PubMatic has reported first quarter revenue above guidance and has raised its 2021 financial outlook.
The company's revenue growth year-over-year was 54% and it delivered $4.9 million in net income and US$14.5 million in adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization).
“We delivered another exceptional quarter driven by multiple organic growth drivers. Our performance reinforces the belief that our differentiated, owned and operated cloud infrastructure provides superior outcomes for the growing digital advertising market,” PubMatic co-founder and CEO Rajeev Goel says.
“Our omnichannel platform fueled growth across all segments of our customer base and all formats we serve, particularly in video and OTT/CTV (over-the-top/ connected TV). Our execution, combined with the economic re-opening and expected acceleration of digital advertising, gives us confidence to raise our full year outlook for 2021.”
Revenue in the first quarter of 2021 was US$43.6 million, an increase of 54% over US$28.3 million in the same period of 2020.
Net income was US$4.9 million, or US$0.09 per diluted share in the first quarter, an increase over net income of US$0.9 million, or $0.00 per diluted share in the same period of 2020.
PubMatic processed 18.5 trillion impressions in the first quarter, a 106% increase over a year ago.
Revenue from fast-growing advertising formats mobile and omnichannel video, which includes OTT/CTV, grew 83% year-over-year and represented 63% of total revenue in Q1 2021.
Revenue from OTT/CTV grew 55% sequentially from Q4 2020, and the business monetised OTT/CTV inventory from over 80 publishers.
“Our out-performance in the quarter reflects the strength of our platform, the value we deliver via our usage-based model and our infrastructure-first approach. We are pleased with our results and are raising our full year outlook,” PubMatic chief financial officer Steve Pantelick says.
“As we grow our market share, we will continue to invest for future growth adding new customers, increasing the capacity of our infrastructure, and expanding our engineering and go-to-market teams. We believe these investments give us a powerful network effect with more visibility and scale, driving increased revenues from existing customers and operating a highly profitable platform that benefits our customers and partners.”
PubMatic's guidance assumes that the global economy continues to recover and there is not any major COVID-19 related setbacks that may cause economic conditions to deteriorate or otherwise significantly reduce advertiser demand.
It estimates for the second quarter 2021 that revenue will be in the range of US$45 million to $46 million, representing growth of 70% to 75% over Q2 2020.
It expects adjusted EBITDA to be in the range of US$14 million to $15 million representing, 31% to 33% margin.
For the full year 2021, PubMatic is raising its outlook and now expects revenue to be in the range of US$195 million to $200 million (previously $180 million to $185 million) representing year-over-year growth of 31% to 34% (previously 21% to 24%) over 2020.
It now expects adjusted EBITDA to be in the range of US$54 million to $58 million (previously $45 million to $49 million) or 27% to 29% margin (previously 25% to 27%).
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.