Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be announcing earnings results this Monday after market close. Here’s what to expect.
PubMatic beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $63.83 million, down 4.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but 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.
This quarter, analysts are expecting PubMatic’s revenue to grow 1.2% year on year to $68.08 million, slowing from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
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 advertising software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.4%, beating analysts’ expectations by 3.9%, and Integral Ad Science reported revenues up 15.7%, topping estimates by 3.8%. Zeta traded up 27.3% following the results while Integral Ad Science’s stock price was unchanged.
Read our full analysis of Zeta’s results here and Integral Ad Science’s results here.
There has been positive sentiment among investors in the advertising software segment, with share prices up 2.1% on average over the last month. PubMatic is down 8.9% during the same time and is heading into earnings with an average analyst price target of $15.50 (compared to the current share price of $11.83).
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