Slide 1: Q4 and FY 2024 Earnings Presentation
Q4 and FY 2024 Earnings Presentation February 27, 2025
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 first quarter of 2025, our expectations regarding our adjusted EBITDA f
Slide 3: FY 2024 Financial Highlights
FY 2024 FINANCIAL HIGHLIGHTS W H AT W E D O REVENUE GAAP NET INCOME PubMatic is $291.3M $12.5M building a better 9% YOY supply chain for the future of AD J U S T E D E B I T D A 1 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 $92.3M $73.4M 3 2 % M AR G I N 1 Adjusted E
Slide 4: Four key customer segments power a flywheel for growth and profitability
OUR FOUR KEY CUSTOMER SEGMENTS POWER A FLYWHEEL FOR GROWTH AND PROFITABILITY UNIQUE AD PREMIUM DEMAND FROM MEDIA SPO AND ACROSS A C T I V AT E CHANNELS PUBLISHERS MEDIA AND APP BUYERS DEVELOPERS D ATA COMMERCE PROVIDERS MEDIA AND NETWORKS C U R AT O R S H I G H - V A L U E D ATA PA R T N E R S A N D
Slide 5: PubMatic's integrated platform built for a complex and evolving ecosystem
P U B M AT I C ’ S I N T E G R AT E D P L AT F O R M I S B U I LT T O T H E N E E D S O F A C O M P L E X A N D E V O LV 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 DATA & AUDIENCES IDENTITY CONNECT HUB D ATA COMMERCE
Slide 6: High-engagement channels of connected TV and mobile app drive revenue growth
HIGH-ENGAGEMENT CHANNELS OF CONNECTED TV & MOBILE APP DRIVE REVENUE GROWTH CTV share of total revenue in Q4 20% 20241 Share of total revenue from 40%+ omnichannel video, including CTV, in Q4 2024 Mobile app YOY revenue growth in 16% FY 2024 1 Includes political ad spend in Q4 6
Slide 7: Supply path optimization acceleration widens competitive moat
SUPPLY PATH OPTIMIZATION ACCELERATION WIDENS COMPETITIVE MOAT SPO SHARE OF Five-year partnership extends to TOTAL ACTIVITY ON OUR PLATFORM Activate and customized algorithms, driving increased advertiser ROI and 53% increased agency activity on the 45% PubMatic platform 32% Customers increased nearl
Slide 8: Commerce media business is gaining traction
COMMERCE MEDIA BUSINESS IS GAINING TRACTION Unified technology platform for commerce media enables customers to manage onsite and offsite advertising strategies L E AD I N G C O M M E R C E M E D I A N E T W O R K S M AK E T H E I R D AT A AN D AU D I E N C E S AV A I L A B L E O N P U B M AT I C 8
Slide 9: Sell-side targeting unlocks open internet growth opportunities
SELL-SIDE TARGETING UNLOCKS OPEN INTERNET GROWTH OPPORTUNITIES AU D I E N C E D AT A PREMIUM INVENTORY 190+ data sets are available Inventory from over 1,900 for buyers to target premium publishers YOY REVENUE GROWTH F R O M O U R C U R AT I O N AN D D ATA P L AT F O R M , CONNECT 140% EFFICIENCY &
Slide 10: Doubling down on use of generative AI for customer and internal benefit
DOUBLING DOWN ON USE OF GENERATIVE AI FOR CUSTOMER AND INTERNAL BENEFIT Gen AI is used throughout product development, testing and release processes YOY ENGINEERING PRODUCTIVITY GROWTH IN 2024 THROUGH THE Second customer-facing Gen AI solution U S E O F G E N E R AT I V E AI launched—PubMatic Assist
Slide 11: PubMatic has the technology, team and infrastructure to drive profitable growth
PubMatic’s underlying business 1 is strong, up 16% YOY in Q4 20241 PubMatic has the technology, team Our multi-year investments are delivering profitable growth and and infrastructure incremental value to customers to drive profitable growth in 2025 The value of the digital advertising supply chain
Slide 12: Financial Highlights
Financial Highlights ▪
Slide 13: FY 2024 Financial Highlights
FY 2024 FINANCIAL HIGHLIGHTS REVENUE1 GROWTH YOY 9% REVENUE AD J U S T E D E B I T D A GROSS PROFIT GROWTH YOY $291 $267 $92 $75 13% GAAP NET INCOME $12.5M 4% MARGIN ADJUSTED EBI TDA2 FY 23 FY 24 FY 23 FY 24 $92.3M 1 FY 2024 revenue includes a headwind from a large DSP buyer that changed its auction
Slide 14: Accelerated Revenue Growth to 9%
MAJOR 2024 ACCOMPLISHMENTS Connected TV revenue doubled YOY Accelerated Mobile app revenue grew 16% YOY Revenue Growth to 9%, Emerging revenue streams doubled YOY Double 2023 Full year SPO represented 53% of platform activity 14
Slide 15: Expanded Margins via Revenue Mix and Optimization
