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August 11, 2025 Q2 2025 Earnings Presentation
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2 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 third quarter of 2025 and capex for the full year 2025, our expectations regarding our free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the ongoing conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation, tariffs and recessionary fears, as well as fiscal tightening, and changes in the interest rate environment and continuing volatility in global capital and currency exchange markets; global macroeconomic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third- party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. We operate in a competitive and rapidly changing market, and new risks may emerge from time to time. Additional information about risks and uncertainties associated with our business are disclosed in our reports filed from time to time with the Securities and Exchange Commission, including our most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available on our investor relations website at https://investors.pubmatic.com and on the Securities and Exchange Commission website at www.sec.gov. All information in this presentation is as of August 11, 2025. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. In addition to financial information presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, Free Cash Flow, non-GAAP net dollar-based retention, non-GAAP net income, non-GAAP net income margin and non-GAAP diluted EPS. We believe that this information can assist investors in evaluating our operational trends, financial performance, and cash generating capacity. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP measures have limitations as analytical tools. For example, other companies may calculate non-GAAP metrics differently or may use other metrics to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial metrics as tools for comparison. They should not be considered in isolation or as a substitute for analysis of other GAAP financial measures. A reconciliation of these measures to the most directly comparable GAAP measures is included at the end of this presentation. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. S A F E H A R B O R
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3 ▪ 1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. See reconciliation in Appendix. 2 Cash flow from operations is net cash provided by operating activities. PubMatic is building a better supply chain for the future of advertising on the open internet W H AT W E D O REVENUE GAAP NET LOSS ADJUSTED EBITDA 1 CASH FLOW FROM OPERATIONS 2 Q 2 2 0 2 5 F I N A N C I A L H I G H L I G H T S $71.1M 6% YOY $(5.2)M $14.2M 20% MARGIN $14.9M
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4 P U B M AT I C H A S E V O LV E D F R O M A N S S P P R O V I D E R T O A N E N D- TO - E N D P L AT F O R M S E R V I N G T H E E N T I R E D I G I TA L A D V E R T I S I N G E C O S Y S T E M M E D I A B U Y E R S D ATA P R O V I D E R S A N D C U R AT O R S P U B L I S H E R S A N D A P P D E V E L O P E R S C O M M E R C E M E D I A N E T W O R K S SSP CTV ONLINE VIDEO MOBILE APP DESKTOP MOBILE WEB NATIVE A C T I VAT E C O N V E R T O P E N W R A P I D E N T I T Y HUB C O N N E C T M O N E T I Z A T I O N & C O N T R O L D A T A & A U D I E N C E S F O R M A T S & D E V I C E S
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5 ADV ANCE CTV LEADERSHIP Continue to capture outsized share of one of the fastest growing programmatic channels INVEST ON THE BUY -SIDE Increase go -to-market investment to accelerate Activate adoption DIVERSIFY OUR DSP MIX Expand with mid -tier and performance DSPs We are prioritizing strategies to accelerate sustainable growth 1 2 3 SCALE EMERGING REVENUE Grow high -margin revenue from data, commerce and enterprise software4 INTEGRATING AI ACROSS OUR BUSINESS Drive growth and efficiency across our tech stack and operations5
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6 B U I L D I N G A B R O A D E R , M O R E R E S I L I E N T D E M A N D E C O S Y S T E M YOY GROWTH RATE OF PERFORMANCE AND MID -TIER DSPs IN Q2 2025 20%+ Adding new high -growth integrations with performance-focused DSPs Working with several China -based DSPs to support their non -China business Diversification drives better buyer resilience and platform stickiness
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7 S C A L I N G A C T I V A T E T O M E E T B U Y- S I D E D E M A N D F O R C O N T R O L & P E R F O R M A N C E SEQUENTIAL INCREASE IN BUYING ACTIVITY VIA ACTIVATE FROM Q1 2025 TO Q2 2025 2X+ LIFT IN BRAND AWARENESS INCREASE IN PURCHASE INTENT EXCEEDED PERFORMANCE KPIs Germany leveraged Activate to boost brand awareness and purchase intent for a leading online marketplace for handmade goods.
