Why PubMatic Stock Skyrocketed Today
Shares of advertising-technology (adtech) company PubMatic (NASDAQ: PUBM) leaped higher on Tuesday morning after its latest financial results -- delivered Monday after the close -- significantly outperformed Wall Street's expectations. As of 10:48 a.m. ET, PubMatic stock was up 25.6%, and had set a new 52-week high.
For the fourth quarter of 2023, PubMatic's management had guided for revenue in the range of $76 million to $80 million. In reality, the company generated revenue of $84.6 million, which was a 14% jump from the prior-year period. PubMatic benefited from having more customers, resulting in a higher number of ads to monetize.
That led to better profits for PubMatic as well. Its net income of almost $19 million represented a net profit margin of 22%. Not only that, it had record free cash flow of almost $53 million in 2023, up 38% from 2022.
Source Fool.com
