PubMatic, Inc. (Nasdaq: PUBM), an independent technology company
delivering digital advertising’s supply chain of the future, today
reported financial results for the fourth quarter and fiscal year
ended December 31, 2023.
“We ended 2023 on an incredibly high note,
marking an inflection point in revenue growth as we accelerated to
14% year-over-year growth and strong profitability in the fourth
quarter. These results highlight the strength of our platform, the
value we deliver to publishers and buyers, our focused investments
in key areas of the business over the last 18 months, and the
increasing importance of sell-side technology across the
ecosystem,” said Rajeev Goel, co-founder and CEO at PubMatic.
“Prior investments in products like Activate, Connect, Convert and
OpenWrap are unlocking emerging revenue streams while also
increasing customer stickiness and providing clear points of
differentiation. We believe we are at the early stages of a period
of significant multi-year revenue growth and market share expansion
and we will continue to invest in key areas of the business where
we see demonstrated success, while also expanding our share
repurchase program.”
Fourth Quarter 2023 Financial
Highlights
- Revenue in the
fourth quarter of 2023 was $84.6 million, an increase of 14% over
$74.3 million in the same period of 2022;
- Revenue from
omnichannel video in the fourth quarter of 2023 grew 7% over the
same period last year;
- GAAP net income was
$18.7 million with a margin of 22%, or $0.34 per diluted share in
the fourth quarter, an increase over GAAP net income of $12.8
million with a margin of 17%, or $0.22 per diluted share in the
same period of 2022;
- Adjusted EBITDA was
$38.9 million, or 46% margin, an increase over $31.8 million, or
43% margin in the same period of 2022;
- Non-GAAP net income
was $24.4 million, or $0.45 per non-GAAP diluted share in the
fourth quarter, an increase over non-GAAP net income of $17.9
million, or $0.32 per non-GAAP diluted share in the same period of
2022; and
- Net cash provided
by operating activities was $28.7 million, a 48% increase over
$19.4 million in the same period of 2022.
Fiscal Year 2023 Financial
Highlights
- Revenue in the full
year 2023 was $267.0 million, an increase of 4% over $256.4 million
in 2022;
- Net dollar-based
retention1 was 101% for the year ended December 31, 2023;
- GAAP net income2
was $8.9 million with a margin of 3%, or $0.16 per diluted share in
2023, compared to net income3 of $28.7 million with a margin of
11%, or $0.50 per diluted share in 2022;
- Adjusted EBITDA was
$75.3 million, or 28% margin, compared to adjusted EBITDA of $97.0
million, or 38% margin, in 2022;
- Non-GAAP net income
was $32.0 million, or $0.57 per non-GAAP diluted share in 2023
compared to non-GAAP net income of $51.2 million, or $0.90 per
non-GAAP diluted share in 2022;
- Net cash provided
by operating activities in 2023 was $81.1 million, compared to
$87.2 million in the full year 2022;
- Generated record
free cash flow of $52.8 million in 2023, up 38% over 2022;
- Ended 2023 with
total cash, cash equivalents, and marketable securities of $175.3
million with no debt, an increase of 1% over the full year 2022;
and
- Through December
31, 2023, used $59.3 million in cash to repurchase 4.0 million
shares of Class A common stock with $15.7 million available from
the 2023 repurchase program.
The section titled “Non-GAAP Financial Measures”
below describes our usage of non-GAAP financial measures.
Reconciliations between historical GAAP and non-GAAP information
are contained at the end of this press release following the
accompanying financial data.
“We delivered exceptional fourth quarter
financial results. In addition to top line revenue acceleration, we
continued our long track record of strong profitability, high
margins, and generated record free cash flow. These results were
driven by significant growth in monetized impressions, multi-year
investments, emerging revenue streams, and strong execution on key
operating priorities,” said Steve Pantelick, CFO at PubMatic. “As
we look to 2024, we see a more constructive environment for digital
ad spend with tremendous opportunity to accelerate revenues. Our
2024 key operating priorities are to increase investment in
high-return areas, deliver further cost efficiencies and
infrastructure optimization, and continue to generate strong free
cash flow. As a result, we expect to more than double our
year-over-year revenue growth in 2024 to over 10%, or over 12%
excluding Yahoo, and expand our adjusted EBITDA margin.”
