REDWOOD CITY, Calif. - PubMatic, Inc. (NASDAQ:PUBM), a company specializing in digital advertising technology, announced robust financial results for the fourth quarter of 2023, with a 14% year-over-year revenue increase to $84.6 million. The company also reported a net income of $18.7 million, reflecting a 22% margin, and an adjusted EBITDA of $38.9 million, or a 46% margin.
The fourth quarter saw significant growth in Supply Path Optimization (SPO), which accounted for over 45% of PubMatic's total activity. The company generated $81.1 million in cash from operations and $52.8 million in free cash flow for the full year, marking a 38% increase from 2022.
PubMatic's annual revenue for 2023 reached $267.0 million, a 4% increase from the previous year. The company ended the year with a net dollar-based retention rate of 101%. Despite a slight decrease in GAAP net income to $8.9 million from $28.7 million in 2022, the company maintained a solid adjusted EBITDA of $75.3 million.
The company's CEO, Rajeev Goel, attributed the strong performance to the strength of PubMatic's platform, strategic investments, and the growing importance of sell-side technology. CFO Steve Pantelick highlighted the company's record free cash flow and significant growth in monetized impressions as key drivers of success.
PubMatic also announced an extension of its share repurchase program, now authorized to repurchase up to an additional $100 million of Class A common stock through the end of 2025.
Looking ahead to 2024, PubMatic expects to more than double its year-over-year revenue growth to over 10%, or over 12% excluding Yahoo, and expand its adjusted EBITDA margin. The company's financial outlook for the first quarter of 2024 anticipates revenue between $61 million and $63 million, with adjusted EBITDA ranging from $10 million to $12 million.
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