PubMatic, Inc. Q4 FY2025 earnings call

• Rajeev highlighted strong Q4 results with revenue and adjusted EBITDA ahead of guidance, growth in CTV, Activate, emerging revenues. Emphasized AI as incremental tailwind, co-founded Ad Context Protocol, launched AgenticOS, saw success with agentic campaigns. Continued focus on 5 strategic priorities: diversify buyer mix, grow buyer-focused go-to-market team, expand CTV, drive emerging revenues, use AI for operational excellence.
• Steve noted Q4 adjusted EBITDA margin 35%, strong growth in secular areas, added 50 DSP partnerships, increased productivity via AI, accelerated free cash flow, expanded infrastructure capacity, saw growth in CTV, mobile app, emerging revenues, display, and ad verticals

In Q4, excluding political and legacy DSP, 83% of revenue grew 18% y/y. CTV grew over 50% y/y (excluding political) with 28 of top 30 global streamers; mobile app grew 25% y/y; emerging revenues (including Activate, commerce media, new AI solutions) grew over 75% y/y in Q4, representing ~12% of total revenues and nearly 10% of total revenues full-year; display revenues returned to mid-single-digit y/y growth excluding legacy DSP, with top 10 ad verticals aggregate growth nearly 10%; APAC and EMEA grew over 25% and 15% respectively, Americas down 18% due to political and large DSP buyer

Q1 revenue expected $58M - $60M, adjusting for legacy DSP midpoint in high single-digit y/y growth. Q1 adjusted EBITDA -$0.5M to $1M. Expect return to double-digit revenue growth in second half of 2026, full-year cost of revenue marginally increase, operating expenses mid-single-digit growth, CapEx ~$15M - $19M

Forward-looking statements subject to risks, uncertainties, and changes in circumstances. Risks related to actual results differing from forward-looking statements, including those in SEC filings. Also, uncertainty around Google Ad Tech Remedies trial

Q: How does PubMatic work with Amazon?

A: Work in multiple ways, including being 1 of 3 SSPs in Certified Supply Exchange program, monetizing streaming and omnichannel inventory, collaborating on product releases Q: What are PubMatic's structural assets?

A: Deep customer integrations, Activate for direct buying, AgenticOS, purpose-built AI infrastructure, data from publisher base and 250 data partners Q: Vision of AI in ad industry?

A: AI to streamline and reduce fees, create value chain disruption, be complementary to programmatic, bring more volume to platform Q: Drivers of Q4 upside?

A: Strong growth in emerging revenues, mobile app, CTV, diversified DSPs, agentic campaigns Q: AgenticOS deals and economics?

A: Over 250 deals, early stage, expect to scale, experimenting with different models, generate incremental fees on Activate transactions, 10% of publishers generating revenue from AI solutions Q: Google Ad Tech Remedies?

A: Waiting for court verdict on remedies, timing and nature uncertain, our lawsuit against Google for damages ongoing Q: CTV growth and sports?

A: Live sports a key driver, monetized Cricket World Cup, U.S. Open, MLB, NFL, NHL, etc., growing inventory with streamers and buyers