PubMatic (PUBM) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-39748
Entity Registrant Name	PUBMATIC, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5863224
Entity Address, Address Line One	601 Marshall St.
Entity Address, City or Town	Redwood City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94063
Title of 12(b) Security	Class A common stock, $0.0001 par value per share
Trading Symbol	PUBM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Entity Central Index Key	0001422930
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		43,171,740
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		9,394,402

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 52,177	$ 82,505
Marketable securities	113,914	77,121
Accounts receivable, net	277,265	286,916
Prepaid expenses and other current assets	14,885	14,207
Total Current Assets	458,241	460,749
Property, equipment and software, net	74,975	50,140
Operating lease right-of-use assets	27,733	21,613
Acquisition-related intangible assets, net	8,819	0
Goodwill	29,832	6,250
Deferred tax assets	469	515
Other assets, non-current	2,095	10,948
TOTAL ASSETS	602,164	550,215
Current Liabilities
Accounts payable	258,478	244,321
Accrued liabilities	14,819	18,780
Operating lease liabilities, current	5,668	3,864
Total Current Liabilities	278,965	266,965
Operating lease liabilities, non-current	22,465	17,842
Deferred tax liabilities	3,212	6,067
Other liabilities, non-current	4,919	2,161
TOTAL LIABILITIES	309,561	293,035
Commitments and contingencies (Note 8)
Stockholders' Equity
Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized as of September 30, 2022 and December 31, 2021; No shares issued and outstanding as of September 30, 2022 and December 31, 2021	0	0
Common stock, par value $0.0001 per share; 1,000,000,000 Class A shares authorized as of September 30, 2022 and December 31, 2021; 43,034,577 and 40,695,140 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively; 1,000,000,000 Class B shares authorized as of September 30, 2022 and December 31, 2021; 9,474,402 and 11,159,609 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively.	6	6
Treasury stock, at cost; 3,140,437 shares as of September 30, 2022 and December 31, 2021	(11,486)	(11,486)
Additional paid-in capital	189,085	169,401
Accumulated other comprehensive loss	(221)	(36)
Retained earnings	115,219	99,295
TOTAL STOCKHOLDERS’ EQUITY	292,603	257,180
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 602,164	$ 550,215

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred stock par value (in usd per share)	$ 0.0001	$ 0.0001
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Treasury stock shares	3,140,437	3,140,437
Common Class A
Common stock par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock shares authorized	1,000,000,000	1,000,000,000
Common stock shares issued	43,034,577	40,695,140
Common stock shares outstanding	43,034,577	40,695,140
Common Class B
Common stock par value (in usd per share)	$ 0.0001	$ 0.0001
Common stock shares authorized	1,000,000,000	1,000,000,000
Common stock shares issued	9,474,402	11,159,609
Common stock shares outstanding	9,474,402	11,159,609

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 64,500	$ 58,086	$ 182,084	$ 151,352
Cost of revenue	21,591	16,020	58,557	41,408
Gross profit	42,909	42,066	123,527	109,944
Operating expenses:
Technology and development	5,080	4,139	14,928	11,738
Sales and marketing	16,087	15,004	50,755	41,790
General and administrative	12,120	8,875	33,847	25,593
Total operating expenses	33,287	28,018	99,530	79,121
Operating income	9,622	14,048	23,997	30,823
Total other income (expense), net	(4,898)	277	(3,345)	237
Income before income taxes	4,724	14,325	20,652	31,060
Provision for income taxes	1,398	799	4,728	2,695
Net income	$ 3,326	$ 13,526	$ 15,924	$ 28,365
Net income per share attributable to common stockholders:
Basic (in usd per share)	$ 0.06	$ 0.27	$ 0.31	$ 0.57
Diluted (in usd per share)	$ 0.06	$ 0.24	$ 0.28	$ 0.50
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic (in shares)	52,435,601	50,559,636	52,168,853	49,754,449
Diluted (in shares)	56,944,230	56,498,891	56,895,162	56,575,867

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Other Comprehensive Income [Abstract]
Net income	$ 3,326	$ 13,526	$ 15,924	$ 28,365
Other comprehensive income (loss):
Unrealized gain (loss) on marketable securities, net of tax	166	0	(185)	(1)
Comprehensive income	$ 3,492	$ 13,526	$ 15,739	$ 28,364

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020		48,988,142
Beginning balance at Dec. 31, 2020	$ 175,427	$ 6	$ (11,434)	$ 144,163	$ 1	$ 42,691
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3,318			3,318
Exercise of stock options (in shares)		278,412
Exercise of stock options	451			451
Repurchase of treasury stock, at cost (in shares)		(693)
Repurchase of treasury stock, at cost	(27)		(27)
Other comprehensive income (loss)	(1)				(1)
Net income	4,918					4,918
Ending balance (in shares) at Mar. 31, 2021		49,265,861
Ending balance at Mar. 31, 2021	184,086	$ 6	(11,461)	147,932	0	47,609
Beginning balance (in shares) at Dec. 31, 2020		48,988,142
Beginning balance at Dec. 31, 2020	175,427	$ 6	(11,434)	144,163	1	42,691
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	28,365
Ending balance (in shares) at Sep. 30, 2021		50,880,338
Ending balance at Sep. 30, 2021	220,837	$ 6	(11,486)	161,261	0	71,056
Beginning balance (in shares) at Mar. 31, 2021		49,265,861
Beginning balance at Mar. 31, 2021	184,086	$ 6	(11,461)	147,932	0	47,609
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3,837			3,837
Exercise of stock options (in shares)		800,426
Exercise of stock options	1,627			1,627
Repurchase of treasury stock, at cost (in shares)		(449)
Repurchase of treasury stock, at cost	(25)		(25)
Issuance of common stock related to employee stock purchase plan (in shares)		155,015
Issuance of common stock related to employee stock purchase plan	2,635			2,635
Issuance of common stock related to RSU vesting (in shares)		21,973
Net income	9,921					9,921
Ending balance (in shares) at Jun. 30, 2021		50,242,826
Ending balance at Jun. 30, 2021	202,081	$ 6	(11,486)	156,031	0	57,530
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	3,981			3,981
Exercise of stock options (in shares)		615,673
Exercise of stock options	1,249			1,249
Issuance of common stock related to RSU vesting (in shares)		21,839
Net income	13,526					13,526
Ending balance (in shares) at Sep. 30, 2021		50,880,338
Ending balance at Sep. 30, 2021	220,837	$ 6	(11,486)	161,261	0	71,056
Beginning balance (in shares) at Dec. 31, 2021		51,854,749
Beginning balance at Dec. 31, 2021	257,180	$ 6	(11,486)	169,401	(36)	99,295
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	5,469			5,469
Exercise of stock options (in shares)		130,958
Exercise of stock options	481			481
Issuance of common stock related to RSU vesting (in shares)		25,033
Other comprehensive income (loss)	(203)				(203)
Net income	4,779					4,779
Ending balance (in shares) at Mar. 31, 2022		52,010,740
Ending balance at Mar. 31, 2022	267,706	$ 6	(11,486)	175,351	(239)	104,074
Beginning balance (in shares) at Dec. 31, 2021		51,854,749
Beginning balance at Dec. 31, 2021	$ 257,180	$ 6	(11,486)	169,401	(36)	99,295
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	304,988
Net income	$ 15,924
Ending balance (in shares) at Sep. 30, 2022		52,508,979
Ending balance at Sep. 30, 2022	292,603	$ 6	(11,486)	189,085	(221)	115,219
Beginning balance (in shares) at Mar. 31, 2022		52,010,740
Beginning balance at Mar. 31, 2022	267,706	$ 6	(11,486)	175,351	(239)	104,074
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	5,780			5,780
Exercise of stock options (in shares)		96,276
Exercise of stock options	357			357
Issuance of common stock related to RSU vesting (in shares)		89,623
Issuance of common stock related to employee stock purchase plan (in shares)		141,709
Issuance of common stock related to employee stock purchase plan	2,402			2,402
Other comprehensive income (loss)	(148)				(148)
Net income	7,819					7,819
Ending balance (in shares) at Jun. 30, 2022		52,338,348
Ending balance at Jun. 30, 2022	283,916	$ 6	(11,486)	183,890	(387)	111,893
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	4,973			4,973
Exercise of stock options (in shares)		77,754
Exercise of stock options	222			222
Issuance of common stock related to RSU vesting (in shares)		92,877
Other comprehensive income (loss)	166				166
Net income	3,326					3,326
Ending balance (in shares) at Sep. 30, 2022		52,508,979
Ending balance at Sep. 30, 2022	$ 292,603	$ 6	$ (11,486)	$ 189,085	$ (221)	$ 115,219

