PubMatic's CTV Business Doubles, Now 20% of Revenue

Core Insights - PubMatic achieved 9% revenue growth for the full year 2024 despite challenges from a major demand-side platform (DSP) partner changing its bidding approach [1] - The company is successfully diversifying its revenue streams, particularly in high-growth areas like connected TV (CTV) and mobile applications [2][4] Revenue Growth and Diversification - CTV revenue more than doubled in 2024, reaching 20% of total revenue in Q4, while mobile app revenue increased by 16%, also representing 20% of total revenue [2] - Excluding revenue from the major DSP and political advertising, Q4 revenue was up 16% year over year, indicating strong underlying growth [4] Supply Path Optimization (SPO) - PubMatic's SPO strategy is gaining traction, with 53% of platform activity transacted via SPO, up from one-third two years ago, reflecting industry adoption of efficient advertising supply chains [6] - The consolidation of major advertising agencies on the platform is creating a flywheel effect, attracting premium publishers and valuable data providers [5] Future Outlook - Management expressed confidence in the company's strategic position and growth strategies, despite near-term challenges with the specific DSP partner [7] - Focused investments in CTV, mobile app, commerce media, and data curation, along with operational efficiency from generative artificial intelligence, position the company for sustainable growth [8]