Latest news with #RajeevGoel
Yahoo
30-06-2025
- Business
- Yahoo
5 Revealing Analyst Questions From PubMatic's Q1 Earnings Call
PubMatic's first quarter results reflected resilience in the face of sector headwinds, as the company's performance was shaped by both ongoing challenges and emerging opportunities within the programmatic advertising landscape. Management emphasized that, while revenue declined year over year, core business areas such as connected TV (CTV) and supply path optimization (SPO) experienced robust growth. CEO Rajeev Goel highlighted that 'excluding the affected DSP and political spend, year-over-year revenue growth accelerated to 21%,' underscoring the strength in newer media channels and data-driven offerings. The company continues to adapt to shifting advertiser preferences and industry changes, helping to offset softness in certain display segments. Is now the time to buy PUBM? Find out in our full research report (it's free). Revenue: $63.83 million vs analyst estimates of $62.09 million (4.3% year-on-year decline, 2.8% beat) Adjusted EPS: -$0.04 vs analyst estimates of -$0.07 ($0.03 beat) Adjusted Operating Income: -$2.21 million vs analyst estimates of -$14.38 million (-3.5% margin, 84.7% beat) Revenue Guidance for Q2 CY2025 is $68 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $10.5 million at the midpoint, below analyst estimates of $11.36 million Operating Margin: -18.6%, down from -8.3% in the same quarter last year Market Capitalization: $565.9 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Eric Martinuzzi (Lake Street Capital) inquired about the impact of the Google AdTech antitrust ruling. CEO Rajeev Goel explained that customers are increasingly considering alternatives to Google, and highlighted PubMatic's potential to gain share as industry dynamics evolve. Zach Cummins (B. Riley) asked for updates on key DSP partner volumes and the effect on display revenue. CFO Steve Pantelick described stability with this partner and expects to lap the impact by the end of Q2, citing growth opportunities beyond the current technical shift. Simran Biswal (RBC) questioned macro spending trends and resilience of CTV and emerging products. Goel responded that advertiser budgets remain steady, while secular shifts toward streaming and lower-funnel performance channels favor PubMatic's offerings. Jacob Armstrong (KeyBanc) probed how higher-margin CTV revenues will be balanced between margin expansion and reinvestment. Pantelick emphasized a disciplined approach, reinvesting in secular growth areas while maintaining adjusted profitability. Andrew Boone (JMP) sought clarity on the roadmap for new products and bridging normalized growth to reported results. Goel outlined a focus on first-party data, supply chain efficiency, and performance optimization, while Pantelick detailed the impact of DSP and political ad headwinds on growth figures. In the coming quarters, our team will closely monitor (1) the pace of CTV and omni-channel video adoption, particularly as advertisers shift budgets from linear TV to streaming; (2) the rollout and client uptake of new AI-powered buying and curation tools; and (3) stabilization in display and emerging product segments as the company laps DSP and political advertising headwinds. Execution in international markets and agency direct sales will also be important indicators of sustained momentum. PubMatic currently trades at $11.68, up from $10.99 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
10-06-2025
- Business
- Yahoo
PUBM Q1 Earnings Call: CTV, Supply Path Optimization, and AI Drive Transformation Amid Ad Market Shifts
Programmatic advertising platform Pubmatic (NASDAQ: PUBM) announced better-than-expected revenue in Q1 CY2025, but sales fell by 4.3% year on year to $63.83 million. Guidance for next quarter's revenue was better than expected at $68 million at the midpoint, 0.6% above analysts' estimates. Its non-GAAP loss of $0.04 per share was $0.03 above analysts' consensus estimates. Is now the time to buy PUBM? Find out in our full research report (it's free). Revenue: $63.83 million vs analyst estimates of $62.09 million (4.3% year-on-year decline, 2.8% beat) Adjusted EPS: -$0.04 vs analyst estimates of -$0.07 ($0.03 beat) Adjusted Operating Income: -$2.21 million vs analyst estimates of -$14.38 million (-3.5% margin, 84.7% beat) Revenue Guidance for Q2 CY2025 is $68 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $10.5 million at the midpoint, below analyst estimates of $11.36 million Operating Margin: -18.6%, down from -8.3% in the same quarter last year Market Capitalization: $587.7 million PubMatic's first quarter performance was shaped by a mix of secular industry shifts and the company's evolving product focus. CEO Rajeev Goel highlighted strong momentum in connected TV (CTV), with revenues in that segment growing over 50% year-over-year, and noted that supply path optimization (SPO) accounted for a record 55% of total activity. Management also attributed underlying business growth to new products such as Activate for SPO and Convert for commerce media. The quarter was affected by continued softness in the display advertising segment, particularly linked to a large demand-side platform (DSP) partner, but Goel emphasized that excluding this factor and last year's political advertising, core business growth accelerated to 21%. Looking ahead, PubMatic's guidance is driven by expectations of continued secular shifts in digital advertising—most notably, increased spending on streaming over linear TV, and a transition from brand to performance-based advertising. Management believes these trends will benefit key product lines, especially CTV and commerce media. CFO Steve Pantelick emphasized the company's growing relationships with both major agency holding companies and mid-market DSPs, while Goel noted that the recent Google AdTech antitrust ruling could open additional opportunities for independent platforms. The ongoing adoption of AI-driven advertising tools is expected to further enhance efficiency and drive customer value. Management attributed the quarter's performance to rapid expansion in CTV, increased