PubMatic Shares Fall After 3Q Outlook Misses Estimates

Dow Jones
08/12

By Connor Hart

 

Shares of PubMatic tumbled after the company's third-quarter outlook missed Wall Street's expectations, and it swung to a loss in the second quarter.

The stock sank 25%, to $7.91, in morning trading Tuesday, extending its 44% decline over the past year.

The technology advertising company late Monday guided for revenue of $61 million to $66 million in the current quarter, missing the $70.8 million that analysts polled by FactSet had expected.

It additionally guided for third-quarter adjusted Ebitda--or earnings before interest, taxes, depreciation and amortization--of $7 million to $10 million, below Wall Street models for $14.9 million.

Chief Executive Rajeev Goel said artificial intelligence is fundamentally changing how advertising is created, transacted and optimized.

"Our end-to-end, AI-powered platform empowers publishers and ad buyers to demand more performance, control and transparency," Goel said, adding that he believes the company is well positioned to grow and capture market share in the long term.

The outlooks came as PubMatic swung to a second-quarter loss, despite logging higher-than-anticipated revenue.

The company posted a loss of $5.21 million, or 11 cents a share, in the June-ending quarter, compared with a profit of $1.97 million, or 4 cents a share, a year earlier. Adjusted per-share earnings came in at 5 cents.

Revenue rose 5.7% to $71.1 million and topped analyst views for $67.9 million.

 

Write to Connor Hart at connor.hart@wsj.com

 

(END) Dow Jones Newswires

August 12, 2025 10:35 ET (14:35 GMT)

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