PubMatic Inc. (NASDAQ: PUBM) reported Q1 EPS of $0.09, $0.09 better than the analyst estimate of $0.00. Revenue for the quarter came in at $43.6 million versus the consensus estimate of $39.5 million.

First Quarter 2021 Financial Highlights

• Revenue in the first quarter of 2021 was $43.6 million, an increase of 54% over $28.3 million in the same period of 2020;
• Net income was $4.9 million, or $0.09 per diluted share in the first quarter, an increase over net income of $0.9 million, or $0.00 per diluted share in the same period of 2020;
• Net dollar-based retention1 was 130% for the trailing twelve months ended Q1 2021, an increase from 112% in the comparable trailing twelve month period a year ago;
• Adjusted EBITDA was $14.5 million, compared to adjusted EBITDA of $5.1 million in the same period of 2020; and
• Total cash, cash equivalents, and marketable securities of $110.0 million with no debt.

“We delivered another exceptional quarter driven by multiple organic growth drivers. Our performance reinforces the belief that our differentiated, owned and operated cloud infrastructure provides superior outcomes for the growing digital advertising market,” said Rajeev Goel, co-founder and CEO at PubMatic. “Our omnichannel platform fueled growth across all segments of our customer base and all formats we serve, particularly in video and OTT/CTV. Our execution, combined with the economic re-opening and expected acceleration of digital advertising, gives us confidence to raise our full year outlook for 2021.”

GUIDANCE:

PubMatic Inc. sees Q2 2021 revenue of $45-46 million, versus the consensus of $41.94 million.

PubMatic Inc. sees FY2021 revenue of $195-200 million, versus the consensus of $184.83 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 otherwise significantly reduce advertiser demand. Accordingly, we estimate the following:

• For the second quarter 2021, we expect revenue to be in the range of $45 million to $46 million, representing growth of 70% to 75% over Q2 2020. We expect adjusted EBITDA to be in the range of $14 million to $15 million representing, 31% to 33% margin.
• For the full year 2021, we are raising our outlook and we now expect revenue to be in the range of $195 million to $200 million (previously $180 million to $185 million) representing year-over-year growth of 31% to 34% (previously 21% to 24%) over 2020. We now expect adjusted EBITDA to be in the range of $54 million to $58 million (previously $45 million to $49 million) or 27% to 29% margin (previously 25% to 27%).

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