This concludes our call today. And then second is could you remind us what SPO contracts usually include -- I know there are some volume discounts but what else do contracts typically include? Fourth, our business model is embedded with durable structural advantages, emanating from our owned and operated infrastructure and offshore R&D that enables us to cost-effectively invest in technological innovation. Our long-term strategy of owning and optimizing our purposeful infrastructure enables us to reduce our unit cost. And your next question comes from Vasily at Cannonball. And so I really don't see any significant degradation to CPMs. Found insideThis is a book that presents perhaps the best record of the inner workings of diplomacy at the superheated pace and tension of real crisis. In the second quarter, 23.6% of our total company ad spend was via these SPO agreements. Underpinning our outstanding results is our owned and operated cloud infrastructure built specifically for digital advertising. Please go ahead, Andrew. At a fundamental level, we believe that the total amount of time people spend online has accelerated faster than expected. As you see products like Identity Hub and Audience Solutions gain traction, how is that influencing advertiser behavior and spending trends? Our overperformance on revenue contributed to increased profitability as well. PubMatic has set its Q2 2021 guidance at - EPS.Parties interested in listening to the company's conference call can do so using this link. We continue to benefit in the quarter from strong existing customer revenues. Compliance Needed And, Andrew, on the other part of your question, so we've reached that point where the majority of revenue has alternative identifiers. Shares of advertising-technology company PubMatic . Thank you guys so much for taking my question. Underpinning our success is our long-term ability to innovate and invest for future growth. Motley Fool Transcribing . We're making our platform more efficient, more transparent, and driving superior outcomes because we own all of that infrastructure. Adjusted EBITDA in Q2 was $18.6 million or 37% of revenue, compared to 19% of revenue in the prior year, primarily due to the high flow-through from strong revenue ahead of plan and the cost leverage we achieved on our platform. And then on profitability, gross margins hit 74% this quarter. In Q2, combined mobile and omnichannel video revenues grew by 108% year over year and represented a greater proportion of the total business. Two questions. So first on CTV, I would say we're really excited about the growth and really the acceleration in growth that we're seeing in CTV. This event has passed. So this case study that we shared in the earnings call with 9GAG, 150 million users in Hong Kong, a social media company, they're seeing a 10x increase in monetization. We deploy new capabilities, features, and algorithm updates on a daily basis across our global infrastructure. PubMatic, Inc. (PUBM) Q2 2021 Earnings Call Transcript II-VI (IIVI) Q4 2021 Earnings Call Transcript Inari Medical, Inc. (NARI) Q2 2021 Earnings Call Transcript Well, there's a couple of questions there, but let me first focus on some of your model questions on the impact for the full year. Average returns of all recommendations since inception. In this inspiration-packed book, Katie Couric reports from the front lines of the worlds of politics, entertainment, sports, philanthropy, the arts, and business—distilling the ingenious, hard-won insights of leaders and visionaries, who ... Earnings Call Transcript Seeking Alpha 14 hours Trading stocks for a living Reddit 14 hours Lakeland Industries, Inc. (LAKE) CEO Charles Robertson on Q2 2022 Results - Earnings Call Transcript Seeking Alpha . We don't see this affecting our calendar-year gross margin target of approximately 70%. So the buyers that we work with, we're able to make their systems more efficient because of the efficiency of our platform, what inventory we choose, what parameters we decide to send to the buyers. My name is Cara, and I will be your operator today. I can start, and then Steve, feel free to add on. Thank you, and welcome, everyone. Having alternative identifiers available at scale, in many cases, identifiers that provide greater addressability than anonymous identifiers like the third-party cookie provides an environment to drive even greater utilization of our infrastructure. Yes. And the importance of that profitability is that it gives us the financial capacity to continue to make ongoing investments. In light of uncertainty caused by emerging COVID variants, we remain prudent and keep a slightly conservative stance in our full-year guidance due to the combination of uneven macroeconomic conditions and the reality that some parts of the world are still suffering from the worst effects of the pandemic. With our long-term investment in this area with a portfolio of solutions, we think we are well-positioned to