Platform for selling ad technology PubMatic (PUBM -12.16%)These numbers are impressive, especially given the difficult operating environment. The company’s top line grew 25% year-over-year to $54.6million.
These are the refreshing results of a digital advertisement company after a few digital advertising companies including Meta Platforms (FB -3.71%), experienced a much lower rate of growth during the same period.
PubMatic’s strong growth is revealed in detail
PubMatic’s 25% year over year growth in its first quarter was especially impressive when investors consider the difficult year-ago comparison. tech companyAgainst. Revenue soared 54% over the previous year in the first quarter 2021. PubMatic’s first quarter 2022 revenue was also higher than the midpoint of management’s guidance range, despite the worsening macro environment for advertising budgets (primarily due to the conflict in Ukraine and uncertainty surrounding how rising interest rates will impact the economy). PubMatic provided its first-quarter outlook.
“PubMatic continued to have an outstanding track record of sustainable growth, GAAP profitability and cash generation,” stated Rajeev Goel (Co-founder and CEO), in PubMatic’s first-quarter earnings release. “Our unique infrastructure-driven digital advertising approach is the key to this consistent performance.”
It’s worth noting, however, that PubMatic’s revenue growth in Q1 was much higher than Meta’s 7% growth and sell-side platform rival. Magnite‘s 15% (MGNI -7.70%) Pro forma top-line growth excluding traffic acquisition expenses (TAC)..
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An upbeat outlook
PubMatic believes it can continue to grow in the future. Management forecasted that first-quarter revenue would grow 20% to 25% year over the previous year, to $60 to $62 millions. This guidance range’s midpoint represents 12% sequential growth.
Management stated in its earnings release for the first quarter that this guidance was “conservative” due to the headwinds advertisers are facing. These include the war in Ukraine and high inflation. There are also ongoing COVID-related issues (e.g. Supply chain challenges in some markets and social distancing measures in others.
However, this is still a more optimistic outlook than that provided by Magnite competitor and Facebook parent Meta. Meta’s second quarter guidance is only 4%. Magnite’s midpoint in its second-quarter pro forma ex–TAC revenue guidance indicates 6% sequential increase.
PubMatic has maintained its full-year guidance to increase total revenue to between $282 and $286 millions, or 25% growth, as it looked at the full year.
But InvestorsPubMatic management stated in its first-quarter earnings release, that the guidance it provided for the entire year and the first quarter assumes that the macroeconomic headwinds it faces “does not worsen and cause economic conditions deteriorate or otherwise significantly decrease advertiser demand.”
Overall, Magnite’s strong momentum in a difficult operational environment highlights the tech firm’s position within a growing marketplace and management’s continued execution for key growth opportunities.
