Magnite, Inc. · NASDAQ:MGNI
Magnite — Q3 2024 Earnings Presentation
15 slides from Magnite's earnings presentation, Nov 7, 2024
Slide 1: Financial Highlights Q3 2024
Financial Highlights Q3 2024 November 7, 2024 © 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 on a consistent basis, measure our performance, identify trends affecting our business, establish budgets, measure the effectiveness of investments in our techno
Slide 4: Q3 Highlights
Q3 Highlights → Supported Netflix’s initial programmatic CTV ad launch → Contribution ex-TAC(1) of $149.4 million, up 12% year-over-year → Contribution ex-TAC(1) attributable to CTV of $64.4 million, up 23% year-over-year, exceeded guidance of $62.0 to $64.0 million → Contribution ex-TAC(1) attributa
Slide 5: Recent Wins
Recent Wins → Netflix Selects & Launches with Magnite as Key Global Programmatic Advertising Partner → Disney Two Year Renewal Including Service Expansion → United Selects Magnite's SpringServe to Power Advertising Solution for Inflight Personal Device Entertainment → New ROKU Exchange integrated with
Slide 6: Q4 Guidance
Q4 Guidance → Total Contribution ex-TAC(1) for Q4 2024 to be between $182 million and $186 million → Contribution ex-TAC(1) attributable to CTV to grow approximately 20% year-over-year for Q4 2024 to be between $75 million and $77 million → Contribution ex-TAC(1) attributable to DV+ for Q4 2024 to b
Slide 7: Full-year 2024 Guidance
Full-year 2024 Guidance → Raising Contribution ex-TAC(1) to grow 11%-12% for the full-year 2024 → Raising Adjusted EBITDA margin(2) expansion for 2024 to 150-200 basis points → Raising Adjusted EBITDA(1) growth for 2024 to be above 15% → Raising free cash flow(3) growth to approximately 20% for 2024
Slide 8: Q3 2024 Summary
Q3 2024 Summary Financial Measures ($MM except per share data) Three Months Ended 9/30/2024 9/30/2023 Change Fav / (Unfav) Revenue $162.0 $150.1 8% Gross Profit $99.5 $65.2 53% (1) Contribution ex-TAC $149.4 $133.1 12% Net income (loss) $5.2 ($17.5) NM Adjusted EBITDA(1) $50.6 $40.3 26% Adjusted EBIT
Slide 9: Cash Flow and Balance Sheet Highlights
Cash Flow and Balance Sheet Highlights Operating Cash Flow Highlights ($MM) Balance Sheet Highlights ($MM) Q3 2024 Q3 2023 Sept 30, 2024 Dec 31, 2023 Adjusted EBITDA(1) $50.6 $40.3 Cash & equivalents $387.2 $326.2 Less capital expenditures (10.4) (8.5) Debt $553.8 $536.6 Operating cash flow(2) $40.2
Slide 10: Net Leverage
Net Leverage Note: Net Leverage is calculated as current and non-current debt outstanding less cash & cash equivalents over trailing 4 quarter Adjusted EBITDA. © Magnite | 10
Slide 11: Amortization Schedule
Amortization Schedule Remaining Amortization Schedule for Acquired Intangibles by Period ($MM) Amount Remaining 2024 7.5 2025 14.4 2026 6.0 2027 0.4 Total Remaining Amortization of Acquired Intangibles $28.3 Note: Amounts may not foot due to rounding. © Magnite | 11
Slide 12: Q3 Reconciliation of Net Income (Loss) to Adjusted EBITDA
Q3 Reconciliation of Net Income (Loss) to Adjusted EBITDA Reconciliation of Net Income (Loss) to Adjusted EBITDA ($MM) Q3 2024 Q3 2023 Net income (loss) $5.2 ($17.5) Add back (deduct): Depreciation and amortization expense, excluding amortization of 7.0 9.5 acquired intangible assets Amortization of
Slide 13: Q3 Reconciliation of Net Income (Loss) to Non-GAAP Income
Q3 Reconciliation of Net Income (Loss) to Non-GAAP Income Reconciliation of Net Income (Loss) to Non-GAAP Income ($MM, except per share figures) Q3 2024 Q3 2023 Net income (loss) $5.2 ($17.5) Add back (deduct): Merger, acquisition and restructuring costs, including amortization of 7.5 29.8 acquired i
Slide 14: Contribution Ex-TAC by Channel and Revenue by Geography
Contribution Ex-TAC by Channel and Revenue by Geography Contribution Ex-TAC Split by Channel ($MM) Q3 2024 Q3 2023 CTV Mobile Desktop Total CTV Mobile Desktop Total Contribution ex-TAC $64.4 $59.3 $25.7 $149.4 $52.5 $55.0 $25.7 $133.1 Percent of Total 43% 40% 17% 39% 41% 20% Revenue Split by Geograp
Slide 15: Reconciliation of Revenue to Contribution Ex-TAC
Reconciliation of Revenue to Contribution Ex-TAC Reconciliation of Revenue to Contribution Three Months Ended Three Months Ended Ex-TAC ($MM) Sept 30, 2024 Sept 30, 2023 Revenue $162.0 $150.1 Less: Cost of Revenue 62.5 84.9 Gross Profit 99.5 65.2 Add back: Cost of revenue, excluding TAC 50.0 67.9 Con