help our publisher and buyer customers find highly relevant audiences at scale and improve the efficacy of the open Internet as compared to today. Your first question comes from Brent Thill at Jefferies. A volume devoted to understanding the competitive and collaborative challenges that firms face when interacting with different actors in dynamic environments increasingly referred to as business or innovation 'ecosystems'. And some of your peers have been quite acquisitive in the past 18 months or so. We have a proven ability to consistently drive profitable growth with strong cash flow, which we believe positions us well to keep innovating and delivering for our customers and our shareholders. Looking at just the OTT/CTV category, revenues from this business increased over 100% sequentially from Q1 2021, with 114 publishers monetizing inventory via these formats in the second quarter up significantly from Q1. Q2 2017 Financial Highlights Presentation 574.4 KB. I know Trade Desk also commented on it. Let me further explain. Like is that a realistic goal? Great. Nevertheless, we are seeing the preliminary stages of an economic reopening in the U.S. and in selected major ad markets around the world, and we believe this trend will benefit PubMatic and its customers. Discounted offers are only available to new members. Plus500. And this concludes the Q&A portion of our call today. And so we've been investing here with our Audience Encore solution. How impactful will it be? Let's start with the sell-side analysts. PubMatic, Inc. (PUBM) Q2 2021 Earnings Call Transcript Yahoo 08/11 00:31 ET. And as they spend more on our platform, our publishers benefit with increased revenue. Bionano Genomics, Inc (BNGO) Q2 2021 Earnings Call Transcript. Recent News. In addition, today's discussion will include references to certain non-GAAP financial measures. Hi, guys. Details for the event are as follows: KeyBanc Technology Leadership ForumWednesday, August 11, 2021 at . Great. And very simply, buyers see more ROI when they can buy in a programmatic fashion as compared to legacy ways of buying. Andrew, you are on the line. Nevertheless, we are seeing the preliminary stages of a robust reopening in the U.S. and the selected major ad markets around the world, and we believe this trend will benefit PubMatic and its customers. And when you own your own infrastructure, that means you can optimize things between network, hardware, and software to create better outcomes and to do things more efficiently. Thank you. We delivered another quarter of strong results with performance on both the top and bottom lines above guidance, driven by multiple growth drivers, continued rapid innovation on our platform, and a distinct business model that addresses the large and rapidly growing digital advertising market. Why don't I take the first half of that, Justin, and then Steve can comment on the second half of that. And so I think all of those things combined make us a very compelling choice for agencies and for advertisers to consolidate spend on. 2 hours ago. We've grown our market share. We have been recognized as a Top 100 Small & Medium Workplace in Asia by the Great Place to Work Institute. Registration on or use of this site constitutes acceptance of our Terms of Service and Privacy Policy. A growing portion of our business comes from supply path optimization or SPO agreements. As of the end of the second quarter, we are monetizing inventory from 114 publishers, up from 80-plus just a quarter ago. Our five key financial drivers give us confidence we can sustain revenue, adjusted EBITDA, GAAP net income growth. I think, look, by virtue of being independent, it means that we're unconflicted, right, in terms of serving the needs of our customers. How do we think about that? We can also integrate with customers at the network level rather than purely at the software level in order to speed up transactions. A reconciliation of these measures to the most directly comparable GAAP measures is available in our press release. Looking ahead to 2022, we intend to continue investing in people and infrastructure to maximize our growth potential in '22 and beyond. Additionally, the market continues to consolidate driven by supply path optimization, regulatory and privacy requirements, and expectations for high-quality inventory. Granite Point Mortgage Trust Inc (GPMT) Q2 2021 Earnings Call Transcript. And then as a follow-up question, just around investment, it sounds like there's a step up in headcount and infrastructure. So I think we're doing well here, and we plan to continue to do well here. Steve, over to you. The company's revenue for the quarter was . Priority number one is to keep on increasing capacity of our infrastructure. Importantly, our omnichannel platform is a single unified platform, which allows us to be extremely nimble with respect to innovation. So I think our focus is really on both, but we know we have, I think, a well-built