PubMatic's Q4 2024: Unpacking Contradictions in DSP Bidding, CTV Growth, and Revenue Dynamics

These are the key contradictions discussed in PubMatic's latest 2024Q4 earnings call, specifically including: DSP bidding changes and their impact on the business, CTV growth drivers, and the impact of DSP changes on revenue:



Revenue Growth and CTV Expansion:
- PubMatic's revenue for the year grew 9%, with 20% of Q4 revenue coming from CTV, more than doubling its share of the business.
- This growth was driven by increased inventory scale, supply path optimization relationships, and a surge in political ad spend.

Adjusted EBITDA Margin Improvement:
- PubMatic's adjusted EBITDA margins expanded to 32%, up 350 basis points year-over-year.
- The improvement was due to revenue mix shifts towards high engagement channels like CTV and mobile app, as well as infrastructure optimization and CapEx investments.

Activates Business Growth:
- Activate, PubMatic's buyer-direct platform, grew nearly 6x year-over-year, with all six global agency holding companies spending ad budgets on its platform.
- This growth was fueled by demand for greater control and transparency in digital advertising supply chains, enhancing efficiency and ad performance.

Data and Curation Development:
- PubMatic's data and curation platform, Connect, grew 140% year-over-year, with over 190 integrated data sets available for buyers.
- This growth was driven by the shift towards sell-side targeting, reducing reliance on third-party cookies, and increasing control over valuable audience data.