PubMatic, Inc.

Hello everyone and welcome to PubMatic's first quarter 2026 earnings call. My name is Christian and I will be your Zoom operator for today. Thank you for your attendance today and as a reminder this webinar is being recorded. I will now turn the call over to Stacey Clements.

Good afternoon everyone and welcome to PubMatic's earnings call for the first quarter 2026. This is Stacey Clements and I'll be your operator today. Joining me on the call are Rajeev Goel, co-founder and CEO, and Steven Pantelick, CFO. Before we get started, I have a few housekeeping items. Today's prepared remarks have been recorded, after which Rajeev and Steve will host live Q&A. If you plan to ask a question, please ensure you've set Zoom to display your full name and firm and use the raise hand function located at the bottom of your screen. A copy of our press release can be found on the website at investors.pomatic.com. Thank you for joining us today. Uncertainties of other factors in our reports filed from time to time with the Securities and Exchange Commission and are available at investors.plomatic.com, including our most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K. Our actual results may differ maturely from those compensated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. All information discussed today is as of May 7, 2026, and we do not intend and undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law. In addition, today's discussion will include references to certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margins, non-GAAP net income, cash flow from operations, and free cash flow. These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. A reconciliation of these measures to the most directly comparable GAAP measures is available in our press release.

I will now turn the call over to Rajeev. Thank you, Stacey, and welcome, everyone. We delivered an exceptional first quarter with revenue and adjusted EBITDA ahead of guidance. These results reflect the continued strength of our business and accelerating adoption of our AI solutions. We delivered 13% year-over-year growth in our underlying business. Emerging revenues grew over 80% year-over-year and climbed to 14% of total revenues, aided by Agentic OS. The new strategy we launched in summer of 2025 is delivering tangible results. We're diversifying our DSP mix, Growing in high consumer engagement channels such as CTV and mobile app and creating more value for key stakeholders across the advertising ecosystem. As a pioneer in AI, our multi-year investments are paying off and fueling new revenue streams, operating leverage, and market-leading advantages that are at the early stages of compounding. Agentic AI is more than just a productivity tool. It's a structural shift that is redefining the entire digital advertising market. It simplifies the connections between advertisers and outcomes and transforms how value flows through the ecosystem. Over the past two decades, digital advertising has undergone two profound transformations, each creating markets measured in the hundreds of billions of dollars. The first was real-time bidding, and the second was the shifts to mobile consumption. Today, a third transformation of even larger magnitude is underway, AI-driven, agentic advertising. AI simplifies the ecosystem by automating decisions that once required large teams using fragmented systems. Our platform sits at the intersection of buyers, publishers, and audiences, enabling us to apply AI at global scale across the entire value chain, from planning and discovery to activation and measurement. Our approach fundamentally changes how value is created. It drives performance that the legacy fragmented model is structurally challenged to deliver. Importantly, agentic AI prioritizes outcomes, not interfaces. At the same time, AI is leveling the playing field between walled gardens and the open internet. Capabilities that once benefited closed platforms, like efficiency, lower operating costs, and stronger advertising ROI, are now achievable in the open internet, with the added benefits of transparency and choice. As advertisers allocate spend based on measurable performance, our adjustable market expands, and we are well positioned to capture that shift. Importantly, our growth engine is directly aligned with customer outcomes. We're evaluated on our ability to monetize every ad impression we process, and we earn revenue only when we deliver superior results for publishers and buyers. As customers see stronger performance, they increase usage, creating a self-reinforcing model where greater adoption and utilization drive both customer ROI and our own profitable growth. Our agentic OS and activated products extend this alignment further into the value chain. Underpinning this model are five competitive advantages, assets that are increasingly difficult for new entrants to replicate and that compound over time. Further, they cannot be vibe-coded. First is scale. Nearly the entire advertising-supported open Internet is available on PubMatic. We have nearly 2,000 premium publishers representing over 100,000 websites, apps, and streamers. including 28 of the top 30 global streamers. This breadth and depth of access to omnichannel inventory is built through years of trust and performance. Second is Activate. Our direct buying platform was designed from the beginning to drive performance and simplify the complexity of the ecosystem. By connecting ad demand and premium supply in a single environment, advertisers see higher ROI and publishers benefit from increased yields. Third is Agentic OS and our growing portfolio of AI agents. We have over 20 different operational agents available for media buyers and publishers, with new agents rolling out every month to automate and optimize core advertising workflows. Our newest agent enables buyers to discover and activate curated omni-channel supply in seconds through natural language queries. For example, a media buyer simply asks for CTV inventory for male sports enthusiasts. and the agent instantly surfaces relevant opportunities, audience reach estimates, and deal options. This process used to take hours or days and is now reduced to minutes. Fourth, our owned and operated infrastructure. This is a structural advantage in the AI era. Our longstanding collaboration with NVIDIA brings advanced GPU technology directly into our platform with a variety of distinct benefits. GPU technology improves data processing to handle the massive advertising-specific workloads that underpin bidding, pricing, and campaign optimization, cutting compute time and cost. We're using NVIDIA Triton Inference Server to deploy real-time inferencing for bidding and audience decisioning. As a result, we process data and train models faster and more cost-effectively than cloud-based alternatives, while also improving model performance. In AI, faster feedback loops lead to better models, and better models attract more advertising activity. By owning our infrastructure, we keep that compounding advantage within Pubmatic, allowing our competitive mode to widen with every transaction processed. Our data platform, Connect, is a key input of this flywheel. Comprised of data assets from over 300 data and commerce media partners, it's our fifth competitive advantage. With faster processing, we are improving our proprietary model training in real time, resulting in significant performance