Business Highlights
Revenue growth fueled by deeper customer
engagements and sticky technology offerings
- Grew active
publishers on the PubMatic platform 9% over 2022, monetizing
inventory from approximately 1,800 global publishers and app
developers.
- Combined revenue
from mobile display formats and omnichannel video (which spans
across desktop, mobile and CTV devices) represented 78% of total
revenue for the year ended December 31, 2023, up 4 percentage
points over the year ended December 31, 2022.
- Programmatically
monetized CTV inventory from 271 publishers, up from 214 publishers
in the fourth quarter of 2022. New and expanded partnerships
announced with premium streaming brands including AMC Networks,
DISH Media, FOX, iQIYI, TiVo and Vevo, and expanded technology
partnerships with CTV ad server Freewheel to bring increased demand
to PubMatic platform.
- Ended Q4 2023 with
over 45% of total activity coming from Supply Path Optimization
(SPO), up from 34% in Q4 2022.
- SPO partners who
have worked with us for three years or more had an average net
spend retention rate4 of 120% in 2023.
- Diversified across
more than 20 verticals. In the fourth quarter, the top 10 ad
verticals, in aggregate, grew over 26% year over year.
Significant momentum in post-cookie
solutions
- Publishers continue
to adopt alternative identification signals. By the end of 2023,
over 80% of impressions on our platform have alternative targeting
signals attached other than the third-party cookie.
- Alternative
identifiers provide more relevant, higher ROI ads to consumers.
Analysis across more than 600 billion ad impressions processed
daily by PubMatic concluded that when alternative IDs are present,
publisher revenue increased by 16%.
- Partnered with
Google, the UK Competition Markets Authority, and Interactive
Advertising Bureau’s Tech Lab on the Privacy Sandbox initiative. As
part of the Google Market Testing Grants program, we are
facilitating end-to-end transactions with Privacy Sandbox APIs
between multiple publishers and Demand Side Platforms.
Focused investments create technology
differentiation and emerging revenue streams
- Expanded total
addressable market by an estimated $75 billion via new offerings
Activate and Convert.
- Emerging revenue
streams, which expand beyond ad monetization services, contributed
three percentage points of year-over-year revenue growth in the
fourth quarter 2023.
- In May, launched
Activate, which allows buyers to access premium content at scale
across PubMatic via non-bidded, direct deal execution.
- Strong SPO
relationships helped fuel revenue growth in private marketplace
(PMP). Revenue from one-to-one Private Marketplace deals grew more
than 50% year over year in 2023.
- In July, announced
Convert, a major new offering built for commerce media and their
advertisers. Convert enables both onsite and offset monetization
including sponsored listing ads and CTV.
Drove increased efficiencies across the
business
- Processed nearly
210.7 trillion impressions in 2023, an increase of 32% over
2022.
- Reduced total capex
in 2023 by more than 70% over 2022 through infrastructure
optimization initiatives.
- Cost of revenue per
million impressions processed decreased 8% on a trailing twelve
month period, as compared to the prior period.
- Delivered 60% more
software releases in 2023, compared to 2022, driven in part by the
use of generative AI across product development and
engineering.
Share Repurchase Program
Expanded
On February 26, 2024 we announced that our Board
of Directors has authorized an extension of our existing share
repurchase program. Under the updated plan, we are authorized to
repurchase up to an additional $100 million of our Class A
common stock through the end of 2025. The previous plan authorized
us to repurchase up to $75 million of our Class A common stock. The
timing and total amount of repurchases will depend upon business,
economic and market conditions, corporate and regulatory
requirements, prevailing stock prices and other considerations. The
share repurchase program may be suspended or discontinued at any
time and does not obligate us to purchase any amount of Class A
common stock. We expect to fund repurchases with existing cash and
cash equivalents and marketable securities.
Financial Outlook
Our Q1 outlook assumes that CPMs remain stable
and general market conditions do not significantly deteriorate as
it relates to current macroeconomic and geopolitical
conditions.
Accordingly, we estimate the following:
- For the first quarter of 2024, we
expect revenue to be in the range of $61 million to $63 million. We
expect adjusted EBITDA to be in the range of $10 million to $12
million.
- We anticipate our adjusted EBITDA
will improve as the year progresses driven by the full effect of
our cost reductions, optimizations and ad spend growth
recovery.