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8 REDUCE OPERATIONAL COMPLEXITY SCALE COMMERCE MEDIA STRATEGIES IMPROVE TARGETING PRECISION C O M M E R C E M E D I A A N D S U P P L Y P A T H O P T I M I Z A T I O N U N L O C K I N C R E M E N T A L B U Y- S I D E G R O W T H is leveraging Activate to enable buyers to apply its transaction -based audience data across PubMatic’s premium omnichannel inventory. S P O S H A R E O F T O T A L A C T I V I T Y O N O U R P L A T F O R M 41% 51% 55% Q2 2023 Q2 2024 Q2 2025
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9 E X P A N D I N G O U R L E A D E R S H I P I N C O N N E C T E D T V COVERAGE OF TOP 30 STREAMERS GLOBALLY 87% YOY REVENUE GROWTH FROM CTV IN Q2 2025 50%+
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10 C T V S C A L E A N D L E A D I N G T E C H N O L O G Y E N A B L E S O P H I S T I C A T E D C U R A T I O N S O L U T I O N S F O R B U Y E R S & P U B L I S H E R S “ By combining FanServ’s deep sports expertise with PubMatic’s unique event-level curation, we’re empowering brands to connect meaningfully at the exact moments that matter most , across every platform they love. ” LIVE SPORTS BUYER ACTIVITY GROWTH YOY IN 1H 2025 NEARLY 3X
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11 A C C E L E R A T I N G G R O W T H I N H I G H- M A R G I N , P L A T F O R M- C O N T R O L L E D R E V E N U E ▪ Integrated PubMatic’s SSP, OpenWrap and Connect ▪ Monetizing both onsite inventory and offsite activations ▪ Driving incremental, performance -based revenue from first -party data DATA CURATION COMMERCE MEDIA ENTERPRISE SOLUTIONS
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12 We continue to invest and innovate, unlocking new avenues for sustainable growth I N V E S T M E N T I N I N N O VAT I O N I M P R O V E D C U S TO M E R O U T C O M E S D I V E R S I F I E D R E V E N U E S T R E AM S S H AR E H O L D E R VAL U E C R E AT I O N
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13 We are well positioned to capture long-term growth and market share. We are diversifying ad demand and revenue streams and investing in the highest growth areas. We are at an inflection point, and the programmatic ecosystem is reshaping to our advantage. We are building a stronger, more sustainable business that creates long -term value for customers and shareholders
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▪ Financial Highlights
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15 Q2'24 Q2'25 Q2'24 Q2'25 1 Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. See reconciliation in Appendix. Q 2 F I N A N C I A L H I G H L I G H T S REVENUE YOY GROWTH CTV + EMERGING REVENUES YOY GROWTH G AAP N E T L O S S $(5.2)M (7)% M A R G I N R E V E N U E G R O W T H Y O Y 6% AD J U S T E D E B I T D A1 $14.2M 20% M A R G I N C T V + E M E R G I N G G R O W T HYOY >100% >50% >100%6% 6%
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16 Q 2 R E V E N U E G R O W T H D R I V E R S Omnichannel Video Revenue 34% CTV Revenue 50%+ Emerging Revenues 100%+ V S . P R I O R Y E AR
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17 61T 78T $25 $27 Q2'24 Q2'25 Ad Impressions Cost of Revenue I N T R I N S I C S T R E N G T H O F B U S I N E S S M O D E L AD 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 C O S T O F R E V E N U E (In Trillions) (In Millions) 60% INCREASE IN AD IMPRESSIONS PROCESSED OVER LAST TWO YEARS WITH 10% INCREASE TO COST OF REVENUE +28%
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18 Q2'24 Q2'25 F U N D I N G H I G H G R O W T H T H R O U G H O P T I M I Z A T I O N SALES TEAM HEADCOUNT FOCUSED ON SECULAR GROWTH ARE AS +44% +25% 20% B U Y E R- F O C U S E D H E A D C O U N T G R O W T H Y O Y Q 2 O P E X F L AT TO Q 1 FLAT Q 2 ' 2 5 V S . Q 1 ' 2 5 O P E X
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19 1 Free Cash Flow is a non-GAAP measure. A reconciliation of free cash flow to net cash flow provided by (used in) operating activities is provided in the Appendix. Note: Numbers rounded for presentation purposes Note: Near term cash flow impacted by change in DSP buyer mix; DSOs expected to stabilize by midyear 2025. L O N G T E R M F O C U S O N C A S H G E N E R A T I O N U S E S O F C A S H ▪ Investments for secular growth ▪ Share repurchases ▪ Potential M&A N E T C A S H F R O M O P E R AT I N G A C T I V I T I E S Q 2 2021 – Q 2 2025 $348M F R E E C A S H F L O W1 Q 2 2021 – Q 2 2025 $183M
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20 C A P I T A L A L L O C A T I O N C A S H U S E D F O R R E P U R C H A S E S1 $178M C L A S S A C O M M O N S H A R E S R E P U R C H A S E D1 12.2M $118M C A S H & M A R K E T A B L E S E C U R I T I E S E N D O F Q 2 2025 F E B 2 0 2 3 TO J U N 2 0 2 5 F E B 2 0 2 3 TO J U N 2 0 2 5 1 As of June 30, 2025, fully diluted shares outstanding of 50,539,394.
