Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be announcing earnings results tomorrow afternoon. Here's what to look for.
Last quarter PubMatic reported revenues of $64.5 million, up 11% year on year, missing analyst expectations by 3.72%. It was a weak quarter for the company, with revenue guidance for the next quarter and the full year missing analysts' expectations.
Is PubMatic buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting PubMatic's revenue to grow 1.45% year on year to $76.7 million, slowing down from the 34.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 6.04%.
Looking at PubMatic's peers in the advertising software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Zeta delivered top-line growth of 29.9% year on year, beating analyst estimates by 9.06% and LiveRamp reported revenues up 12.8% year on year, exceeding estimates by 0.55%. LiveRamp was down 9.29%. Read our full analysis of Zeta's results here and LiveRamp's results here.
Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 0.93% over the last month. PubMatic is up 6.85% during the same time, and is heading into the earnings with analyst price target of $20.4, compared to share price of $16.07.
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The author has no position in any of the stocks mentioned.