Core Insights - Digital Turbine (APPS) and PubMatic (PUBM) operate in the digital advertisement market, focusing on different segments: APPS as an on-device advertising platform and PUBM as a sell-side platform for ad publishers [1][2] Digital Turbine (APPS) - APPS' App Growth Platform (AGP) is gaining traction, connecting demand-side platforms (DSPs) with publishers, driven by an expanding SDK footprint and strong performance in the APAC region [3] - In Q2 of fiscal 2026, APPS' AGP supply volumes saw a 30% year-over-year increase in impressions, with improvements in targeting and return on ad spend through AI and machine learning [4][5] - The On Device Solutions segment is experiencing over 30% year-over-year revenue growth per device, supported by strong advertiser demand and improved pricing and fill rates [6] - APPS' AGP segment generated $44.7 million in revenue, reflecting a 20% year-over-year growth [5] PubMatic (PUBM) - PUBM is focusing on CTV, AI-driven automation, and sell-side data intelligence to mitigate macro pressures and reduced spending from legacy DSP customers [7] - Mid-tier DSP partners are driving growth, with ad spend from these partners increasing over 25% year-over-year, aided by the adoption of PUBM's AI-enabled tools [8] - PUBM launched Programmatic Guaranteed with a top-three DSP, enhancing efficiency in CTV and premium video deals, with Supply Path Optimization (SPO) accounting for over 55% of platform activity in Q3 2025 [9] - The company has invested heavily in AI, achieving a five times faster bid response speed and serving three times more ad requests per server [10] Performance Comparison - Over the past year, APPS shares increased by 246.2%, while PUBM shares declined by 42.7% [11] - APPS is experiencing strong growth in impressions and revenues, while PUBM is adapting through AI innovation and a diversified DSP mix [12] Earnings Estimates - The Zacks Consensus Estimate for APPS' fiscal 2026 earnings indicates a 5.7% year-over-year decline, with recent downward revisions [13] - PUBM's 2025 earnings estimate is 19 cents per share, reflecting a 75.6% year-over-year decline, but has been revised upward recently [13] Conclusion - APPS benefits from strong on-device demand and rapid revenue growth, while PUBM leverages CTV and AI to strengthen its market position [14] - In terms of valuation, APPS has a trailing P/B multiple of 3.75X, compared to PUBM's 1.76X [15] - APPS holds a Zacks Rank 1 (Strong Buy), indicating a stronger investment potential compared to PUBM, which has a Zacks Rank 3 (Hold) [17]

Summary of PubMatic Conference Call - December 09, 2025 Company Overview - **Company**: PubMatic (NasdaqGM:PUBM) - **Industry**: Digital Advertising and Advertising Technology - **Founded**: Approximately 20 years ago, led by technology co-founders - **Focus**: AI-driven ad tech, delivering value to buyers, publishers, data owners, and commerce media networks [3][5][6] Key Points and Arguments Macro Environment - **Q3 Performance**: PubMatic reported solid Q3 results, exceeding guidance on both revenue and earnings, with significant growth in CTV (Connected TV) and merchant revenues [10][11] - **Revenue Breakdown**: CTV business accounts for nearly 20% of revenues, growing double digits; merchant revenues represent about 10% and grew over 80% [10][11] - **Market Sentiment**: Some consumer discretionary verticals showed muted seasonality in October, but overall confidence remains due to a diverse set of ad verticals [10][12] Industry Dynamics - **Blurring Lines**: The distinction between buy-side and sell-side is diminishing, with advertisers focusing more on performance, transparency, and control [13][14] - **Curation and AI**: PubMatic is leveraging AI to enhance curation capabilities, providing an efficient platform for buyers to access valuable data sets [17][18] Diversification Strategy - **DSP Relationships**: PubMatic is diversifying its exposure to various Demand-Side Platforms (DSPs), focusing on performance buyers and mid-tier DSPs, which grew 25% year-over-year [20][21] - **Trade Desk Relationship**: The relationship with The Trade Desk has stabilized, with PubMatic being the first sell-side platform to participate in their Price Discovery initiative [22] Regulatory Environment - **Google Trial**: The ongoing trial against Google is seen as a potential positive for PubMatic, with expectations for behavioral remedies that could create a more level playing field [23][24][25] AI Initiatives - **AI Leadership**: PubMatic is positioned as a leader in AI capabilities, with significant improvements in infrastructure and product offerings [27][28][31] - **Activate Product**: The Activate platform has seen 100% year-over-year revenue growth, allowing buyers to execute campaigns efficiently [34][35] CTV Business - **Market Position**: PubMatic works with over 90% of the top 30 global streamers, with CTV revenues growing over 50% in the last quarter [36][37] - **Innovative Offerings**: New formats like pause ads and a live sports marketplace are contributing to growth in the CTV segment [36][37] Investment Focus - **Future Investments**: CTV, Activate, and AI initiatives will be prioritized for investment in 2026, with a balanced approach to resource allocation [38][39] - **Growth Expectations**: Anticipated re-acceleration of growth in the second half of 2026, particularly excluding the Trade Desk and political advertising impacts [42][43] Additional Important Insights - **Customer Feedback**: Positive feedback from clients like Mars Petcare highlights the effectiveness of the Activate platform [35] - **Unified Platform**: PubMatic emphasizes a unified platform approach, allowing seamless execution of campaigns across various data sources [18] This summary encapsulates the key insights and strategic directions discussed during the PubMatic conference call, highlighting the company's performance, market dynamics, and future growth opportunities.