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21 F I N A N C I A L D I S C I P L I N E F U E L S B U S I N E S S T R A N S F O R M A T I O N Accelerate growth by aligning investment and resources towards high growth opportunities Healthy balance sheet and positive cash flows to execute long -term strategy and drive shareholder value Optimization of resources to drive accelerated, sustainable revenue Gain incremental cost efficiencies via AI while we optimize existing resources towards growth areas Continued growth in key secular areas of the business Our end -to-end platform, SPO and AI solutions help customers scale their ad business with PubMatic
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22 22 Although we provide guidance for Adjusted EBITDA, a non-GAAP metric, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our Adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information. Adjusted EBITDA margin is a non-GAAP financial measures. See reconciliation in Appendix. 2 0 2 5 Q 3 G U I D A N C E ($ in Millions) Q3 2025 Low High Revenue $61 $66 Year over Year Grow th % -15% -8% Year over Year Grow th % ex political -10% -3% Adjusted EBITDA $7 $10 Adjusted EBITDA Margin 11% 15% Note: Numbers rounded for presentation purposes Full year capex outlook remains ~$15 million
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23 S T R O N G F O U N D AT I O N F O R L O N G-T E R M G R O W T H 23 Integrated Platform Capitalizes on Industry Shifts2 Use of Generative AI to Drive Efficiency and Growth3 Durable Business Model Delivers Healthy Margins and Cash Flow4 Continued Investment in Key Secular Growth Areas1
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24 Appendix
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25 Note: Numbers rounded for presentation purposes N O N- G A A P R E C O N C I L I AT I O N – A D J U S T E D E B I T D A & N O N- G A A P N E T I N C O M E ( L O S S ) ($ in Thousands) Q2 '25 Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24 Q4 '23 Q3 '23 Net income (loss) $(5,208) $(9,486) $13,899 $ (912) $ 1,971 $(2,454) $18,702 $ 1,774 Add back (deduct): Stock-based compensation 9,801 9,698 9,409 9,457 9,699 9,111 7,337 7,200 Depreciation and amortization 11,861 11,676 11,421 11,384 11,336 11,212 11,039 11,401 Interest income (1,379) (1,593) (1,604) (1,969) (2,340) (2,564) (2,515) (2,246) Provision for (benefit from) income taxes (862) (1,838) 4,521 586 412 (249) 4,343 111 Adjusted EBITDA $14,213 $ 8,457 $37,646 $18,546 $21,078 $15,056 $38,906 $18,240 Revenue $71,095 $63,825 $85,502 $71,786 $67,267 $66,701 $84,600 $63,677 Adjusted EBITDA Margin 20% 13% 44% 26% 31% 23% 46% 29%
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26 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 I N C O M E ( L O S S ) Note: Numbers rounded for presentation purposes (in Thousands except per share data) Q2 '25 Q1 '25 Q4 '24 Q3 '24 Q2 '24 Q1 '24 Q4 '23 Q3 '23 Net income (loss) $(5,208) $(9,486) $13,899 $ (912) $ 1,971 $(2,454) $18,702 $ 1,774 Stock based compensation 9,801 9,698 9,409 9,457 9,699 9,111 7,337 7,200 Adjustment for income taxes (2,068) (2,055) (1,865) (1,978) (1,999) (1,886) (1,590) (1,397) Non-GAAP net income (loss) $ 2,525 $(1,843) $21,443 $ 6,567 $ 9,671 $ 4,771 $24,449 $ 7,577 Revenue $71,095 $63,825 $85,502 $71,786 $67,267 $66,701 $84,600 $63,677 Non-GAAP net income (loss) margin 4% (3%) 25% 9% 14% 7% 29% 12% Non-GAAP weighted average shares outstanding – diluted 47,185 48,346 52,623 53,986 55,577 55,006 54,940 55,979 Non-GAAP diluted EPS $0.05 $(0.04) $0.41 $0.12 $0.17 $0.09 $0.45 $0.14
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27 Note: Numbers rounded for presentation purposes F R E E C A S H F L O W R E C O N C I L I AT I O N ($ in Millions) Three Months Ended June 30, 2025 2024 2023 Net Cash provided by Operating Activities $14.9 $11.9 $15.8 Deduct: Purchases of Property and Equipment (1.3) (0.7) (1.1) Capitalized Software Development Costs (4.3) (4.3) (3.9) Free Cash Flow $9.3 $6.9 $10.8 Revenue $71.1 $67.3 $63.3 Free Cash Flow Margin 13% 10% 17%