adoption of SPO, and growth in new product lines targeting commerce media and curation. CTV and video expansion: CTV remained a major growth engine, with over 50% year-over-year revenue gains, supported by deeper partnerships with leading streamers and international broadcasters. Goel noted 80% penetration among the top 30 streaming platforms. Supply path optimization (SPO) momentum: SPO represented a record 55% of PubMatic's total activity, as advertisers and agencies sought greater efficiency and transparency. Management sees SPO's share potentially reaching as high as 75% in coming years. Emerging products and curation: New revenue streams, especially from the Connect curation and data platform, more than doubled year-over-year. These solutions help advertisers better target audiences using first-party data and have become increasingly relevant as privacy concerns and data ownership shift industry dynamics. AI-driven platform launch: PubMatic introduced an AI-powered end-to-end platform, enabling buyers to use natural language to create and activate optimized campaigns. Early beta partners, such as GroupM, are testing this tool to improve campaign efficiency and targeting. Diversification of demand sources: The company reported accelerating activity from mid-market DSPs and direct advertisers, reflecting broader industry trends of budget consolidation and performance marketing. This diversification helps lessen reliance on large agency holding companies and single DSPs. PubMatic expects future growth to be driven by increasing adoption of programmatic CTV, AI-enabled advertising tools, and the ongoing shift to performance-focused digital campaigns. Secular shift to streaming and performance: Management expects advertisers to allocate more budgets toward streaming and lower-funnel, performance-based campaigns, as flexibility and measurable outcomes gain importance. This transition favors PubMatic's CTV and commerce media products, with anticipated benefits from higher demand and premium inventory. AI and operational efficiency: The expanded use of generative AI across the business, from campaign planning to internal engineering, is expected to enable faster innovation and productivity without increased headcount. AI-powered tools are projected to improve customer outcomes and streamline costs. Industry changes and regulatory impact: The Google AdTech antitrust verdict and changes in third-party cookie policies are seen as catalysts for independent platforms like PubMatic. Management anticipates potential market share gains as publishers and buyers seek alternatives to incumbent solutions, supported by ongoing investments in data-driven, privacy-compliant products. In the coming quarters, the StockStory team will track (1) the pace of CTV and AI product adoption across new and existing clients, (2) the impact of regulatory changes and the Google antitrust ruling on market share, and (3) further progress in diversifying demand away from large DSPs and agency holding companies. The effectiveness of cost control measures and the rollout of new AI-driven tools will also be key to monitoring operational leverage. PubMatic currently trades at a forward price-to-sales ratio of 1.9×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. 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Yahoo
03-06-2025
- Business
- Yahoo
Q1 Earnings Roundup: PubMatic (NASDAQ:PUBM) And The Rest Of The Advertising Software Segment
As the Q1 earnings season comes to a close, it's time to take stock of this quarter's best and worst performers in the advertising software industry, including PubMatic (NASDAQ:PUBM) and its peers. The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements. The 7 advertising software stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 4.8% while next quarter's revenue guidance was 1.3% below. Luckily, advertising software stocks have performed well with share prices up 10.5% on average since the latest earnings results. Founded in 2006 as an online ad platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform. PubMatic reported revenues of $63.83 million, down 4.3% year on year. This print exceeded analysts' expectations by 2.8%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts' EBITDA estimates. 'We are pleased with our Q1 performance, exceeding guidance on both the top and bottom line driven by the secular growth areas in our business. Ongoing investments in product innovation and go to market teams drove 21% year over year growth in our underlying business, with momentum carrying into April,' said Rajeev Goel, co-founder and CEO at PubMatic. PubMatic delivered the slowest revenue growth of the whole group. The stock is up 10.5% since reporting and currently trades at $12.14. Is now the time to buy PubMatic? Access our full analysis of the earnings results here, it's free. Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads. The Trade Desk reported revenues of $616 million, up 25.4% year on year, outperforming analysts' expectations by 7%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' billings estimates. The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $74.70. Is now the time to buy The Trade Desk? Access our full analysis of the earnings results here, it's free. Started in 2011 as a spin-out of RapLeaf, LiveRamp (NYSE:RAMP) is a software-as-a-service provider that helps companies better target their marketing by merging offline and online data about their customers. LiveRamp reported revenues of $188.7 million, up 9.8% year on year, exceeding analysts' expectations by 1.3%. Still, it was a mixed quarter as it posted full-year guidance of slowing revenue growth. LiveRamp delivered the weakest performance against analyst estimates in the group. The company added 3 enterprise customers paying more than $1 million annually to reach a total of 128. Interestingly, the stock is up 15.3% since the results and currently trades at $32.37. Read our full analysis of LiveRamp's results here. Founded in 2009, Integral Ad Science (NASDAQ:IAS) provides digital advertising verification and optimization solutions, ensuring that ads are viewable by real people in brand-safe