PubMatic (PUBM) Reports Q1: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/05/06 7:15 am EDT
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Programmatic Advertising platform Pubmatic (NASDAQ: PUBM) will be reporting results next Monday after market close. Here's what investors should know.

Last quarter PubMatic reported revenues of $75.5 million, up 34.3% year on year, in line with analyst expectations. Despite the solid top-line growth, it was a weak quarter for the company, with an underwhelming guidance for the next year.

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 25% year on year to $54.5 million, slowing down from the 53.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 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 9.62%.

Looking at PubMatic's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Sprout Social delivered top-line growth of 40.6% year on year, beating analyst estimates by 2.08% and HubSpot reported revenues up 40.5% year on year, exceeding estimates by 3.27%. Sprout Social traded up 3.7%, and Hubspot was down 5.4% on the results. Read our full analysis of Sprout Social's results here and HubSpot's results here.

There has been a stampede out of high valuation technology stocks and software stocks have been swept alongside with it, with share price down on average 17% over the last month. PubMatic is down 11.8% during the same time, and is heading into the earnings with analyst price target of $43.6, compared to share price of $23.39.

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.