PubMatic (PUBM) stock price crosses key level after earnings

PubMatic (NASDAQ: PUBM) stock price was one of the best performers in the pre-market as investors cheered the company’s financial results. It jumped by more than 30% to $21, its highest point since August 2022. The shares have jumped by more than 90% from its lowest point this year.

PubMatic, a leading company in the digital marketing industry, has done well in the past few months. This view was confirmed after it published strong financial results on Monday this week.

The results revealed that its revenue rose by 33% YoY in the fourth-quarter. Excluding its Yahoo partnership, the company’s revenue rose by 19%. Total revenues jumped to over $84.6 million in the quarter while the net income was $18.7 million. 

For the year, the company’s revenue came in at $267 million while its adjusted EBITDA came in at over $75.3 million. Most importantly, the company’s free cash flow came in at $52.8 million, a 38% YoY increase.

PubMatic is also growing how it makes money by serving advertisements. It now has over 1,800 publishers globally and its mobile and omnichannel video adverts are growing.

The company expects that its revenue will grow to between $61 million and $63 million in the current quarter. It also believes that its annual revenue will go up by between 105 and 12%, which is an impressive figure for a company in a mature industry.

Most importantly, some analysts believe that PubMatic is fairly cheap as the management continues with its share repurchase program.

PUBM chart by TradingView

The daily chart shows that the PUBM share price bottomed at around $10.80 in November and has now almost doubled. It has risen above the key resistance point at $17.93, its highest point on December 14th. 

The stock also rose above the crucial resistance level at $20. This is both a psychological level and its highest point on August 1st. 

In addition, the shares have moved above the 50-day and 100-day Exponential Moving Averages (EMA), which is a positive sign. The MACD and the Relative Strength Index (RSI) have also pointed upwards.

Therefore, the outlook for the stock is bullish, with the next point to watch being at $23.63, its highest swing in August 2022.

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