Magnite, Inc. · NASDAQ:MGNI
Magnite — Rubicon Project — Q3 2016 Earnings Presentation
14 slides from Magnite's earnings presentation, Nov 2, 2016
Slide 1: Q3 2016 Financial Highlights
RUBICON PROJECT Q3 2016 FINANCIAL HIGHLIGHTS NOVEMBER 2, 2016
Slide 2: Safe Harbor: Forward-Looking Statements
SAFE HARBOR Forward-Looking Statements These materials include forward-looking statements concerning or implying growth trends or expectations, including without limitation growth in our cash flow and mobile and Orders businesses. Forward-looking statements are not guarantees of future performance;
Slide 3: Q3 2016 Summary
Q3 2016 SUMMARY Financial Measures Three Months Ended September 30, 2016 September 30, 2015 Change GAAP revenue $65.8 M $64.3 M 2% Non-GAAP net revenue(1) $60.6 M $57.9 M 5% Advertising Spend(2) $242.8 M $244.4 M (1%) Mobile Advertising Spend $83.3 M $63.6 M 31% Desktop Advertising Spend $159.5 M $1
Slide 4: Revenue Highlights
REVENUE HIGHLIGHTS Q3 GAAP Revenue Q3 Non-GAAP Net Revenue Q3 Advertising Spend ($MM) ($MM) ($MM) $60.6 $65.8 $57.9 $64.3 $244.4 $242.8 23.7% 24.9% Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Take Rate (1) 4 (1) Take Rate represents Non-GAAP Net Revenue divided by Advertising Spend.
Slide 5: Net Loss and Adjusted EBITDA
NET LOSS AND ADJUSTED EBITDA Q3 GAAP Net Income (Loss) Q3 Adjusted EBITDA ($MM) ($MM) $3.5 $15.3 $5.6 MM tax benefit in Q3 2016 (no tax had been $12.6 assumed) 25% ($3.0) 22% $2.1 MM tax benefit in Q3 2015 Q3 2015 Q3 2016 Q3 2015 Q3 2016 Adj. EBITDA Margin (1) 5 (1) Adjusted EBITDA Margin is calcula
Slide 6: EPS Highlights
EPS HIGHLIGHTS Q3 GAAP EPS (Diluted) Q3 Non-GAAP EPS ($MM) ($MM) $5.6 MM tax benefit in Q3 2016 (no tax had been assumed) $0.32 $0.07 $0.23 ($0.07) $2.1 MM tax benefit in Q3 2015 Q3 2015 Q3 2016 Q3 2015 Q3 2016 6
Slide 7: Advertising Spend by Channel, Inventory Type & Geography
ADVERTISING SPEND BY CHANNEL, INVENTORY TYPE & GEOGRAPHY Advertising Spend Advertising Spend Advertising Spend % by Channel % by Inventory Type % by Geography(1) ($MM) ($MM) ($MM) $244 $243 $244 $ 243 $ 244 $ 243 7% 2% 66% 74% 66% 65% 75% 77% 34% 34% 35% 26% 16% 23% Q3 2015 Q3 2016 Q3 2015 Q3 2016 Q
Slide 8: Advertising Spend by Inventory Type: 2014-2016
ADVERTISING SPEND BY INVENTORY TYPE: 2014-2016 Advertising Spend by Inventory Type: Quarterly ($MM) $336.0 16.5 $248.5 $257.4 $244.4 9.0 $242.8 $227.2 13.3 $216.5 18.0 5.4 $197.2 17.9 22.9 $168.2 18.1 258.6 $153.5 21.6 $129.6 22.8 194.5 182.3 187.7 193.1 170.4 25.6 166.5 149.7 129.1 115.6 94.1 60.9
Slide 9: Advertising Spend by Channel: 2014-2016
ADVERTISING SPEND BY CHANNEL: 2014-2016 Advertising Spend by Channel: Quarterly ($MM) $336.0 $257.4 $244.4 $248.5 $242.8 $227.2 $216.5 $197.2 232.0 $168.2 $153.5 174.7 172.4 159.5 180.8 $129.6 176.6 173.9 158.1 138.4 129.5 112.0 104.0 73.8 85.0 83.3 50.6 63.6 29.8 42.6 39.1 17.6 24.0 Q1 2014 Q2 2014
Slide 10: Cash Flow and Balance Sheet Highlights
CASH FLOW AND BALANCE SHEET HIGHLIGHTS Cash Flow Highlights Balance Sheet Highlights ($MM) ($MM) September 30, December 31, YTD 2016 YTD 2015 2016 2015 Financial measure: Financial measure: Net cash provided by $48.8 $21.2 Cash & equivalents $154.3 $116.5 operating activities Less capital expenditur
Slide 11: Appendix
AUTOMATION APPENDIX LA,
Slide 12: Depreciation & Amortization / Amortization Schedule
DEPRECIATION & AMORTIZATION / AMORTIZATION SCHEDULE Income Statement Includes Depreciation and Amortization as Follows: ($MM) Q3 2016 Q3 2015 Cost of revenue $ 7.0 $ 5.3 Add in new Sales and marketing 2.8 2.3 Technology and development 0.7 0.5 General and administrative 0.5 0.5 Total Depreciation an
Slide 13: Reconciliations of Net Income (Loss) to Adjusted EBITDA & GAAP Revenue to Advertising Spend
RECONCILIATIONS OF NET INCOME (LOSS) TO ADJUSTED EBITDA & GAAP REVENUE TO ADVERTISING SPEND Q3 2016 Q3 2015 Financial Measure: ($MM) Net income (loss) $3.5 ($3.0) Add back (deduct): Depreciation and amortization, excluding acquisition of acquired intangible assets 5.3 3.8 Amortization of acquired in
Slide 14: Reconciliations of GAAP Revenue to Non-GAAP Net Revenue & Net Income to Non-GAAP Net Income
RECONCILIATIONS OF GAAP REVENUE TO NON-GAAP NET REVENUE & NET INCOME (LOSS) TO NON-GAAP NET INCOME Reconciliation of GAAP Revenue to Non-GAAP Net Revenue ($MM) Q3 2016 Q3 2015 Financial Measure: GAAP revenue $65.8 $64.3 Less amounts paid to sellers reflected in cost of revenue(1) $5.2 $6.4 Non-GAAP