PubMatic Q4 Earnings: Revenue, EPS Beat Expectations, Strong Guidance, Buyback Authorized

PubMatic, Inc PUBM shares are trading higher in Monday’s after-hours session after the company reported better-than-expected financial results.

• Q4 Revenue: $84.6 million, beat estimates of $78.2 million

• Q4 EPS: 45 cents, beat estimates of 20 cents

Total revenues were up 14% year-over-year. Net cash provided by operating activities totaled $28.7 million, up 48% year-over-year. Active publishers on the PubMatic platform grew 9% compared to 2022.

“We ended 2023 on an incredibly high note, marking an inflection point in revenue growth as we accelerated to 14% year-over-year growth and strong profitability in the fourth quarter,” said Rajeev Goel, co-founder and CEO of PubMatic.

“These results highlight the strength of our platform, the value we deliver to publishers and buyers, our focused investments in key areas of the business over the last 18 months, and the increasing importance of sell-side technology across the ecosystem.”

PubMatic’s board also authorized the company to repurchase up to an additional $100 million of its stock. The company’s previous buyback plan authorized it to repurchase up to $75 million worth of its stock.

Outlook: PubMatic expects first-quarter revenue to be in the range of $61 million to $63 million versus estimates of $58.189 million. The company said it expects adjusted EBITDA to improve as the year progresses.

Full-year 2024 revenue growth is expected to be above 10%. Full-year free cash flow is expected to be in line with 2023 and capital expenditures are expected to be between $16 million and $18 million.

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PUBM Price Action: PubMatic shares were up 26.74% after hours at $21 at time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.