PubMatic (PUBM) Reports Earnings Tomorrow. What To Expect

Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be reporting earnings tomorrow after the bell. Here's what to look for.

Last quarter PubMatic reported revenues of $55.4 million, up 1.57% year on year, beating analyst revenue expectations by 8.57%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic 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 decline 5.19% year on year to $59.8 million, a deceleration on the 26.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

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 missed Wall St's revenue estimates twice over the last two years.

Looking at PubMatic's peers in the sales and marketing software segment, only VeriSign has so far reported results, delivering top-line growth of 5.71% year on year, missing analyst estimates by 0.29%. The stock was down 2.09% on the results. Read our full analysis of VeriSign's earnings results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.7% over the last month. PubMatic is up 8.76% during the same time, and is heading into the earnings with analyst price target of $20.67, compared to share price of $19.11.

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