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Statement of Cash Flows [Abstract]
Net income	$ 15,924	$ 28,365
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,587	15,992
Unrealized loss and impairment of equity investment	5,948	0
Stock-based compensation	15,182	10,508
Deferred income taxes	(3,949)	1,404
Accretion of discount on marketable securities	(170)	(46)
Non-cash operating lease expense	4,292	1,355
Other	98	(2)
Changes in operating assets and liabilities:
Accounts receivable	12,626	(8,876)
Prepaid expenses and other current assets	(1,354)	(6,620)
Accounts payable	4,013	16,648
Accrued liabilities	(4,806)	3,386
Operating lease liabilities	(3,985)	(1,546)
Other liabilities, non-current	448	(366)
Net cash provided by operating activities	67,854	60,202
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(26,961)	(22,846)
Capitalized software development costs	(9,597)	(6,755)
Purchases of marketable securities	(100,113)	(53,118)
Proceeds from maturities of marketable securities	63,200	25,600
Business combination, net of cash acquired	(28,085)	0
Net cash used in investing activities	(101,556)	(57,119)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock for employee stock purchase plan	2,402	2,635
Proceeds from exercise of stock options	1,060	3,327
Principal payments on finance lease obligations	(88)	0
Payments for offering costs	0	(805)
Payments to acquire treasury stock	0	(52)
Net cash provided by financing activities	3,374	5,105
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(30,328)	8,188
CASH AND CASH EQUIVALENTS - Beginning of period	82,505	81,188
CASH AND CASH EQUIVALENTS - End of period	52,177	89,376
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Income taxes paid	7,564	4,445
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Stock-based compensation capitalized as internal-use software costs	1,040	628
Property and equipment included in accounts payable and accrued expenses	7,550	2,712
Capitalized software costs included in accounts payable and accrued expenses	1,491	1,115
Operating lease right-of-use assets obtained in exchange for new lease obligations	10,412	0
Business combination purchase consideration - indemnification claims holdback	$ 2,597	$ 0

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	Organization and Description of BusinessPubMatic, Inc. (together with its subsidiaries, “the Company” or “PubMatic”) was founded in 2006. The Company has offices in California, New York, Europe, Asia, and Australia. The Company provides a specialized cloud infrastructure platform that enables real-time programmatic advertising transactions. The purpose-built technology and infrastructure provides superior outcomes for both publishers and advertisers leveraging an efficient design, machine learning, and data processing capabilities, with customer alignment and global omnichannel reach.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Fiscal Year The Company’s fiscal year ends on December 31, and its fiscal quarters end on March 31, June 30, September 30, and December 31. References to fiscal year 2022, for example, refer to the fiscal year ended December 31, 2022. Unaudited Interim Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements include the accounts of PubMatic, Inc. and its wholly owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2022 or for any other interim period or for any other future year. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on March 1, 2022 (the “Annual Report”). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The accompanying condensed consolidated financial statements include the accounts of PubMatic, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period presentation. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates and assumptions. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after September 30, 2022, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by the Company’s assumptions and estimates. Business Combinations The Company allocates the purchase consideration for acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the condensed consolidated statements of operations. Acquisition-related Intangible Assets and Goodwill Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives on a straight-line basis. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events. Impairment of Equity Investment During the three months ended September 30, 2022, the Company concluded there was no longer a readily determinable fair value for its equity investment because the shares of the issuer were no longer publicly quoted pursuant to SEC Rule 15c2-11. The Company evaluated the measurement guidance for non-marketable equity securities and performed a qualitative assessment of various impairment indicators and concluded the equity investment was impaired as of September 30, 2022. As a result, the Company recognized an impairment loss equal to the difference between the fair value of the investment and its carrying amount. An impairment charge of $6.4 million was recorded within other income (expense), net in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022. Stock-based Compensation The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors, and nonemployees, including stock options, restricted stock units (“RSUs”), and purchases under the employee stock purchase plan (the “ESPP”) based on the fair value of the awards on the date of grant. The fair value of stock options and shares of common stock to be issued under the ESPP is estimated using the Black-Scholes option pricing model. The grant date fair value of RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant. The Black-Scholes option pricing model is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock options, the expected term of the stock options, risk-free interest rates, and the expected dividend yield. For additional information regarding stock-based compensation and the assumptions used for determining the fair value of stock options and ESPP awards, refer to Note 9 — “Stockholders’ Equity and Stock Option Plans.” Concentration of Revenue and Accounts Receivable The Company defines its revenue concentration based on revenue recognized from individual publishers. For the three months ended September 30, 2022 and 2021, one publisher represented 13% and 17%, respectively, and 13% and 18% for the nine months ended September 30, 2022 and 2021, respectively, of the Company’s revenue. As of September 30, 2022, two buyers accounted for 36% and 14%, respectively, of accounts receivable. As of December 31, 2021, two buyers accounted for 29% and 19%, respectively, of accounts receivable. Adoption of Topic 842 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) which, along with other ASU's containing minor amendments and technical corrections, provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within US GAAP. Topic 842 supersedes the legacy Topic 840 lease accounting guidance and is intended to increase transparency and comparability among organizations by recognizing right-of-use lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. Lease expense continues to be recognized in a manner similar to legacy GAAP. The effect of adopting Topic 842 resulted in the recognition of operating right-of-use assets and corresponding lease liabilities on the Company’s consolidated balance sheet. The Company adopted Topic 842 in the fourth quarter of our fiscal 2021 reflecting an initial application date of January 1, 2021 using the modified retrospective transition approach under which the adoption date of Topic 842 became the application date, with the comparative periods presented and disclosed under the Topic 840 requirements. Interim financial data for the comparable prior-year quarter ended September 30, 2021 has been revised to reflect the adoption of Topic 842 and differs from what was disclosed in the prior year Form 10-Q filed on November 10, 2021. The standard did not affect the Company’s consolidated statements of operations, comprehensive income, and stockholders’ equity for the three and nine months ended September 30, 2021. Though net cash provided by operating, investing, and financing activities were unchanged, the standard did affect certain operating cash flow line items within the Company’s consolidated statements of cash flows for the nine months ended September 30, 2021. Select condensed consolidated cash flow items, which reflects the adoption of the new standard as reported for the nine months ended September 30, 2021, are as follows (in thousands): Nine Months Ended September 30, 2021 Balances Without Adoption of Topic 842 Effect of Change As Reported (As Previously Reported in the Prior Year 10-Q) Higher (Lower) Non-cash operating lease expense $ 1,355 $ — $ 1,355 Operating lease liabilities $ (1,546) $ — $ (1,546) Accrued liabilities $ 3,386 $ 3,195 $ 191 Net cash provided by operating activities $ 60,202 $ 60,202 $ — Recent Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under current GAAP, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date. ASU 2021-08 is effective for the Company in fiscal year 2023 and the adoption, including the impact and required disclosures, will be included in its 2023 Form 10-K. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements, however, any financial impact will depend on the magnitude and nature of future business combinations.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables set forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy (in thousands): September 30, 2022 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 37,859 $ — $ — $ 37,859 Certificates of deposit — 4,534 — 4,534 Cash equivalents 37,859 4,534 — 42,393 Commercial paper — 57,146 — 57,146 U.S. Treasury and government debt securities — 56,768 — 56,768 Marketable securities — 113,914 — 113,914 Total Financial Assets $ 37,859 $ 118,448 $ — $ 156,307 December 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 65,311 $ — $ — $ 65,311 Certificates of deposit — 5,942 — 5,942 Cash equivalents 65,311 5,942 — 71,253 Commercial paper — 50,954 — 50,954 U.S. Treasury and government debt securities — 26,167 — 26,167 Marketable securities — 77,121 — 77,121 Equity investment 5,948 — — 5,948 Non-current assets 5,948 — — 5,948 Total Financial Assets $ 71,259 $ 83,063 $ — $ 154,322

