PubMatic sees Q3 revenue of $58M-$61M, consensus $65.93M

Steve Pantelick, CFO at PubMatic, said: “Our Q2 financial results again underscored our robust business model, driven by strength in high-growth areas like CTV and SPO and improved display revenues. Adjusting for an unexpected bad debt expense of $5.7M related to the bankruptcy of a buyer, adjusted EBITDA would have exceeded our guidance. While macro factors are weighing on eCPMs, we continue to increase monetized impressions amongst a challenging environment for brand advertising. We are focused on the drivers of long-term market share gains: deeper relationships with publishers and ad buyers, TAM expansion through innovative new products like Activate and Convert, and increased revenue mix from higher growth drivers like CTV and SPO. With our focus on operational excellence and efficiency, we expect to deliver strong profitability and cash flow this year.” The company added: “Macroeconomic conditions continue to be challenging and advertisers remain cautious, particularly with respect to brand advertising. Our outlook is based on the latest data that reflect positive volume trends, industry-wide pricing headwinds and the short term impact from the redistribution of ad spend caused by a recent DSP bankruptcy. For the third quarter of 2023, the company expects revenue to be between $58M-$61M; Adjusted EBITDA to be in the range of $13M-$15M, representing approximately a 23% margin at the midpoint. For full year 2023, the company expects CapEx to be in the range of $10M-$13M, a decrease of approximately 70% over 2022.”