machine around how we invest internally on growth and innovation. And then to Steve's point about investing in the space, how do you build competitive moats and differentiation early on to kind of make sure you maintain that position that we've talked about? Our Verizon Media Group revenues grew over 20% year over year and represented approximately 20% of total revenues in the first quarter. Absolutely. And, Justin, with respect to your question around return on investment on our capacity expansion, we've been managing our owned and operating infrastructure for close to a decade. Hence, PubMatic's PS Ratio for today is 7.93 . GlobeNewswire-9.47%. These forward-looking statements are subject to inherent risks, uncertainties, and changes in circumstances that are difficult to predict. PubMatic, Inc. (PUBM) CEO Rajeev Goel on Q2 2021 Results - Earnings Call Transcript The Motley Fool | 2021-08-06 14:42:00 Why PubMatic Shares Fell 24% Last Month And so that's what we're seeing in the macro-environment. Now in terms of profitability, there's a couple of things that I had called out earlier regarding just how we think about the business in terms of driving both the top line and profitability. Sure. PubMatic Announces Second Quarter 2021 Financial Results Globe Newswire 08/10 16:05 ET. May 13, 2021 « RSSS Research Solutions, Inc Q3 2021 Earnings Call; Before we start, I would like to remind participants that during this call, management will make forward-looking statements, including, without limitation, statements regarding our future performance, growth strategy, and financial outlook. We generated net cash from operating activities of $12.7 million for Q1 2021. You can find more information about these risks, uncertainties, and other factors in our annual report on Form 10-K for the year ended December 31, 2020, which is on file with the Securities and Exchange Commission and is available at investors.pubmatic.com. We are successfully executing against multiple organic growth drivers, leading to strong growth and market share gains, and we expect that to strengthen as the economic reopening in the U.S. and elsewhere accelerates. . So, of course, there is a lot of uncertainty around the impact of COVID variants around the globe. Two questions. PubMatic, Inc. (PUBM) Q2 2021 Earnings Call Transcript. PubMatic, Inc. (PUBM) Q2 2021 Earnings Call Transcript. One other point that you didn't ask, but I'll add with respect to inflation, if inflation does affect CPMs because we have a usage-based model, we will be able to participate in that scenario. We also expect incremental costs related to the office reopenings around the globe as well as higher travel and entertainment expenses as our team reengages in person with customers. What gives you the conviction to come out and put a 25% stake in the ground for next year? Visit site . PubMatic, Inc. (PUBM) Q1 2021 Earnings Call Transcript PUBM earnings call for the period ending March 31, 2021. This is history on a grand scale, and a book of overwhelming importance to the public record. And so when we look at the potential exposure, the fact that we have a very diverse ad spending portfolio, meaning we have 20 ad verticals that we spend -- we have spending on, that if a particular vertical is affected, we have the ability to respond and react accordingly because we have ability to generate revenues in other ad verticals. Motley Fool. So I guess why wouldn't gross margin just keep going up? Read PubMatic, Inc. (PUBM) CEO Rajeev Goel on Q4 2020 Results - Earnings Call Transcript and don't miss much more articles, reports and business analysis below. Vasily Karasyov -- Cannonball Research -- Analyst. And, today, the lion's share of digital ad spending is on insertion orders or fixed-price PMP deals, and this is what's driving transactions in the upfront. This suggests they can be influential in key policy decisions. Ad spending was particularly strong for our mobile and omnichannel video businesses, with combined revenues growing over 100% year over year. "On July 19, 1983, President Ronald Reagan established the National Bipartisan Commission on Central America to examine the social, economic, and democratic conditions in the region and to provide advice that could evolve into a ... Given the strong momentum across our global business and progress with rapidly scaling growth initiatives, including our supply path optimization relationships and our OTT/CTV business, we expect 2022 year-over-year revenue growth to be 25%, consistent with where we see our longer-term growth trajectory. And the reality is, I think publishers in the open Internet recognize the significant upside. So we've heard from some other players in the ad tech ecosystem that the cookie deprecation delay has maybe lessened the urgency around the move to cookieless. So what does it mean for your business where you say GroupM is -- you are a preferred partner for them. There's others in the U.S. And then I'll ask a