Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
PubMatic missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $85.5 million, up 1.1% year on year. It was a slower quarter for the company, with EBITDA guidance for next quarter missing analysts’ expectations significantly and a poor net revenue retention rate.
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 decline 6.9% year on year to $62.09 million, a reversal from the 20.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 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 sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 4.1%, and Freshworks reported revenues up 18.9%, topping estimates by 2.1%. Zeta’s stock price was unchanged after the results, while Freshworks was up 2.9%.
Read our full analysis of Zeta’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 17% on average over the last month. PubMatic is up 23.9% during the same time and is heading into earnings with an average analyst price target of $15.63 (compared to the current share price of $9.63).
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