Programmatic advertising platform Pubmatic (NASDAQ: PUBM) will be announcing earnings results tomorrow after the bell. Here’s what investors should know.

PubMatic beat analysts’ revenue expectations by 8.5% last quarter, reporting revenues of $71.79 million, up 12.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a significant improvement in its net revenue retention rate.

Is PubMatic a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting PubMatic’s revenue to grow 4.3% year on year to $88.27 million, slowing from the 13.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PubMatic has missed Wall Street’s revenue estimates twice over the last two years.

Looking at PubMatic’s peers in the advertising software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 49.6%, beating analysts’ expectations by 6.7%, and AppLovin reported revenues up 44%, topping estimates by 8.6%. AppLovin traded up 24.1% following the results.

Read our full analysis of Zeta’s results here and AppLovin’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the advertising software stocks have shown solid performance, the group has generally underperformed, with share prices down 8% on average over the last month. PubMatic is down 4.6% during the same time and is heading into earnings with an average analyst price target of $19.67 (compared to the current share price of $14.46).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.