Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be announcing earnings results tomorrow after market close. Here's what you need to know.
PubMatic beat analysts' revenue expectations by 7.3% last quarter, reporting revenues of $66.7 million, up 20.4% year on year. It was a very strong quarter for the company, with a significant improvement in its net revenue retention rate and strong sales guidance for the next quarter.
Is PubMatic a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting PubMatic's revenue to grow 10.7% year on year to $70.11 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PubMatic has missed Wall Street's revenue estimates twice over the last two years.
Looking at PubMatic's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 32.6%, beating analysts' expectations by 7.2%, and DoubleVerify reported revenues up 16.6%, topping estimates by 1.4%. Zeta traded up 11.9% following the results while DoubleVerify was down 2.2%.
Read our full analysis of Zeta's results here and DoubleVerify's results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 4.8% on average over the last month. PubMatic is down 5.3% during the same time and is heading into earnings with an average analyst price target of $27.9 (compared to the current share price of $19.21).
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