PubMatic (PUBM) To Report Earnings: Here Is What To Expect

Adam Hejl /
2022/02/28 6:56 am EST
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Programmatic Advertising platform Pubmatic (NASDAQ: PUBM) will be reporting earnings today after the close. Here's what investors should know.

Last quarter PubMatic reported revenues of $58 million, up 53.6% year on year, beating analyst revenue expectations by 10.7%. It was a strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic 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 34.1% year on year to $75.4 million, slowing down from the 63.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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 since going public on average by 11.9%.

Looking at PubMatic's peers in the advertising software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. AppLovin (NASDAQ:APP) delivered top-line growth of 55.6% year on year, beating analyst estimates by 2.2% and The Trade Desk (NASDAQ:TTD) reported revenues up 23.6% year on year, exceeding estimates by 1.52%. AppLovin traded down 6.76% on the results, The Trade Desk was down 1.24%. Read our full analysis of AppLovin's results here and The Trade Desk's results here.

The whole tech sector has been facing a sell-off since late last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.13% over the last month. PubMatic is up 19.7% during the same time, and is heading into the earnings with analyst price target of $52.5, compared to share price of $29.4.

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.