What to expect from PubMatic’s (PUBM) Q3 earnings

Digital advertising technology company PubMatic (NASDAQ:PUBM) will be reporting results this Monday after the bell. Here’s what to expect.

PubMatic beat analysts’ revenue expectations last quarter, reporting revenues of $78.59 million, up 10.5% year on year. It was an incredible quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter exceeding analysts’ expectations.

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

This quarter, the market is expecting PubMatic’s revenue to grow 12% year on year, a reversal from the 5.3% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PubMatic rarely misses Wall Street’s revenue estimates.

Looking at PubMatic’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 55.5%, beating analysts’ expectations by 5.4%, and DoubleVerify reported revenues up 9%, topping estimates by 1.1%. AppLovin traded up 31% following the results while DoubleVerify’s stock price was unchanged.

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

Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. PubMatic is down 4.4% during the same time and is heading into earnings with an average analyst price target of $21 (compared to the current share price of $17.83).

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