PubMatic (PUBM) Q4 2024 earnings summary

Executive summary

• FY 2024 revenue grew 9% year-over-year to $291.3M, with adjusted EBITDA of $92.3M at a 32% margin and GAAP net income of $12.5M.

• CTV revenue more than doubled, reaching 20% of Q4 revenue; mobile app revenue grew 16% and also represented 20% of total revenue.

• Supply Path Optimization accounted for 53% of platform activity in 2024.

• Strategic focus on high-engagement channels, generative AI innovation, and multi-year product investments.

• Ended 2024 with $141M in cash and marketable securities, no debt, and reduced fully diluted shares outstanding by 8%.

Financial highlights

• Gross profit grew 13% year-over-year, with gross margin up 250 basis points to 65%.

• Adjusted EBITDA increased 23% to $92.3M (32% margin); Q4 adjusted EBITDA was $37.6M (44% margin).

• Free cash flow for 2024 was $34.9M, with a margin of 12%.

• Q4 2024 revenue was $85.5M, up 1% year-over-year; Q4 GAAP net income was $13.9M (16% margin).

• Diluted GAAP EPS for FY 2024 was $0.23; non-GAAP diluted EPS was $0.41.

Outlook and guidance

• Q1 2025 revenue expected between $61M–$63M; adjusted EBITDA projected at $5M–$7M.

• Underlying business (excluding DSP and political) targeted to grow 15%+ year-over-year in 2025 and represent over two-thirds of revenue.

• Full-year adjusted EBITDA margin anticipated in the high 20% range, with first half margins lower due to DSP headwind.

• CapEx for 2025 projected at ~$18M, similar to 2024.

• Free cash flow expected to be lower in first half, returning to historical levels in second half.