- For the full year 2024, we expect:
- Year-over-year revenue growth of
over 10%, or over 12% excluding Yahoo
- Adjusted EBITDA margin to be
approximately 30%
- Free cash flow to be in line with
2023
- CapEx to be in the range of $16M –
$18M
Although we provide guidance for adjusted EBITDA
and free cash flow, we are not able to provide guidance for net
income, the most directly comparable GAAP measure. Certain elements
of the composition of GAAP net income, including stock-based
compensation expenses, are not predictable, making it impractical
for us to provide guidance on net income or to reconcile our
adjusted EBITDA guidance to net income without unreasonable
efforts. For the same reason, we are unable to address the probable
significance of the unavailable information.
Conference Call and Webcast
details
PubMatic will host a conference call to discuss
its financial results on Monday, February 26, 2024 at 1:30 p.m.
Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call
can be accessed from PubMatic’s Investor Relations website at
https://investors.pubmatic.com. An archived version of the webcast
will be available from the same website after the call.
Non-GAAP Financial Measures
In addition to our results determined in
accordance with U.S. generally accepted accounting principles
(GAAP), including, in particular operating income, net cash
provided by operating activities, and net income, we believe that
adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income,
non-GAAP earnings per share and free cash flow, each a non-GAAP
measure, are useful in evaluating our operating performance. We
define adjusted EBITDA as net income adjusted for stock-based
compensation expense, depreciation and amortization, unrealized
loss and impairment of equity investment, interest income,
acquisition-related and other expenses, and provision for income
taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated
as a percentage of revenue. We define non-GAAP net income as net
income adjusted for unrealized loss on equity investments,
stock-based compensation expense, acquisition-related and other
expenses, and adjustments for income taxes. We define non-GAAP free
cash flow as net cash provided by operating activities reduced by
purchases of property and equipment and capitalized software
development costs.
In addition to operating income and net income,
we use adjusted EBITDA and non-GAAP net income as measures of
operational efficiency. We believe that these non-GAAP financial
measures are useful to investors for period to period comparisons
of our business and in understanding and evaluating our operating
results for the following reasons:
- Adjusted EBITDA and
non-GAAP net income are widely used by investors and securities
analysts to measure a company’s operating performance without
regard to items such as stock-based compensation expense,
depreciation and amortization, interest expense, and provision for
income taxes that can vary substantially from company to company
depending upon their financing, capital structures and the method
by which assets were acquired; and,
- Our management uses
adjusted EBITDA and non-GAAP net income in conjunction with GAAP
financial measures for planning purposes, including the preparation
of our annual operating budget, as a measure of operating
performance and the effectiveness of our business strategies and in
communications with our board of directors concerning our financial
performance; and adjusted EBITDA provides consistency and
comparability with our past financial performance, facilitates
period-to-period comparisons of operations, and also facilitates
comparisons with other peer companies, many of which use similar
non-GAAP financial measures to supplement their GAAP results.
Our use of non-GAAP financial measures has
limitations as an analytical tool, and you should not consider them
in isolation or as a substitute for analysis of our financial
results as reported under GAAP. Some of these limitations are as
follows:
- Adjusted EBITDA
does not reflect: (a) changes in, or cash requirements for, our
working capital needs; (b) the potentially dilutive impact of
stock-based compensation; or (c) tax payments that may represent a
reduction in cash available to us;
- Although
depreciation and amortization expense are non-cash charges, the
assets being depreciated and amortized may have to be replaced in
the future, and adjusted EBITDA does not reflect cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements; and
- Non-GAAP net income
does not include: (a) unrealized losses resulting from our equity
investment; (b) the potentially dilutive impact of stock-based
compensation; (c) income tax effects for stock-based compensation
and unrealized losses from our equity investment; or (d)
acquisition-related and other expenses.
Because of these and other limitations, you
should consider adjusted EBITDA and non-GAAP net income along with
other GAAP-based financial performance measures, including net
income and our GAAP financial results.
