Stock Alert: PubMatic Shares Up 7%

Shares of PubMatic Inc. (PUBM) are rising over 7% Friday morning, after the cloud infrastructure platform provider raised its fiscal 2021 guidance, while reporting stellar Q1 results. The stock, which has been trading in the range of $22.42 – $76.96 for the past one year, is currently trading at $36.81, up $2.49 or 7.26%, with trading volume of over 358K versus an average volume of 686K shares.

Updated FY21 Outlook

The company now expects fiscal 2021 revenue to be in the range of $195 million – $200 million, representing year-over-year growth of 31% – 34%, compared to the previously communicated range of $180 million – $185 million, representing year-over-year growth of 21% – 24% over 2020. Seven Wall Street analysts have a consensus revenue estimate of $184.83 million for the year 2021.

PubMatic currently sees 2021 adjusted EBITDA in the range of $54 million – $58 million, or 27% – 29% margin, versus the prior estimate of $45 million – $49 million, or 25% – 27% margin.

Q2 Guidance

The company projects second-quarter revenue in the range of $45 million – $46 million, representing growth of 70% – 75% over Q2 2020. Analysts estimate revenue of $41.94 million for the quarter.

Adjusted EBITDA is expected to be in the range of $14 million – $15 million representing, 31% – 33% margin, for the quarter.

Q1 Results

The company’s Q1 net income was $4.9 million or $0.09 per share compared to $0.9 million or $0.00 per share in the same period of 2020. Analysts polled by Thomson Reuters expected breakeven per share for the quarter. Analysts’ estimate typically exclude certain special items.

Revenue in the first quarter of 2021 was $43.6 million, an increase of 54% over $28.3 million in the same period of 2020.

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