PubMatic, Viant and Digital Turbine Grew Up to 29%. Here’s Where Advertisers Are Spending.
PubMatic, Viant and Digital Turbine posted double-digit revenue growth, while iHeartMedia leaned on digital audio and WEBTOON’s advertising grew as paid content slipped.
Five members of the PRISM Comms & Media Index reported third-quarter results on Monday, and they point in the same direction. Advertising budgets are moving toward connected TV, mobile apps and AI-driven buying, and the companies selling those tools are growing fastest. Companies tied to older formats are leaning on their digital businesses to offset softer areas.
PubMatic: faster growth, wider margins
PubMatic (NASDAQ: PUBM) said revenue accelerated for the third consecutive quarter, growing 17% to $79.6 million, with connected TV, mobile app and emerging revenues representing about 64% of the total. Profitability improved sharply: adjusted EBITDA was $26.0 million, a 33% margin, up from $11.2 million and a 16% margin a year earlier, and GAAP net income was $5.5 million. The board authorized an additional $150 million of share repurchases through the end of 2028, and PubMatic expects fourth-quarter revenue of $91 million to $93 million.
Viant: connected TV crosses half of spend
At Viant Technology (NASDAQ: DSP), revenue increased 29% to $110.4 million and adjusted EBITDA rose 24% to $19.8 million. The shift to streaming TV is central: connected TV advertiser spend increased nearly 40% and now represents over 50% of total advertiser spend on the platform. GAAP net income fell to $2.6 million from $5.2 million, as stock-based compensation rose to $10.4 million from $6.4 million and the company recorded $1.7 million of acquisition and restructuring costs. Viant acquired Waymark, a generative AI video ad production platform built for connected TV, and raised its share repurchase authorization by $50 million. At the midpoint of its guidance, it expects full-year revenue of about $435 million, up 26%.
Digital Turbine: profit grows faster than revenue
Digital Turbine (NASDAQ: APPS), which places apps and ads on mobile devices, reported revenue of $178.7 million, up 27%, and GAAP net income of $10.3 million. Adjusted EBITDA rose 46% to $39.8 million. The company now expects fiscal 2027 revenue of $670 million to $690 million.
iHeartMedia: digital audio carries the quarter
iHeartMedia (NASDAQ: IHRT) grew more modestly. Consolidated revenue rose 3.3%, and its Digital Audio Group grew 13.8%, driven primarily by continuing demand for digital and podcast advertising. Adjusted EBITDA decreased to $170.5 million from $204.8 million, even as GAAP operating income swung to $73.0 million from an operating loss of $116.3 million.
WEBTOON: advertising grows, other lines slip
WEBTOON Entertainment (NASDAQ: WBTN) reported revenue of $362.8 million, down 4.0%, driven by declines in Paid Content and IP Adaptations, partially offset by growth in Advertising. On a constant currency basis, revenue grew 0.2%. Adjusted EBITDA was $2.2 million, compared with $5.1 million, primarily due to higher foreign currency losses. The company has about $548.4 million in cash and no debt, and its CEO said he is confident in a return to double-digit revenue growth in the fourth quarter.
What to watch
The quarter separated companies selling the tools advertisers are adopting from those defending older formats. PubMatic, Viant and Digital Turbine grew faster, and PubMatic and Viant both expanded buybacks, a sign of confidence in their cash generation. For iHeartMedia, the question is whether digital audio can keep outpacing its broadcast business. For WEBTOON, the fourth quarter will test its forecast of double-digit growth.
