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Mar 31, 2024
PubMatic Q1 2024 Earnings Report
PubMatic's Q1 2024 financial results were announced, demonstrating accelerated revenue growth and exceeding expectations.
Key Takeaways
PubMatic reported a record first quarter with revenue growth of 20% year-over-year, exceeding guidance. The company's adjusted EBITDA more than doubled, and free cash flow tripled compared to Q1 2023.
Revenue increased by 20% year-over-year, reaching $66.7 million.
Adjusted EBITDA surged to $15.1 million, representing a 23% margin.
Supply Path Optimization (SPO) accounted for 50% of total activity.
Free cash flow tripled compared to Q1 2023, reaching $16.3 million.
PubMatic
PubMatic
PubMatic Revenue by Segment
Revenue by Segment
Omnichannel Video (incl. CTV) Revenue
CapyFin.com Forward Guidance
PubMatic provided guidance for Q2 2024 and raised full-year 2024 revenue and adjusted EBITDA guidance, anticipating continued growth across ad formats, channels, and regions.
Positive Outlook
- Revenue for Q2 2024 is expected to be between $69 million and $71 million.
- Adjusted EBITDA for Q2 2024 is projected to be in the range of $17 million to $19 million.
- Full year revenue is expected to be between $296 million and $304 million, representing approximately 12% growth.
- Full year adjusted EBITDA is projected to be in the range of $90 million to $94 million.
- Free cash flow is expected to be in line with 2023.
Challenges Ahead
- Anticipated headwind as one of the top DSPs plans to revise its bidding approach.
- Guidance assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.
- CapEx to be in the range of $16 million – $18 million.
- The company is not able to provide guidance for net income, the most directly comparable GAAP measure.
- Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts.