REDWOOD CITY, Calif. - PubMatic Inc. (NASDAQ:PUBM), a technology company specializing in digital advertising with a market capitalization of approximately $794 million and strong revenue growth of 13% year-over-year, has announced an expansion of its partnership with Western Union (NYSE:WU) to include commerce media business. According to InvestingPro data, the company maintains robust financial health with an overall score of "GOOD." This collaboration will utilize PubMatic's Sell-Side Platform (SSP) to enhance onsite monetization for Western Union, leveraging its first-party data for audience extension through Convert.
Western Union will use PubMatic's SSP and OpenWrap, a header bidding solution, to streamline its advertising strategies and operations. The integration of these platforms is expected to increase efficiency and reduce fragmentation in Western Union's monetization approach.
Tim Rogers (NYSE:ROG), VP of Commerce Media at PubMatic, stated, "Our work with Western Union Media Network expands our collaboration with financial service companies as we build a global commerce media ecosystem." The partnership aims to create customized advertising opportunities for a diverse, multicultural audience.
Chris Hammer, Senior Vice President of Western Union Media Network, commented on the collaboration's potential to deliver impactful campaigns for advertisers while maintaining high-quality consumer experiences. The partnership is designed to enable brands to connect more effectively with Western Union's global customer base. Based on InvestingPro's Fair Value analysis, PubMatic appears to be trading below its Fair Value, suggesting potential upside for investors. The platform offers 10+ additional exclusive insights about PubMatic's financial position and growth prospects.
According to eMarketer, US ad spending on financial media networks is projected to grow significantly, from $350 million in 2024 to $1.5 billion by 2026. With its current revenue of $290 million and gross profit margin of 65%, PubMatic and Western Union are positioning themselves to capitalize on this expected increase in ad spending. Detailed analysis of PubMatic's growth potential and comprehensive valuation metrics are available in the Pro Research Report on InvestingPro, which provides in-depth analysis of 1,400+ top US stocks.
The expanded partnership between PubMatic and Western Union highlights the growing trend of leveraging first-party data and technology to improve advertising outcomes and reach target audiences more effectively. This information is based on a press release statement from PubMatic.
In other recent news, advertising technology leader PubMatic reported an impressive third quarter in 2024, with a 13% increase in revenue year-over-year, exceeding market expectations. This robust performance was fueled by significant advancements in Connected TV (CTV) and the innovative use of generative AI in political advertising, leading to a noteworthy 25% increase in omnichannel video revenue and a doubling of CTV monetized impressions from the previous year. The company's adjusted EBITDA stood at $18.5 million, reflecting a healthy 26% margin.
In addition to these developments, PubMatic's mobile app business sustained its growth trajectory, expanding over 20% for the fourth consecutive quarter. The company also introduced an AI-powered political ad classification tool and a CTV Marketplace for inventory curation, further solidifying its position in the market.
Looking ahead, PubMatic has raised its full-year revenue guidance to between $292 million and $296 million, with Q4 revenue expected to fall between $86 million and $90 million. The company remains cautiously optimistic about the upcoming holiday season and growth in 2025, with investments in AI technologies set to enhance efficiency and productivity. These recent developments underscore PubMatic's commitment to continued growth and innovation in the advertising technology space.
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