PubMatic (PUBM) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2022/11/07 2:27 am EST

Programmatic Advertising platform Pubmatic (NASDAQ: PUBM) will be reporting results tomorrow afternoon. Here's what to expect.

Last quarter PubMatic reported revenues of $63 million, up 26.9% year on year, beating analyst revenue expectations by 3.81%. It was a mixed quarter for the company, with a decent beat of analyst estimates but underwhelming revenue guidance for the next quarter.

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 15.1% year on year to $66.9 million, slowing down from the 53.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.

PubMatic Total Revenue

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 has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.43%.

Looking at PubMatic's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Zeta delivered top-line growth of 32.2% year on year, beating analyst estimates by 7.94% and BigCommerce reported revenues up 22.1% year on year, exceeding estimates by 3.97%. Zeta traded up 5.26% on the results, BigCommerce was down 9.05%. Read our full analysis of Zeta's results here and BigCommerce's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. PubMatic is down 7.96% during the same time, and is heading into the earnings with analyst price target of $28.00, compared to share price of $16.40.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.