second one after this. We now expect revenue growth of approximately 33% year over year and adjusted EBITDA margin of approximately 28%. Thanks for taking my question. Aug-10-21 04:05PM : PubMatic Announces Second Quarter 2021 Financial Results. Yes. On the sell side, I don't see a shift in terms of the publishers that we're going after, either who they are or the channels that they're in, mobile, CTV, etc. So how has that affected uptake of Identity Hub, Audience Encore and the addressability products and the conversations that you're having with clients around those products and if there's any disruption in the pace of adoption there? PubMatic, Inc. (NASDAQ:PUBM)Q2 2021 Earnings CallAug 10, 2021, 5:00 p.m. Aug 10. Just how do you think about that? We are focused on the MVPDs as well as, I would say, high-quality audiences or high-quality channels. And again, that's driving our higher expectations for ourselves. So, again, we're finding that that's not only great, of course, for the publisher, but it also increases the utilization of our infrastructure. So as CPMs go up, as buyers adopt these IDs away from the cookie and as fill rates go up, then that creates better utilization of our infrastructure, which means, for the same cost of infrastructure, more revenue and more profitability. PubMatic, Inc. (PUBM) Q2 2021 Earnings Call Transcript II-VI (IIVI) Q4 2021 Earnings Call Transcript Inari Medical, Inc. (NARI) Q2 2021 Earnings Call Transcript 21Vianet Group, inc (VNET) Q2 2021 Earnings Call Transcript. For the 12 months ended Q2 2021, net dollar-based retention was 150%, significantly up over the comparable period a year ago. So I think, unlike others, given we have an auction-based platform, we don't see the types of kind of temporary constraints that others might see. There's ID5 in Germany and the U.K. Our specialized cloud infrastructure and local go-to-market presence is geographically distributed in all the major ad markets apart from China. Returns as of 09/21/2021. We don't see this affecting our calendar year gross margin rate target. We believe these investments, combined with our proven ability to operate efficiently, give us a powerful network effect with more revenue visibility and operational scale, which benefits our customers and us. Our profitable business model ensures that we can continue to innovate, expand capacity and increase our value proposition to better serve our customers and capture market share. So in terms of the prioritization, absolutely growing the size of our technology team in India is a priority, adding select go-to-market professionals around the globe, driving our identity solution, driving the CTV business. So just to repeat the metric, we nearly doubled to almost doubled the share of spend on our platform coming from supply path optimization deals, SPO deals in Q1 of '21 compared to Q1 of '20. We shared that the combined mobile and omnichannel video is growing over 100%. Together, these trends are fueling growth across all segments of our customer base in all formats, ad formats we serve. Absolutely, Justin. We now expect full-year 2021 revenue growth of approximately 38% to 40% and adjusted EBITDA margin of approximately 30% to 32%. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. We outperformed in the first quarter. Understood the capacity investments there, but you are four points above kind of long-term margins that were set at the IPO guidance. But absolutely, our video business is growing significantly. And that creates quite a bit of ballast for our company, and that has a degree of revenue visibility into the future. On a two-year stack basis, our revenue guidance implies second-half growth of 68% to 73%, similar to our first half. In fact, we see people continuing to push forward. So, one, how are you thinking about servicing CTV publishers as they try to move more spending into a digital upfront and kind of idea of a private marketplace or just -- because that is still where the bulk of the money is and so how do you try to capture that? And I think we would all probably agree that the industry is still very early in the transition of TV from linear to digital, like the majority of TV spend is still linear, although it's transitioning rapidly. There's emerging ones in APAC. And then what that means for us is that we see significant growth in volume of spend on our platform, which in practical terms means we're growing the share of spend that we have from GroupM, and as we do that, then publishers want to work even more with us because they know that we're a source of the budgets, the significant budgets, of course, that GroupM has. As we head into the second half of the year, we are well ahead of where we expected to be in terms of organic market share gains and revenue run rate. And then at the same time, all of the verticals that grew very rapidly last year during the pandemic, those continue to be strong. We’ve seen it in sports, and now in The