What To Expect From PubMatic's (PUBM) Q1 Earnings

Jabin Bastian /
2024/05/06 3:05 am EDT

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

PubMatic beat analysts' revenue expectations by 8.2% last quarter, reporting revenues of $84.6 million, up 13.9% year on year. It was a stunning quarter for the company, with a significant improvement in its gross margin and optimistic revenue 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 11.8% year on year to $61.97 million, improving from the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.03 per share.

PubMatic Total Revenue

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 Q1 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 28.7%, meeting analysts' expectations, and VeriSign reported revenues up 5.5%, in line with consensus estimates. Sprout Social traded down 40.1% following the results while VeriSign was also down 4%.

Read our full analysis of Sprout Social's results here and VeriSign's results here.

Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. PubMatic is down 2.6% during the same time and is heading into earnings with an average analyst price target of $25.1 (compared to the current share price of $23.07).

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