Magnite, Inc. · NASDAQ:MGNI
Magnite — Q2 2016 Earnings Presentation
13 slides from Magnite's earnings presentation, Aug 2, 2016
Slide 1: Q2 2016 Financial Highlights
Leading the Automation of Advertising Q2 2016 Financial Highlights August 2, 2016
Slide 2: Safe harbor
Safe harbor Forward-Looking Statements These materials include forward-looking statements concerning or implying growth trends or expectations, including without limitation growth in our mobile and Orders businesses. Forward-looking statements are not guarantees of future performance; they reflect o
Slide 3: Q2 2016 Summary
Q2 2016 Summary Financial Measure Three Months Ended June 30, 2016 June 30, 2015 Change GAAP revenue $70.5 M $53.0 M 33% Non-GAAP net revenue(1) $65.1 M $48.5 M 34% Managed revenue (advertising spending)(2) $257.4 M $227.2 M 13% Mobile managed revenue (advertising spending) $85.0 M $50.6 M 68% Deskt
Slide 4: Revenue highlights
Revenue highlights Q2 GAAP Revenue Q2 Non-GAAP Net Revenue Q2 Managed Revenue ($MM) ($MM) (Advertising Spending, $MM) $65.1 $70.5 $257.4 $227.2 $48.5 $53.0 Primary focus + metric tracked in Wall Street estimates 25.3% 21.4% Q2 2015 Q2 2016 Q2 2015 Q2 2016 Q2 2015 Q2 2016 TAKE RATE (1) (1) Take Rate
Slide 5: Net Loss and Adjusted EBITDA
Net Loss and Adjusted EBITDA Q2 GAAP Net Loss Q2 Adjusted EBITDA ($MM) ($MM) $18.4 ($2.7) $4.9 MM tax provision (expense) in Q2 $6.7 28% 2016 (no tax had been assumed). 14% ($11.9) Q2 2015 Q2 2016 Q2 2015 Q2 2016 (1) ADJ. EBITDA MARGIN (1) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divi
Slide 6: EPS highlights
EPS highlights Q2 GAAP EPS (Diluted) Q2 Non-GAAP EPS $4.9 M tax provision (expense) in Q2 2016 (no tax had been assumed) ($0.06) $0.17 $0.06 ($0.30) Q2 2015 Q2 2016 Q2 2015 Q2 2016 6
Slide 7: Cash flow and balance sheet highlights
Cash flow and balance sheet highlights Cash Flow Highlights Balance Sheet Highlights ($MM) ($MM) June 30, December 31, YTD 2016 YTD 2015 2016 2015 Financial measure: Financial measure: Net cash provided by $ 33.3 $ 28.6 Cash & equivalents $ 147.2 $ 116.5 operating activities Less capital expenditure
Slide 8: Managed revenue by channel, inventory type and geography
Managed revenue by channel, inventory type and geography Managed Revenue Managed Revenue Managed Revenue (Advertising Spending) (Advertising Spending) (Advertising Spending) % by Channel % by Inventory Type % by Geography(1) ($MM) ($MM) $257 ($MM) $257 $257 $227 3% $227 $227 8% 67% 59% 76% 65% 78% 7
Slide 9: Managed revenue by inventory type: 2014 to 2016
Managed revenue (advertising spending) by inventory type: 2014 to 2016 Managed Revenue by Inventory Type: Quarterly $336.0 16.5 Orders RTB Static $257.4 ($MM) $244.4 $248.5 $227.2 9.0 $216.5 18.0 13.3 $197.2 17.9 22.9 $168.2 18.1 258.6 $153.5 21.6 194.5 $129.6 22.8 193.1 170.4 187.7 25.6 166.5 149.7
Slide 10: Managed revenue by channel: 2014 to 2016
Managed revenue (advertising spending) by channel: 2014 to 2016 Managed Revenue by Channel: Quarterly $336.0 Mobile Desktop $257.4 ($MM) $244.4 $248.5 $227.2 $216.5 $197.2 232.0 $168.2 $153.5 172.4 180.8 174.7 $129.6 176.6 173.9 158.1 138.4 129.5 112.0 104.0 73.8 85.0 50.6 63.6 29.8 42.6 39.1 17.6 2
Slide 11: Appendix: Depreciation and Amortization / Amortization Schedule
Appendix: Depreciation and Amortization / Amortization Schedule Income Statement Includes Depreciation and Amortization as Follows: ($MM) Q2 2016 Q2 2015 Cost of revenue $6.7 $5.3 Add in new Sales and marketing 2.0 3.2 Technology and development 0.6 0.5 General and administrative 0.5 0.5 Total Depre
Slide 12: Appendix: Net Loss to Adjusted EBITDA and Revenue to Managed Revenue reconciliation
Appendix: Net Loss to Adjusted EBITDA reconciliation and reconciliation of GAAP Revenue to Managed Revenue Q2 2016 Q2 2015 Financial Measure: ($MM) Net income (loss) ($2.7) ($11.9) Add back (deduct): Depreciation and amortization, excluding acquisition of acquired intangible assets 5.2 4.2 Amortizat
Slide 13: Appendix: Reconciliations to Non-GAAP Net Revenue and Non-GAAP Net Income
Appendix: reconciliations of GAAP Revenue to Non-GAAP Net Revenue and Net Loss to Non-GAAP Net Income Reconciliation of GAAP Revenue to Non-GAAP Net Revenue ($MM) Q2 2016 Q2 2015 Financial Measure: GAAP revenue $70.5 $53.0 Less amounts paid to sellers reflected in cost of revenue(1) $5.4 $4.5 Non-GA