NASDAQ$PUBM

PUBMATIC INC-CLASS A · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

PubMatic's first quarter performance in 2023 was driven by a focused strategy, strong execution, and deep customer relationships, leading to market share gains.

PubMatic reported revenue of $55.4 million, a GAAP net loss of $5.9 million, and a non-GAAP net income of $0.9 million for Q1 2023. The company's revenue increased by 2% year-over-year, with omnichannel video revenue growing by 13%.

  • Revenue in the first quarter of 2023 was $55.4 million, an increase of 2% over the same period of 2022.
  • Revenue from omnichannel video in the first quarter of 2023 grew 13% over the same period last year.
  • Supply path optimization accelerated to over 35% of total activity on our platform in Q1 2023, up from approximately 27% a year ago.
  • Added over 65 publishers to the platform in the first quarter.

Headline financials

Total Revenue

$55.4M

Previous: $54.6M+1.6%
EPS (adj)

$0.02

Previous: $0.14-85.7%
Capital Expenditures

-$1.42M

Previous: -$148K-857.4%
Free Cash Flow

-$7.29M

Previous: $4.63M-257.4%
Net Income

-$5.87M

Previous: $4.78M-222.8%
Operating Income

-$10.7M

Previous: $4.58M-333.0%
Gross Profit

$31.5M

Previous: $36.6M-13.7%
Cash & Equivalents

$79.3M

Previous: $74.5M+6.4%
Total Assets

$577M

Previous: $498M+16.0%

Revenue & EPS history

PubMatic · Revenue · Quarterly

$55.4M

Q1 2023+1.6%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

PubMatic · $16.6M total across 1 segment · Q1 2023

  • Omnichannel Video
    $16.6M

Forward guidance

For the second quarter of 2023, PubMatic expects revenue to be between $58 million to $61 million and adjusted EBITDA to be in the range of $13 million to $15 million, representing approximately a 23% margin at the midpoint. For full year 2023, the company expects adjusted EBITDA margin to be 30%+, free cash flow on par with 2022 and CapEx to be in the range of $12M – $15M, a decrease of more than 60% over 2022.

Tailwinds

  • Revenue to be between $58 million to $61 million.
  • Adjusted EBITDA to be in the range of $13 million to $15 million, representing approximately a 23% margin at the midpoint.
  • Adjusted EBITDA margin to be 30%+
  • Free cash flow on par with 2022
  • CapEx to be in the range of $12M – $15M, a decrease of more than 60% over 2022.

Headwinds

  • Macroeconomic conditions continue to be challenging and advertisers remain cautious.
  • Arguably new sources of uncertainty have emerged that may impact consumer spending such as US Fed interest rate plans, the growing perception that inflation is stickier than expected and the effect of tightening credit conditions related to debt ceiling discussions and US banking system concerns.
  • The investment plan assumes a low to mid single digit rate of growth for digital advertising in 2023.
  • Advertisers remain cautious.
  • New sources of uncertainty have emerged that may impact consumer spending.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+2.6%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+3.5%

Avg return

30 days after

52%

12 / 23 earnings

Positive

+43.5%

Q3 2025

Best reaction

-36.0%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-3.6%+13.9%
Q4 2025+14.7%+23.5%+15.8%
Q3 2025+43.5%+23.3%+22.0%
Q1 2025+1.1%+6.5%+9.6%
Q4 2024-23.9%-23.3%-33.6%
Q3 2024-0.7%-9.1%+1.0%
Q2 2024-25.8%-25.4%-23.5%
Q1 2024-4.0%-4.4%-9.3%
Q4 2023+25.2%+28.8%+42.2%
Q3 2023+24.5%+23.8%+42.3%
Q2 2023-36.0%-30.8%-30.2%
Q1 2023+13.4%+21.5%+49.8%
Q4 2022-7.6%-10.2%-11.0%
Q3 2022-14.0%+0.4%-15.6%
Q2 2022+26.1%+34.0%+8.6%
Q1 2022-10.1%+3.0%-5.4%
Q4 2019-22.6%-29.1%-14.6%
Q4 2021-13.0%-25.5%-7.6%
Q3 2020+24.3%+19.3%+20.3%
Q3 2021+17.2%+31.8%+29.3%
Q2 2021+10.2%-5.6%-7.7%
Q1 2021-10.8%-12.9%-13.9%
Q4 2020+27.6%+37.2%-2.1%
Q2 2020
Q1 2020
Q3 2019

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro