PubMatic stock (NASDAQ:PUBM) was hammered on Friday after its second-quarter results and forecasts for the full year and current quarter disappointed Wall Street analysts.
The company reported second-quarter non-GAAP earnings of $0.17 per share after the close on Thursday, beating expectations by 4 times. cents, but revenue of $67.3 million missed the consensus mark by nearly $3 million. It also forecast full-year revenue in the range of $288 million to $292 million, with a midpoint of $290 million, below Seeking Alpha’s forecast of $300.3 million.
PubMatic expects revenue for the current quarter to be between $65 million and $67 million, still below Wall Street expectations of $69 million.
Key Points from Raymond James: “PubMatic reported lower-than-expected second-quarter fiscal 2024 results due to changes in its auction structure for DSP partners and weakness across a range of verticals including technology, automotive, travel and arts/entertainment. These issues are expected to continue through In the third quarter, and leading to lower performance in fiscal 2024, the DSP problem is temporary, but the weakness in the vertical industry is more worrying, echoing the concerns of other digital advertising platforms in their second-quarter reports,” they said on August 9 stated in a report on the same day.
Raymond James added that macro weakness in key verticals was one of the reasons for the downgrade, but the research firm is also hopeful about the company’s management team and expects to see “more stability” before turning bullish. and consistency”. PUBM currently has no PT assigned to it.
Jeffries’ key points: “PUBM’s second-quarter results were worse than expected. It is worth noting that second-quarter revenue growth fell to 6% year-over-year from 20% in the first quarter, as bid changes from major DSP partners resulted in a $2 million Adverse effects. Compensation,” they said.
The stock ratings firm now takes a “more cautious view” on PUBM, highlighting the combined impact of DSP and macro headwinds on the company of about $7 million, noting that lowered full-year guidance means revenue growth will re-accelerate to Around 6% Y/Y and 35% Q/Q. PT was lowered to $16, an increase of 16% at current price levels.
Macquarie analysts also commented, noting that PUBM’s second-quarter revenue fell short of target, but considered full-year guidance to be modest.
They said, “These issues are largely beyond the company’s control; beyond that, CTV, Action and PubMatic’s SPO work trends remain positive. The rating firm stuck to its neutral rating and lowered PT to $19, up 38%.
company shares Close -28.3% The price on Friday was $14.06. it A drop of up to 33% It fell to an intraday low of $13.18 during the day. in stock Value loss exceeds 17% So far this year, the benchmark S&P up 11.5%.