Forward Looking Statements
This press release contains “forward-looking
statements” regarding our future business expectations, including
our guidance relating to our revenue and adjusted EBITDA for the
first quarter of 2024 and revenue, adjusted EBITDA margin, free
cash flow and capex for the full year 2024, our expectations
regarding our free cash flow, capital expenditures, future hiring,
future market growth, our long-term revenue growth and our ability
to gain market share. These forward-looking statements are based on
our current expectations and assumptions regarding our business,
the economy and other future conditions and may differ materially
from actual results due to a variety of factors including: our
dependency on the overall demand for advertising and the channels
we rely on; our existing customers not expanding their usage of our
platform, or our failure to attract new publishers and buyers; our
ability to maintain and expand access to spend from buyers and
valuable ad impressions from publishers; the rejection of the use
of digital advertising by consumers through opt-in, opt-out or
ad-blocking technologies or other means; our failure to innovate
and develop new solutions that are adopted by publishers; the war
between Ukraine and Russia and the ongoing conflict between Israel
and Palestine, and the related measures taken in response by the
global community; the impacts of inflation as well as fiscal
tightening and rising interest rates; public health crises,
including the resulting global economic uncertainty; limitations
imposed on our collection, use or disclosure of data about
advertisements; the lack of similar or better alternatives to the
use of third-party cookies, mobile device IDs or other tracking
technologies if such uses are restricted; any failure to scale our
platform infrastructure to support anticipated growth and
transaction volume; liabilities or fines due to publishers, buyers,
and data providers not obtaining consents from consumers for us to
process their personal data; any failure to comply with laws and
regulations related to data privacy, data protection, information
security, and consumer protection; and our ability to manage our
growth. Moreover, we operate in a competitive and rapidly changing
market, and new risks may emerge from time to time. For more
information about risks and uncertainties associated with our
business, please refer to the “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and “Risk
Factors” sections of our SEC filings, including but not limited to,
our annual report on Form 10-K and quarterly reports on From 10-Q,
copies of are available on our investor relations website at
https://investors.pubmatic.com and on the SEC website at
www.sec.gov. All information in this press release is as of
February 26, 2024. We undertake no obligation to update any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
About PubMatic
PubMatic is an independent technology company
maximizing customer value by delivering digital advertising’s
supply chain of the future. PubMatic’s sell-side platform empowers
the world’s leading digital content creators across the open
internet to control access to their inventory and increase
monetization by enabling marketers to drive return on investment
and reach addressable audiences across ad formats and devices.
Since 2006, PubMatic’s infrastructure-driven approach has allowed
for the efficient processing and utilization of data in real time.
By delivering scalable and flexible programmatic innovation,
PubMatic improves outcomes for its customers while championing a
vibrant and transparent digital advertising supply chain.
__________________________________
1 Net dollar-based retention is calculated by starting with the
revenue from publishers in the trailing twelve months ended
December 31, 2022 (“Prior Period Revenue”). We then calculate the
revenue from these same publishers in the trailing twelve months
ended December 31, 2023 (“Current Period Revenue”). Current Period
Revenue includes any upsells and is net of contraction or
attrition, but excludes revenue from new publishers. Our net
dollar-based retention rate equals the Current Period Revenue
divided by Prior Period Revenue. Net dollar-based retention rate is
an important indicator of publisher satisfaction and usage of our
platform, as well as potential revenue for future periods.2 Fiscal
year 2023 GAAP net income includes approximately $5.7 million of
incremental bad debt expense related to the bankruptcy of a Demand
Side Platform buyer of our platform.3 Fiscal year 2022 GAAP net
income includes an unrealized loss on equity investments. Net of
income taxes, the impact was $4.5 million for fiscal year 2022.4 We
calculate our Supply Path Optimization (“SPO”) net spend retention
rate by starting with the spend from SPO buyers that have been
buyers on our platform for at least three years, in the last prior
year (“Prior Period SPO Buyer Spend”). We then calculate the spend
from these same buyers in the current year (“Current Period
Spend”). Current Period SPO Buyer Spend includes any upsells and is
net of contraction or attrition but excludes spend from new SPO
buyers. Our net SPO retention rate equals the Current Period SPO
Buyer Spend divided by Prior Period SPO Buyer Spend.
