PubMatic Reports Q4 Non-GAAP EPS of $0.33 in 2023, Missing Expectations by $0.02.
March 1, 2023
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PUBMATIC ($NASDAQ:PUBM): In its fourth quarter results, PubMatic reported a Non-GAAP earnings per share (EPS) of $0.33, missing expectations by $0.02. This earnings miss comes despite the company reporting strong revenue growth in the quarter, driven by increased monetization from its publisher platform and higher volumes of advertiser demand. Moreover, the company also reported lower gross profit margins compared to Q4 of the previous year, due to pricing pressure from advertisers and decreased efficiency in their cost structure. Despite this slight earnings miss, PubMatic showed resilience in their core business and was able to continue to grow their revenue and improve their overall financial health.
The management team has indicated their plan to focus on optimizing their cost structure in order to maximize profitability and remain competitive. This might help the company reach its financial targets in the coming quarters and further improve their performance.
Price History
The news has been met with mostly negative reviews, as the company expected to meet or even beat expectations. On Tuesday, PUBMATIC‘s stock opened at $15.1 and closed at $15.2, up by 0.1% from last closing price of 15.2. This minor uptick likely indicates investors are still optimistic despite the missed expectations as they look towards potential future opportunities. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pubmatic. More…
| Total Revenues | Net Income | Net Margin |
| 257.64 | 44.16 | 15.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pubmatic. More…
| Operations | Investing | Financing |
| 96.33 | -141.16 | 7.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pubmatic. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 602.16 | 309.56 | 5.57 |
Key Ratios Snapshot
Some of the financial key ratios for Pubmatic are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.7% | 127.9% | 20.2% |
| FCF Margin | ROE | ROA |
| 19.4% | 11.3% | 5.4% |
Analysis
GoodWhale recently conducted an analysis of PUBMATIC‘s wellbeing. We classified it as a ‘gorilla’ company based on our Star Chart, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. These are the types of companies that are attractive to investors looking for long-term growth and strong returns. PUBMATIC is strong in asset and growth, medium in profitability, and weak in dividend – which is expected of a company with a focused growth model. It also has a high health score of 10/10 with regard to its cash flows and debt, meaning that it is capable of safely riding out any crisis without the risk of bankruptcy. This makes PUBMATIC an attractive investment for investors looking for long-term growth and stability. More…
Peers
The company operates in the United States, Europe, and Asia Pacific. PubMatic was founded in 2006 and is headquartered in Redwood City, California. PubMatic’s competitors include The Trade Desk Inc, Kubient Inc, BC Technology Group Ltd, among others.
– The Trade Desk Inc ($NASDAQ:TTD)
The Trade Desk is a global technology company that provides programmatic advertising solutions for brands, agencies, and publishers. Its platform allows customers to purchase and manage advertising campaigns across various digital channels, including display, video, audio, native, and social. The company was founded in 2009 and is headquartered in Los Angeles, California.
– Kubient Inc ($NASDAQ:KBNT)
Kubient is a cloud-based marketing platform that helps businesses reach their customers through targeted advertising. The company has a market cap of 16.85M and a ROE of -52.06%. Kubient’s platform uses data from a variety of sources to create targeted ad campaigns that reach the right customers at the right time. The company’s technology is designed to help businesses save time and money on their marketing efforts, while also providing them with the ability to track and measure the results of their campaigns.
– BC Technology Group Ltd ($SEHK:00863)
In 2022, HBC Technology Group Ltd had a market cap of 933.91M and a ROE of -29.73%. HBC Technology Group Ltd is a leading provider of technology solutions and services in China. The company offers a full range of services, including research and development, technology consulting, software development, system integration, and cloud services.
Summary
PubMatic has reported a disappointing Non-GAAP EPS of $0.33 in Q4 2023, missing analyst expectations by $0.02. This has caused some negative news coverage as investors take stock of the results. This, combined with rising competition and the potential for increased costs in the future, has made investors cautious about their outlook for PubMatic.
In terms of stock performance, the company’s share price has been largely volatile since the Q4 results were announced, despite the overall market trend being positive. Overall, investors are wary of the current situation and unsure about where PubMatic is heading in the long-term.
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