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Mar 31, 2023
PubMatic Q1 2023 Earnings Report
PubMatic's first quarter performance in 2023 was driven by a focused strategy, strong execution, and deep customer relationships, leading to market share gains.
Key Takeaways
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.
PubMatic
PubMatic
PubMatic Revenue by Segment
Revenue by Segment
Omnichannel Video (incl. CTV) Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.