NASDAQ$PUBM

PUBMATIC INC-CLASS A · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

PubMatic navigated a challenging second half, with revenue reflecting industry-wide ad spend declines, but maintained profitability and positive cash flow.

PubMatic reported Q4 2022 revenue of $74.3 million, a slight decrease compared to the same period in 2021. The company's GAAP net income was $12.8 million, or $0.22 per diluted share, while non-GAAP net income was $18.7 million, or $0.33 per non-GAAP diluted share. Despite facing industry-wide ad spend declines, PubMatic achieved an adjusted EBITDA of $32.6 million, representing a 44% margin.

  • Q4 revenue was $74.3 million, slightly down from $75.6 million in Q4 2021.
  • Omnichannel video revenue grew 25% year-over-year.
  • GAAP net income was $12.8 million, or $0.22 per diluted share.
  • Supply path optimization represented over 30% of total activity.

Headline financials

Total Revenue

$74.3M

Previous: $75.6M-1.7%
EPS (adj)

$0.33

Previous: $0.48-31.2%
Capital Expenditures

$8.91M

Previous: $7.59M+17.4%
Free Cash Flow

$87.2M

Previous: $20.9M+317.4%
Net Income

$12.8M

Previous: $28.2M-54.7%
Operating Income

$16.5M

Previous: $28M-40.9%
Gross Profit

$51.3M

Previous: $58.7M-12.5%
Cash & Equivalents

$92.4M

Previous: $82.5M+12.0%
Total Assets

$642M

Previous: $550M+16.7%

Revenue & EPS history

PubMatic · Revenue · Quarterly

$74.3M

Q4 2022-1.7%vs Q4 2021
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

PubMatic anticipates outperforming industry growth rates and continuing to gain market share annually, with digital ad spend expected to grow in the low to mid-single digits in 2023.

Tailwinds

  • Revenue for Q1 2023 is expected to be in the range of $50 million to $52 million.
  • Adjusted EBITDA for Q1 2023 is expected to be in the range of $4 million to $6 million.
  • Adjusted EBITDA is expected to improve as the year progresses due to cost reductions, optimizations, and ad spend growth recovery.
  • FY 2023 adjusted EBITDA margin to be 30%+
  • FY 2023 free cash flow is expected to be similar to 2022.

Headwinds

  • There is considerable uncertainty about the trajectory for digital ad spend this year due to pronounced December weakness and persistent macro headwinds.
  • Display advertising, in particular, continues to see pressure.
  • Industry forecasts for 2023 may significantly change as the year progresses.
  • Guidance assumes continued softness in the first half of the year followed by tempered improvement in the second half of the year.
  • CapEx to be in the range of $13M – $16M, a decrease of more than 50% over 2022.

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 Q4 2022

Historical avgQ4 2022

+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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