|
CONDENSED CONSOLIDATED BALANCE SHEETS(In
thousands)(unaudited) |
|
|
December 31,2023 |
|
December 31,2022 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
78,509 |
|
|
$ |
92,382 |
|
Marketable securities |
|
96,835 |
|
|
|
82,013 |
|
Accounts receivable, net |
|
375,468 |
|
|
|
314,299 |
|
Prepaid expenses and other
current assets |
|
11,143 |
|
|
|
14,784 |
|
Total current assets |
|
561,955 |
|
|
|
503,478 |
|
Property, equipment and
software, net |
|
60,729 |
|
|
|
71,156 |
|
Operating lease right-of-use
assets |
|
21,102 |
|
|
|
26,206 |
|
Acquisition-related intangible
assets, net |
|
5,864 |
|
|
|
8,299 |
|
Goodwill |
|
29,577 |
|
|
|
29,577 |
|
Deferred tax assets |
|
13,880 |
|
|
|
1,047 |
|
Other assets, non-current |
|
2,136 |
|
|
|
2,412 |
|
TOTAL ASSETS |
$ |
695,243 |
|
|
$ |
642,175 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
347,673 |
|
|
$ |
277,414 |
|
Accrued liabilities |
|
25,684 |
|
|
|
18,936 |
|
Operating lease liabilities,
current |
|
6,236 |
|
|
|
5,676 |
|
Total current liabilities |
|
379,593 |
|
|
|
302,026 |
|
Operating lease liabilities,
non-current |
|
15,607 |
|
|
|
20,915 |
|
Deferred tax liabilities |
|
— |
|
|
|
573 |
|
Other liabilities,
non-current |
|
3,844 |
|
|
|
6,473 |
|
TOTAL LIABILITIES |
|
399,044 |
|
|
|
329,987 |
|
Stockholders' Equity |
|
|
|
Common stock |
|
6 |
|
|
|
6 |
|
Treasury stock |
|
(71,103 |
) |
|
|
(11,486 |
) |
Additional paid-in
capital |
|
230,419 |
|
|
|
195,677 |
|
Accumulated other
comprehensive loss |
|
(4 |
) |
|
|
(9 |
) |
Retained earnings |
|
136,881 |
|
|
|
128,000 |
|
TOTAL STOCKHOLDERS’
EQUITY |
|
296,199 |
|
|
|
312,188 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
695,243 |
|
|
$ |
642,175 |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
data)(unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
$ |
84,600 |
|
$ |
74,296 |
|
$ |
267,014 |
|
$ |
256,380 |
|
Cost of revenue(1) |
|
24,208 |
|
|
22,955 |
|
|
99,229 |
|
|
81,512 |
|
Gross profit |
|
60,392 |
|
|
51,341 |
|
|
167,785 |
|
|
174,868 |
|
Operating expenses:(1) |
|
|
|
|
|
|
|
Technology and development |
|
6,846 |
|
|
5,918 |
|
|
26,727 |
|
|
20,846 |
|
Sales and marketing |
|
20,353 |
|
|
17,807 |
|
|
82,803 |
|
|
68,562 |
|
General and administrative(2) |
|
12,780 |
|
|
11,093 |
|
|
56,219 |
|
|
44,940 |
|
Total operating expenses |
|
39,979 |
|
|
34,818 |
|
|
165,749 |
|
|
134,348 |
|
Operating income |
|
20,413 |
|
|
16,523 |
|
|
2,036 |
|
|
40,520 |
|
Total other income (expense),
net |
|
2,632 |
|
|
292 |
|
|
8,469 |
|
|
(3,053 |
) |
Income before income taxes |
|
23,045 |
|
|
16,815 |
|
|
10,505 |
|
|
37,467 |
|
Provision for income taxes |
|
4,343 |
|
|
4,034 |
|
|
1,624 |
|
|
8,762 |
|
Net income |
$ |
18,702 |
|
$ |
12,781 |
|
$ |
8,881 |
|
$ |
28,705 |
|
Net income per share attributable
to common stockholders: |
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
$ |
0.24 |
|
$ |
0.17 |
|
$ |
0.55 |
|
Diluted |
$ |
0.34 |
|
$ |
0.22 |
|
$ |
0.16 |
|
$ |
0.50 |
|
Weighted-average shares used
to compute net income per share attributable to common
stockholders: |
|
|
|
|
|
|
|
Basic |
|
50,659 |
|
|
52,602 |
|
|
51,760 |
|
|
52,278 |
|
Diluted |
|
54,940 |
|
|
56,944 |
|
|
56,027 |
|
|
56,908 |
|
|
(1)Stock-based compensation expense includes the
following:
STOCK BASED COMPENSATION EXPENSE(In
thousands)(unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Cost of revenue |
$ |
383 |
|
$ |
274 |
|
$ |
1,472 |
|
$ |
1,135 |
Technology and
development |
|
1,137 |
|
|
758 |
|
|
4,346 |
|
|
3,225 |
Sales and marketing |
|
2,589 |
|
|
1,905 |
|
|
10,462 |
|
|
7,645 |
General and
administrative |
|
3,228 |
|
|
2,527 |
|
|
12,582 |
|
|
8,641 |
Total stock-based compensation |
$ |
7,337 |
|
$ |
5,464 |
|
$ |
28,862 |
|
$ |
20,646 |
|
(2)On June 30, 2023, a Demand Side Platform
buyer of our platform filed for Chapter 11 bankruptcy. As a result
of this bankruptcy, we recorded incremental bad debt expense of
$5.7 million which is reflected in our GAAP net income and adjusted
EBITDA results for the year ended December 31, 2023.
