Business Wire

PubMatic Announces Record Financial Results


PubMatic, the automation solutions company for an open digital media industry, today announced that 2016 financial results reflect the highest levels of revenue, profit and free cash flow performance in its ten-year history, with an Adjusted EBITDA margin over 30%. Last year was the fourth year in a row that PubMatic achieved operating profitability (based on Adjusted EBITDA), and the company’s operating profit per full time employee (FTE) is now among the top tier in the “ad tech” space. Key drivers of the company’s strong financial results include increased adoption of header bidding, increased mobile and video monetization and PubMatic’s renewed commitment to customer satisfaction.

PubMatic launched its header bidding technology globally in 2012, and it now represents over 75% of all of PubMatic’s available impressions. Publishers utilizing PubMatic’s header bidding technology have often realized CPM increases exceeding 50%. Advanced mobile monetization strategies such as private marketplaces and header bidding, according to its recently released 2016 Quarterly Mobile Index (QMI), resulted in average PubMatic mobile eCPMs increasing by over 30% for mobile web and 16% for mobile app year-over-year. As such 75 % of PubMatic’s impressions were generated via mobile devices while the company realized over 25% of marketer spend placed against video in Q4 2016.

“Our focus on sell side digital media execution enables publishers and app developers to take control of their ad decisioning. Header bidding, and corresponding wrapper technology, maximizes the value of demand through increased access to buyers and competitive CPMs,” said Rajeev Goel, Co-Founder & CEO of PubMatic. “The strategy of publishers taking back control of their assets is further supported as we see the implementation of our Unified Ad Server technology, allowing programmatic and direct sales channels to compete for access to audiences in real-time.”

PubMatic, in late 2015, shifted its strategy toward serving premium publishers and made a renewed commitment to customer satisfaction, including implementing a quarterly Net Promoter Score (NPS) survey, a management tool used to gauge the loyalty of a company’s customer relationships. Over the course of 2016, PubMatic’s results have risen steadily, with its fourth quarter publisher results showing a NPS score that exceeds benchmarks for all B2B service provider categories, according to Inavero.

During the second half of 2016, PubMatic unveiled its comprehensive revenue management platform, SEVEN, which gives publishers full control of their digital assets and provides media buyers with the ability to purchase verified audiences and premium inventory at scale across screens, channels, and formats. As part of the SEVEN launch, PubMatic introduced its Unified Ad Server as well as OpenWrap, whereby it has made the wrapper tag that powers the company's enterprise-grade Wrapper Solution open-source, following through on PubMatic's commitment to promote and support transparency and fairness in the digital advertising ecosystem. PubMatic’s OpenWrap and Unified Ad Server represent the next step in the evolution of publisher ad decisioning after the rapid penetration of header bidding.

Over the past year, PubMatic established several new partnerships around the globe, including new or expanded relationships with Gruner+Jahr e|MS, Tencent Online Media Group, Hemnet, Web Financial Group, Proxama and Mediekompaniet Adapt. PubMatic, in conjunction with the Publisher Monetization Research Group, also launched the Japan Publisher Alliance on Digital (J-PAD), an alliance of Japanese and international publishers that allows brands to access exclusive private marketplace inventory via PubMatic’s SEVEN.

In 2016, PubMatic was named to Deloitte’s Technology Fast 500™ for the fifth consecutive year, with 236 percent revenue growth since 2012.

To learn more about PubMatic’s revenue management platform, SEVEN, its Unified Ad Server, or any of the company’s other solutions, visit

About PubMatic

PubMatic is the automation solutions company for an open digital media industry. Featuring the leading omni-channel revenue automation platform for publishers and enterprise-grade programmatic tools for media buyers, PubMatic's publisher-first approach enables advertisers to access premium inventory at scale. Processing nearly one trillion ad impressions per month, PubMatic has created a global infrastructure to activate meaningful connections between consumers, content and brands. Since 2006, PubMatic's focus on data and technology innovation has fueled the growth of the programmatic industry as a whole. Headquartered in Redwood City, California, PubMatic operates 11 offices and six data centers worldwide.

PubMatic is a registered trademark of PubMatic, Inc. Other trademarks are the property of their respective owners.

This press release may contain forward-looking statements about future results and other events that have not yet occurred. Actual results may differ materially from PubMatic's expressed expectations due to future risks and uncertainties. PubMatic does not intend to update the information contained in this press release if any information or statement contained herein is or later turns out to be inaccurate.

Contact information

Global Contact
Johanna Bauman, 646-453-7245
Sr. Director, Marketing Communications

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