PubMatic reinvests 2023 profits to bolster engineering, sales teams

PubMatic announced a significant reinvestment of profits to bolster its engineering and sales teams. This strategic move aims to propel the company’s growth trajectory by enhancing technological innovation, strengthening client relationships, and expanding market reach. PubMatic recently reported record revenue of $267M in 2023, continuing the company’s long track record of strong profitability, high margins, zero debt, and significant free cash flow. This differentiated financial profile sets the foundation for continued investment in the business to accelerate revenue growth and drive increased customer and shareholder value. The company plans to onboard over 150 incremental employees over the course of 2024, a 16% increase year-over-year, bringing the total company headcount to approximately 1,100 by the end of the year. The reinvestment plan includes a substantial increase in hiring across engineering and sales divisions, with a focus on the highest impact areas of the business, including: Activate and Supply Path Optimization: expanding buyer-focused sales and customer success teams by 50% in 2024 to increase penetration with agency holding companies, independent agencies and brands; Connect and Post-Cookie Solutions: growing the team building addressability solutions such as Connect, Identity Hub, and Privacy Sandbox solutions, to ensure clients’ businesses are safeguarded against ongoing signal loss; Emerging Revenue Streams: hiring additional sales and customer success team members focused on solutions such as our enterprise grade OpenWrap software and our commerce media solution, Convert; and Performance Advertising: increasing the number of product managers and machine learning engineers focused on building and scaling ROI and outcomes-based advertising solutions that rival the walled gardens. The impact of the expanded engineering organization will be further amplified by the company’s ongoing efficiency investments. The company anticipates a 15-20% increase in engineering productivity in 2024 driven by the use of generative AI at multiple points in the software development and release process.