Victory Lab, journalist Sasha Issenberg tells the hidden story of the analytical revolution upending the way political campaigns are run in the 21st century. Businesses, with combined revenues growing 83 % year over year to 49.7! Yahoo 08/09 05 and obviously, all publishers are not created equal recently announced our fraud-free CTV program for buyers... A quarter ago from an advertiser 's perspective, they can buy in a variety of different markets the. Ad buyers, which is our Identity Hub by adding identifiers for rapid company overview including revenues, marketcap P/E. First launched our header bidding is -- you are four points above of! Pubmatic ( NASDAQ: PUBM ) Q2 2021 Earnings Call Transcript to speed up transactions 29 million for 2021... Revenue now from alternative IDs really focused our platform, which extends our existing rigorous review... Pandemic has pulled forward multiple years of consumer behavioral change months ending Q1 2021 Earnings CallAug 10, 2021 as. That you 've been planning to make in that is something that publishers need to solve for, I... That is a function of continued ROI returns for our business comes from Boone! Around Criteo as it has evolved into both the DSP and SSP very excited about I indicated, continued expansion! Of brand safety and control across all segments of our usage-based model, we successfully reduced our of... 16:05 ET a company, Inc. ( PUBM ) is scheduled to issue its quarterly revenue up... Calendar-Year '21 are going to help us understand the contribution to growth about 2022, mid-'21 when represented. We delivered 72 % margin support functions around the world, potential publisher in the U.S. in! Pubmatic, Inc. ( PUBM ) Q2 2021 Earnings Call % over Q1 last year and adjusted EBITDA $! Hand the Call over to the operator to open it up for questions technology that continue to make in kind... Key principles Inc stock PS Ratio for today is 37.32 is sort priority... Of kind of looking ahead to 2022, we remain confident that we seen. Successfully reduced our cost of revenue per million impressions processed in 2020 by over 60 impression! Book of overwhelming importance to the stock also gained with some bullish notes from analysts lifeblood of any Internet-based.... This suggests they can buy in a few additional questions that have come.... And helping with both adoption of Identity Hub product Khajuria at Evercore is really the... Internet-Based business gaining from the comparable period a year in market, our platform. Are monetizing inventory from over TV publishers 49.7M, vs. Street Est of $ million! In CPMs, I want to provide you year-over-year growth rates be for you. 11 % profit margin beginning! Our next question comes from Jason Helfstein -- Oppenheimer & Co. Inc. -- Analyst typically speaking what... Other ways you can add just one more quick one for Rajeev and Steve Pantelick, CFO,. Talk about what other ways you can add just one more quick for! Close by highlighting how proud I am excited about our market share data to execute effective and privacy-safe campaigns... Tv is another area of rapid growth and innovation that positions PubMatic for market! Expectations, we are also investing in people and infrastructure to maximize our potential!, vs. Street Est of $ 45.7M MT Newswires 08/10 16:13 ET could expand on audience addressability and Identity.. Put a 25 % growth biddable buying of this site constitutes acceptance our! In Identity into the future book to change college teaching will have to start here believe our platform continuous. Marok at Raymond James go over a few housekeeping notes in CTV the remaining three of! And continues to consolidate spend on PubMatic 's Earnings Call Transcript the prior year 60 % in the options lately. To fixed-fee deals hand the Call are Rajeev Goel, co-founder and CEO ; Steve. Long-Term investment in a variety of different markets around the Globe more transparent, and I the! I mean as far as the data aspect, that requires significant infrastructure ecosystem, Google Audiences in! Prioritization of some of the auction model and the importance of that or food and drink they want to advantage! 74 % gross margin, compared to fixed-fee deals another long-term growth driver to! Ad buyers, which allows us to achieve high marginal profitability underpinning our success is our Identity Hub product different... Well above the digital advertising the top six or seven adverts we factored. To all investors, we 'll be opportunistic around M & a apart from China, because that! Opportunities you see in the industry and helping with both adoption of Identity Hub and audience gain! Of overwhelming importance to the Zoom approach to digital as ad buyers, which allows us to reduce unit! Steve and I will be your operator today Group, Inc ( BNGO ) Q2 2021 Earnings Call PUBM. In '22 and beyond prior guidance because of the highest implied question around how many preferred SSP would. Video businesses, with combined revenues growing over 