PubMatic Stock

PubMatic, Inc. operates as an independent technology company. The company is seeking to maximize customer value by delivering digital advertising’s supply chain of the future.

The company’s integrated technology platform empowers the world’s leading digital content creators (which it collectively refers to as publishers) across the open internet to maximize monetization of their advertising inventory. The company’s platform also provides control and transparency to buyers, which includes advertisers, agencies, agency trading desks, and demand side platforms (DSPs) (which it collectively refers to as buyers) and enables both publishers and buyers to drive better business outcomes.

Digital Advertising Solutions

The company generates revenue from the use of its platform for the purchase and sale of digital advertising inventory.

The company primarily works with publishers and app developers who allow it direct access to their ad inventory, as well as select channel partners that meet its quality and scale thresholds. The company’s channel partners aggregate and provide further access to thousands of sites and apps from smaller publishers. The company generates revenue through fees charged to its publishers, which are generally a percentage of the value of the advertising impressions that publishers monetize on its platform.

The company also generates revenues from its other products, such as OpenWrap, its header bidding solution, and Connect, its solution that provides additional data and insights to buyers, which are sold separate from or in conjunction with use of its platform. The company continues to invest in new features for its existing solutions and new solutions, such as its new product Activate, which allows buyers to execute direct deals on its platform across publisher inventory, and Convert, its commerce media solution, both of which were launched in 2023.

The company also enters into written service agreements with its buyers, primarily DSPs, that allow them to use its platform to buy ad inventory. Two of the company’s largest DSP relationships are with Google and The Trade Desk. The company is party to an agreement with Google LLC, under which Google is a buyer on its platform. The initial one-year term of the current agreement ended in May 2019, and it automatically renews for successive one-year terms unless either party provides written notice at least 60 days’ prior to the end of the initial term or such successive terms. Either party may terminate for convenience upon providing at least 30 days’ prior written notice. The company signed a prior similar agreement with a Google subsidiary in 2012. The company is also party to an agreement with The Trade Desk, Inc., under which The Trade Desk is a buyer on its platform. The initial term of the agreement ended in November 2013, and it automatically renews for successive one-year terms. Either party may terminate for convenience upon providing at least 30 days’ prior written notice.

Growth Strategy

The company is positioned to benefit from tailwinds in the advertising industry, including the rapid proliferation of digital media, the need for purpose-built infrastructure to address the increasing complexity in the digital advertising landscape, and increasing consumer time spent online. The key elements of the company’s growth strategy are to attract new customers and expand its relationship with existing customers globally; expand SPO agreements and activate; expand video and mobile; expand the capacity of its infrastructure platform; and implement a number of technology innovations, process enhancements, and industry solutions in response to its publishers’ increased obligations.

Technology

The company has designed its technology to efficiently process real-time advertising transactions while leveraging data to optimize outcomes for publishers and buyers. The company owns and operates its software and hardware infrastructure globally, which saves significant infrastructure expenditures as compared to public cloud alternatives. The company designed its platform using a flexible, service-oriented architecture in order to facilitate rapid development of new solutions, to meet evolving industry demands, and to support new use cases and new ad formats. The company’s agile development process and flexible, service-oriented architecture empower its development teams to routinely convert a requirement into working software within a typical time frame of two weeks or less.

The company offers its solution as a complete, unified offering for publishers who want a simple, efficient and comprehensive solution. The company also offers modular access to its platform via rich application programming interfaces and a mobile software developer kit for mobile applications (SDK), for publishers who wish to integrate with or extend the platform or develop new business models and custom advertising solutions.

Sales and Marketing

The company primarily deploys a self-service model and focus its sales and marketing efforts on supporting, advising, and training its publishers to optimize their usage of its platform. The company employs a nimble in-market sales team with expertise in programmatic advertising to attract premium publishers to its platform. The company has dedicated teams focused on new publisher acquisition and existing publisher relationship management. New publishers on the company’s platform work closely with its Customer Success team, which handles on-boarding and providing support throughout the publisher relationship life cycle. The company’s Customer Success team is organized and specialized by type of ad format and device and is trained to both maximize the number of integrations with each publisher and deploy the value-added solutions that it provides.

Similarly, the company has teams focused on new business acquisition and existing partner retention and expansion for advertisers, agencies, and DSPs. These teams focus on onboarding new partners and increasing spend across a variety of ad formats, devices, and geographies.

The company’s marketing team focuses on achieving thought leadership, educating customers on how to harness programmatic advertising to improve their business, guiding buyers on how to maximize ROI via the PubMatic cloud infrastructure, supporting its sales team, generating new leads, and increasing awareness for its brand.

Competition

To successfully grow its business, the company competes with SSPs like Magnite, Inc., smaller private SSPs in markets around the world, as well as divisions of larger companies like Google. While there is direct competition, the company’s cloud infrastructure is interoperable with the major header bidding software frameworks including open source Prebid, Google’s Open Bidding, Amazon’s Transparent Ad Marketplace, and others.

Intellectual Property

The company owns two issued U.S. patents, expiring in 2034, relating to online advertising and auction techniques. The company also owns one issued Japanese patent. The company also owns trademark registrations and applications for the PubMatic name and variants thereof and other product-related marks in the United States and certain foreign countries. The company has also registered numerous Internet domain names related to its business.

Regulation

The company’s compliance with its privacy policy and its general consumer data privacy and security practices are subject to review by the Federal Trade Commission.

The company has registered as a data broker in California with the California Attorney General. The California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) set forth high potential liabilities for data privacy violations on a per-record basis, and the industry faces an uncertain compliance burden as the company’s partners and publishers work to become compliant with the law. Outside of the United States, the company’s privacy and data practices are subject to regulation by data protection authorities and other regulators in the countries in which it does business.

Beyond laws and regulations, the company is also member of self-regulatory bodies that impose additional requirements related to the collection, use, and disclosure of consumer data, including the Interactive Advertising Bureau (IAB), the Digital Advertising Alliance, and the NAI.

History

The company was founded in 2006. It was incorporated in 2006. The company was formerly known as Komli, Inc. and changed its name to PubMatic, Inc. in 2008.