Loading...
•
Dec 31, 2022
PubMatic Q4 2022 Earnings Report
PubMatic navigated a challenging second half, with revenue reflecting industry-wide ad spend declines, but maintained profitability and positive cash flow.
Key Takeaways
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.
PubMatic
PubMatic
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.