• by Ray Schultz , August 9, 2023

Supply-side platform (SSP) PubMatic reported flat Q2 revenue and a financial hit from the bankruptcy of MediaMath, one of its top-10 demand-side platforms (DSPs), in Q2, but reduced its net loss in the period. 

PubMatic reported revenue of $63.3 million versus $63 million in Q2 2022, and a net loss to $5.7 million, versus $7.8 million in the year-ago quarter.  

The results include bad debt expenses due to the bankruptcy of MediaMath, which owes PubMatic $10.5 million.

PubMatic said the bankruptcy's impacts will be short term, noting that some revenue will be deferred for a few months as ad buyers determine where to redistribute spending that would have run on MediaMath. 

On the bright side, PubMatic saw 30% growth in connected TV (CTV) revenue -- a strong showing considering that followed 150% CTV growth in 2022's second half.  

Also, PubMatic processed nearly 48.8 trillion ad impressions in Q2 -- up 35% year-over-year, and a 52% YOY gain on a trailing 12-month basis. 

However, CPMs for desktop display advertising, which comprises 69% of PubMatic's total revenue, declined by 1%, and CPMs for both display and mobile declined. PubMatic expects video and display CPMs to decline by 20% and 10%, respectively, in Q3, and a dip in CTV revenue.

Last month, the company launched Convert, a self-service platform that provides on-site and off-site monetization across existing CTV, video and display tools and a new sponsored listings ad format. 

The number of active clients on PubMatic's platform grew 13%, to more than 1,750 global publishers and app developers, in Q2.

“As the market consolidates, we are in a strong position despite macro headwinds,” said Rajeev Goel, PubMatic's co-founder and CEO. “I am confident in our growing list of long-term revenue drivers and ability to gain market share.”