PubMatic Shows Revenue Growth and Strong CTV Performance

PubMatic's latest earnings report highlights revenue for 2024 growing 9%, with significant success in CTV and mobile app segments, indicating a positive outlook for investors.

Date: 28-02-2025

AI Rating: 7

Earnings Insights

PubMatic reported strong revenue growth of 9% for the year, indicating a shift towards high-engagement channels like CTV and mobile applications. The company achieved an adjusted EBITDA margin of 32%, reflecting effective management of operational efficiencies and cost structures.

Revenue Growth

The reported growth more than doubled the previous year's rate. Excluding the impact from a specific DSP partner and an uptick in political advertising, the underlying revenue growth was even more significant at 16% year-over-year in Q4.

Connected TV (CTV) revenue more than doubled, now representing 20% of total revenue, showcasing the company’s successful shift to high-value metrics. The anticipated continued adoption of CTV is expected to sustain revenue growth moving forward.

Profit Margins

Adjusted EBITDA has increased by 23% year-over-year, reflecting that the mix of business has changed favorably towards more profitable channels.

Free Cash Flow

PubMatic reported an operating cash flow of $73 million, with free cash flow of $35 million, supporting its aggressive capital allocation strategy including share repurchase programs. This signifies a healthy cash flow situation amidst investments in new growth areas.

Forward Looking Statements

The report highlights confidence in sustained revenue growth and outlines a target of 15% growth in underlying business for 2025, positioning PubMatic as a competitive entity in the advertising technology market.

Stocks: PUBM