NASDAQ$PUBM

PUBMATIC INC-CLASS A · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Revenue and adjusted EBITDA exceeded guidance, net income achieved with 3% margin, and cash from operating activities generated.

PubMatic's Q3 2023 results show revenue of $63.7 million, net income of $1.8 million, and adjusted EBITDA of $18.2 million. Supply Path Optimization (SPO) reached 45% of total activity, and the company generated $17.2 million in free cash flow.

  • Revenue reached $63.7 million.
  • Net income was $1.8 million, representing a 3% margin.
  • Adjusted EBITDA totaled $18.2 million, a 29% margin.
  • Supply Path Optimization (SPO) accounted for 45% of total activity.

Headline financials

Total Revenue

$63.7M

Previous: $64.5M-1.3%
EPS (adj)

$0.14

Previous: $0.22-36.4%
Capital Expenditures

-$5.42M

Previous: -$27M+79.9%
Free Cash Flow

-$3.65M

Previous: -$23.6M+84.6%
Net Income

$1.77M

Previous: $3.33M-46.7%
Operating Income

-$571K

Previous: $9.62M-105.9%
Gross Profit

$37.6M

Previous: $42.9M-12.4%
Cash & Equivalents

$97.7M

Previous: $52.2M+87.3%
Total Assets

$613M

Previous: $602M+1.8%
R&D Expense

$6.63M

No prior period

Revenue & EPS history

PubMatic · Revenue · Quarterly

$63.7M

Q3 2023-1.3%vs Q3 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

PubMatic · $21M total across 1 segment · Q3 2023

  • Omnichannel Video
    $21M

Forward guidance

For the fourth quarter of 2023, PubMatic expects revenue between $76 million and $80 million, and adjusted EBITDA in the range of $32 million to $35 million, representing approximately a 43% margin at the midpoint.

Tailwinds

  • Revenue to be between $76 million to $80 million.
  • Adjusted EBITDA to be in the range of $32 million to $35 million.
  • Adjusted EBITDA margin of approximately 43% at the midpoint.
  • Full year 2023 CapEx to be in the range of $10M – $13M, a decrease of approximately 70% over 2022.
  • Macroeconomic and geopolitical conditions continue to be challenging and advertisers remain cautious, particularly with respect to brand advertising.

Headwinds

  • Macroeconomic and geopolitical conditions continue to be challenging.
  • Advertisers remain cautious, particularly with respect to brand advertising.
  • Outlook reflects challenging conditions alongside recent positive trends in the business.
  • Assumes business conditions remain stable without significant deterioration.
  • Company is not able to provide guidance for net income, the most directly comparable GAAP measure.

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 Q3 2023

Historical avgQ3 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

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