Digital advertising technology company PubMatic (NASDAQ: PUBM) will be announcing earnings results tomorrow after market close. Here’s what to look for.
PubMatic beat analysts’ revenue expectations last quarter, reporting revenues of $67.96 million, down 5.3% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.
Is PubMatic a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PubMatic’s revenue to decline 11.8% year on year, a reversal from the 1.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PubMatic has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PubMatic’s peers in the advertising software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 20.8%, beating analysts’ expectations by 2.2%, and Zeta Global reported revenues up 25.4%, topping estimates by 3.7%. AppLovin traded down 19.7% following the results.
Read our full analysis of AppLovin’s results here and Zeta Global’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. Unfortunately, advertising software stocks have struggled in this environment as share prices are down 19% on average over the last month. PubMatic is down 16.4% during the same time and is heading into earnings with an average analyst price target of $12.06 (compared to the current share price of $6.41).
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