PubMatic (PUBM) Reports Q2: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2022/08/07 6:27 am EDT

Programmatic Advertising platform Pubmatic (NASDAQ: PUBM) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter PubMatic reported revenues of $54.5 million, up 25% year on year, in line with analyst expectations. It was a weaker quarter for the company, with revenue guidance for both the next quarter and 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 22.1% year on year to $60.6 million, slowing down from the 88.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

PubMatic Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. 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 8.04%.

Looking at PubMatic's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. LiveRamp delivered top-line growth of 19.4% year on year, beating analyst estimates by 2.35% and DoubleVerify reported revenues up 43.4% year on year, exceeding estimates by 7.67%. LiveRamp traded down 3.78% on the results, and DoubleVerify was up 8.62%. Read our full analysis of LiveRamp's results here and DoubleVerify's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 4.68% over the last month. PubMatic is up 5.77% during the same time, and is heading into the earnings with analyst price target of $28.5, compared to share price of $17.77.

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