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS(In
thousands)(unaudited) |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
CASH FLOW FROM OPERATING
ACTIVITIES: |
|
|
|
Net Income |
$ |
8,881 |
|
|
$ |
28,705 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
44,770 |
|
|
|
34,249 |
|
Unrealized loss and impairment of equity investment |
|
— |
|
|
|
5,948 |
|
Stock-based compensation |
|
28,862 |
|
|
|
20,646 |
|
Provision for doubtful accounts |
|
5,675 |
|
|
|
— |
|
Deferred income taxes |
|
(13,406 |
) |
|
|
(7,166 |
) |
Accretion of discount on marketable securities |
|
(4,093 |
) |
|
|
(577 |
) |
Non-cash lease expense |
|
6,145 |
|
|
|
5,831 |
|
Other |
|
45 |
|
|
|
90 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(75,716 |
) |
|
|
(24,408 |
) |
Prepaid expenses and other current assets |
|
3,918 |
|
|
|
(1,595 |
) |
Accounts payable |
|
79,687 |
|
|
|
29,763 |
|
Accrued liabilities |
|
3,035 |
|
|
|
(1,024 |
) |
Operating lease liabilities |
|
(5,789 |
) |
|
|
(5,539 |
) |
Other liabilities, non-current |
|
(893 |
) |
|
|
2,289 |
|
Net cash provided by operating
activities |
|
81,121 |
|
|
|
87,212 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Purchases of and deposits on property and equipment |
|
(10,601 |
) |
|
|
(35,869 |
) |
Capitalized software development costs |
|
(17,687 |
) |
|
|
(13,024 |
) |
Purchases of marketable securities |
|
(140,603 |
) |
|
|
(137,793 |
) |
Proceeds from sales of marketable securities |
|
18,873 |
|
|
|
— |
|
Proceeds from maturities of marketable securities |
|
111,000 |
|
|
|
133,400 |
|
Business combination, net of cash acquired |
|
— |
|
|
|
(28,085 |
) |
Net cash used in investing
activities |
|
(39,018 |
) |
|
|
(81,371 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Proceeds from issuance of common stock for employee stock purchase
plan |
|
1,869 |
|
|
|
2,960 |
|
Proceeds from exercise of stock options |
|
1,549 |
|
|
|
1,195 |
|
Principal payments on finance lease obligations |
|
(126 |
) |
|
|
(119 |
) |
Payments to acquire treasury stock |
|
(59,268 |
) |
|
|
— |
|
Net cash provided by (used in)
financing activities |
|
(55,976 |
) |
|
|
4,036 |
|
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS |
|
(13,873 |
) |
|
|
9,877 |
|
CASH AND CASH EQUIVALENTS -
Beginning of year |
|
92,382 |
|
|
|
82,505 |
|
CASH AND CASH EQUIVALENTS - End
of year |
$ |
78,509 |
|
|
$ |
92,382 |
|
|
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED
EBITDA AND NON-GAAP NET INCOME(In thousands,
except per share amounts)(unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
18,702 |
|
|
$ |
12,781 |
|
|
$ |
8,881 |
|
|
$ |
28,705 |
|
Add back (deduct): |
|
|
|
|
|
|
|
Stock-based compensation |
|
7,337 |
|
|
|
5,464 |
|
|
|
28,862 |
|
|
|
20,646 |
|
Depreciation and
amortization |
|
11,039 |
|
|
|
10,662 |
|
|
|
44,770 |
|
|
|
34,249 |
|
Unrealized loss and impairment
of equity investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,948 |
|
Interest income |
|
(2,515 |
) |
|
|
(1,170 |
) |
|
|
(8,828 |
