Slide 1: Q1 2025 Earnings Presentation
Q1 2025 Earnings Presentation May 8, 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 second quarter of 2025 and capex for the full year 2025, our expectatio
Slide 3: Q1 2025 Financial Highlights
Q1 2025 FINANCIAL HIGHLIGHTS W H AT W E D O REVENUE GAAP NET LOSS PubMatic is $63.8M $(9.5)M building a better -4% 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 $8.5M $15.6M 1 3 % M AR G I N 1 Adjusted EBI
Slide 4: PubMatic's integrated platform offers clear points of differentiation
P U B M AT I C ’ S I N T E G R AT E D P L AT F O R M O F F E R S C L E A R P O I N T S O F D I F F E R E N T I AT I O N 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 PROVIDERS MEDIA AND FORMA
Slide 5: The current macro environment
OUR GUIDING PRINCIPLES FOR MANAGING THE BUSINESS TO DRIVE MARKET SHARE GAINS The current Anticipate where advertising growth will move macro to as the market rapidly evolves environment creates more Closely manage costs in order to preserve agility and protect cash and free cash flow opportunities f
Slide 6: Anticipate where ad growth will move to as the market evolves
T H E C U R R E N T E N V I R O N M E N T C R E AT E S O P P O R T U N I T I E S F O R P U B M AT I C : PRINCIPLE 1: Acceleration of ad spend from linear TV to streaming, with increased Anticipate where opportunities for programmatic ad growth will move More pronounced shift from upper to lower funn
Slide 7: Powering the next era of programmatic
POWERING THE NEXT ERA O F P R O G R A M M AT I C The first Gen AI- powered end-to-end platform that gives buyers direct access to nearly the entire open internet 7
Slide 8: Closely manage costs in order to preserve agility
P R O T E C T I N G O U R B AL AN C E S H E E T AN D F R E E C AS H F L O W PRINCIPLE 2: Tightly manage costs and drive continued opex and capex efficiencies Closely manage costs in order to Apply Gen AI across our business preserve agility operations Accelerate innovation without expanding headcoun
Slide 9: Align resource mix towards high growth opportunities
F R AM E W O R K F O R AC C E L E R AT I N G GROWTH PRINCIPLE 3: Growing our agency holding company sales team to drive SPO Align resource mix Investing in our independent agency towards high and direct advertiser sales teams growth Adding specialist sellers for opportunities Activate, CTV, commerce
Slide 10: Global CTV growth fueled by strong publisher partnerships
GLOBAL CTV GROWTH FUELED BY STRONG PUBLISHER PARTNERSHIPS Deepened US CTV partnerships to support curated access and live sports monetization CONNECTED TV Drove publisher growth in key international REVENUE GROWTH YOY markets IN Q1 2025 Expanded FAST channel expansion across global audiences 50%+ In
Slide 11: Supply path optimization grows as more buyers seek transparency
SUPPLY PATH OPTIMIZATION GROWS AS MORE BUYERS SEEK TRANSPARENCY AND EFFICIENCY IN MEDIA BUYING “ SPO SHARE OF PubMatic has consistently been TOTAL ACTIVITY ON OUR PLATFORM achieving efficient supply-path strategies backed by data, especially in 55%+ online video, where their performance 50% outshine
Slide 12: Commerce media taking share from brand-oriented budgets
COMMERCE MEDIA TAKING SHARE FROM BRAND-ORIENTED BUDGETS By leveraging Instacart’s commerce-driven audience signals and PubMatic’s premium inventory, a leading causal dining brand drove 11% greater price efficiency without sacrificing reach or engagement Commerce media companies gain full control ove
Slide 13: Sell-side targeting via PubMatic is gaining traction across the ecosystem
S E L L - S I D E TA R G E T I N G V I A P U B M AT I C I S GAINING TRACTION ACROSS THE ECOSYSTEM AU D I E N C E D AT A PREMIUM INVENTORY 190+ data sets are available Inventory from over 1,950 for buyers to target premium publishers REVENUE LIFT SEEN BY PUBLISHERS USING OUR C U R AT I O N T O O L S
Slide 14: PubMatic has the technology, team and infrastructure to drive profitable growth
