• Oppenheimer analyst Jason Helfstein raised the price target on PubMatic Inc to $50 from $45, implying a 55.7% upside, and reiterated an Outperform.
• The company's Q3 results and guidance suggest it is gaining share and has been able to turn Apple Inc's (NASDAQ: AAPL) Identifier for Advertisers and advertisers to focus on the removal of cookies into a tailwind.
• The analyst believes PubMatic is "successfully moving closer to advertisers and agencies."
• PubMatic reported third-quarter FY21 revenue growth of 54% year-on-year to $58.1 million.
• "This quarter marks our fourth consecutive quarter of organic revenue growth above 50% and adjusted EBITDA margin over 30%," CEO Rajeev Goel said.
• PubMatic processed 23.9 trillion impressions in Q3, a 103% increase Y/Y as publishers continued to expand their inventory on the PubMatic platform.
• Revenue from fast-growing advertising formats mobile and omnichannel video, which includes CTV, grew 64% Y/Y.
• Revenue from CTV grew by over seven times Y/Y. PubMatic programmatically monetized CTV inventory from 154 publishers, up from 114 publishers in Q2 of 2021.
• Outlook: PubMatic sees Q4 revenue of $74 million - $76 million, above the consensus of $62.2 million.
• PubMatic raised FY21 revenue outlook to $225 million - $227 million (previously $205 million - $209 million), above the consensus of $208 million.
• PubMatic sees FY22 revenue of at least $281 million, above the consensus of $260.22 million.
• Price Action:PUBM shares traded higher by 24.5% at $39.98 in the premarket session on the last check Wednesday.