Following a slew of disappointing earnings reports from companies reliant on digital advertising revenue (barring a few exceptions), investors likely weren't expecting anything impressive from advertising technology company PubMatic (NASDAQ: PUBM) when it released its fourth-quarter results after the bell on Tuesday.

Investors had a pretty good heads-up about the challenges the company was facing; management had provided underwhelming fourth-quarter revenue guidance when it reported its third-quarter results. So it might not come as much of a surprise to hear that PubMatic's fourth-quarter revenue fell 2% year over year.

What was the culprit behind the sudden weakness relative to its strong full-year results and its consistently robust growth since its initial public offering in 2020? An uncertain and challenging macroeconomic environment.

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Source Fool.com