PubMatic (PUBM) Q3 Earnings: What To Expect

Digital advertising technology company PubMatic (NASDAQ:PUBM) will be announcing earnings results this Monday after the bell. Here’s what to look for.

PubMatic beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $71.1 million, up 5.7% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.

Is PubMatic a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting PubMatic’s revenue to decline 10.8% year on year to $64.02 million, a reversal from the 12.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

Analysts covering the company have generally 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 advertising software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 4.5%, and Integral Ad Science reported revenues up 15.6%, topping estimates by 3.4%. AppLovin’s stock price was unchanged after the resultsand Integral Ad Science’s price followed a similar reaction.

Read our full analysis of AppLovin’s results here and Integral Ad Science’s results here.

Investors in the advertising software segment have had steady hands going into earnings, with share prices flat over the last month. PubMatic is down 5.6% during the same time and is heading into earnings with an average analyst price target of $11.28 (compared to the current share price of $7.54).

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