Magnite, Inc. · NASDAQ:MGNI
Magnite — Rubicon Project — Q4 2016 Earnings Presentation
15 slides from Magnite's earnings presentation, Mar 14, 2017
Slide 1: Q4 and FY 2016 Financial Highlights
RUBICON PROJECT Q4 AND FY 2016 FINANCIAL HIGHLIGHTS MARCH 14, 2017
Slide 2: Safe Harbor: Forward-Looking Statements
SAFE HARBOR Forward-Looking Statements These materials include forward-looking statements concerning or implying growth trends or expectations. Forward-looking statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptio
Slide 3: Q4 & FY 2016 Summary
Q4 & FY 2016 SUMMARY Financial Measures Three Months Ended Fiscal Year Ended 12/31/2016 12/31/2015 Change 12/31/2016 12/31/2015 Change GAAP revenue $72.7 M $94.0 M (23)% $278.2 M $248.5 M 12% Mobile GAAP revenue $26.9 M $32.0 M (16)% $96.8 M $71.3 M 36% Desktop GAAP revenue $45.8 M $62.0 M (26)% $18
Slide 4: Revenue Highlights
REVENUE HIGHLIGHTS GAAP Revenue Non-GAAP Net Revenue Advertising Spend ($MM) ($MM) ($MM) $278.2 $1,025.8 $1,004.8 $256.1 $248.5 $227.3 $94.0 $336.0 $83.7 $72.7 $277.1 $66.9 25.0% 22.6% 24.9% 24.1% Q4 FY Q4 FY Q4 FY 2015 2016 Take Rate (1) 4 (1) Take rate represents non-GAAP net revenue divided by ad
Slide 5: Revenue Highlights As Adjusted: Excluding Static and Intent Marketing
REVENUE HIGHLIGHTS AS ADJUSTED: EXCLUDING STATIC AND INTENT MARKETING(1) GAAP Revenue (2) Non-GAAP Net Revenue (2) Advertising Spend ($MM) ($MM) ($MM) $955.1 $888.9 $234.6 $234.6 $200.4 $200.4 $300.4 $75.0 $75.0 $266.0 $62.4 $62.4 24.6% 22.5% 25.0% 23.5% Q4 FY Q4 FY Q4 FY 2015 2016 Take Rate (3) (1)
Slide 6: Net Income (Loss) and Adjusted EBITDA
NET INCOME (LOSS) AND ADJUSTED EBITDA GAAP Net Income (Loss) Adjusted EBITDA ($MM) ($MM) $70.9 $20.4 $26.8 MM $59.5 impairment & restructuring in Q4 2016 $0.4 $36.0 Q4 2015 Q4 2016 2015 2016 $21.7 28% 26% ($18.1) 43% ($21.2) 32% Q4 2015 Q4 2016 2015 2016 2015 2016 Adj. EBITDA Margin (1) 6 (1) Adjust
Slide 7: EPS Highlights
EPS HIGHLIGHTS GAAP EPS (Diluted) Non-GAAP EPS ($MM) ($MM) $3.3 MM restructuring in Q4 2016 $0.43 $26.8 MM impairment & restructuring in Q4 2016 $1.07 $0.98 $0.01 $0.74 Q4 2015 Q4 2016 2015 2016 $0.37 ($0.39) ($0.44) Axis Title Q4 2015 Q4 2016 2015 2016 2015 2016 7
Slide 8: Advertising Spend by Channel & Geography
ADVERTISING SPEND BY CHANNEL & GEOGRAPHY Advertising Spend Advertising Spend % by Channel % by Geography(1) ($MM) ($MM) $1,005 $1,026 $1,005 $1,026 67% 63% 74% 65% $336 $336 $277 $277 69% 66% 64% 33% 67% 35% 37% 26% 31% 36% 34% 33% Q4 2015 Q4 2016 2015 2016 Q4 2015 Q4 2016 2015 2016 Mobile Desktop I
Slide 9: Advertising Spend by Channel: 2014-2016
ADVERTISING SPEND BY CHANNEL: 2014-2016 Advertising Spend by Channel: Quarterly ($MM) $336.0 $277.1 $248.5 $257.4 $244.4 $242.8 $216.5 $227.2 $197.2 232.0 $168.2 178.2 $153.5 172.4 174.7 159.5 $129.6 180.8 176.6 173.9 158.1 138.4 129.5 112.0 104.0 98.9 73.8 85.0 83.3 50.6 63.6 29.8 42.6 39.1 17.6 24
Slide 10: Cash Flow and Balance Sheet Highlights
CASH FLOW AND BALANCE SHEET HIGHLIGHTS Cash Flow Highlights Balance Sheet Highlights ($MM) ($MM) 2016 2015 December 31, December 31, Financial measure: 2016 2015 Net cash provided by $60.1 $76.8 Financial measure: operating activities Less capital expenditures 33.4 28.4 Cash & equivalents $149.4 $11
Slide 11: Appendix
AUTOMATION APPENDIX LA,
Slide 12: Depreciation & Amortization / Amortization Schedule
DEPRECIATION & AMORTIZATION / AMORTIZATION SCHEDULE Income Statement Includes Depreciation and Amortization as follows: ($MM) Q4 2016 Q4 2015 2016 2015 Cost of revenue $ 9.2 $5.3 $28.9 $19.3 Add in new Sales and marketing 2.7 2.1 9.0 8.2 Technology and development 0.9 0.6 2.8 1.8 General and adminis
Slide 13: Reconciliations of Net Income (Loss) to Adjusted EBITDA & GAAP Revenue to Advertising Spend
RECONCILIATIONS OF NET INCOME (LOSS) TO ADJUSTED EBITDA & GAAP REVENUE TO ADVERTISING SPEND Q4 2016 Q4 2015 2016 2015 Financial Measure: ($MM) Net income (loss) ($21.2) $20.4 ($18.1) $ 0.4 Add back (deduct): Depreciation and amortization, excluding acquisition of acquired intangible assets 7.2 3.9 2
Slide 14: Reconciliations of GAAP Revenue to Non-GAAP Net Revenue & Net Income to Non-GAAP Net Income
RECONCILIATIONS OF GAAP REVENUE TO NON-GAAP NET REVENUE & NET INCOME (LOSS) TO NON-GAAP NET INCOME Reconciliation of GAAP Revenue to Non-GAAP Net Revenue ($MM) Q4 2016 Q4 2015 2016 2015 Financial Measure: GAAP revenue $72.7 $94.0 $278.2 $248.5 Less amounts paid to sellers reflected in cost of revenu
Slide 15: Additional Reconciliations of Non-GAAP Financial Measures to GAAP
ADDITIONAL RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP 2015 2016 Financial Measure: ($MM) Mobile GAAP Revenue $71.3 $96.8 Plus amounts paid to Mobile sellers(1) 185.9 244.2 Mobile Advertising Spend $257.2 $341.0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Financial Measure: ($MM) FastLane GAAP R