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Dec 31, 2024
PubMatic Q4 2024 Earnings Report
PubMatic reported its financial results for the fourth quarter and fiscal year ended December 31, 2024, showing growth in revenue and gross profit, with significant contributions from CTV and Supply Path Optimization.
Key Takeaways
PubMatic delivered a strong performance in Q4 2024, with revenue increasing by 1% year-over-year to $85.5 million. The company reported a net income of $13.9 million and an adjusted EBITDA of $37.6 million, demonstrating continued profitability and operational efficiency. CTV revenue more than doubled year-over-year, representing 20% of total revenue, highlighting a significant shift in ad buying towards high-engagement channels.
Q4 2024 revenue reached $85.5 million, a 1% increase over the same period in 2023.
CTV revenue in Q4 more than doubled year-over-year, accounting for 20% of total revenue.
Supply Path Optimization represented 53% of total activity in 2024, up from 45% in 2023.
The company repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024.
PubMatic
PubMatic
Forward Guidance
For the first quarter of 2025, PubMatic expects revenue to be in the range of $61 million to $63 million and adjusted EBITDA to be in the range of $5 million to $7 million.
Positive Outlook
- Accelerated growth expected in the underlying business as ad buyers seek premium, brand safe, curated inventory in the open internet.
- Underlying business, excluding revenue from a specific DSP and political advertising, is targeted to grow 15%+ and represent over two thirds of total company revenues in 2025.
- Continued expansion of high-value formats and channels, including mobile and omnichannel video.
- Strategic commitment to operational excellence and targeted investments for growth.
- Scaling of generative AI adoption leading to increased engineering productivity and faster software development.
Challenges Ahead
- Continued headwind from one of the top DSP buyers that revised its auction approach in late May 2024.
- Negative FX impact predominately from Euro and Pound Sterling expenses assumed in adjusted EBITDA expectation.
- Assumes general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.
- Inability to provide guidance for net income due to unpredictability of certain GAAP elements like stock-based compensation expenses.
- Expectation of total revenues to grow year over year in the second half of 2025, implying slower growth in the first half due to the DSP impact.