PubMatic (PUBM) Q3 Earnings Report Preview: What To Look For

Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be announcing earnings results tomorrow afternoon. Here’s what to look for.

PubMatic missed analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $67.27 million, up 6.2% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter.

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 grow 3.7% year on year to $66.04 million, a reversal from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.09 per share.

The majority of analysts covering the company have 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 three times over the last two years.

Looking at PubMatic’s peers in the advertising software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 38.6%, beating analysts’ expectations by 5.9%, and The Trade Desk reported revenues up 27.3%, topping estimates by 1.2%. AppLovin traded up 46.1% following the results while The Trade Desk was down 5.6%.

Read our full analysis of AppLovin’s results here and The Trade Desk’s results here.

There has been positive sentiment among investors in the advertising software segment, with share prices up 11% on average over the last month. PubMatic is up 3.4% during the same time and is heading into earnings with an average analyst price target of $20 (compared to the current share price of $15.63).

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