such as CTV, mobile app and commerce media,” said Rajeev Goel, co-founder and CEO at PubMatic. “Today, our omnichannel platform serves publishers, media buyers, commerce media networks, and curation/data providers, all of which are turning to sell side technology for critical end-to-end solutions needed to build their ad businesses. As we look to 2025, we expect accelerated growth in our underlying business as ad buyers seek premium, brand safe, curated inventory in the open internet.”

Fiscal Year 2024 Financial Highlights

  • Revenue for the full year 2024 was $291.3 million, an increase of 9% over $267.0 million in 2023;
  • Gross profit was $190.2 million, or 65% 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 of 4%, or $0.23 per diluted share in 2024, an increase over net income2 of $8.9 million with a margin of 3%, or $0.16 per diluted share in 2023;
  • Adjusted EBITDA was $92.3 million, or 32% margin, an increase over adjusted EBITDA of $75.3 million, or 28% 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, down 34% over 2023;
  • Ended 2024 with total cash, cash equivalents, and marketable securities of $140.6 million with no debt, a decrease of 20% 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 of 1% over $84.6 million in the same period of 2023;
  • GAAP net income was $13.9 million with a margin of 16%, or $0.26 per diluted share in the fourth quarter, compared to GAAP net income of $18.7 million with a margin of 22%, or $0.34 per diluted share in the same period of 2023;
  • Adjusted EBITDA was $37.6 million, or 44% margin, compared to $38.9 million, or 46% 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 15%+ and represent over two thirds of total company revenues in 2025.”

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 from 45% 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 $5.7 million which is reflected in our GAAP net income and adjusted EBITDA results for the year ended December 31, 2023.

 
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 $4.0 million related to our efforts to build and test integrations with the Google Privacy Sandbox.


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 $5.7 million of incremental bad debt expense related to the bankruptcy of a Demand Side Platform buyer of our platform.
3 Omnichannel video spans across desktop, mobile and CTV devices.


FAQ

What was PubMatic's (PUBM) revenue growth in FY 2024?

PubMatic's revenue grew 9% to $291.3 million in FY 2024 compared to $267.0 million in 2023.

How much did PUBM's CTV revenue grow in Q4 2024?

CTV revenue more than doubled year-over-year in Q4 2024, representing 20% of total revenue.

What was PubMatic's share repurchase activity in 2024?

PUBM repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024.

What was PUBM's adjusted EBITDA margin in 2024?

PubMatic achieved an adjusted EBITDA margin of 32% in 2024, with adjusted EBITDA of $92.3 million.

How much cash does PubMatic (PUBM) have on its balance sheet?

PUBM ended 2024 with $140.6 million in total cash, cash equivalents, and marketable securities, with no debt.

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