Digital advertising technology company PubMatic (NASDAQ:PUBM) will be announcing earnings results this Thursday after the bell. Here’s what investors should know.
PubMatic beat analysts’ revenue expectations last quarter, reporting revenues of $80.05 million, down 6.4% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations.
Is PubMatic a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PubMatic’s revenue to decline 6.1% year on year, a further deceleration from the 4.3% decrease it recorded in the same quarter last year.
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 multiple times 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. Zeta Global delivered year-on-year revenue growth of 49.9%, beating analysts’ expectations by 7%, and Shopify reported revenues up 34.3%, topping estimates by 2.5%. Zeta Global’s stock price was unchanged following the results.
Read our full analysis of Zeta Global’s results here and Shopify’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 12.4% on average over the last month. PubMatic is up 21.2% during the same time and is heading into earnings with an average analyst price target of $11.83 (compared to the current share price of $10.30).
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