Digital advertising technology company PubMatic (NASDAQ:PUBM) will be reporting results this Thursday after the bell. Here’s what investors should know.
PubMatic beat analysts’ revenue expectations last quarter, reporting revenues of $62.57 million, down 2% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter beating 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 2.7% year on year, a reversal from the 5.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will 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 Q2 results, giving us a hint as to what we can expect. Zeta Global delivered year-on-year revenue growth of 43.5%, beating analysts’ expectations by 5.2%, and Wix reported revenues up 14.9%, topping estimates by 1.9%.
Read our full analysis of Zeta Global’s results here and Wix’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 9.6% on average over the last month. PubMatic is down 1.6% during the same time and is heading into earnings with an average analyst price target of $12.89 (compared to the current share price of $13.30).
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