PubMatic, a supply-side platform, posted record high annual revenue of $148.7 million as its Q4 returns jumped 64% year over year.
Top line
New to the public markets, PubMatic is enjoying the highs that its fellow ad-tech companies have been seeing. The Trade Desk and LiveRamp recently reported 48% and 17% growth in quarterly revenues, respectively.
PubMatic’s stock price has nearly doubled since it debuted on the Nasdaq on Dec. 9, and the SSP’s market capitalization is $2.2 billion.
Between the lines
PubMatic, like many other ad-tech companies today, is attributing its growth to changes in consumer habits caused by the pandemic. More people are on their devices, streaming television and buying products online. Advertisers are shifting their budgets to reach those consumers, thus spending more through programmatic channels.
“We are in the midst of an accelerated digital transformation, with consumers everywhere spending more time online as they shift transactions from the physical world to the internet,” said Rajeev Goel, co-founder and CEO of PubMatic, in a statement.
PubMatic processed 46.9 trillion impressions in 2020, up 69% compared to 2019. The company’s Q4 omnichannel video revenues, which includes over-the-top media, increased by 100% year over year.
Bottom line
It’s not all roses for ad tech, however. The impending demise of third-party cookies and restrictions around Apple’s IDFA means it will be harder to track consumers online and serve them targeted ads, potentially undermining programmatic advertising’s value proposition.
