Pubmatic, Inc. · NASDAQ:PUBM
Pubmatic — Q2 2025 Earnings Presentation
27 slides from Pubmatic's earnings presentation, Aug 11, 2025
Slide 1: Q2 2025 Earnings Presentation
Q2 2025 Earnings Presentation A u g u s t 11 , 2 0 2 5
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements regarding our future business expectations, including but not limited to our guidance relating to our revenue, adjusted EBITDA, and adjusted EBITDA margin for the third quarter of 2025 and capex for the full year 2025, our expectation
Slide 3: Q2 2025 Financial Highlights
Q2 2025 FINANCIAL HIGHLIGHTS W H AT W E D O REVENUE GAAP NET LOSS ▪ PubMatic is $71.1M $(5.2)M building a better 6% Y O Y supply chain for the future of AD J U S T E D EBITDA1 C AS H F L O W F R O M O P E R AT I O N S 2 advertising on the open internet $14.2M $14.9M 20% M AR G I N 1 Adjusted EBITDA
Slide 4: PubMatic Has Evolved
P U B M AT I C H A S E V O LV E D F R O M A N S S P P R O V I D E R T O A N E N D - T O - E N D P L AT F O R M S E R V I N G T H E E N T I R E D I G I TA L A D V E R T I S I N G E C O S Y S T E M MONETIZATION & CONTROL PUBLISHERS MEDIA SSP A C T I V AT E AND APP BUYERS DEVELOPERS OPENWRAP CONVERT DA
Slide 5: Prioritizing strategies to accelerate sustainable growth
1 DIVERSIFY OUR DSP MIX Expand with mid-tier and performance DSPs We are INVEST ON THE BUY-SIDE 2 Increase go-to-market investment to accelerate prioritizing Activate adoption strategies to AD V AN C E C T V L E AD E R S H I P 3 Continue to capture outsized share of one of the fastest accelerate gro
Slide 6: Building a Broader, More Resilient Demand Ecosystem
BUILDING A BROADER, MORE RESILIENT DEMAND ECOSYSTEM Adding new high-growth integrations with performance-focused DSPs Y O Y G R O W T H R AT E O F P E R F O R M AN C E AN D M I D - T I E R D S P s Working with several China-based DSPs to IN Q2 2025 support their non-China business 20%+ Diversificati
Slide 7: Scaling Activate to Meet Buy-Side Demand for Control & Performance
SCALING ACTIVATE TO MEET BUY-SIDE DEMAND FOR CONTROL & PERFORMANCE Germany leveraged Activate to boost brand awareness and purchase intent for a leading online marketplace for handmade goods. S E Q U E N T I AL I N C R E AS E I N B U Y I N G AC T I V I T Y V I A AC T I VAT E F R O M Q1 2025 TO Q2 20
Slide 8: Commerce Media and Supply Path Optimization
COMMERCE MEDIA AND SUPPLY PATH OPTIMIZATION UNLOCK INCREMENTAL BUY-SIDE GROWTH SPO SHARE OF is leveraging Activate to enable TOTAL ACTIVITY ON OUR PLATFORM buyers to apply its transaction-based audience data across PubMatic’s premium omnichannel inventory. 55% 51% 41% I M P R O V E TAR G E T I N G P
Slide 9: Expanding Our Leadership in Connected TV
EXPANDING OUR LEADERSHIP IN CONNECTED TV YOY REVENUE GROWTH FROM CTV IN Q2 2025 50%+ C O V E R AG E O F T O P 3 0 S T R E AM E R S G L O B AL LY 87% 9
Slide 10: CTV Scale and Leading Technology
CTV SCALE AND LEADING TECHNOLOGY ENABLE SOPHISTICATED CURATION SOLUTIONS FOR BUYERS & PUBLISHERS “ By combining FanServ’s deep sports expertise with PubMatic’s unique event-level curation, we’re empowering LIVE SPORTS BUYER AC T I V I T Y G R O W T H YOY IN 1H 2025 brands to connect meaningfully at
Slide 11: Accelerating Growth in High-Margin, Platform-Controlled Revenue
ACCELERATING GROWTH IN HIGH -MARGIN, PLATFORM-CONTROLLED REVENUE DATA CURATION ▪ Integrated PubMatic’s SSP, OpenWrap and Connect COMMERCE MEDIA ▪ Monetizing both onsite inventory and offsite activations ▪ Driving incremental, performance-based revenue ENTERPRISE SOLUTIONS from first-party data 11
Slide 12: Diversified Investment in Innovation
DIVERSIFIED INVESTMENT IN We continue REVENUE STREAM S I N N O VAT I O N to invest and innovate, unlocking new avenues for sustainable SHAREHOLDER IMPROVED growth VA L U E C R E AT I O N CUSTOMER OUTCOMES 12
Slide 13: We are building a stronger, more sustainable business
We are at an inflection point, and the programmatic ecosystem is reshaping to our advantage. We are building a stronger, more We are diversifying ad demand sustainable business and revenue streams and investing in the highest growth that creates long-term areas. value for customers and shareholders