Balance Sheet Components

Balance Sheet Components	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	Balance Sheet Components Marketable Securities The following tables summarize the Company’s marketable securities by significant investment categories (in thousands): September 30, 2022 Amortized Cost Unrealized Loss Fair Value Commercial paper $ 57,146 $ — $ 57,146 U.S. Treasury and government debt securities 56,989 (221) 56,768 Total $ 114,135 $ (221) $ 113,914 December 31, 2021 Amortized Cost Unrealized Loss Fair Value Commercial paper $ 50,954 $ — $ 50,954 U.S. Treasury and government debt securities 26,203 (36) 26,167 Total $ 77,157 $ (36) $ 77,121 The remaining contractual maturity of all marketable securities was within one year as of September 30, 2022 and December 31, 2021. Realized gains and losses were immaterial for the three and nine months ended September 30, 2022 and 2021. As of September 30, 2022 and 2021, there were no securities that were in an unrealized loss position for more than twelve months. Property, Equipment and Software, Net Property, equipment and software, net consisted of the following (in thousands): September 30, December 31, Internal-use software $ 40,871 $ 30,581 Network hardware, computer equipment and software 127,878 92,561 Leasehold improvements 3,774 2,426 Furniture and fixtures 1,678 1,448 Property, equipment and software, gross 174,201 127,016 Less: accumulated depreciation and amortization (99,226) (76,876) Total property, equipment and software, net $ 74,975 $ 50,140 Depreciation and amortization expense related to property, equipment, and software (excluding amortization of internal-use software) was $6.4 million and $4.4 million for the three months ended September 30, 2022 and 2021, respectively, and $16.3 million and $10.7 million for the nine months ended September 30, 2022 and 2021, respectively. The Company capitalized $3.5 million and $2.6 million in software development costs during the three months ended September 30, 2022 and 2021, respectively, and $10.3 million and $7.2 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense of internal-use software was $2.6 million and $1.9 million during the three months ended September 30, 2022 and 2021, respectively, and $7.2 million and $5.3 million for the nine months ended September 30, 2022 and 2021. These costs are included within cost of revenue in the condensed consolidated statements of operations. The Company did not recognize any impairment charges on its long-lived assets during the nine months ended September 30, 2022 and 2021, respectively. Acquisition-related Intangible Assets, Net Acquisition-related intangible assets, net consisted of the following (in thousands): September 30, December 31, Developed technology $ 7,900 $ — Customer relationships 1,000 — Acquisition-related intangible assets, gross 8,900 — Less: accumulated amortization (81) — Total acquisition-related intangible assets, net $ 8,819 $ — The amortization period for developed technology and customer relationships is 5 years and 2 years, respectively. Amortization expense related to acquisition-related intangibles was $0.1 million for the three and nine months ended September 30, 2022. As of September 30, 2022, estimated future amortization expense for acquisition-related intangible assets was as follows (in thousands): Remainder of 2022 $ 520 2023 2,080 2024 1,936 2025 1,580 2026 1,580 Thereafter 1,123 Total estimated future amortization expense for acquisition-related intangible assets $ 8,819 Accounts Payable Accounts payable consisted of the following (in thousands): September 30, December 31, Payable to publishers $ 238,358 $ 235,440 Trade payables 20,120 8,881 Total accounts payable $ 258,478 $ 244,321 Accrued Liabilities Accrued liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 12,563 $ 17,271 Accrued and other current liabilities 2,256 1,509 Total accrued liabilities $ 14,819 $ 18,780

Loan and Security Agreement

Loan and Security Agreement	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Loan and Security Agreement	Loan and Security Agreement In June 2021, the Company amended and restated its loan and security agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). The Loan Agreement provides a senior secured revolving credit facility of up to $25.0 million or 80% of eligible accounts receivable less certain reserves, minus the aggregate principal amount of all outstanding advances. Interest accrues on advances under the revolving line of credit at a variable rate equal to the greater of prime rate or 3.25%. As of September 30, 2022, the applicable interest rate under the revolving line of credit was 6.25%. An unused revolver fee in the amount of 0.40% per annum of the average unused portion of the revolver line is charged and is payable quarterly in arrears in any quarter where the average closing outstanding balance is less than $5.0 million. The maturity date of the revolving line of credit is June 6, 2024. As of September 30, 2022, there were no outstanding advances under the revolving line of credit. The Company’s obligations under the line of credit and the letters of credit (described in Note 8) with SVB are secured by substantially all of its assets excluding its intellectual property. The Loan Agreement contains affirmative covenants including financial covenants that, among other things, require the Company to maintain an adjusted quick ratio of no less than 1.0 to 1.0. The adjusted quick ratio is defined as the ratio of unrestricted cash and cash equivalents at SVB, plus billed accounts receivable to total accounts payable plus all SVB loans outstanding and outstanding letters of credit. The Loan Agreement also restricts the Company from paying dividends to stockholders without prior consent from SVB. The Company was in compliance with the financial covenants as of September 30, 2022. On October 17, 2022, the Company entered into a Senior Secured Credit Facilities Credit Agreement with the several lenders parties thereto, and Silicon Valley Bank, as administrative agent, lead arranger, issuing lender, and swingline lender. In connection with the entry into the Credit Agreement, the Company’s existing Loan Agreement described above was terminated. For additional information, see Note 14, “Subsequent Events.”

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Leases Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the right-of-use assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 1,759 $ 592 $ 5,059 $ 1,846 Finance lease cost - amortization of right-of-use assets 43 — 130 — Finance lease cost - interest on lease liabilities 4 — 14 — Total lease cost $ 1,806 $ 592 $ 5,203 $ 1,846 No sublease income was recognized during the nine months ended September 30, 2022 and 2021. Short-term and variable lease expenses are not material to the Company’s condensed consolidated financial statements. As of September 30, 2022, a weighted average discount rate of 3.40% and 2.24% has been applied to the remaining operating and finance lease payments, respectively, to calculate the lease liabilities included within the condensed consolidated balance sheets. The weighted average remaining lease term of operating and finance leases is 4.8 and 5.5 years, respectively, as of September 30, 2022. As of September 30, 2022, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2022 $ 1,688 $ 34 $ 1,722 2023 6,446 140 6,586 2024 6,518 145 6,663 2025 5,155 149 5,304 2026 5,377 153 5,530 Thereafter 5,242 198 5,440 Total minimum lease payments $ 30,426 $ 819 $ 31,245 Less: imputed interest (2,293) (49) (2,342) Total present value of lease liabilities $ 28,133 $ 770 $ 28,903
Leases	Leases Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease cost is recognized as a combination of the amortization expense for the right-of-use assets and interest expense for the outstanding lease liabilities, and results in a front-loaded expense pattern over the lease term. The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 1,759 $ 592 $ 5,059 $ 1,846 Finance lease cost - amortization of right-of-use assets 43 — 130 — Finance lease cost - interest on lease liabilities 4 — 14 — Total lease cost $ 1,806 $ 592 $ 5,203 $ 1,846 No sublease income was recognized during the nine months ended September 30, 2022 and 2021. Short-term and variable lease expenses are not material to the Company’s condensed consolidated financial statements. As of September 30, 2022, a weighted average discount rate of 3.40% and 2.24% has been applied to the remaining operating and finance lease payments, respectively, to calculate the lease liabilities included within the condensed consolidated balance sheets. The weighted average remaining lease term of operating and finance leases is 4.8 and 5.5 years, respectively, as of September 30, 2022. As of September 30, 2022, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2022 $ 1,688 $ 34 $ 1,722 2023 6,446 140 6,586 2024 6,518 145 6,663 2025 5,155 149 5,304 2026 5,377 153 5,530 Thereafter 5,242 198 5,440 Total minimum lease payments $ 30,426 $ 819 $ 31,245 Less: imputed interest (2,293) (49) (2,342) Total present value of lease liabilities $ 28,133 $ 770 $ 28,903

