PubMatic, Inc. (PUBM) witnessed a sharp after-hours plunge of 9.09% on Thursday, February 27, 2025, following the release of its fourth-quarter and fiscal year 2024 financial results. While the company reported better-than-expected adjusted earnings and adjusted EBITDA, its revenue growth and guidance failed to impress investors.
In the fourth quarter, PubMatic's revenue grew a mere 1% year-over-year to $85.5 million, missing analysts' estimates of $88.2 million. The company attributed this sluggish growth to one of its top demand-side platform (DSP) buyers revising its auction approach in late May 2024, which impacted PubMatic's revenue.
For the fiscal year 2024, PubMatic reported revenue of $291.3 million, up 9% from the previous year. However, the company's guidance for the first quarter of 2025 fell short of expectations, with PubMatic projecting revenue of $61 million to $63 million, reflecting the continued impact from the DSP buyer issue through the second quarter of 2025.