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PubMatic (PubMatic) Operating Income : $7.2 Mil (TTM As of Mar. 2024)


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What is PubMatic Operating Income?

PubMatic's Operating Income for the three months ended in Mar. 2024 was $-5.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $7.2 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. PubMatic's Operating Income for the three months ended in Mar. 2024 was $-5.5 Mil. PubMatic's Revenue for the three months ended in Mar. 2024 was $66.7 Mil. Therefore, PubMatic's Operating Margin % for the quarter that ended in Mar. 2024 was -8.28%.

Warning Sign:

PubMatic Inc operating margin has been in a 5-year decline. The average rate of decline per year is -18.1%.

PubMatic's 5-Year average Growth Rate for Operating Margin % was -18.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. PubMatic's annualized ROC % for the quarter that ended in Mar. 2024 was -12.51%. PubMatic's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was -24.42%.


PubMatic Operating Income Historical Data

The historical data trend for PubMatic's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PubMatic Operating Income Chart

PubMatic Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial 8.51 31.76 58.79 40.52 2.04

PubMatic Quarterly Data
Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.67 -7.13 -0.57 20.41 -5.53

PubMatic Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $7.2 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


PubMatic  (NAS:PUBM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

PubMatic's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-22.1 * ( 1 - 9.21% )/( (165.326 + 155.476)/ 2 )
=-20.06459/160.401
=-12.51 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=695.243 - 354.573 - ( 175.344 - max(0, 379.593 - 561.955+175.344))
=165.326

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=626.19 - 297.589 - ( 174.081 - max(0, 315.78 - 488.905+174.081))
=155.476

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

PubMatic's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-22.1/( ( (81.831 + max(13.254, 0)) + (80.023 + max(5.885, 0)) )/ 2 )
=-22.1/( ( 95.085 + 85.908 )/ 2 )
=-22.1/90.4965
=-24.42 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(375.468 + 0 + 11.143) - (354.573 + 0 + 18.784)
=13.254

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(303.284 + 0 + 11.54) - (297.589 + 0 + 11.35)
=5.885

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

PubMatic's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=-5.525/66.701
=-8.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


PubMatic Operating Income Related Terms

Thank you for viewing the detailed overview of PubMatic's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


PubMatic (PubMatic) Business Description

Traded in Other Exchanges
N/A
Address
601 Marshall Street, Redwood City, CA, USA, 94063
PubMatic is one of the leading supply-side platform providers in the digital advertising technology market. These platforms help publishers, which supply digital ad inventory, better manage their inventory, selling a high percentage of their inventory (increase the ad fill rate) and maximizing revenue per ad sold (optimize yield). PubMatic generates revenue mainly via taking a piece of the ad sales that it enables. Buyers on the platform include intermediary buyers, such as demand-side platforms, or advertisers and ad agencies directly. Given the growth in overall digital advertising, more publishers and advertisers are adopting programmatic (or automated) buying and selling, driving the firm's success in attracting more inventory.
Executives
Paulina Klimenko officer: Chief Growth Officer C/O PUBMATIC, INC., 601 MARSHALL STREET, REDWOOD CITY CA 94065
Rajeev K. Goel director, 10 percent owner, officer: Chief Executive Officer C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Steven Pantelick officer: Chief Financial Officer C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Andrew Woods officer: General Counsel & Secretary C/O PUBMATIC, INC., 601 MARSHALL STREET, REDWOOD CITY CA 94063
Amar K. Goel director, 10 percent owner, officer: Chairman, Chief Growth Officer C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Mukul Kumar officer: President, Engineering C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Nikhil Ramesh Mehta director C/O F5 NETWORKS, INC., 401 ELLIOTT AVE. WEST, SEATTLE WA 98119
Anton Hanebrink director C/O PUBMATIC, INC., 601 MARSHALL STREET, REDWOOD CITY CA 94063
Lisa Gimbel officer: Chief Accounting Officer C/O PUBMATIC, INC., 601 MARSHALL STREET, REDWOOD CITY CA 94063
Van Der Zweep Michael officer: Controller C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Jeffrey K. Hirsch officer: Chief Commercial Officer C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Susan Daimler director C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Thomas C. Chow officer: General Counsel and Secretary C/O PUBMATIC, INC., 3 LAGOON DRIVE, SUITE 180, REDWOOD CITY CA 94065
Shelagh Glaser director ZENDESK, INC., 989 MARKET STREET, SAN FRANCISCO CA 94103
Yakov (jacob) Shulman director C/O MELLANOX TECHNOLOGIES, INC., 350 OAKMEAD PARKWAY, SUITE 100, SUNNYVALE CA 94085