Business Combination

Business Combination	9 Months Ended
	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Business Combination	Business CombinationOn September 16, 2022, the Company acquired all outstanding stock of ConsultMates, Inc. (dba “Martin”), a media measurement and reporting platform, for $30.8 million. The acquisition is in response to growing demand from the Company’s buy-side customers for enhanced tools to take advantage of the Company’s global omnichannel inventory, including market-leading addressability solutions and innovative technology to enable supply path optimization. The assets acquired and liabilities assumed were recorded at fair value. The purchase price excludes $14.2 million of post-acquisition cash compensation arrangements for certain key acquired employees to be paid ratably over three years following the closing of the acquisition (subject to forfeiture upon termination). The purchase price was attributed to $7.9 million of developed technology intangible assets (to be amortized over an estimated useful life of 5 years), $1.0 million of customer relationship intangible assets (to be amortized over an estimated useful life of 2 years), $23.6 million of goodwill, $1.1 million of deferred tax liabilities, and $0.6 million of net liabilities assumed. The fair values of assets acquired and liabilities assumed may change over the measurement period as additional information is received. The measurement period will end no later than one year from the acquisition date. The goodwill recognized was primarily attributable to the assembled workforce and the expected synergies from integrating Martin’s technology into the Company’s platform. Goodwill is not expected to be deductible for tax purposes. The financial results of Martin are included in the Company’s condensed consolidated financial statements from the date of acquisition. Separate operating results and pro forma results of operations for Martin have not been presented as the effect of this acquisition was not material to the Company’s financial results. Acquisition-related costs were $0.9 million and are included in general and administrative expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Obligations The Company’s purchase obligations primarily relate to minimum contractual payments due to data center providers. During the three and nine months ended September 30, 2022, there were no material changes outside of the normal course of business to the Company’s non-cancelable purchase obligations disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Letters of Credit As of September 30, 2022, the Company had two irrevocable letters of credit outstanding related to non-cancelable facilities leases in the amounts of $3.5 million and $0.5 million, with annual automatic renewal and final expiration dates in July 2028 and April 2025, respectively. As of December 31, 2021, the Company had two irrevocable letters of credit outstanding related to non-cancelable facilities leases in the amounts of $3.5 million and $0.7 million, with annual automatic renewal and final expiration dates in July 2028 and June 2022, respectively. Legal Matters From time to time, the Company has become involved in claims and other legal matters arising in the normal course of business. The Company investigates these claims as they arise and accrues for contingencies when the Company believes that a loss is probable and that the Company can reasonably estimate the amount of any such loss. The Company has made an assessment of the probability of incurring any such losses and whether or not those losses are estimable and although claims are inherently unpredictable, the Company concluded that these losses are not material to the Company’s business, financial position, results of operations, or cash flows. To the extent there is a reasonable possibility that a loss exceeding amounts already recognized may be incurred, and the amount of such additional loss would be material, the Company will either disclose the estimated additional loss or state that such an estimate cannot be made. Indemnification In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnification. The Company’s exposure under these agreements is unknown because it involves future claims that may be made against the Company but have not yet been made. To date, the Company has not paid any material claims or been required to defend any actions related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. In addition, the Company has indemnification agreements with certain of its directors and executive officers that require it, among other things, to indemnify them against certain liabilities that may arise due to their status or service as directors or officers of the Company. The terms of such obligations may vary.

Stockholders_ Equity and Stock

Stockholders’ Equity and Stock Option Plans	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders’ Equity and Equity Incentive Plans	Stockholders’ Equity and Equity Incentive Plans Equity Incentive Plans The Company maintains the 2020 Equity Incentive Plan (“2020 Plan”), pursuant to which the Company may grant stock options, restricted stock awards, stock appreciation rights, restricted stock units (“RSUs”), deferred stock units (“DSUs”) performance awards, and stock bonus awards. As of September 30, 2022, the Company has reserved 7,333,638 shares of Class A common stock for the issuance of awards under the 2020 Plan. These available shares will increase automatically on January 1 for each of the first ten calendar years during the term of the 2020 Plan by the number of shares equal to the lesser of five percent (5%) of the aggregate number of outstanding shares of all classes of the Company’s common stock outstanding as of the immediately preceding December 31, or a number as may be determined by the Company’s board of directors or compensation committee. To the extent outstanding awards under the 2017 Plan and the 2006 Plan are forfeited, expire unexercised, or would otherwise have been returned to the share reserve under the Prior Plans, the shares of Class B common stock subject to such awards instead will be available for future issuance as Class A common stock under the 2020 Plan. No new awards were issued under the 2006 Plan or 2017 Plan after the effective date of the 2020 Plan. Stock Options The following table summarizes stock option activity and related information under the Company’s equity incentive plans: Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding — December 31, 2021 6,542,351 $ 6.08 6.95 $ 184,727 Options granted 450,153 26.05 Options exercised (304,988) 3.48 Options canceled (96,179) 12.22 Options expired (160) $ 3.70 Outstanding — September 30, 2022 6,591,177 $ 7.48 6.39 $ 77,296 Vested and exercisable — September 30, 2022 4,893,334 $ 4.68 5.76 $ 64,664 As of September 30, 2022, unrecognized stock-based compensation of $16.5 million related to unvested stock options will be recognized on a straight-line basis over a weighted average period of 2.37 years. Restricted Stock Units The following table summarizes RSU activity and related information under the Company’s 2020 Plan: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested — December 31, 2021 483,302 $ 35.23 Granted 1,416,994 $ 25.91 Vested (207,533) $ 31.32 Canceled/Forfeited (125,331) $ 30.10 Unvested — September 30, 2022 1,567,432 $ 27.73 As of September 30, 2022, unrecognized stock-based compensation of $40.1 million related to unvested RSUs will be recognized on a straight-line basis over a weighted average period of 3.20 years. 2020 Employee Stock Purchase Plan In November 2020, the Company’s board of directors adopted, and its stockholders approved, the 2020 Employee Stock Purchase Plan (“ESPP”), which became effective in connection with the Company’s IPO. A total of 500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the ESPP. The aggregate number of shares reserved for issuance under the ESPP will increase automatically on January 1st of each of the first ten calendar years during the term of the ESPP by the number of shares equal to the lesser of (a) 1% of the total outstanding shares of all classes of the Company’s common stock as of the immediately preceding December 31, and (b) such number of shares of common stock as determined by the Company’s board of directors. The aggregate number of shares issued over the term of the ESPP may not exceed 7,500,000 shares of Class A common stock. As of September 30, 2022, the Company had reserved 571,766 shares of its Class A common stock for issuance under the ESPP. Under the ESPP, Class A common stock will be purchased for the accounts of employees participating in the ESPP on each purchase date at a price per share equal to 85% of the lesser of: (a) the fair market value on the offering date or (b) the fair market value on the purchase date. The ESPP provides for, at maximum, 27 month offering periods and each offering period may consist of one or more six-month purchase periods, whereby the latest offering period commenced on June 1, 2022, and the offering periods thereafter consist of two six-month purchase periods ending May 31, 2023. As of September 30, 2022, $0.5 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions and is included in accrued and other current liabilities. For the nine months ended September 30, 2022, there were 141,709 shares of our Class A common stock purchased under the ESPP. As of September 30, 2022, unrecognized stock-based compensation expense related to the ESPP was $0.6 million, which is expected to be recognized over a weighted-average period of 0.67 years. Stock-Based Compensation Total stock-based compensation recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 256 $ 233 $ 861 $ 605 Technology and development 683 586 2,467 1,646 Sales and marketing 1,735 1,388 5,740 3,839 General and administrative 1,981 1,507 6,114 4,418 Total stock-based compensation 4,655 3,714 15,182 10,508 Tax benefit from stock-based compensation (1,245) (521) (2,951) (1,401) Total stock-based compensation, net of tax effect $ 3,410 $ 3,193 $ 12,231 $ 9,107

Net Income Per Share Attributab

Net Income Per Share Attributable to Common Stockholders	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Net Income Per Share Attributable to Common Stockholders	Net Income Per Share Attributable to Common Stockholders The Company has two classes of common stock, Class A and Class B. Basic and diluted earnings per share (“EPS”) attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights. The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income attributable to common stockholders – basic $ 3,326 $ 13,526 $ 15,924 $ 28,365 Denominator: Weighted average common shares outstanding – basic 52,435,601 50,559,636 52,168,853 49,754,449 Net income per share attributable to common stockholders – basic: $ 0.06 $ 0.27 $ 0.31 $ 0.57 Numerator: Net income attributable to common stockholders – diluted $ 3,326 $ 13,526 $ 15,924 $ 28,365 Denominator: Weighted average shares outstanding – basic 52,435,601 50,559,636 52,168,853 49,754,449 Options to purchase common stock 4,489,223 5,864,634 4,700,898 6,739,481 Restricted stock 19,406 11,553 9,926 23,222 Employee stock purchase plan shares — 63,068 15,485 58,715 Weighted average shares outstanding – diluted 56,944,230 56,498,891 56,895,162 56,575,867 Net income per share attributable to common stockholders – diluted $ 0.06 $ 0.24 $ 0.28 $ 0.50 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Options to purchase common stock 1,059,602 892,639 1,008,066 668,294 Unvested restricted stock units 1,284,870 — 1,095,729 — ESPP 133,539 — 66,142 — Total excludable from net income per share attributable to common stockholders – diluted 2,478,011 892,639 2,169,937 668,294