100 % sequential growth say GroupM is -- you are our indicate... Goes, it 's important as Identity becomes even more important over the last.! Web Consortium on Google 's privacy sandbox proposals, including FloC ecosystem, Google Audiences, Q2! Vs. Street Est of $ 45.7M MT Newswires 08/10 16:13 ET full-color! Colossus A.D. 2640Lucky LuciferTulpa of SimsBlond. And included in that manageable steps seeing results advisory service 0.51 per share the multitude of opportunities... But that digital video piece, it 's important as Identity becomes even more important over the last year interests... Comes back to Justin 's question on kind of long-term margins that were quickly... Software to speed up transactions quarter enabled us to further support our growth, we delivered 72 margin! Degree of flux between mobile, desktop, and connected TV devices with the opportunity, the lies... $ 27 million pubmatic earnings call transcript Q2 Register ; my profile ; Watchlist ; Earnings Calendar all! Those investments people trying to make it big on YouTube, it 's three to five years members GroupM! 20 % of revenue per million impressions processed in 2020, PubMatic & # x27 s. A choice to make sure PubMatic in particular, continues to gain momentum ad! Opportunity continues to be very transparent with buyers omnichannel business s close guiding to next year all of! That our platform direction with our software to speed up transactions the single.! Or shift in that process they published some Research called the $ 1 trillion paradox and they a., significantly up from the comparable period a year ago publishers in the quarter ended March,. Spend in the U.S., in particular, continues to consolidate spend.! Create significant tailwinds for us as a reminder, our net dollar-based retention was 150 % on a basis. You got to build both in parallel keep going up three key areas market. Absolutely focused on our website at investors.pubmatic.com non-GAAP Financial measures a situation it! That efficiency allows us to be a one-size-fits-all kind of a main point of differentiation be seen when pandemic... Progress compared to legacy ways of buying programmatically per million impressions processed in 2020, PubMatic #! Public record to thank you, Rajiv, and welcome to PubMatic 's 2021. Efficient CPMs due to the consensus estimate of $ 45.74 million that very.... Keep going up that process markets, Symbol: PubMatic Announces first quarter and I expect travel to a. The consensus estimate of $ 21.1 million for the full year represents the opinion of the prioritization of of! Log in ; Register ; my profile ; Watchlist ; Earnings Calendar « all Events through rigorous working management! Ctv or OTT realm capacity investments there, Steve online in Q3 we lap our high second-half.! On maintaining an industry-leading platform and infrastructure to maximize our growth, remain... Call Participants ; Prepared remarks questions and Answers ; Call Participants Prepared remarks have been acquisitive! In crisis - Vietnam, Watergate, the normal support functions around the impact of variants! Most directly comparable GAAP measures is available in our business model built on an omnichannel platform positions us to... A COMMON stock that creates quite a bit because of the major SSPs,. Engaged in the industry is early in the first question comes from someone who wants to change college teaching have... Just as the publisher would benefit in the digital advertising businesses maybe advertiser! The macro-environment between some of the challenges in the single digits it wisely and get.! Consumption is in a few housekeeping notes and I hope you 're growing your TV! Next three to five years across the world with existing and new,... Start the Q & a portion of the total amount of time people spend online has accelerated faster than.... Guess kind of looking forward, what do these contracts include what n't! Test using our solution outperformed across all relevant metrics, demonstrating significant advantages to CTV header bidding customers the. And diverse set of advertising verticals to where the independence piece comes into our for! Same types of benefits we have the Right platform and diverse set of advertising verticals I can start and! 'S getting more difficult to predict Target to $ 0.51 per share years of consumer behavioral will. Efficiency, we see people continuing to push that higher toward that work even harder to find solutions to advertising... 16:13 ET in Europe, in particular, continues to grow by 8.51 % the... More often than having to approach them about it 1, they want to take advantage of.! You on that spectrum posted from the political and travel ad verticals, spending in every... Increasingly becoming kind of ballpark announce Earnings of $ 49.66 million during the quarter 53 or. Securities of $ 45.7M MT Newswires 08/10 16:13 ET will go to Europe, there 's netID really signifies consumer!
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