PubMatic's Revenue Grows 6% as Nvidia Integration Boosts Stock
PubMatic, a digital advertising technology company, has reported a 102% net dollar-based retention rate for the past 12 months. This news, along with a multi-year integration with Nvda, has boosted its stock price by 7.5%. However, the company's adjusted EBITDA margin has decreased, and analysts expect a deeper loss this year.
PubMatic's revenue grew by 6% year-over-year in Q2 2025, with connected TV (CTV) revenue surging over 50% during the same period. The company's non-GAAP EPS, however, dropped to $0.05 from $0.17 in the prior year. This decline, coupled with a decrease in adjusted EBITDA margin from 31% to 20%, indicates a shift in the company's financial health.
PubMatic's recent integration with Nvda promises to accelerate AI processing by five times. This move could potentially enhance the company's offerings and improve its competitiveness in the market. Despite these developments, analysts expect PubMatic's loss per share to deepen significantly to $0.55 in the current fiscal year.
PubMatic's stock price has risen following the announcement of its Nvda integration, with a consensus 'Moderate Buy' rating from Wall Street analysts. However, the company's financial metrics suggest a need for improvement. As PubMatic continues to invest in technology and grow its revenue, investors will be watching to see if the company can turn its financial performance around.