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company computes its provision for income taxes by applying the estimated annual effective tax rate to pretax income and adjusts the provision for discrete tax items recorded in the period. The Company recorded a provision for income taxes of $1.4 million and $0.8 million for the three months ended September 30, 2022 and 2021, respectively, and $4.7 million and $2.7 million for the nine months ended September 30, 2022 and 2021, respectively. The effective income tax rate was 30% and 6% for the three months ended September 30, 2022 and 2021, respectively, and 23% and 9% for the nine months ended September 30, 2022 and 2021, respectively. The income tax provision for the nine months ended September 30, 2022 is related to an increase in nondeductible stock-based compensation, Section 162(m) limitation on the tax deductibility of officers compensation, state taxes and global intangible low-taxed income (GILTI) inclusion offset by deductions for equity awards, tax benefit from foreign-derived intangible income (FDII), foreign tax credits, federal and state research credits, and other effects created by the capitalization and amortization of R&D expenses for tax purposes starting on January 1, 2022, which was primarily due to a change in Section 174 of the Tax Cuts and Jobs Act of 2017. Realization of the Company’s deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, the Company considers its historical, as well as future projected, taxable income along with other objectively verifiable evidence. Objectively verifiable evidence includes the Company’s realization of tax attributes, assessment of tax credits, and utilization of net operating loss carryforwards during the year.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information The following table presents total revenue by geographic area based on the publisher’s billing address (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 40,780 $ 36,451 $ 111,826 $ 93,935 EMEA 16,525 15,552 48,210 41,306 APAC 6,456 4,909 19,352 13,245 Rest of the world 739 1,174 2,696 2,866 Total $ 64,500 $ 58,086 $ 182,084 $ 151,352 The following table presents long-lived assets, net, which consist primarily of property and equipment and operating lease right-of-use assets, by geographic area (in thousands): September 30, December 31, United States $ 83,975 $ 63,015 Rest of the world 18,733 8,738 Total $ 102,708 $ 71,753

401(k) Plan

401(k) Plan	9 Months Ended
	Sep. 30, 2022
Retirement Benefits [Abstract]
401(k) Plan	401(k) PlanThe Company has a 401(k) Savings Plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer matching contribution. The Company made $0.9 million in matching contribution to the 401(k) Plan for the nine months ended September 30, 2022 and no matching contribution for the nine months ended September 30, 2021.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On October 17, 2022, the Company entered into a Senior Secured Credit Facilities Credit Agreement (the “Credit Agreement”) with the several lenders parties thereto (the “Lenders”), and Silicon Valley Bank, as administrative agent, lead arranger, issuing lender, and swingline lender. The Credit Agreement provides a revolving credit facility in an aggregate principal amount of $110.0 million (“the Revolving Credit Facility”), including a $25.0 million letter of credit sub-facility and a $25.0 million swingline sub-facility. The Company may, subject to certain customary conditions, on one or more occasions increase commitments under the Revolving Credit Facility in an amount not to exceed $90.0 million in the aggregate (the “Incremental Facility”). Each Lender will have discretion to determine whether it will participate in any Incremental Facility. The Credit Agreement matures on October 17, 2027. In connection with the entry into the Credit Agreement, the Company’s existing Third Amended and Restated Loan and Security Agreement, as amended, dated as of November 7, 2017 (the “Existing Credit Agreement”) was terminated. Borrowings under the Revolving Credit Facility will accrue interest at rates equal, at the Company’s election, to (i) the applicable secured overnight financing rate (“SOFR”), plus the applicable margin for such loans, or (ii) the alternate base rate (“ABR”), which is defined as the highest of (a) the prime rate in effect from time to time, (b) the federal funds effective rate in effect from time to time plus 0.50%, and (c) the adjusted term SOFR for a one (1) month tenor in effect from time to time plus 1.0%, plus the applicable margin for such loans. The applicable margin for borrowings bearing interest on the SOFR ranges from 2.00% to 2.75%, and the applicable margin for borrowings bearing interest based on the ABR ranges from 1.00% to 1.75%. The Company will pay a quarterly commitment fee during the term of the Credit Agreement for the non-use of available funds ranging from 0.25% to 0.35%. In addition, the Credit Agreement provides a mechanism to determine a successor reference rate to the applicable reference rate if, among other things, the applicable reference rate becomes unavailable or is generally replaced as a benchmark interest rate. The Credit Agreement contains customary representations and warranties as well as customary affirmative and negative covenants and customary events of default. The Company may use amounts borrowed under the Credit Agreement to refinance the Existing Credit Agreement, for general corporate purposes or working capital financing. The Company may borrow additional amounts under the Credit Agreement from time to time as opportunities and needs arise.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. The accompanying condensed consolidated financial statements include the accounts of PubMatic, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period presentation.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. The Company evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. Actual results could materially differ from those estimates and assumptions. Due to the inherent uncertainty involved in making assumptions and estimates, events and changes in circumstances arising after September 30, 2022, including those resulting from the impacts of the COVID-19 pandemic, may result in actual outcomes that differ from those contemplated by the Company’s assumptions and estimates.
Business Combinations and Acquisition-related Intangible Assets and Goodwill	Business Combinations The Company allocates the purchase consideration for acquired companies to tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date, with the excess recorded to goodwill. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the condensed consolidated statements of operations. Acquisition-related Intangible Assets and Goodwill Acquisition-related intangible assets with finite lives are amortized over their estimated useful lives on a straight-line basis. Goodwill amounts are not amortized. Acquisition-related intangible assets and goodwill are tested for impairment at least annually, and more frequently upon the occurrence of certain events.
Stock-based Compensation	Stock-based Compensation The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors, and nonemployees, including stock options, restricted stock units (“RSUs”), and purchases under the employee stock purchase plan (the “ESPP”) based on the fair value of the awards on the date of grant. The fair value of stock options and shares of common stock to be issued under the ESPP is estimated using the Black-Scholes option pricing model. The grant date fair value of RSUs is based on the closing market price of the Company’s Class A common stock on the date of grant. The Black-Scholes option pricing model is impacted by the fair value of the Company’s common stock, as well as changes in assumptions regarding a number of highly complex and subjective variables. These variables include, but are not limited to, the expected common stock price volatility over the term of the stock options, the expected term of the stock options, risk-free interest rates, and the expected dividend yield. For additional information regarding stock-based compensation and the assumptions used for determining the fair value of stock options and ESPP awards, refer to Note 9 — “Stockholders’ Equity and Stock Option Plans.”
Adoption of Topic 842 and Recent Accounting Pronouncements Not Yet Adopted	Adoption of Topic 842 In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) which, along with other ASU's containing minor amendments and technical corrections, provides for a comprehensive overhaul of the lease accounting model and changes the definition of a lease within US GAAP. Topic 842 supersedes the legacy Topic 840 lease accounting guidance and is intended to increase transparency and comparability among organizations by recognizing right-of-use lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. Lease expense continues to be recognized in a manner similar to legacy GAAP. The effect of adopting Topic 842 resulted in the recognition of operating right-of-use assets and corresponding lease liabilities on the Company’s consolidated balance sheet. The Company adopted Topic 842 in the fourth quarter of our fiscal 2021 reflecting an initial application date of January 1, 2021 using the modified retrospective transition approach under which the adoption date of Topic 842 became the application date, with the comparative periods presented and disclosed under the Topic 840 requirements. Interim financial data for the comparable prior-year quarter ended September 30, 2021 has been revised to reflect the adoption of Topic 842 and differs from what was disclosed in the prior year Form 10-Q filed on November 10, 2021. The standard did not affect the Company’s consolidated statements of operations, comprehensive income, and stockholders’ equity for the three and nine months ended September 30, 2021. Though net cash provided by operating, investing, and financing activities were unchanged, the standard did affect certain operating cash flow line items within the Company’s consolidated statements of cash flows for the nine months ended September 30, 2021. Recent Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with Topic 606, Revenue from Contracts with Customers, as if the acquirer had originated the contracts. Under current GAAP, such assets and liabilities are recognized by the acquirer at fair value on the acquisition date. ASU 2021-08 is effective for the Company in fiscal year 2023 and the adoption, including the impact and required disclosures, will be included in its 2023 Form 10-K. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements, however, any financial impact will depend on the magnitude and nature of future business combinations.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Accounting Standards Update and Change in Accounting Principle	Select condensed consolidated cash flow items, which reflects the adoption of the new standard as reported for the nine months ended September 30, 2021, are as follows (in thousands): Nine Months Ended September 30, 2021 Balances Without Adoption of Topic 842 Effect of Change As Reported (As Previously Reported in the Prior Year 10-Q) Higher (Lower) Non-cash operating lease expense $ 1,355 $ — $ 1,355 Operating lease liabilities $ (1,546) $ — $ (1,546) Accrued liabilities $ 3,386 $ 3,195 $ 191 Net cash provided by operating activities $ 60,202 $ 60,202 $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables set forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy (in thousands): September 30, 2022 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 37,859 $ — $ — $ 37,859 Certificates of deposit — 4,534 — 4,534 Cash equivalents 37,859 4,534 — 42,393 Commercial paper — 57,146 — 57,146 U.S. Treasury and government debt securities — 56,768 — 56,768 Marketable securities — 113,914 — 113,914 Total Financial Assets $ 37,859 $ 118,448 $ — $ 156,307 December 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets Money market funds $ 65,311 $ — $ — $ 65,311 Certificates of deposit — 5,942 — 5,942 Cash equivalents 65,311 5,942 — 71,253 Commercial paper — 50,954 — 50,954 U.S. Treasury and government debt securities — 26,167 — 26,167 Marketable securities — 77,121 — 77,121 Equity investment 5,948 — — 5,948 Non-current assets 5,948 — — 5,948 Total Financial Assets $ 71,259 $ 83,063 $ — $ 154,322