MAJOR 2024 ACCOMPLISHMENTS Improved gross margins by 250 bp Expanded Improved Adjusted EBITDA by 350 bp Margins via Revenue Improved engineering productivity by 15%+ with Gen AI Mix and Optimization Increased capacity and reduced cost of revenue per million impressions 15
Slide 16: Managed Working Capital to Fund Growth and Share Repurchases
MAJOR 2024 ACCOMPLISHMENTS Delivered $73M in operating cash flow and Managed $35M in free cash flow Working Reduced fully diluted shares outstanding by Capital to 8% in 2024 Fund Growth Finished the year with $141 million in cash and Share and marketable securities and no debt Repurchases 16
Slide 17: Q4 2024 Growth Metrics
Q4 2024 GROWTH METRICS Revenue Growth Accelerated Excluding Political and One DSP Buyer 1 16% YOY Significant Growth in Omnichannel Video Revenue 37% YOY Connected TV Revenues Reached All Time High 20% OF REVENUE Share of Revenue Emerging Revenues Continued Rapid Growth 2X+ YOY 1 Excludes revenues f
Slide 18: GAAP Cost of Revenue and Operating Expenses
GAAP COST OF REVENUE AND OPERATING EXPENSES: ACHIEVING EFFICIENCIES AND INVESTING FOR GROWTH $200,000 $186 $50,000.00 $46 DRIVERS $166 $40 ▪ Lowered rate of opex $58 $40,000.00 $14 $150,000 growth in 2024 $56 $13 $30,000.00 ▪ Leveraged prior $100,000 investments to drive $95 revenue growth in 2024 $
Slide 19: Net Income and Diluted Earnings Per Share
19 NET INCOME AND DILUTED EARNINGS PER SHARE NET INCOME1 1 DILUTED EARNINGS PER SHARE 2 1, 2 1Non-GAAP net income and Non-GAAP diluted EPS are non-GAAP measures. A reconciliation of Non-GAAP net income to net income is provided in the Appendix of this presentation. 2 EPS = Earnings per share 19
Slide 20: Long Term Focus on Cash Generation
LONG TERM FOCUS ON CASH GENERATION USES OF CASH ▪ Investments for growth $330M $175M ▪ Share repurchases NET CASH FROM FREE CASH FLOW 1 OPERATING ACTIVITIES 2021 - 2024 2021 - 2024 1 Free Cash Flow is a non-GAAP measure. A reconciliation of free cash flow to net cash flow provided by (used in) opera
Slide 21: Capital Allocation
CAPITAL ALLOCATION CASH & MARKETABLE SECURITIES $134.6M 8.3M CASH USED FOR REPURCHASES1 CLASS A COMMON SHARES $140.6M REPURCHASED YEAR END 2024 1 Between Feb 1, 2023 – Dec 31, 2024 21
Slide 22: 2025 Operating Priorities and Growth Levers
2025 OPERATING PRIORITIES & GROWTH LEVERS Further Accelerate Revenue Leverage 2024 investments in sales Growth By Building on 2024 and technology and selectively add Momentum specialists Significantly Expand Use of Invest to drive AI-centered products Generative AI to Drive to expand customer value
Slide 23: Q1 2025 Guidance
23 Q1 2025 GUIDANCE Q1 2025 ($ in Millions) Low High Revenue $61 $63 Ad j u s t e d E B I T D A $5 $7 Ad j u s t e d E B I T D A M a r g i n 8% 11% Note: Numbers rounded for presentation purposes • After lapping DSP buyer impact end of Q2, expect 2H 2025 revenue growth to accelerate • Expect capital
Slide 24: Strong Foundation for Long-Term Growth
24 S T R O N G F O U N D AT I O N F O R L O N G - T E R M G R O W T H 1 Revenue Mix Increasing Towards Secular Growth Areas 2 Revenue Growth Acceleration in 2H 2025 3 Integrated Platform Capitalizes on Sell-Side Industry Shift 4 Use of Generative AI to Drive Efficiency and Growth 5 Durable Business
Slide 25: Appendix
Appendix 25
Slide 26: Non-GAAP Reconciliation – Adjusted EBITDA
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T I N C O M E (LOSS) ($ in Thousands) Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 Net income (loss) $ 13,899 $ (912) $ 1,971 $(2,454) $ 18,702 $ 1,774 $(5,724) $(5,871) Add back (deduct): Stock-based c
Slide 27: Non-GAAP Reconciliation – Non-GAAP Net Income and EPS
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T I N C O M E (LOSS) ($ in thousands except per share data) Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Q1'23 Net income (loss) $ 13,899 $ (912) $ 1,971 $(2,454) $ 18,702 $ 1,774 $(5,724) $(5,871) Stock base
Slide 28: Free Cash Flow Reconciliation
F R E E C A S H F L O W R E C O N C I L I AT I O N ($ in Millions) Three Months Ended Twelve Months Ended December 31, December 31, 2024 2023 2024 2023 Net Cash provided by Operating Activities $18.0 $28.7 $73.4 $81.1 Deduct: Purchases of Property and Equipment (4.3) (5.2) (17.6) (10.6) Capitalized