Magnite, Inc. · NASDAQ:MGNI
Magnite — Q4 2020 Earnings Presentation
17 slides from Magnite's earnings presentation, Feb 24, 2021
Slide 1: Financial Highlights Q4 2020
Financial Highlights Q4 2020 February 24, 2021 CONFIDENTIAL © MAGNITE | © MAGNITE 1
Slide 2: Safe Harbor
Safe Harbor FORWARD-LOOKING STATEMENTS This presentation and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to ou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to our GAAP results, we review certain non-GAAP financial measures to help us evaluate our business, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our technology and development
Slide 4: Q4 Highlights & Trends
Q4 Highlights & Trends ➔ Total pro forma revenue grew 20% year over year in Q4 2020 to $82.0 million (1) ➔ CTV pro forma revenue grew 53% year over year in Q4 2020 to $15.3 million (1) ➔ Adjusted EBITDA was $30.0 million with a 37% margin in Q4 2020 (2) ➔ Free cash flow of $20.7 million in Q4 2020 (3
Slide 5: SpotX Acquisition
SpotX Acquisition CTV 34% ➔ $560 million plus 14 million shares ➔ Expected to close in Q2 2020, subject to regulatory approval and other customary closing conditions ➔ SpotX Financial Details: ➔ $116 million in non-GAAP net revenue(1) in 2020, $67 million was CTV ➔ Total non-GAAP net revenue(1) grow
Slide 6: SpotX Acquisition: Pro Forma Results
SpotX Acquisition Pro Forma Results: ➔ Full year 2020 combined company estimated non-GAAP net revenue(1) would have been $350 million on a pro forma basis 33% Audio, Display ➔ Combined pro forma adjusted EBITDA (2) & Other for the full year 2020 would have been approximately $76 million, for a margi
Slide 7: Q4 2020 Combined non-GAAP Pro Forma Net Revenue Mix
Q4 2020 Combined non-GAAP Pro Forma Net Revenue Mix CTV OLV 34% 33% Display, Audio & Other 33% Note: The SpotX numbers used in the combined pro forma figures are preliminary, unaudited and provided by SpotX. Combined pro forma results include (i) preliminary unaudited financial results for SpotX for
Slide 8: Magnite Q4 2020 Summary
Magnite Q4 2020 Summary Financial Measures ($MM except per share data) Three Months Ended 12/31/2020 12/31/2019 Change Fav / (Unfav) Revenue $82.0 $48.5 69% Net income (loss) $5.9 $1.5 286% Adjusted EBITDA(1) $30.0 $15.3 96% (3) Adjusted EBITDA margin 37% 32% 5 ppt Adjusted EBITDA operating expenses
Slide 9: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Adjusted Cash Flow Highlights ($MM) Balance Sheet Highlights ($MM) Q4 2020 Q4 2019 Dec 31, Sept 30, 2020 2020 Adjusted EBITDA(1) $30.0 $15.3 Cash & equivalents $117.7 $103.8 Less capital expenditures (9.3) (6.4) Marketable securities — — Cash flow $20.7 $8.9 (ex
Slide 10: Amortization Schedule
Amortization Schedule Remaining Amortization Schedule for Acquired Intangibles by Period ($MM) Amount 2021 $31.0 2022 26.3 2023 13.9 2024 13.8 2025 4.2 Thereafter 0.6 TOTAL Remaining Amortization of Acquired Intangibles $89.9 Note: Amounts may not foot due to rounding. CONFIDENTIAL © MAGNITE | © MAG
Slide 11: Q4 MGNI Reconciliations of Net Income to Adjusted EBITDA
Q4 MGNI Reconciliations of Net Income to Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA ($MM) Q4 2020 Q4 2019 Net income $5.9 $1.5 Add back (deduct): Depreciation and amortization, excluding amortization of 5.1 6.3 acquired intangible assets Amortization of acquired intangibles 8.0
Slide 12: Q4 MGNI Reconciliations of Net Income to Non-GAAP Income
Q4 MGNI Reconciliations of Net Income to Non-GAAP Income Reconciliation of Net Income to Non-GAAP Income ($MM, except share figures) Q4 2020 Q4 2019 Net income $5.9 $1.5 Add back (deduct): Acquisition and related items, including 8.6 3.0 amortization of acquired intangibles Stock-based compensation e
Slide 13: MGNI 2020 Reconciliations of Net Income to Adjusted EBITDA
MGNI 2020 Reconciliations of Net Income to Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA ($MM) 2020 Net income (loss) $(53.4) Add back (deduct): Depreciation and amortization, excluding amortization of 24.3 acquired intangible assets Amortization of acquired intangibles 24.9 Stock-
Slide 14: Revenue Split by Channel & Geography
Revenue Split by Channel & Geography Revenue Split by Channel Q4 2020 Q4 2019 Financial Measure: ($MM) CTV Mobile Desktop Total CTV Mobile Desktop Total GAAP Revenue $15.3 $39.2 $27.5 $82.0 - $27.9 $20.6 $48.5 Percent of Revenue 19% 48% 33% 58% 42% Revenue Split by Geography Q4 2020 Q4 2019 Financia
Slide 15: Pro Forma 2020 Reconciliation
PRO FORMA 2020 RECONCILIATION AEBITDA Magnite FY 2020 Telaria Q1 2020 SpotX FY 2020 Pro forma FY 2020 REVENUE SpotX Q4 and FY 2020 GAAP to Non GAAP NET REVENUE CONFIDENTIAL © MAGNITE | © MAGNITE 15
Slide 16: Pro Forma 2020 Reconciliations of Net Income to Adjusted EBITDA
PRO FORMA 2020 Reconciliations of Net Income to Adjusted EBITDA Reconciliation of Net Income MGNI TELARIA(1) SPOTX(2) PRO FORMA to Adjusted EBITDA ($MM) 2020 Q1 2020 2020 2020 Net income (loss) $(53.4) $(4.3) $17.2 $(40.5) Add back (deduct): Depreciation and amortization, excluding amortization of a
Slide 17: Q4 and 2020 Reconciliation of Revenue to Pro Forma Non-GAAP Net Revenue
Q4 and 2020 RECONCILIATION OF REVENUE TO PRO FORMA NON-GAAP NET REVENUE Three Months Ended Year Ended ($ in thousands) (December 31, 2020) (December 31, 2020) Magnite, SpotX, (1) Pro forma Magnite, Q1 Telaria, SpotX, (1) Pro forma Inc. Inc. Combined Inc. Inc(2) Inc. Combined GAAP Revenue $82,003 $71