Shares of PubMatic (NASDAQ: PUBM) dropped 31.7% this week, according to data provided by S&P Global Market Intelligence, after the programmatic advertising technology specialist announced solid second-quarter 2023 results, but followed with conservative forward guidance.

To be sure, the entirety of Pubmatic's decline this week came on Wednesday after the company told investors its quarterly revenue grew a modest 0.5% year over year to $63.3 million, which was technically above both analysts' estimates (for sales of $59.8 million) and guidance provided in May (for a range of $58 million to $61 million). On the bottom line, that translated to non-GAAP (adjusted) net income of $1.3 million, or $0.02 per share, down significantly from $0.23 per share a year earlier -- but again well above Wall Street's models calling for an adjusted net loss of $0.01 per share.

Meanwhile, PubMatic grew its number of active publishers on the platform by 13% year over year, monetizing inventory from over 1,750 publishers and app developers. Revenue from omnichannel video -- including desktop, mobile, and connected TV (CTV) devices -- grew to 31% of total revenue during the quarter. CTV revenue, in particular, grew by over 30% year over year.

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Source Fool.com