Simran Biswal

Simran Biswal asked for an overview of the current macroeconomic environment and its impact on ad spend for the remainder of the year, as well as the resiliency of key growth drivers like CTV and emerging products.

Answer

CEO Rajeev Goel stated that PubMatic is not currently seeing a pullback in ad spend and expects market shifts to benefit the company, including moves from linear TV to programmatic streaming, brand to performance advertising, and increased spend consolidation (SPO). CFO Steven Pantelick reinforced this, expressing confidence in achieving 15%+ underlying business growth in the second half, supported by a diversified customer base and strong momentum in secular growth areas like CTV and mobile.

Simran Biswal, on for Matt Hedberg, asked about business trends so far in Q4, expected linearity, and the risk of deals being pushed. She also inquired about the typical customer journey for large deals.

Answer

CFO Howard Wilson stated that as the company has shifted to Enterprise, linearity has become more back-end loaded, though they aim to close half the business in the first two months. He doesn't expect unusual linearity in Q4 but noted holidays can affect timing. CEO Jennifer Tejada explained the large deal journey varies; it's rarely a large land but rather an expansion. The new solution-selling approach starts the conversation with the full platform, and the pace is set by the customer.

Simran Biswal, on for Matt Swanson, asked about the growth strategy for existing CTV partnerships and inquired about pressure on non-political ad spend and trends heading into Q4.

Answer

CEO Michael Barrett said the strategy is to grow with partners as they mature from lower-take-rate, publisher-sold deals to higher-take-rate, biddable programmatic models, which improves economics. He acknowledged political advertising displaced some brand spend, which is expected to return for the holiday season. CFO David Day noted political ad revenue for the year met their ~$20 million expectation.

Simran Biswal, on for Matt Swanson, asked about the strategy for growing existing CTV partnerships and inquired about pressure on non-political ad spend.

Answer

CEO Michael Barrett explained the growth strategy is to guide partners through the maturation of programmatic, moving from low-take-rate publisher-sold deals to higher-yield biddable formats where Magnite sources demand. He also acknowledged that political spending can temporarily displace brand advertising, but expects that spend to return for the holiday season. CFO David Day confirmed political ad spend met expectations for the year.

Asked about the strategy for growing existing CTV partnerships and inquired about pressure on non-political ad spend and trends heading into Q4.

Answer

The strategy for CTV growth is to guide partners through the maturation of programmatic, moving from lower-take-rate publisher-sold deals to higher-take-rate biddable models as new advertisers enter the space. On spending, political ads did displace some brand spend, but this is expected to return for the holiday season. The company's full-year political revenue met its ~$20 million expectation.