PubMatic (PUBM) investor relations material

Industry transformation and leadership

• Generative AI is seen as the third major transformation in the industry, following real-time bidding and the shift to mobile, with the potential to revolutionize the value chain and bring publishers and advertisers closer together.

• Leadership during technological disruption requires honesty, questioning assumptions, and adapting team skills to new realities.

• The shift to AI is expected to simplify the ecosystem, reduce operational overhead, and increase data available for targeting while maintaining privacy.

Product innovation and adoption

• AgenticOS, an AI-powered operating system, is positioned as the primary growth driver, enabling buyers to use AI agents for campaign management and direct SSP access.

• Activate allows buyers to transact directly in the SSP, and AgenticOS acts as a wrapper to access multiple platform capabilities agentically.

• Adoption is led by independent agencies and mid-market advertisers, with 30 campaigns live and rapid growth in emerging revenue streams.

• By 2028, 25% of media in the ecosystem is expected to be agentic, rising to 50% by 2030.

Financial impact and efficiency

• Emerging revenue streams, including AgenticOS, Activate, and Connect, now account for 14% of revenue and grew 80% year-over-year.

• AI-driven automation has reduced campaign setup time by 98% and improved ROI for advertisers, with some agencies reporting 40% lower CPMs and 30-40% higher return on ad spend.

• Internal use of AI has enabled 80% of code to be generated via AI, allowing faster product delivery and a 5-10% reduction in headcount while growing revenue.

• Take rates are expected to remain stable or grow due to deeper integration into buyer workflows and value-added services.