improvements and better optimization for advertiser return on ad spend. Connect is a powerful platform that enables advertisers to shift their audience targeting strategies to the sell side with greater efficiency and reach, which is a further catalyst for activate and agentic OS performance. There is no other company that has all five of these components and is innovating at this pace. Further, revenue growth is building and customer adoption continues to scale quickly. Pubmatic now has AI embedded across its entire platform. Publishers use Pubmatic AI Assistant to seamlessly make their inventory available to buyers on Pubmatic via deals. Over 1,000 AI-powered deals have been transacted to date, resulting in millions of dollars in publisher monetization. Similarly, buyers use our AI assistance chat-based interface to discover audiences and inventory and to activate new advertising campaigns. Even more exciting is the adoption of fully autonomous Pogetic campaigns. What launched at CES in January with a single campaign has now scaled to more than 30 live, fully autonomous campaigns from independent agencies, large buying platforms, and global brands across the United States, France, the Netherlands, Australia, and India. Amatic is the only platform that has operationalized fully agented campaigns at scale. Agencies like Butler Till, MIQ, and Breakthrough, a digital media solutions provider for more than 1,000 brands and 235 agencies, alongside Amnet and a Bovo Max lead in EMEA, are seeing compelling results. A material reduction in fees, more dollars shifting into working media, high-performing KPIs, and 80% to 90% time savings in campaign setup. These aren't marginal gains. These are set function efficiency unlocks that validate agentic buying as a value chain shift. I'm incredibly proud of the team and the results we're delivering. We have the technology, infrastructure, scale, and innovation to lead this seismic industry shift. At the same time, we continue to strengthen our underlying business. The DSP landscape continues to evolve and fragment with the growing share of digital advertising spend coming from outside the Fortune 1000 advertisers. Our growth profile mirrors this trend as we diversify our business and accelerate expansion beyond the largest DSPs. In Q1, activity from mid-market and performance DSPs continued to grow over 20% year-over-year. Many of these DSPs are also quickly innovating around agentic. AdRoll became the first DSP to connect to Pomatic's P&P deal troubleshooting AI agent via model context protocol. This integration enables their agents to autonomously troubleshoot private marketplace deals, cutting resolution time from days to minutes as compared to traditional programmatic workflows. This is an exciting area of innovation and demonstrates how existing software interfaces are quickly becoming obsolete. We also continue to innovate with the largest performance DSPs. A significant milestone this quarter was our integration with the Amazon's dynamic traffic engine, now launched globally. This integration shares demand signals from Amazon directly with Amatic so that we can better match inventory to their advertiser demand in real time. Early results are delivering increased monetization for publishers on Pubmatic, up to a 10% increase in CPM since its launch. We also delivered growth in high-consumer engagement channels, including CTV and mobile app. New products like Creative Innovation Suite are now live across the GENTIQ OS, enabling brands to connect with viewers across interactive content and devices. For example, a viewer may start a show on their TV, pick it up later on a phone, or pause the content to check something online. Our technology lets advertisers deliver a consistent story across all of these moments. Premium publishers like Sling TV are unlocking more value from their inventory, while agencies such as Horizon Media, Cross Media, and Kelly Scott Madison use Creative Innovation Suite to deliver more engaging, measurable campaigns for their clients. Our live sports marketplace continues to be one of the most powerful ways to reach and engage audiences. Through PAMATIC, buyers can access premium CTV inventory across major sporting leagues and global events. The scale behind this growth opportunity is significant. We expect the FIFA World Cup alone will bring more than 100 million high-value impressions per day to our platform, with growing demand from buyers across the UK, France, Germany, and Italy. According to eMarketer, digital live sports viewership is projected to grow 20% between now and 2030. With expansive partnerships across some of the largest premium live sports inventory, coupled with over 300 data partners and innovative CTV solutions, we expect live sports to be a strong growth driver over the next several years. Our mobile app business grew over 25% year-over-year. Over the past quarter, we deepened our integrations across the mobile ecosystem. We're now live with the three leading global mediation platforms, AppLove and Max, Google AdMob, and most recently, Unity Level Play. Amatic now has access to over 90% of global SDK inventory. For example, Zynga, a global leader in interactive entertainment that reaches hundreds of millions of players worldwide, has integrated our SDK to provide advertisers with programmatic access to their high-value mobile audiences at global scale. Much like mobile apps, commerce media also benefits from logged-in user engagement, where buyers can prioritize performance and measurable outcomes. With an addressable market of $18 billion, we see a significant long-term opportunity in commerce media. Fueling this are new partnerships that add scale and audience data to the Pomatics Connect platform. We recently announced an exciting partnership with Walmart Connect, which unlocks new advertisers and new ad spend on our platform, particularly for CTV. Our partnership with Walmart Connect Select integrates their first-party shopper audiences with the media on our platform, enabling new performance-oriented ad transactions for SMV and enterprise advertisers. I'm also excited to share that we have integrated with payments leader PayPal, integrating the PayPal Ads ID. This integration brings over 25 billion transactions across 400 million verified PayPal and Venmo accounts to the platform, giving buyers high-value data to activate across the open internet. It enhances targeting accuracy, verified identity across devices, and true closed-loop attribution in a privacy-safe way. As this partnership scales, we expect it to contribute to emerging revenue streams and deliver incremental margin. In closing, we delivered a great quarter. We continue to add marquee partnerships, focus on innovation, and execute across our strategic priorities. AI is an accelerant to our already diverse growth engine. The repeat engagement we're seeing from customers underscores that this technology is driving performance. Each additional transaction compounds our data advantage, driving superior in performance and accelerating organic growth across our core business, including CTV, mobile app, and commerce media. With our proven model, differentiated infrastructure, and expanding global footprint, Amatic is positioned to capture this next transformational shift in digital advertising, creating long-term value for our customers, partners, and shareholders. I'll now turn the call over to Steve for the financials.