PubMatic : Q4 2022 Earnings Fact Sheet

PUBMATIC FY AND Q4 2022 AT A GLANCE

STRONG FINANCIAL PROFILE PROVIDES FOUNDATION0 FOR RESILIENCE AND LONG-TERM SUCCESS

7th Consecutive Year of Profitability

REVENUE

FY 2022 revenue of $256.4 million, up 13% year-over-year.

Q4 2022 revenue of $74.3 million, down 1.7% year-over-year.

GAAP NET INCOME 1

GAAP net income FY 2022 was $28.7 million or 11% of revenue, vs. 25% in 2021. FY 2022 diluted earnings per share of $0.50.

GAAP net income in Q4 2022 was $12.8 million or 17% of revenue, vs. 38% in Q4 2021. Q4 2022 diluted earnings per share of $0.22.

ADJUSTED EBITDA2

FY 2022 adjusted EBITDA was $98.0 million, or 38% of revenue.

Adjusted EBITDA in Q4 2022 was $32.6 million, or 44% of revenue, compared to $38.9 million, or 51% of revenue, in Q4 2021.

NET CASH PROVIDED BY OPERATING ACTIVITIES

Cash flow from operations was $87.2 million for FY 2022.

Board of Directors authorized $75 million share repurchase program through the end of 2024.

PUBLISHER RETENTION

Omnichannel video (across desktop, mobile and CTV devices) represented 34% of revenues in Q4 2022. FY 2022 omnichannel video revenues increased 42% year over year.

Mobile advertising revenues (across video and display formats) represented 57% of revenue in Q4 2022. FY 2022 mobile advertising increased 19% over FY 2021.

Connected TV revenue nearly tripled year over year in 2022.

PUBLISHER RETENTION

In 2022, we had high publisher initiated logo retention of 97%. Net dollar-based revenue retention for FY 2022 was 108%.3

Signed new and expanded relationships with 429 publishers in 2022. Continue to acquire marquee customers, such as Roku, TiVo and Kroger.

EXPANDED USAGE FROM BUYERS

Over 30% of activity on our platform is now via supply path optimization (SPO) agreements, up from approx. 20% at the beginning of 2020. Average 2022 net spend retention rate for SPO partners who have worked with us for three years or more was 124% per year.

Signed new and expanded relationships with 28 ad buyers in 2022 including GroupM, Havas, and Horizon.

IMPRESSIONS PROCESSED

In Q4 2022, we processed nearly 48 trillion impressions, 63% more than the amount processed in Q4 2021.

Reduced the unit cost of impressions by 19% year-over-year.

• Q4 2021 and FY 2021 GAAP net income include an unrealized gain on equity investments. Net of income taxes, the impact was -$4.5

• This non-GAAP measure is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. Please see provided table for a reconciliation between GAAP net income and Adjusted EBITDA.

• Calculated by starting with the revenue from publishers in the trailing twelve months ended December 31, 2021 ("Prior Period Revenue"). We then calculate the revenue from these same publishers in the trailing twelve months ended December 31, 2022 ("Current Period Revenue") (including any upsells and net of contraction or attrition, but excluding revenue from new publishers). Our net dollar-based retention rate equals Current Period Revenue divided by Prior Period Revenue.

RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA

(In thousands) (unaudited)

	Three Months Ended December 31,	Year Ended December 31,
	2022		2021		2022		2021
Net income	$12,781	$28,239		$28,705	$56,604
Add back (deduct):	0	0		0	0
Stock-based compensation	5,464	3,599		20,646	14,107
Depreciation and amortization	10,662	7,081		34,249	23,073
Unrealized (gain) loss and impairment of	0	0		0	0
----	(5,433)		5,948	(5,433)
equity investment
0	0		0	0
Interest income	(1,170)	(92)		(2,214)	(300)
Acquisition-related and other expenses	821	----		1,882	----
Provision for income taxes	4,034		5,504		8,762		8,199
Adjusted EBITDA	$32,592	$38,898		$97,978	$96,250
	0	0		0	0

©2023 PubMatic, Inc. PubMatic is a registered trademark of PubMatic, Inc., U.S. Pat. & Tm. Off. and other countries. Other trademarks are the properties of their respective owners.

PUBMATIC FY AND Q4 2022 AT A GLANCE

STRONG FINANCIAL PROFILE PROVIDES FOUNDATION FOR RESILIENCY AND LONG-TERM SUCCESS

2022 Case Studies & Customer Proof Points

BUYER VALUE CREATION

How PubMatic's Premium Inventory and Google Audiences Deliver Better Open Market Performance for Amnet

PubMatic and Goodway Group Unlock Superior ROI w/ Consumer Experience Auction Package

PubMatic Selected by GroupM To Support the Supply Chain of the Future

How Finecast Scaled Reach with Header Bidding for OTT

Havas Media Group North America Partners with PubMatic to Increase Advertiser Return on Ad Spend

Horizon Media Selects PubMatic as Exclusive Partner to Provide Advertisers with Data-Driven Advertising at Scale

How PubMatic Helped N365 Gain More Supply Chain Control

Omnicom Media Group Germany Streamlines Deals With PubMatic's Media Buyer Console

PUBLISHER MONETIZATION GROWTH

PubMatic OpenWrap SDK Delivers 34% Revenue Uplift for Autoscout24

How FloSports Experienced a 254% Revenue Increase from Switching to PubMatic's OpenWrap

PubMatic Drives Unique and Incremental Demand for a Digital-First CTV Publisher Future Today, Boosts Revenue over 400% Per Month PubMatic and Ironsource Exchange (iSX) Brings Mobile Publishers Incremental Brand Advertising Demand

How Kobe Shimun Saw a 120% Increase in Overall Revenue with PubMatic's OpenWrap

How My Code's Prebid Tech Makes It Possible To Manage Omnichannel Inventory

PubMatic Delivers 58% Higher eCPM and More Than Double SOV for NESN

PubMatic Drives Unique Video Demand for Primis' Gaming Vertical, Increases Revenue by 170%

ADDRESSABILITY & DATA TARGETING

PubMatic and LiveRamp: Publishers Significantly Increase Fill Rate, Yield, and Overall Revenue Across Cookieless Browsers Globally PubMatic and Lotame Deliver Greater Viewability and VCR for Banana Boat Across Browsers

PubMatic and MiQ are at the Leading Edge of Addressability Innovation

Samba TV and PubMatic Launch Australia Partnership to Deliver Programmatic Omniscreen TV Audience Targeting PubMatic and Wunderkind Deliver Greater Scale With Sell-Side Data Targeting

©2022 PubMatic, Inc. PubMatic is a registered trademark of PubMatic, Inc., U.S. Pat. & Tm. Off. and other countries. Other trademarks are the properties of their respective owners.