"Shares of online advertising expert PubMatic skyrocketed on Tuesday morning. At 12:30 p.m. ET, the stock had gained 40.8%, and the intraday chart was still trending higher. PubMatic published third-quarter results last night, crushing Wall Street's estimates across the board. Wall Street analysts didn't see these numbers coming The company posted analyst-stumping financials, citing strong demand for connected TV (CTV) advertising and a successful launch of artificial intelligence (AI) tools and features across PubMatic's platforms."
"Revenues fell 5.3% year over year to $68.0 million, largely due to massive political ad budgets in the year-ago quarter. Adjusted earnings dropped back from $0.12 to $0.03 per diluted share, again due to the much lower political ad volume. The Street consensus had pointed to a net loss of $0.22 per share on revenues near $64.0 million. PubMatic crushed those projections."
Shares of PubMatic surged over 40% after third-quarter results far exceeded expectations. Revenues declined 5.3% year over year to $68.0 million mainly because of elevated political ad spending in the prior-year quarter. Adjusted earnings fell to $0.03 per diluted share from $0.12 for the same reason, yet the company beat Street projections that had forecast a net loss. Excluding political spending, CTV sales grew by more than 50%. Management also cited successful launches of AI tools and platform features. Despite the strong quarter, the stock remains well below prior highs, reflecting a multiyear price decline.
Read at The Motley Fool
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