What is the revenue and EPS growth rate for Pubmatic year over year?

What were the key takeaways from Pubmatic's earnings call?

What is Pubmatic's gross profit margin?

What guidance did Pubmatic's management provide for the next earnings period?

Did Pubmatic beat or miss consensus estimates last quarter?

What factors drove the changes in Pubmatic's revenue and profit?

What were the key takeaways from Pubmatic’s earnings call?

What does Pubmatic do and what are its main business segments?

- **AI-Driven Growth**: 5x faster ad bidding with NVIDIA GPUs, AI agents boosting publisher revenue by 10%. 
- **CTV Dominance**: 90% top streamers use PubMatic, CTV revenue +50% YoY. Pause ads generate premium CTV engagement. 
- **Financial Strength**: $136M cash, no debt, 2026 guidance for double-digit revenue growth and margin expansion. 
- **Strategic Lead**: 100% owned infrastructure vs. 80%+ peers on public cloud. Mid-market DSPs (+25% YoY) offset legacy DSP decline.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue exceeded expectations, driven by 50%+ year-over-year growth in CTV (excluding political ads) and 80%+ growth in emerging revenue streams like commerce media and AI-driven yield optimization. 
- **AI Strategy**: PubMatic is building a 3-layer AI system (infrastructure, application, transaction) with NVIDIA GPUs, achieving 5x faster bid responses and 85% fewer auction timeouts. AI agents now handle 17 operational tasks for publishers, boosting revenue by 10%.
- **CTV Expansion**: 90% of top 30 global streamers use PubMatic, with live sports ad spend up 150% QoQ. New AI-powered pause ads for CTV generate premium engagement opportunities.
- **DSP Diversification**: 25+ new mid-market DSP partnerships (e.g., Mountain, Bliss) added in 2025, offsetting legacy DSP declines. Activate platform campaigns grew 4x YoY.

**【CFO Financial Commentary】**
- **Q3 Results**: Revenue $75M, adjusted EBITDA $11.2M (16% margin). Free cash flow $22.8M, ending Q3 with $136.5M cash.
- **Cost Efficiency**: Unit costs down 19% YoY, CapEx reduced 20% via AI optimization. Operating expenses flat at $51M despite 19% sales team expansion.
- **Q4 Guidance**: Revenue $73-77M, EBITDA $19-21M. Full year 2025: Revenue $276-280M, EBITDA $53-55M. 2026 outlook: Double-digit revenue growth, margin expansion.
- **Capital Allocation**: $180M repurchased since 2023, $94M remaining under 2026 buyback program. No debt, 60%+ revenue from high-margin CTV/app/emerging streams.

**【Q&A Highlights】**
- **AI Infrastructure Lead**: NVIDIA partnership enables 100% owned infrastructure, 87T impressions/month. Competitors rely on public cloud, limiting scale.
- **DSP Relationships**: Trade Desk Kokai platform adoption stabilized Q3, mid-market DSPs (+25% YoY) offset legacy DSP decline. 
- **CTV Growth**: 90% top streamers use PubMatic, 78% incremental ad revenue for partners. Pause ads and programmatic guaranteed deals drive CTV share shift.
- **Risk Mitigation**: <10% revenue exposure to AI search traffic, 60% impressions from CTV/app (unaffected by search).

PubMatic, Inc. (PUBM) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

PUBM

PUBM fundamentals

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