) |
|
|
(2,214 |
) |
Acquisition-related and other
expenses1 |
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
918 |
|
Provision for income
taxes |
|
4,343 |
|
|
|
4,034 |
|
|
|
1,624 |
|
|
|
8,762 |
|
Adjusted EBITDA |
$ |
38,906 |
|
|
$ |
31,822 |
|
|
$ |
75,309 |
|
|
$ |
97,014 |
|
|
|
|
|
|
|
|
|
Revenues |
$ |
84,600 |
|
|
$ |
74,296 |
|
|
$ |
267,014 |
|
|
$ |
256,380 |
|
GAAP net income margin |
|
22 |
% |
|
|
17 |
% |
|
|
3 |
% |
|
|
11 |
% |
Adjusted EBITDA margin |
|
46 |
% |
|
|
43 |
% |
|
|
28 |
% |
|
|
38 |
% |
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
18,702 |
|
|
$ |
12,781 |
|
|
$ |
8,881 |
|
|
$ |
28,705 |
|
Add back (deduct): |
|
|
|
|
|
|
|
Unrealized loss and impairment
of equity investment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,948 |
|
Stock-based compensation |
|
7,337 |
|
|
|
5,464 |
|
|
|
28,862 |
|
|
|
20,646 |
|
Acquisition-related and other
expenses1 |
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
918 |
|
Adjustment for income
taxes |
|
(1,590 |
) |
|
|
(352 |
) |
|
|
(5,695 |
) |
|
|
(4,968 |
) |
Non-GAAP Net Income |
$ |
24,449 |
|
|
$ |
17,944 |
|
|
$ |
32,048 |
|
|
$ |
51,249 |
|
GAAP diluted EPS |
$ |
0.34 |
|
|
$ |
0.22 |
|
|
$ |
0.16 |
|
|
$ |
0.50 |
|
Non-GAAP diluted EPS |
$ |
0.45 |
|
|
$ |
0.32 |
|
|
$ |
0.57 |
|
|
$ |
0.90 |
|
GAAP weighted average shares
outstanding—diluted |
|
54,940 |
|
|
|
56,944 |
|
|
|
56,027 |
|
|
|
56,908 |
|
Non-GAAP weighted average
shares outstanding—diluted |
|
54,940 |
|
|
|
56,944 |
|
|
|
56,027 |
|
|
|
56,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Beginning in the third quarter of 2023, we are
no longer excluding the impact of post-acquisition cash
compensation agreements for certain key acquired employees from the
Martin acquisition from Adjusted EBITDA and Non-GAAP net income.
Prior period amounts for Adjusted EBITDA and Non-GAAP net income
have been updated to conform to the current period presentation.
For comparative purposes, the impact of this change for the three
and twelve months ended December 31, 2022 is a decrease of $0.8
million and $1.0 million, respectively, to Adjusted EBITDA income
and Non-GAAP net income.
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Reconciliation of cash
provided by operating activities: |
|
|
|
|
|
|
|
Net cash provided by operating
activities |
$ |
28,674 |
|
|
$ |
19,358 |
|
|
$ |
81,121 |
|
|
$ |
87,212 |
|
Less: Purchases of property and equipment |
|
(5,177 |
) |
|
|
(8,908 |
) |
|
|
(10,601 |
) |
|
|
(35,869 |
) |
Less: Capitalized software development costs |
|
(3,962 |
) |
|
|
(3,427 |
) |
|
|
(17,687 |
) |
|
|
(13,024 |
) |
Free cash flow |
$ |
19,535 |
|
|
$ |
7,023 |
|
|
$ |
52,833 |
|
|
$ |
38,319 |
|
Investors:
The Blueshirt Group for PubMatic
investors@pubmatic.com
Press Contact:
Broadsheet Communications for PubMatic
pubmaticteam@broadsheetcomms.com
Grafico Azioni PubMatic (NASDAQ:PUBM)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni PubMatic (NASDAQ:PUBM)
Storico
Da Set 2023 a Set 2024