Slide 14: Financial Highlights
Financial Highlights ▪
Slide 15: Q2 Financial Highlights
Q2 FINANCIAL HIGHLIGHTS REVENUE GROWTH YOY 6% REVENUE CTV + EMERGING REVENUES YOY GROWTH YOY GROWTH CTV + EMERGING GROWTH YOY 6% 6% >100% >100% GAAP NET LOSS >50% $(5.2)M (7)% M A R G I N ADJUSTED EBI TDA1 $14.2M Q2'24 Q2'25 Q2'24 Q2'25 20% M A R G I N 1 Adjusted EBITDA and Adjusted EBITDA Margin ar
Slide 16: Q2 Revenue Growth Drivers
Q2 REVENUE GROWTH DRIVERS VS. PRIOR YEAR Omnichannel Video Revenue 34% CTV Revenue 50%+ Emerging Revenues 100%+ 16
Slide 17: Intrinsic Strength of Business Model
INTRINSIC STRENGTH OF BUSINESS MODEL A D I M P R E S S I O N S P R O C E S S E D C O M PA R E D T O COST OF REVENUE 78T 60% +28% 61T I N C R E AS E I N AD I M P R E S S I O N S $25 $27 PROCESSED OVER L AS T T W O Y E AR S W I T H 1 0 % I N C R E AS E TO COST OF REVENUE Q2'24 Q2'25 Ad Impressions Cos
Slide 18: Funding High Growth Through Optimization
FUNDING HIGH GROWTH THROUGH OPTIMIZATION S AL E S T E AM H E AD C O U N T F O C U S E D O N S E C U L AR G R O W T H AR E AS Q2 '25 VS. Q1 '25 OPEX +25% FLAT +44% BUYER-FOCUSED HEADCOUNT GROWTH YOY Q2'24 Q2'25 20% 18
Slide 19: Long Term Focus on Cash Generation
LONG TERM FOCUS ON CASH GENERATION USES OF CASH $348M $183M ▪ Investments for secular growth NET CASH FROM FREE CASH FLOW 1 ▪ Share repurchases O P E R AT I N G A C T I V I T I E S Q2 2021 – Q2 2025 Q2 2021 – Q2 2025 ▪ Potential M&A 1 Free Cash Flow is a non-GAAP measure. A reconciliation of free ca
Slide 20: Capital Allocation
CAPITAL ALLOCATION CASH & MARKETABLE $178M 12.2M SECURITIES CASH USED FOR REPURCHASES1 CLASS A COMMON SHARES $118M REPURCHASED1 END OF Q2 2025 FEB 2023 TO JUN 2025 FEB 2023 TO JUN 2025 1 As of June 30, 2025, fully diluted shares outstanding of 50,539,394. 20
Slide 21: Financial Discipline Fuels Business Transformation
FINANCIAL DISCIPLINE FUELS BUSINESS TRANSFORMATION Our end-to-end platform, SPO and AI Continued growth in key secular solutions help customers scale their areas of the business ad business with PubMatic Gain incremental cost efficiencies Optimization of resources to drive via AI while we optimize e
Slide 22: 2025 Q3 Guidance
22 2025 Q3 GUIDANCE Q3 2025 ($ in Millions) Low High Revenue $61 $66 Ye a r o v e r Ye a r G r o w t h % -15% -8% Ye a r o v e r Ye a r G r o w t h % e x p o l i t i c a l -10% -3% Ad j u s t e d E B I T D A $7 $10 Ad j u s t e d E B I T D A M a r g i n 11% 15% Note: Numbers rounded for presentation
Slide 23: Strong Foundation for Long-Term Growth
23 S T R O N G F O U N D AT I O N F O R L O N G - T E R M G R O W T H 1 Continued Investment in Key Secular Growth Areas 2 Integrated Platform Capitalizes on Industry Shifts 3 Use of Generative AI to Drive Efficiency and Growth 4 Durable Business Model Delivers Healthy Margins and Cash Flow 23
Slide 24: Appendix
Appendix 24
Slide 25: Non-GAAP Reconciliation – Adjusted EBITDA & Non-GAAP Net Income (Loss)
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T INCOME (LOSS) ($ in Thousands) Q2 '25 Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24 Q4 '23 Q3 '23 Net income (loss) $(5,208) $(9,486) $ 13,899 $ (912) $ 1,971 $(2,454) $18,702 $ 1,774 Add back (deduct): Stock-based
Slide 26: Non-GAAP Reconciliation – Adjusted EBITDA & Non-GAAP Net Income (Loss)
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T INCOME (LOSS) (in Thousands except per share data) Q2 '25 Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24 Q4 '23 Q3 '23 Net income (loss) $(5,208) $(9,486) $ 13,899 $ (912) $ 1,971 $(2,454) $18,702 $ 1,774 Stock base
Slide 27: Free Cash Flow Reconciliation
F R E E C A S H F L O W R E C O N C I L I AT I O N ($ in Millions) Three Months Ended June 30, 2025 2024 2023 Net Cash provided by Operating Activities $14.9 $11.9 $15.8 Deduct: Purchases of Property and Equipment (1.3) (0.7) (1.1) Capitalized Software Development Costs (4.3) (4.3) (3.9) Free Cash F