Predicting revenue for the first quarter of 2021, PubMatic noted that it expects to record about $38 million to $40 billion.
Digital advertising technology company PubMatic Inc (NASDAQ: PUBM) gained 10% in its stock value after reporting profits in its earnings result for 2020 Q4. The earnings result is the company’s first after its initial public offering (IPO) last December.
According to the earnings results released on the 23rd of February, PubMatic pulled in more revenue, beating analysts’ estimates. Earlier, analysts surveyed by Refinitiv had predicted that PubMatic would record revenue of $47.4 million in the fourth quarter. However, the advertising technology company said revenue in 2020 Q4 jumped 64% year-over-year to $56.2 million.
PubMatic Strong 2020 Q4 Earnings
Additionally, PubMatic also saw an increase in its 2020 full-year revenue. In the past year, the company grew 31% year-over-year to $148.7 million.
PubMatic offers real-time programmatic ad transactions to clients and allows publishers and developers to sell advertising spaces. The advertising space spans across all media platforms, including video ads on desktop, streaming TV, mobile webs, and mobile apps.
As of December, PubMatic was providing services to different clients, including publishers and app makers. They include Verizon Media Group (NYSE: VZ), News Corp (NASDAQ: NSWA), Electronic Arts (NASDAQ: EA), and Zynga Inc (NASDAQ: ZNGA).
According to PubMatic’s chief financial officer Steve Pantelick, the increase in 2020 Q4 was fueled by advertising strength in e-commerce, technology, personal finance, and on streaming video.
PubMatic’s clients, especially Verizon, played a significant role in its profitable earnings report. In 2019, Verizon made 28% of PubMatic’s revenue and represented 21% of its revenue in the first three quarters of 2020.
In the fourth quarter of 2020, PubMatic’s net income was $18.8 million, an increase over $4.1 million recorded in the same period last year. Previously, the company reported an adjusted EBITDA of $9.3 million in Q4 2019. However, the company saw an increase of 190% to $26.9 million in Q4 2020.
PubMatic Predicts Revenue Increase in Q1 2021
Predicting revenue for the first quarter of 2021, PubMatic noted that it expects to record about $38 million to $40 billion. The company predicted that it would grow by 34% to 41% over Q1 2020.
Rajeev Goel, co-founder, and CEO at PubMatic, said:
“Our IPO marked a tremendous milestone for PubMatic. Over the last 14 years, we’ve built an incredible company and I’m excited about the opportunities ahead as we seek to continue to grow our market share. I’d like to thank our entire team for their handwork and dedications to our customers, without which our success would not be possible.”
Since the beginning of 2021, PubMatic has surged more than 65%. According to MarketWatch data, the company has also grown by 24.76% over the past month. In the last five days, PUBM has declined 6.12%. Currently trading at $51.75, PubMatic is up 12.11% over its previous close of $456.16.