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Debt Securities, Available-for-sale	The following tables summarize the Company’s marketable securities by significant investment categories (in thousands): September 30, 2022 Amortized Cost Unrealized Loss Fair Value Commercial paper $ 57,146 $ — $ 57,146 U.S. Treasury and government debt securities 56,989 (221) 56,768 Total $ 114,135 $ (221) $ 113,914 December 31, 2021 Amortized Cost Unrealized Loss Fair Value Commercial paper $ 50,954 $ — $ 50,954 U.S. Treasury and government debt securities 26,203 (36) 26,167 Total $ 77,157 $ (36) $ 77,121
Property, Plant and Equipment	Property, equipment and software, net consisted of the following (in thousands): September 30, December 31, Internal-use software $ 40,871 $ 30,581 Network hardware, computer equipment and software 127,878 92,561 Leasehold improvements 3,774 2,426 Furniture and fixtures 1,678 1,448 Property, equipment and software, gross 174,201 127,016 Less: accumulated depreciation and amortization (99,226) (76,876) Total property, equipment and software, net $ 74,975 $ 50,140
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination	Acquisition-related intangible assets, net consisted of the following (in thousands): September 30, December 31, Developed technology $ 7,900 $ — Customer relationships 1,000 — Acquisition-related intangible assets, gross 8,900 — Less: accumulated amortization (81) — Total acquisition-related intangible assets, net $ 8,819 $ —
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of September 30, 2022, estimated future amortization expense for acquisition-related intangible assets was as follows (in thousands): Remainder of 2022 $ 520 2023 2,080 2024 1,936 2025 1,580 2026 1,580 Thereafter 1,123 Total estimated future amortization expense for acquisition-related intangible assets $ 8,819
Schedule of Accounts Payable and Accrued Liabilities	Accounts payable consisted of the following (in thousands): September 30, December 31, Payable to publishers $ 238,358 $ 235,440 Trade payables 20,120 8,881 Total accounts payable $ 258,478 $ 244,321
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands): September 30, December 31, Accrued compensation $ 12,563 $ 17,271 Accrued and other current liabilities 2,256 1,509 Total accrued liabilities $ 14,819 $ 18,780

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Lease, Cost	The components of lease cost were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease cost $ 1,759 $ 592 $ 5,059 $ 1,846 Finance lease cost - amortization of right-of-use assets 43 — 130 — Finance lease cost - interest on lease liabilities 4 — 14 — Total lease cost $ 1,806 $ 592 $ 5,203 $ 1,846
Lessee, Operating Lease, Liability, Maturity	As of September 30, 2022, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2022 $ 1,688 $ 34 $ 1,722 2023 6,446 140 6,586 2024 6,518 145 6,663 2025 5,155 149 5,304 2026 5,377 153 5,530 Thereafter 5,242 198 5,440 Total minimum lease payments $ 30,426 $ 819 $ 31,245 Less: imputed interest (2,293) (49) (2,342) Total present value of lease liabilities $ 28,133 $ 770 $ 28,903
Finance Lease, Liability, Fiscal Year Maturity	As of September 30, 2022, the maturities of lease liabilities under operating and finance leases were as follows (in thousands): Operating Leases Finance Leases Total Remainder of 2022 $ 1,688 $ 34 $ 1,722 2023 6,446 140 6,586 2024 6,518 145 6,663 2025 5,155 149 5,304 2026 5,377 153 5,530 Thereafter 5,242 198 5,440 Total minimum lease payments $ 30,426 $ 819 $ 31,245 Less: imputed interest (2,293) (49) (2,342) Total present value of lease liabilities $ 28,133 $ 770 $ 28,903

Stockholders_ Equity and Stoc_2

Stockholders’ Equity and Stock Option Plans (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award	The following table summarizes stock option activity and related information under the Company’s equity incentive plans: Stock Options Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in thousands) Outstanding — December 31, 2021 6,542,351 $ 6.08 6.95 $ 184,727 Options granted 450,153 26.05 Options exercised (304,988) 3.48 Options canceled (96,179) 12.22 Options expired (160) $ 3.70 Outstanding — September 30, 2022 6,591,177 $ 7.48 6.39 $ 77,296 Vested and exercisable — September 30, 2022 4,893,334 $ 4.68 5.76 $ 64,664 The following table summarizes RSU activity and related information under the Company’s 2020 Plan: RSUs Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested — December 31, 2021 483,302 $ 35.23 Granted 1,416,994 $ 25.91 Vested (207,533) $ 31.32 Canceled/Forfeited (125,331) $ 30.10 Unvested — September 30, 2022 1,567,432 $ 27.73
Share-based Payment Arrangement, Expensed and Capitalized, Amount	otal stock-based compensation recognized in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 256 $ 233 $ 861 $ 605 Technology and development 683 586 2,467 1,646 Sales and marketing 1,735 1,388 5,740 3,839 General and administrative 1,981 1,507 6,114 4,418 Total stock-based compensation 4,655 3,714 15,182 10,508 Tax benefit from stock-based compensation (1,245) (521) (2,951) (1,401) Total stock-based compensation, net of tax effect $ 3,410 $ 3,193 $ 12,231 $ 9,107

Net Income Per Share Attribut_2

Net Income Per Share Attributable to Common Stockholders (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Earnings per Share, Basic, by Common Class, Including Two Class Method	The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income attributable to common stockholders – basic $ 3,326 $ 13,526 $ 15,924 $ 28,365 Denominator: Weighted average common shares outstanding – basic 52,435,601 50,559,636 52,168,853 49,754,449 Net income per share attributable to common stockholders – basic: $ 0.06 $ 0.27 $ 0.31 $ 0.57 Numerator: Net income attributable to common stockholders – diluted $ 3,326 $ 13,526 $ 15,924 $ 28,365 Denominator: Weighted average shares outstanding – basic 52,435,601 50,559,636 52,168,853 49,754,449 Options to purchase common stock 4,489,223 5,864,634 4,700,898 6,739,481 Restricted stock 19,406 11,553 9,926 23,222 Employee stock purchase plan shares — 63,068 15,485 58,715 Weighted average shares outstanding – diluted 56,944,230 56,498,891 56,895,162 56,575,867 Net income per share attributable to common stockholders – diluted $ 0.06 $ 0.24 $ 0.28 $ 0.50
Schedule of Earnings per Share, Diluted, by Common Class, Including Two Class Method	The following table sets forth the computation of the Company’s basic and diluted net income per share (in thousands, except share and per share data): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Numerator: Net income attributable to common stockholders – basic $ 3,326 $ 13,526 $ 15,924 $ 28,365 Denominator: Weighted average common shares outstanding – basic 52,435,601 50,559,636 52,168,853 49,754,449 Net income per share attributable to common stockholders – basic: $ 0.06 $ 0.27 $ 0.31 $ 0.57 Numerator: Net income attributable to common stockholders – diluted $ 3,326 $ 13,526 $ 15,924 $ 28,365 Denominator: Weighted average shares outstanding – basic 52,435,601 50,559,636 52,168,853 49,754,449 Options to purchase common stock 4,489,223 5,864,634 4,700,898 6,739,481 Restricted stock 19,406 11,553 9,926 23,222 Employee stock purchase plan shares — 63,068 15,485 58,715 Weighted average shares outstanding – diluted 56,944,230 56,498,891 56,895,162 56,575,867 Net income per share attributable to common stockholders – diluted $ 0.06 $ 0.24 $ 0.28 $ 0.50
Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Options to purchase common stock 1,059,602 892,639 1,008,066 668,294 Unvested restricted stock units 1,284,870 — 1,095,729 — ESPP 133,539 — 66,142 — Total excludable from net income per share attributable to common stockholders – diluted 2,478,011 892,639 2,169,937 668,294

