Shares of PubMatic (NASDAQ: PUBM) got a boost this week following a first-quarter earnings report that beat analyst estimates across the board. While the sell-side digital advertising platform only grew revenue slightly, there were plenty of positives for investors to latch onto. And with economic uncertainty impacting the advertising industry, PubMatic has one clear advantage that will help it weather the storm.

PubMatic does one thing differently than many of its peers: The company builds, owns, and operates its own cloud infrastructure. It doesn't rely on Amazon Web Services or another major cloud platform.

This approach is capital intensive, and scaling is not quite so simple. But the upside is that PubMatic can relentlessly drive down unit costs by optimizing its infrastructure. The company handled 46.5 trillion ad impressions in the trailing-12-month period that ended in the first quarter, up 42% year over year. On a public cloud, costs would likely rise in lockstep with usage. But PubMatic was instead able to reduce its per-impression cost by 16% over the past year.

Continue reading

Source Fool.com