PubMatic’s underlying business is PubMatic has the strong, up 21% YOY in Q1 20251 technology, team and infrastructure to drive profitable growth in We are growing high double digits in key secular areas 2025 as we create value for the entire supply chain The current macro environment serves as a cat
Slide 15: Financial Highlights
Financial Highlights ▪
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Exceeded revenue and profit A C C E L E R AT I N G U N D E R LY I N G Y O Y R E V E N U E G R O W T H expectations EXCLUDES IMPACT FROM DSP BUYER AND POLITICAL SPEND 21% Increasing mix 17% 16% towards high ~70% engagement formats of Total Revenues Benefit from cumulative Q3'24 Q
Slide 17: Q1 Revenue Growth Drivers
Q1 REVENUE GROWTH DRIVERS VS. PRIOR YEAR Omnichannel Video Revenue 20% CTV Revenue 50%+ Emerging Revenues 100%+ Display Revenue, Excluding Impacted DSP 20% 1 Excludes a several million-dollar impact from one DSP buyer on our platform that changed their bidding methodology and All Political advertisi
Slide 18: 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 300 +27% 280T 180 160 +28% 60% 250 221T 140 173T 200 120 $101 $101 150 $87 100 I N C R E AS E I N AD 80 IMPRESSIONS 100 60 PROCESSED OVER 40 L AS T T W O Y E AR S 50 W I T H 1 6 % I N
Slide 19: Long Term Focus on Cash Generation
LONG TERM FOCUS ON CASH GENERATION USES OF CASH ▪ Investments for $346M $183M secular growth NET CASH FROM FREE CASH FLOW 1 ▪ Share repurchases OPERATING ACTIVITIES Q1 2021 – Q1 2025 Q1 2021 – Q1 2025 ▪ Potential M&A 1 Free Cash Flow is a non-GAAP measure. A reconciliation of free cash flow to net c
Slide 20: Capital Allocation
CAPITAL ALLOCATION CASH & MARKETABLE SECURITIES $144M END OF Q1 2025 $138M 8.7M BOARD AUTHORIZED CASH USED FOR CLASS A COMMON EXPANSION OF REPURCHASES1 SHARES REPURCHASE PROGRAM REPURCHASED1 FEB 2023 TO MAR 2025 FEB 2023 TO MAR 2025 $100M APPROVED THROUGH DEC. 2026 1 As of March 31, 2025, fully dilu
Slide 21: Executing Against 2025 Guiding Principles
EXECUTING AGAINST 2025 GUIDING PRINCPLES Anticipate where advertising growth Focusing on value-enhancing will move to as the market rapidly innovation across our well-diversified evolves platform Closely manage costs in order to Achieving incremental productivity preserve agility and protect our gai
Slide 22: 2025 Q2 Guidance
22 2025 Q2 GUIDANCE Q2 2025 ($ in Millions) Low High Revenue $66 $70 Ye a r o v e r Ye a r G r o w t h % -2% 4% Ad j u s t e d E B I T D A $9 $12 Ad j u s t e d E B I T D A M a r g i n 14% 17% Note: Numbers rounded for presentation purposes Full year capex outlook reduced by more than 15% to ~$15 mi
Slide 23: Strong Foundation for Long-Term Growth
23 S T R O N G F O U N D AT I O N F O R L O N G - T E R M G R O W T H 1 Underlying Business Expected to Grow 15%+ in 2025 2 Revenue Growth Acceleration in 2H 2025 3 Integrated Platform Capitalizes on Sell-Side Industry Shift 4 Use of Generative AI to Drive Efficiency and Growth 5 Durable Business Mo
Slide 24: Appendix
Appendix 24
Slide 25: Non-GAAP Reconciliation – Adjusted EBITDA & Non-GAAP Net Income (Loss)
N O N - G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N - G A A P N E T INCOME (LOSS) ($ in Thousands) Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2 '23 Net income (loss) $(9,486) $13,899 $ (912) $ 1,971 $(2,454) $ 18,702 $ 1,774 $(5,724) Add back (deduct): Stock-based compen
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) Q1'25 Q4'24 Q3'24 Q2'24 Q1'24 Q4'23 Q3'23 Q2'23 Net income (loss) $(9,486) $13,899 $ (912) $ 1,971 $(2,454) $ 18,702 $ 1,774 $(5,724) Stock based compen
Slide 27: Free Cash Flow Reconciliation
F R E E C A S H F L O W R E C O N C I L I AT I O N ($ in Millions) Three Months Ended March 31, 2025 2024 2023 Net Cash provided by Operating Activities $15.6 $24.3 $12.8 Deduct: Purchases of Property and Equipment (1.4) (0.8) (1.4) Capitalized Software Development Costs (6.9) (7.2) (6.0) Free Cash