By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain. CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(unaudited) March 31,2025 December 31,2024ASSETS Current assets Cash and cash equivalents$101,811 $100,452 Marketable securities 42,315 40,135 Accounts receivable, net 349,123 424,814 Prepaid expenses and other current assets 12,018 10,145 Total current assets 505,267 575,546 Property, equipment and software, net 54,386 58,522 Operating lease right-of-use assets 42,575 44,402 Acquisition-related intangible assets, net 3,889 4,284 Goodwill 29,577 29,577 Deferred tax assets 29,619 24,864 Other assets, non-current 3,289 2,324 TOTAL ASSETS$668,602 $739,519 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable$323,611 $386,602 Accrued liabilities 20,309 26,365 Operating lease liabilities, current 6,241 5,843 Total current liabilities 350,161 418,810 Operating lease liabilities, non-current 38,649 39,538 Other liabilities, non-current 4,191 3,908 TOTAL LIABILITIES 393,001 462,256 Stockholders' equity Common stock 6 6 Treasury stock (150,409) (146,796)Additional paid-in capital 286,471 275,304 Accumulated other comprehensive loss (366) (636)Retained earnings 139,899 149,385 TOTAL STOCKHOLDERS’ EQUITY 275,601 277,263 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$668,602 $739,519 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(unaudited) Three Months Ended March 31, 2025 2024 Revenue$63,825 $66,701 Cost of revenue(1) 25,588 25,424 Gross profit 38,237 41,277 Operating expenses:(1) Technology and development 8,772 7,960 Sales and marketing 26,799 24,815 General and administrative 14,569 14,027 Total operating expenses 50,140 46,802 Operating loss (11,903) (5,525)Interest income 1,593 2,564 Other income (expense), net (1,014) 258 Loss before income taxes (11,324) (2,703)Benefit from income taxes (1,838) (249)Net loss$(9,486) $(2,454) Basic and diluted net loss per share of Class A and Class B stock$(0.20) $(0.05)Weighted-average shares used to compute net loss per share attributable to common stockholders: Basic 48,346 50,039 Diluted 48,346 50,039 (1)Stock-based compensation expense includes the following: STOCK-BASED COMPENSATION EXPENSE(In thousands)(unaudited) Three Months Ended March 31, 2025 2024 Cost of revenue$474 $437 Technology and development 1,585 1,441 Sales and marketing 3,463 3,238 General and administrative 4,176 3,995 Total stock-based compensation expense$9,698 $9,111 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS(In thousands)(unaudited) Three Months Ended March 31, 2025 2024 CASH FLOW FROM OPERATING ACTIVITIES: Net loss$(9,486) $(2,454)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 11,676 11,212 Stock-based compensation 9,698 9,111 Deferred income taxes (4,754) (4,667)Accretion of discount on marketable securities (454) (1,234)Non-cash operating lease expense 1,928 1,690 Other (223) (1)Changes in operating assets and liabilities: Accounts receivable 75,691 72,184 Prepaid expenses and other assets 5,681 (196)Accounts payable (62,578) (58,444)Accrued liabilities (11,287) (1,784)Operating lease liabilities (590) (1,380)Other liabilities, non-current 319 257 Net cash provided by operating activities 15,621 24,294 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (1,441) (801)Capitalized software development costs (6,880) (7,231)Purchases of marketable securities (15,307) (34,336)Proceeds from maturities of marketable securities 13,559 38,500 Net cash used in investing activities (10,069) (3,868)CASH FLOWS FROM FINANCING ACTIVITIES: Payment of business combination indemnification claims holdback — (2,148)Proceeds from exercise of stock options 563 939 Principal payments on finance lease obligations (35) (32)Payments to acquire treasury stock (5,000) (17,500)Net cash used in financing activities (4,472) (18,741)NET INCREASE IN CASH AND CASH EQUIVALENTS 1,080 1,685 Effect of foreign currency on cash 279 — CASH AND CASH EQUIVALENTS - Beginning of period 100,452 78,509 CASH AND CASH EQUIVALENTS - End of period$101,811 $80,194 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(In thousands, except per share amounts)(unaudited) Three Months Ended March 31, 2025 2024 Reconciliation of net loss: Net loss$(9,486) $(2,454)Add back (deduct): Stock-based compensation 9,698 9,111 Depreciation and amortization 11,676 11,212 Interest income (1,593) (2,564)Benefit from income taxes (1,838) (249)Adjusted EBITDA$8,457 $15,056 Revenue$63,825 $66,701 Adjusted EBITDA margin 13% 23% Three Months Ended March 31, 2025 2024 Reconciliation of net loss per share: Net loss$(9,486) $(2,454)Add back (deduct): Stock-based compensation 9,698 9,111 Adjustment for income taxes (2,055) (1,886)Non-GAAP net income (loss)$(1,843) $4,771 GAAP diluted EPS$(0.20) $(0.05)Non-GAAP diluted EPS$(0.04) $0.09 GAAP weighted average shares outstanding—diluted 48,346 50,039 Non-GAAP weighted average shares outstanding—diluted 48,346 55,006 Reported GAAP diluted loss and Non-GAAP diluted loss per share for the three months ended March 31, 2025, and reported GAAP diluted loss per share for the three months ended March 31, 2024 were calculated using basic share count.
PubMatic sits at the forefront of this transformation while creating value for the entire supply chain.” First Quarter 2025 Financial Highlights Revenue in the first quarter of 2025 was $63.8 million, compared to $66.7 million in the same period of 2024;Net dollar-based retention1 was 102% for the trailing twelve-months ended March 31, 2025, compared to 106% in the comparable trailing twelve-month period a year ago;GAAP net loss was $(9.5) million with a margin of (15)%, or $(0.20) per diluted share in the first quarter, compared to GAAP net loss of $(2.5) million with a margin of (4)%, or $(0.05) per diluted share in the same period of 2024;Adjusted EBITDA was $8.5 million, or 13% margin, compared to $15.1 million, or a 23% margin, in the same period of 2024;Non-GAAP net loss was $(1.8) million, or $(0.04) per diluted share in the first quarter, compared to Non-GAAP net income of $4.8 million, or $0.09 per diluted share in the same period of 2024;Net cash provided by operating activities was $15.6 million, compared to $24.3 million in the same period of 2024;Total cash, cash equivalents, and marketable securities of $144.1 million as of March 31, 2025 with no debt;Through March 31, 2025, used $138.2 million to repurchase 8.7 million shares of Class A common stock, representing 17% of fully diluted shares as of the program’s inception.
We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons: Adjusted EBITDA and non-GAAP net income (loss) are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and benefit from income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,Our management uses adjusted EBITDA, non-GAAP net income (loss), and free cash flow in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance or, in the case of free cash flow, as a measure of liquidity, and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.
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