PubMatic Inc. (PUBM) Tops Q4 EPS by 4c, Revenues Beat; Offers 1Q & FY21 Revenue Guidance Above Consensus

PubMatic Inc. (NASDAQ: PUBM) reported Q4 EPS of $0.34, $0.04 better than the analyst estimate of $0.30. Revenue for the quarter came in at $56.2 million versus the consensus estimate of $47.54 million.

Fourth Quarter 2020 Financial Highlights

• Revenue in the fourth quarter of 2020 was $56.2 million, an increase of 64% over $34.4 million in the same period of 2019;
• Net income was $18.8 million, or $0.34 per diluted share in the fourth quarter, an increase over net income of $4.1 million, or $0.06 per diluted share in the same period of 2019;
• Adjusted EBITDA was $26.9 million, a 190% increase over Adjusted EBITDA of $9.3 million in the same period of 2019; and
• Total cash, cash equivalents, and marketable securities of $101.0 million.

“Our record performance demonstrates PubMatic’s differentiated market position across the digital advertising ecosystem,” said Rajeev Goel, co-founder and CEO at PubMatic. “We are in the midst of an accelerated digital transformation, with consumers everywhere spending more time online as they shift transactions from the physical world to the Internet. PubMatic brings the global infrastructure and scale that publishers need to power data-intensive, real time programmatic ad transactions in order to increase their revenues. We are executing well and growing organically in mobile, digital video, and over the top streaming and connected TV (OTT/CTV). Our buyer supply path optimization relationships are expanding, and we are gaining market share in the large and growing global digital advertising market.”

“Our IPO marked a tremendous milestone for PubMatic. Over the last 14 years, we’ve built an incredible company and I’m excited about the opportunities ahead as we seek to continue to grow our market share. I’d like to thank our entire team for their hard work and dedication to our customers, without which our success would not be possible.”

“We delivered impressive year-over-year revenue growth of 64% in the fourth quarter driven by strength across a number of advertising verticals including eCommerce, Technology, Personal Finance and robust omnichannel video growth including OTT/CTV,” said Steve Pantelick, CFO at PubMatic. “Our usage-based business model is highly efficient and built on what we believe are long-term structural advantages, which provide key performance benefits to our customers and increased revenues and profits to us. We continue to focus on growing our market share via new publisher acquisition, existing customer growth, and buy-side spend consolidation.”

GUIDANCE:

PubMatic Inc. sees Q1 2021 revenue of $38-40 million, versus the consensus of $33.71 million.

PubMatic Inc. sees FY2021 revenue of $180-185 million, versus the consensus of $167.78 million.

Our guidance assumes that the global economy continues to recover and we do not have any major COVID-19 related setbacks that may cause economic conditions to deteriorate or significantly reduce advertiser demand. Accordingly, we estimate the following:

• For the first quarter 2021, we expect revenue to be in the range of $38.0 million to $40.0 million, representing growth of 34% to 41% over Q1 2020. We expect Adjusted EBITDA to be in the range of $8.0 million to $9.0 million, or 21% to 23% margin.
• For the full year 2021, we expect revenue to be in the range of $180.0 million to $185.0 million representing growth of 21% to 24% over 2020. We expect Adjusted EBITDA to be in the range of $45.0 million to $49.0 million or 25% to 27% margin.

For earnings history and earnings-related data on PubMatic Inc. (PUBM) click here.

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