environments across various platforms and devices. Integral Ad Science reported revenues of $134.1 million, up 17.1% year on year. This print topped analysts' expectations by 3.2%. More broadly, it was a mixed quarter as it also produced a solid beat of analysts' EBITDA estimates. Integral Ad Science had the weakest full-year guidance update among its peers. The stock is flat since reporting and currently trades at $8.15. Read our full, actionable report on Integral Ad Science here, it's free. Co-founded by former Apple CEO John Sculley, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers. Zeta reported revenues of $264.4 million, up 35.6% year on year. This number surpassed analysts' expectations by 4.1%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' billings estimates. Zeta achieved the highest full-year guidance raise among its peers. The stock is down 5.1% since reporting and currently trades at $12.85. Read our full, actionable report on Zeta here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
PubMatic's (NASDAQ:PUBM) Q1: Beats On Revenue
Programmatic advertising platform Pubmatic (NASDAQ: PUBM) announced better-than-expected revenue in Q1 CY2025, but sales fell by 4.3% year on year to $63.83 million. Guidance for next quarter's revenue was better than expected at $68 million at the midpoint, 0.6% above analysts' estimates. Its non-GAAP loss of $0.04 per share was $0.03 above analysts' consensus estimates. Is now the time to buy PubMatic? Find out in our full research report. Revenue: $63.83 million vs analyst estimates of $62.09 million (4.3% year-on-year decline, 2.8% beat) Adjusted EPS: -$0.04 vs analyst estimates of -$0.07 ($0.03 beat) Adjusted EBITDA: $8.46 million vs analyst estimates of $6.13 million (13.3% margin, 38% beat) Revenue Guidance for Q2 CY2025 is $68 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $10.5 million at the midpoint, below analyst estimates of $11.36 million Operating Margin: -18.6%, down from -8.3% in the same quarter last year Free Cash Flow Margin: 11.4%, up from 10.4% in the previous quarter Market Capitalization: $485.4 million 'We are pleased with our Q1 performance, exceeding guidance on both the top and bottom line driven by the secular growth areas in our business. Ongoing investments in product innovation and go to market teams drove 21% year over year growth in our underlying business, with momentum carrying into April,' said Rajeev Goel, co-founder and CEO at PubMatic. Founded in 2006 as an online ad platform helping ad sellers, Pubmatic (NASDAQ: PUBM) is a fully integrated cloud-based programmatic advertising platform. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, PubMatic grew its sales at a weak 6.6% compounded annual growth rate. This was below our standard for the software sector and is a tough starting point for our analysis. This quarter, PubMatic's revenue fell by 4.3% year on year to $63.83 million but beat Wall Street's estimates by 2.8%. Company management is currently guiding for a 1.1% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 5.3% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and indicates its products and services will face some demand challenges. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments. It's relatively expensive for PubMatic to acquire new customers as its CAC payback period checked in at 58.9 months this quarter. The company's slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low. We were impressed by how significantly PubMatic blew past analysts' EBITDA expectations this quarter. We were also happy its revenue outperformed Wall Street's estimates. On the other hand, its EBITDA guidance for next quarter missed significantly. Zooming out, we think this was a mixed quarter. The stock traded up 2.4% to $11.25 immediately following the results. So should you invest in PubMatic right now? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-04-2025
- Business
- Yahoo
With 50% ownership of the shares, PubMatic, Inc. (NASDAQ:PUBM) is heavily dominated by institutional owners
Institutions' substantial holdings in PubMatic implies that they have significant influence over the company's share price The top 14 shareholders own 51% of the company Insiders have been selling lately Our free stock report includes 2 warning signs investors should be aware of before investing in PubMatic. Read for free now. Every investor in PubMatic, Inc. (NASDAQ:PUBM) should be aware of the most powerful shareholder groups. With 50% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's delve deeper into each type of owner of PubMatic, beginning with the chart below. View our latest analysis for PubMatic Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that PubMatic does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of PubMatic, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in PubMatic. From our data, we infer that the largest shareholder is Amar Goel (who also holds the title of Top Key Executive) with 8.8% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Meanwhile, the second and third largest shareholders, hold 8.7% and 7.2%, of the shares outstanding, respectively. In addition, we found that Rajeev Goel, the CEO has 4.9% of the shares allocated to their name. A closer look at our ownership figures suggests that the top 14 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our information suggests that insiders maintain a significant holding in PubMatic, Inc.. It has a market capitalization of just US$407m, and insiders have US$63m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently. The general public, who are usually individual investors, hold a 29% stake in PubMatic. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Public companies currently own 4.8% of PubMatic stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership. It's always worth thinking about the different groups who own shares in a company. But to understand PubMatic better, we need to consider many other factors. For example, we've discovered 2 warning signs for PubMatic (1 is a bit unpleasant!) that you should be aware of before investing here. If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