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting [Abstract]
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	The following table presents total revenue by geographic area based on the publisher’s billing address (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 United States $ 40,780 $ 36,451 $ 111,826 $ 93,935 EMEA 16,525 15,552 48,210 41,306 APAC 6,456 4,909 19,352 13,245 Rest of the world 739 1,174 2,696 2,866 Total $ 64,500 $ 58,086 $ 182,084 $ 151,352 The following table presents long-lived assets, net, which consist primarily of property and equipment and operating lease right-of-use assets, by geographic area (in thousands): September 30, December 31, United States $ 83,975 $ 63,015 Rest of the world 18,733 8,738 Total $ 102,708 $ 71,753

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Impairment of Equity Investment (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Accounting Policies [Abstract]
Equity securities without readily determinable fair value, downward price adjustment, annual amount	$ 6.4	$ 6.4

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - Concentration Risk Percentage (Details) - Customer Concentration Risk - Accounts Receivable	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
One Publisher
Concentration Risk [Line Items]
Concentration risk, percentage	13%	17%	13%	18%
Buyer One
Concentration Risk [Line Items]
Concentration risk, percentage			36%		29%
Buyer Two
Concentration Risk [Line Items]
Concentration risk, percentage			14%		19%

Basis of Presentation and Sum_6

Basis of Presentation and Summary of Significant Accounting Policies - Adoption of ASC 842 (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Non-cash operating lease expense	$ 4,292	$ 1,355
Operating lease liabilities	(3,985)	(1,546)
Accrued liabilities	(4,806)	3,386
Net cash provided by operating activities	$ 67,854	60,202
Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Non-cash operating lease expense		0
Operating lease liabilities		0
Accrued liabilities		3,195
Net cash provided by operating activities		60,202
Revision of Prior Period, Change in Accounting Principle, Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Non-cash operating lease expense		1,355
Operating lease liabilities		(1,546)
Accrued liabilities		191
Net cash provided by operating activities		$ 0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	$ 113,914	$ 77,121
Equity investment		5,948
Non-current assets		5,948
Total Financial Assets	156,307	154,322
Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	42,393	71,253
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	37,859	65,311
Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	4,534	5,942
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	0	0
Equity investment		5,948
Non-current assets		5,948
Total Financial Assets	37,859	71,259
Level 1 | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	37,859	65,311
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	37,859	65,311
Level 1 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	113,914	77,121
Equity investment		0
Non-current assets		0
Total Financial Assets	118,448	83,063
Level 2 | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	4,534	5,942
Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
Level 2 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	4,534	5,942
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	0	0
Equity investment		0
Non-current assets		0
Total Financial Assets	0	0
Level 3 | Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
Level 3 | Certificates of deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	57,146	50,954
Commercial paper | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	0	0
Commercial paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	57,146	50,954
Commercial paper | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	0	0
U.S. Treasury and government debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	56,768	26,167
U.S. Treasury and government debt securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	0	0
U.S. Treasury and government debt securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	56,768	26,167
U.S. Treasury and government debt securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities, fair value	$ 0	$ 0

Balance Sheet Components - Summ

Balance Sheet Components - Summary of Marketable Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 114,135	$ 77,157
Unrealized Loss	(221)	(36)
Marketable securities	113,914	77,121
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	57,146	50,954
Unrealized Loss	0	0
Marketable securities	57,146	50,954
U.S. Treasury and government debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	56,989	26,203
Unrealized Loss	(221)	(36)
Marketable securities	$ 56,768	$ 26,167

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Property, Equipment and Software, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, equipment and software, gross	$ 174,201	$ 127,016
Less: accumulated depreciation and amortization	(99,226)	(76,876)
Property, equipment and software, net	74,975	50,140
Internal-use software
Property, Plant and Equipment [Line Items]
Property, equipment and software, gross	40,871	30,581
Network hardware, computer equipment and software
Property, Plant and Equipment [Line Items]
Property, equipment and software, gross	127,878	92,561
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, equipment and software, gross	3,774	2,426
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, equipment and software, gross	$ 1,678	$ 1,448

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Property, Plant and Equipment [Line Items]
Depreciation, depletion and amortization	$ 6.4	$ 4.4	$ 16.3	$ 10.7
Capitalized computer software additions	3.5	2.6	10.3	7.2
Amortization of intangible assets	0.1		$ 0.1
Developed technology
Property, Plant and Equipment [Line Items]
Acquired finite-lived intangible assets, weighted average useful life			5 years
Customer relationships
Property, Plant and Equipment [Line Items]
Acquired finite-lived intangible assets, weighted average useful life			2 years
Internal-use software
Property, Plant and Equipment [Line Items]
Amortization	$ 2.6	$ 1.9	$ 7.2	$ 5.3

Balance Sheet Components - Acqu

Balance Sheet Components - Acquisition-Related Intangible Assets, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Acquisition-related intangible assets, gross	$ 8,900	$ 0
Less: accumulated amortization	(81)	0
Total acquisition-related intangible assets, net	8,819	0
Developed technology
Property, Plant and Equipment [Line Items]
Acquisition-related intangible assets, gross	7,900	0
Customer relationships
Property, Plant and Equipment [Line Items]
Acquisition-related intangible assets, gross	$ 1,000	$ 0

Balance Sheet Components - Esti

Balance Sheet Components - Estimated Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remainder of 2022	$ 520
2023	2,080
2024	1,936
2025	1,580
2026	1,580
Thereafter	1,123
Total acquisition-related intangible assets, net	$ 8,819	$ 0

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Accounts Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Payable to publishers	$ 238,358	$ 235,440
Trade payables	20,120	8,881
Total accounts payable	$ 258,478	$ 244,321

Balance Sheet Components - Sc_3

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued compensation	$ 12,563	$ 17,271
Accrued and other current liabilities	2,256	1,509
Accrued liabilities	$ 14,819	$ 18,780

Loan and Security Agreement (De

Loan and Security Agreement (Details) - Revolving Credit Facility - Silicon Valley Bank - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Jun. 30, 2021
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 25
Line of credit facility, borrowing capacity, percentage of eligible accounts receivable, net,		80%
Debt instrument, interest rate	6.25%	3.25%
Line of credit facility, unused capacity, commitment fee percentage	0.40%
Line of credit facility, borrowing capacity, unused capacity fee, closing balance threshold	$ 5
Debt instrument, covenant, quick ratio, minimum		1

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Operating lease cost	$ 1,759	$ 592	$ 5,059	$ 1,846
Finance lease cost - amortization of right-of-use assets	43	0	130	0
Finance lease cost - interest on lease liabilities	4	0	14	0
Total lease cost	$ 1,806	$ 592	$ 5,203	$ 1,846

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Leases [Abstract]
Sublease Income	$ 0	$ 0
Operating leases	3.40%
Finance leases	2.24%
Operating lease term	4 years 9 months 18 days
Finance lease term	5 years 6 months

Leases - Lease Maturity (Detail

Leases - Lease Maturity (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Operating Leases
Remainder of 2022	$ 1,688
2023	6,446
2024	6,518
2025	5,155
2026	5,377
Thereafter	5,242
Total minimum lease payments	30,426
Less: imputed interest	(2,293)
Total present value of lease liabilities	28,133
Finance Leases
Remainder of 2022	34
2023	140
2024	145
2025	149
2026	153
Thereafter	198
Total minimum lease payments	819
Less: imputed interest	(49)
Total present value of lease liabilities	770
Total
Remainder of 2022	1,722
2023	6,586
2024	6,663
2025	5,304
2026	5,530
Thereafter	5,440
Total minimum lease payments	31,245
Less: imputed interest	(2,342)
Total present value of lease liabilities	$ 28,903

Business Combination (Details)

Business Combination (Details) $ in Millions	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Customer relationships
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life			2 years
Martin
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 30.8
Business combination, separately recognized transactions, expenses and losses recognized	$ 14.2
Business combination, acquisition costs, payment term	3 years
Goodwill, acquired during period	$ 23.6
Business combination, recognized identifiable assets acquired and liabilities assumed, deferred tax liabilities	1.1	$ 1.1	$ 1.1
Business combination, recognized identifiable assets acquired and liabilities assumed, liabilities	0.6	0.6	0.6
Martin | General and administrative
Business Acquisition [Line Items]
Business combination, acquisition related costs		$ 0.9	$ 0.9
Martin | Developed Technology Rights
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 7.9
Acquired finite-lived intangible assets, weighted average useful life	5 years
Martin | Customer relationships
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 1
Acquired finite-lived intangible assets, weighted average useful life	2 years

