Magnite, Inc. · NASDAQ:MGNI
Magnite — Q1 2016 Earnings Presentation
11 slides from Magnite's earnings presentation, May 3, 2016
Slide 1: Q1 2016 Financial Highlights
Leading the Automation of Advertising Q1 2016 Financial Highlights May 3, 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, Orders, and buyer cloud businesses. Forward-looking statements are not guarantees of future performance;
Slide 3: Significant Q1 2016 takeaways
Significant Q1 2016 takeaways(1) Non-GAAP Net Revenue(2) increased 71% y-o-y, 1 driven by continued strength in Mobile and RTB 2 Adj. EBITDA(3) increased 269% y-o-y, 24% Adj. EBITDA margin 3 Positive Free Cash Flow(4) of $6.9 million in Q1 2016 (1) Rubicon Project acquired Chango Inc. in late April
Slide 4: Revenue highlights
Revenue highlights Q1 Managed Revenue(1) Q1 GAAP Revenue Q1 Non-GAAP Net Revenue ($MM) ($MM) ($MM) $63.6 $248.5 $69.2 $197.2 $37.2 $37.2 25.6% Primary focus + metric tracked in Wall Street estimates 18.9% Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 TAKE RATE (2) (1) Managed Revenue represents ad
Slide 5: Adjusted EBITDA and EPS highlights
Adjusted EBITDA and EPS highlights Q1 Adjusted EBITDA Q1 Non-GAAP EPS(2) Q1 GAAP EPS (Diluted) ($MM) $0.31 Tax benefit provided an increase to $15.5 Non-GAAP and GAAP EPS in Q1 2016. $0.05 $4.2 24% 11% $0.02 ($0.14) Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1 2016 ADJ. EBITDA MARGIN (1) (1) Adjusted
Slide 6: Cash flow and balance sheet highlights
Cash flow and balance sheet highlights Cash Flow Highlights ($MM) Balance Sheet Highlights ($MM) March 31, December 31, Q1 2016 2016 2015 Financial measure: Financial measure: Net cash provided by $ 10.7 Cash & equivalents $ 136.6 $ 116.5 operating activities Less capital expenditures 3.8 Marketable
Slide 7: Managed revenue by channel, inventory type and geography
Managed revenue by channel, inventory type and geography Managed Revenue Managed Revenue Managed Revenue % by Channel % by Inventory Type % by Geography(1) ($MM) ($MM) ($MM) $248 $248 $248 5% $197 $197 $197 70% 61% 9% 78% 63% 80% 76% 39% 30% 37% 20% 15% 17% Q1 2015 Q1 2016 Q1 2015 Q1 2016 Q1 2015 Q1
Slide 8: Managed revenue and non-GAAP net revenue contribution % by quarter
Managed revenue and non-GAAP net revenue contribution % by quarter Q4 as % of Full Year Average = 32.9% Q2 as % of Full Year Q3 as % of Full Year Q1 as % of Full Year Average = 34.5% Average = 24.6% Average = 22.8% Average: 19.6% Average = 24.8% 37% Average = 22.4% 33% 34% 34% 33% 33% Average: 18.3%
Slide 9: RUBI's complete advertising automation solution and financials are differentiators
RUBI’s complete advertising automation solution and financials are differentiators Criteria: Product and Service Capabilities Other Public Ad Tech? Strong capabilities as top provider in desktop and mobile Independent provider of complete Buyer and Seller solutions(1) None Monetizes all types of ad
Slide 10: Appendix: Net income (loss) to Adjusted EBITDA reconciliation and D&A detail
Appendix: Net income (loss) to Adjusted EBITDA reconciliation and D&A detail Q1 2016 Q1 2015 Financial Measure: ($MM) Net income (loss) $2.3 ($5.0) Add back (deduct): Depreciation and amortization, excluding acquisition of acquired intangible assets 4.6 3.4 Amortization of acquired intangibles 4.0 1
Slide 11: Appendix: reconciliations of GAAP Revenue to Non-GAAP Net Revenue and Net Income
Appendix: reconciliations of GAAP Revenue to Non-GAAP Net Revenue and Net Income (Loss) to Non-GAAP Net Income Reconciliation of GAAP Revenue to Non-GAAP Net Revenue ($MM) Q1 2016 Q1 2015(1) Financial Measure: GAAP revenue $69.2 $37.2 Amounts paid to sellers: $5.6 ̶̶̶̶ Non-GAAP net revenue $63.6 $37