PubMatic today reported financial results for the second quarter ending June 30, 2022.
Revenue in the second quarter of 2022 was $63 million, an increase of 27% over $49.7 million in the same period of 2021. Net income was up 21% to $7.8 million from $9.9 million. Adjusted EBITDA increased 24% to $23 million from $18.6 million in the same period of 2021.
Net dollar-based retention was 130% for the trailing twelve months ended June 30, 2022, compared to 150% in the comparable trailing twelve-month period a year ago.
Net cash provided by operating activities was $20.5 million, compared to $21.1 million in the same period of 2021. Total cash, cash equivalents, and marketable securities of $183 million with no debt.
“We delivered another terrific quarter, with organic revenue growth of 27% year over year, well above market growth rates. Our results demonstrate the number and magnitude of growth opportunities we have incorporated into our business, as we continue to consolidate the market,” said PubMatic Co-Founder and CEO Rajeev Goel.
“We participate in the open internet sector of the ecosystem and provide an omnichannel solution that provides publishers and buyers with flexibility as consumer trends shift. We’ve built our business on the belief that all advertising will be digital, and all digital advertising will be transacted programmatically, and this is quickly becoming reality.”
During the quarter, the company processed 36.2 trillion impressions in the second quarter, an increase of 79% over a year ago. Since the second quarter of 2020, cost of revenue per million impressions processed has been reduced by 48%.
Revenue from fast-growing advertising formats mobile and omnichannel video, which includes Connected TV (CTV), grew 43% year-over-year and represented 72% of total revenue in the second quarter.
Revenue from CTV grew by more than 150% over the second quarter of 2021. Added more premium CTV inventory to our platform, now monetizing inventory from 196 CTV publishers.
The company said it is well diversified across more than 20 verticals. The top 10 ad verticals, in aggregate, grew over 40% year over year. Supply path optimisation represented over 30% of total activity on our platform in Q2 2022, up from approximately 24% a year ago.
Pubmatic said all its global data centers are now powered by 100% renewable energy, a significant milestone in a comprehensive, multi-pronged sustainability strategy across the organization. Advertisers and agencies can now buy media in an environmentally sustainable way on the PubMatic platform.
Launched Connect, a comprehensive and fully integrated platform to enable media buyers to seamlessly connect with their target audiences across the open internet. Top ad buyers IPG Matterkind, Omnicom Media Group, and Havas Media Group have recently expanded relationships with PubMatic to extend access to Connect directly to their advertising clients.
"The second quarter marks our 8th straight quarter where we grew revenue significantly above our long-term growth target of 20+%. We saw broad strength in the Americas region, led by fast-growing ad formats CTV, online video, and mobile, and continued momentum in Supply Path Optimization. We also delivered our 13th straight quarter of positive GAAP Net Income and our 25th consecutive quarter of positive Adjusted EBITDA,” said PubMatic CFO Steve Pantelick.
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