Technical Analysis - PubMatic, Inc. (PUBM) has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1] - The 20-day simple moving average (SMA) is a popular tool among traders as it smooths out price fluctuations and can signal trend reversals more effectively than longer-term averages [2] Performance Metrics - Over the past four weeks, PUBM has gained 23.3%, and it is currently ranked Zacks Rank 3 (Hold), suggesting potential for further upward movement [4] - Positive earnings estimate revisions have occurred, with 2 revisions higher for the current fiscal year and no lower revisions, leading to an upward adjustment in the consensus estimate [4] Investment Outlook - Given the positive technical indicators and earnings estimate revisions, PUBM may present a compelling opportunity for investors looking for potential gains in the near future [5]

Core Insights - Pubmatic (PUBM) shares initially surged by 40% after the Q3 earnings release but subsequently lost most of the gains due to broader market weakness [1] Financial Performance - Q3 revenue and guidance were reported to be comfortably strong, indicating positive financial health for the company [1]

Core Insights - Pubmatic (PUBM) shares initially surged by 40% after the Q3 earnings release but subsequently lost most of the gains due to broader market weakness [1] Financial Performance - Q3 revenue and guidance were reported to be comfortably strong, indicating positive financial health for the company [1]

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Core Insights - PubMatic's earnings highlight a broader trend in the ad-tech industry, where companies are leveraging AI to enhance marketing campaign capabilities, resulting in an average revenue growth of 13.5% among key players [3]. Company Performance - PubMatic reported third-quarter revenue of $68 million, surpassing analysts' expectations, although this figure is down from $71.8 million in the same period last year, which included $5 million from political advertising [5]. - Revenue from Connected TV (CTV) advertising grew over 50% year-over-year, excluding political advertising, while revenue from omnichannel video increased by 21% [5]. - The partnership with Nvidia has significantly improved processing speeds, reportedly up to five times faster than traditional systems, contributing to PubMatic's competitive edge [5]. Product Developments - The company launched a unified, AI-powered publisher platform that optimizes revenue, monetizes first-party data, and provides direct access to high-value media budgets, reducing campaign setup time by 87% and speeding up issue resolution by 70% [6]. - Ad-buying activity from the Live Sports Marketplace increased by more than 150% from the previous quarter [6]. - A new feature for CTV allows advertisers to serve dynamic and contextually relevant ads when viewers pause content [6]. - Supply path optimization on the platform has increased by 50% year-over-year [6].

Core Insights - U.S. stocks showed mixed performance, with the Dow Jones index increasing by over 100 points on Tuesday [1] Company Performance - PubMatic Inc reported third-quarter earnings of 3 cents per share, surpassing the analyst consensus estimate of a loss of 10 cents per share, and quarterly sales of $67.960 million, exceeding the estimate of $63.768 million [1] - PubMatic shares surged by 33.2% to $10.19 following the positive earnings report [2] - Surmodics Inc experienced a gain of 49.3% to $40.85 after a court denied the FTC's attempt to block GTCR's acquisition [4] - enGene Holdings Inc's shares rose by 36.4% to $8.20 after reporting a 63% complete response rate in its Phase 2 LEGEND study [4] - Energy Vault Holdings Inc's stock increased by 33.1% to $4.72 following its third-quarter results [4] - RealReal Inc's shares climbed by 25.6% to $14.08 after reporting better-than-expected third-quarter results and raising its FY25 sales guidance [4] - Hallador Energy Co reported better-than-expected quarterly sales, leading to a 19.3% increase in its stock price to $23.87 [4] - BigBear.ai Holdings Inc's shares rose by 17.3% to $6.71 after announcing better-than-expected quarterly results and the acquisition of Ask Sage [4] - Paramount Skydance Corp's stock gained 10.9% to $16.92 after reporting third-quarter results and issuing optimistic fourth-quarter sales guidance [4] - Clearwater Analytics Holdings Inc's shares increased by 9.3% to $18.24 [4] - Rocket Lab Corp's stock rose by 8.3% to $56.27 after reporting better-than-expected third-quarter results and issuing positive fourth-quarter sales guidance [4] - Viasat Inc's shares gained 8.1% to $39.96 after an upgrade from JP Morgan analyst Philip Cusick, who raised the price target from $23 to $50 [4] - Soleno Therapeutics Inc's stock rose by 6.7% to $49.42 after announcing a $100 million accelerated share repurchase plan [4]

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Core Viewpoint - PubMatic, Inc. reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.01 per share, but down from $0.12 per share a year ago, indicating a significant earnings surprise of +400.00% [1] Financial Performance - The company achieved revenues of $67.96 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 7.04%, although this represents a decline from $71.79 million in the same quarter last year [2] - Over the last four quarters, PubMatic has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - PubMatic shares have declined approximately 49.6% year-to-date, contrasting with the S&P 500's gain of 14.4% [3] - The current Zacks Rank for PubMatic is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $74.54 million, and for the current fiscal year, it is also $0.16 on revenues of $272.98 million [7] - The outlook for the Internet - Software industry, where PubMatic operates, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for performance [8]