Magnite, Inc. · NASDAQ:MGNI
Magnite — Q4 2023 Earnings Presentation
17 slides from Magnite's earnings presentation, Feb 28, 2024
Slide 1: Financial Highlights Q4 2023
Financial Highlights Q4 2023 February 28, 2024 © Magnite | 1
Slide 2: Safe Harbor
Safe Harbor FORWARD-LOOKING STATEMENTS This presentation, press release 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
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 a
Slide 4: Q4 Highlights
Q4 Highlights → Total Contribution ex-TAC(1) grew 6% year-over-year to $165.3 million, exceeded guidance of $158 to $162 million → Contribution ex-TAC(1) attributable to CTV was $63.5 million, exceeded guidance of $61 to $63 million, down 2% year-over-year → Contribution ex-TAC(1) attributable to DV
Slide 5: 2023 Full-Year Highlights
2023 Full-Year Highlights → Total Contribution ex-TAC(1) grew 7% year-over-year to $549.1 million, from $514.6 in 2022 → Contribution ex-TAC(1) attributable to CTV was $218.5 million, an increase of 2% year-over-year → Contribution ex-TAC(1) attributable to DV+ grew 10% year-over-year to $330.7 mill
Slide 6: Guidance
Guidance → Total Contribution ex-TAC(1) for Q1 2024 to be between $122 and $126 million → Contribution ex-TAC(1) for Q1 2024 for CTV to be between $49 and $51 million → Contribution ex-TAC(1) for Q1 2024 for DV+ to be between $73 and $75 million → Adjusted EBITDA operating expenses(2) for Q1 2024 to
Slide 7: Capital Structure Progression
Capital Structure Progression Credit Facility Par Amount (Millions) Original - 2021 12/31/2023 Post Refi Close Term Loan B $360.0 $351.0 $365.0 Convertible Notes $400.0 $205.1 $205.1 Percentage of convertible notes paid early 49% 49% Revolving Credit Facility Capacity ($0 drawn) $65.0 $65.0 $175.0 Re
Slide 8: New Credit Facilities & Repurchase Plan Highlights
New Credit Facilities & Repurchase Plan Highlights → Removes the restrictive springing covenant tied to Convertible Notes → Extends maturities - to 2031 for Term Loan B and 2029 for Revolving Credit Facility → Increases liquidity - Revolver increased to $175 million from $65 million → Decreases debt
Slide 9: Q4 2023 Summary
Q4 2023 Summary Financial Measures ($MM except per share data) Three Months Ended 12/31/2023 12/31/2022 Change Fav / (Unfav) Revenue $186.9 $175.4 7% Gross Profit $116.9 $64.4 82% (1) Contribution ex-TAC $165.3 $156.6 6% Net income (loss) $30.9 ($36.4) 185% Adjusted EBITDA(1) $70.4 $64.2 10% Adjusted
Slide 10: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Operating Cash Flow Highlights ($MM) Balance Sheet Highlights ($MM) Q4 2023 Q4 2022 Dec 31, 2023 Dec 31, 2022 Adjusted EBITDA(1) $70.4 $64.2 Cash & equivalents $326.2 $326.3 Less capital expenditures (11.8) (7.3) Debt $536.6 $726.4 Operating cash flow(2) $58.6 $
Slide 11: Net Leverage
Net Leverage Note: Net Leverage is calculated as current and non-current debt outstanding less cash & cash equivalents over trailing 4 quarter Adjusted EBITDA. © Magnite | 11
Slide 12: Amortization Schedule
Amortization Schedule Remaining Amortization Schedule for Acquired Intangibles by Period ($MM) Amount 2024 30.1 2025 14.4 2026 6.0 2027 0.4 Total Remaining Amortization of Acquired Intangibles $51.0 Note: Amounts may not foot due to rounding. © Magnite | 12
Slide 13: Q4 Reconciliation of Net Income (Loss) to Adjusted EBITDA
Q4 Reconciliation of Net Income (Loss) to Adjusted EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA ($MM) Q4 2023 Q4 2022 Net income (loss) $30.9 ($36.4) Add back (deduct): Depreciation and amortization expense, excluding 9.2 8.4 amortization of acquired intangible assets Amortization o
Slide 14: Q4 Reconciliation of Net Income (Loss) to Non-GAAP Income
Q4 Reconciliation of Net Income (Loss) to Non-GAAP Income Reconciliation of Net Income (Loss) to Non-GAAP Income ($MM, except per share figures) Q4 2023 Q4 2022 Net income (loss) $30.9 ($36.4) Add back (deduct): Merger, acquisition and restructuring costs, including amortization of acquired intangibl
Slide 15: Q4 Calculation of Diluted Earnings (Loss) Per Share
Q4 Calculation of Diluted Earnings (Loss) Per Share Calculation of Diluted Earnings (Loss) Per Share ($MM, except per share figures) Q4 2023 Q4 2022 Net income (loss) $30.9 ($36.4) Adjustments: Interest expense, Convertible Senior Notes, net of tax 0.5 – Gain on extinguishment of debt, net of tax (8.
Slide 16: Revenue by Channel and Geography
Revenue by Channel and Geography Contribution Ex-TAC Split by Channel ($MM) Q4 2023 Q4 2022 CTV Mobile Desktop Total CTV Mobile Desktop Total Contribution ex-TAC $63.5 $71.6 $30.2 $165.3 $64.6 $61.1 $30.9 $156.6 Percent of Total 38% 44% 18% 41% 39% 20% Revenue Split by Geography ($MM) Q4 2023 Q4 202
Slide 17: Reconciliation of Revenue to Contribution Ex-TAC
Reconciliation of Revenue to Contribution Ex-TAC Reconciliation of Revenue to Contribution Three Months Ended Three Months Ended Ex-TAC ($MM) Dec 31, 2023 Dec 31, 2022 Revenue $186.9 $175.4 Less: Cost of Revenue 70.0 111.0 Gross Profit 116.9 64.4 Add back: Cost of revenue, excluding TAC 48.4 92.2 Con