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) $ in Millions	Sep. 30, 2022 USD ($) instrument	Dec. 31, 2021 USD ($) instrument
Irrevocable Letters of Credit due July 2028
Other Commitments [Line Items]
Number of letters of credit | instrument	2	2
Letters of credit outstanding, amount	$ 3.5	$ 3.5
Irrevocable Letters of Credit due June 2022
Other Commitments [Line Items]
Letters of credit outstanding, amount		$ 0.7
Irrevocable Letters of Credit due April 2025
Other Commitments [Line Items]
Letters of credit outstanding, amount	$ 0.5

Stockholders_ Equity and Stoc_3

Stockholders’ Equity and Stock Option Plans - Narrative (Details) $ in Millions		9 Months Ended
	Nov. 30, 2020 shares	Sep. 30, 2022 USD ($) calendarYear shares
Class of Stock [Line Items]
Number of calendar years | calendarYear		10
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $		$ 40.1
Discount from market price, purchase date		5%
Amount withheld for employee stock purchase plan | $		$ 0.5
Share-based Payment Arrangement, Option
Class of Stock [Line Items]
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $		$ 16.5
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition		2 years 4 months 13 days
Unvested restricted stock units
Class of Stock [Line Items]
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition		3 years 2 months 12 days
ESPP
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)		571,766
Number of calendar years | calendarYear		10
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition		8 months 1 day
Share-based payment arrangement, nonvested award, excluding option, cost not yet recognized, amount | $		$ 0.6
Percentage of outstanding stock maximum	1%
Discount from market price, purchase date		85%
Offering period		27 months
Purchase period		6 months
Common Class A
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)		7,333,638
Issuance of common stock related to employee stock purchase plan (in shares)		141,709
Common Class A | ESPP
Class of Stock [Line Items]
Common stock reserved for issuance (in shares)	500,000
Number of shares authorized	7,500,000

Stockholders_ Equity and Stoc_4

Stockholders’ Equity and Stock Option Plans - Summary of Stock Option Activity and Related Information (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares
Number of Shares Underlying Outstanding Options
Beginning balance (in shares) | shares	6,542,351
Options granted (in shares) | shares	450,153
Options exercised (in shares) | shares	(304,988)
Options canceled (in shares) | shares	(96,179)
Options expired (in shares) | shares	(160)
Ending balance (in shares) | shares	6,591,177	6,542,351
Vested (in shares) | shares	4,893,334
Weighted-Average Exercise Price
Beginning balance (in usd per share) | $ / shares	$ 6.08
Options granted (in usd per share) | $ / shares	26.05
Options exercised (in usd per share) | $ / shares	3.48
Options canceled (in usd per share) | $ / shares	12.22
Options expired (in usd per share) | $ / shares	3.70
Ending balance (in usd per share) | $ / shares	7.48	$ 6.08
Vested (in usd per share) | $ / shares	$ 4.68
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average remaining contractual term (years)	6 years 4 months 20 days	6 years 11 months 12 days
Weighted average remaining contractual term vested (in years)	5 years 9 months 3 days
Aggregate intrinsic value, awards outstanding | $	$ 77,296	$ 184,727
Aggregate intrinsic value, vested | $	$ 64,664

Stockholders_ Equity and Stoc_5

Stockholders’ Equity and Stock Option Plans - Summary of Restricted Stock Units and Related Information (Details) - Unvested restricted stock units	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Number of Shares Underlying Outstanding Options
Unvested beginning balance (in shares) | shares	483,302
Granted (in shares) | shares	1,416,994
Vested (in shares) | shares	(207,533)
Canceled/Forfeited (in shares) | shares	(125,331)
Unvested ending balance (in shares) | shares	1,567,432
Weighted-Average Exercise Price
Unvested beginning balance (in usd per share) | $ / shares	$ 35.23
Granted (in usd per share) | $ / shares	25.91
Vested (in usd per share) | $ / shares	31.32
Canceled/Forfeited (in usd per share) | $ / shares	30.10
Unvested ending balance (in usd per share) | $ / shares	$ 27.73

Stockholders_ Equity and Stoc_6

Stockholders’ Equity and Stock Option Plans - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 4,655	$ 3,714	$ 15,182	$ 10,508
Tax benefit from stock-based compensation	(1,245)	(521)	(2,951)	(1,401)
Total stock-based compensation, net of tax effect	3,410	3,193	12,231	9,107
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	256	233	861	605
Technology and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	683	586	2,467	1,646
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,735	1,388	5,740	3,839
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 1,981	$ 1,507	$ 6,114	$ 4,418

Net Income Per Share Attribut_3

Net Income Per Share Attributable to Common Stockholders - Basic and Diluted Net Income per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net income	$ 3,326	$ 7,819	$ 4,779	$ 13,526	$ 9,921	$ 4,918	$ 15,924	$ 28,365
Denominator:
Weighted average common shares outstanding – basic	52,435,601			50,559,636			52,168,853	49,754,449
Net income per share attributable to common stockholders – basic: (in usd per share)	$ 0.06			$ 0.27			$ 0.31	$ 0.57
Numerator:
Net income attributable to common stockholders – diluted	$ 3,326			$ 13,526			$ 15,924	$ 28,365
Denominator:
Weighted average common shares outstanding – basic	52,435,601			50,559,636			52,168,853	49,754,449
Options to purchase common stock (in shares)	4,489,223			5,864,634			4,700,898	6,739,481
Restricted stock (in shares)	19,406			11,553			9,926	23,222
Weighted average shares outstanding – diluted	0			63,068			15,485	58,715
Weighted average shares outstanding – diluted	56,944,230			56,498,891			56,895,162	56,575,867
Net income per share attributable to common stockholders – diluted (in usd per share)	$ 0.06			$ 0.24			$ 0.28	$ 0.50

Net Income Per Share Attribut_4

Net Income Per Share Attributable to Common Stockholders - Schedule of Antidilutive Securities Excluded from Computation of Earnings per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Total excludable from net income per share attributable to common stockholders – diluted	2,478,011	892,639	2,169,937	668,294
Options to purchase common stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Total excludable from net income per share attributable to common stockholders – diluted	1,059,602	892,639	1,008,066	668,294
Unvested restricted stock units
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Total excludable from net income per share attributable to common stockholders – diluted	1,284,870	0	1,095,729	0
ESPP
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Total excludable from net income per share attributable to common stockholders – diluted	133,539	0	66,142	0

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 1,398	$ 799	$ 4,728	$ 2,695
Effective income tax rate reconciliation, percent	30%	6%	23%	9%

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 64,500	$ 58,086	$ 182,084	$ 151,352
Total	102,708		102,708		$ 71,753
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	40,780	36,451	111,826	93,935
Total	83,975		83,975		63,015
EMEA
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	16,525	15,552	48,210	41,306
APAC
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	6,456	4,909	19,352	13,245
Rest of the world
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	739	$ 1,174	2,696	$ 2,866
Total	$ 18,733		$ 18,733		$ 8,738

401(k) Plan - Narrative (Detail

401(k) Plan - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Retirement Benefits [Abstract]
Defined contribution plan, maximum annual contributions per employee, percent	100%
Defined contribution plan, employer discretionary contribution amount	$ 900,000	$ 0

Subsequent Event (Details)

Subsequent Event (Details) - Revolving Credit Facility - Credit Agreement - Subsequent Event $ in Millions	Oct. 17, 2022 USD ($)
Line of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 110
Line of credit facility, accordion feature, increase limit	90
Letter of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity	25
Swingline Sub-Facility
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 25
Minimum | Line of Credit
Subsequent Event [Line Items]
Line of credit facility, commitment fee percentage	0.25%
Maximum | Line of Credit
Subsequent Event [Line Items]
Line of credit facility, commitment fee percentage	0.35%
Fed Funds Effective Rate Overnight Index Swap Rate | Line of Credit
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	0.50%
Secured Overnight Financing Rate (SOFR) | Line of Credit
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	1%
Secured Overnight Financing Rate (SOFR) | Minimum | Line of Credit
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	2%
Secured Overnight Financing Rate (SOFR) | Maximum | Line of Credit
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	2.75%
Alternate Base Rate | Minimum | Line of Credit
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	1%
Alternate Base Rate | Maximum | Line of Credit
Subsequent Event [Line Items]
Debt instrument, basis spread on variable rate	1.75%