Magnite, Inc. · NASDAQ:MGNI
Magnite — Rubicon Project — Q2 2017 Earnings Presentation
12 slides from Magnite's earnings presentation, Aug 1, 2017
Slide 1: Rubicon Project Q2 2017 Financial Highlights
RUBICON PROJECT Q2 2017 FINANCIAL HIGHLIGHTS AUGUST 1, 2017 0 | CONFIDENTIAL. COPYRIGHT RUBICON PROJECT 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, including the impact of our acquisition of nToggle and its traffic shaping technology on our business. Forward-looking statements are not guarantees of futu
Slide 3: Strategy Update
Strategy Update Key Elements & Initiatives: • Increase market share of supply – Increased 50% in last year • Integrating and implementing server-side header bidding solutions • Onboarding new seller clients across desktop, mobile app, video, and emerging media such as digital out of home • Manage hi
Slide 4: nToggle Acquisition: Technology Shaping Inventory Beyond What's Humanly Possible
nToggle Acquisition: Technology Automated Shaping by Employing Machine Learning Shaping Inventory Beyond What’s Humanly Possible • Algorithmically shapes inventory to maximize bid & win rates • Automates traffic rules using bid and win patterns • Creates 100,000s of precise rules to pinpoint valuabl
Slide 5: nToggle Acquisition: Deal Highlights
nToggle Acquisition: Deal Highlights • Paid $38.5m in cash transaction • Boston based team of 23 – mostly data scientists / engineers • Planned deployment & integration in 6 months • Financial Details / Benefits • Increase share of wallet • Raise fill rates • Improve capex efficiency • 2H 2017 modes
Slide 6: Q2 2017 Summary
Q2 2017 SUMMARY Financial Measures Three Months Ended 6/30/2017 6/30/2016 Change GAAP revenue $42.9 M $70.5 M (39)% Mobile GAAP revenue $19.2 M $24.4 M (21)% Desktop GAAP revenue $23.7 M $46.1 M (49)% Non-GAAP net revenue(1) $42.9 M $65.1 M (34)% Advertising spend(2) $204.4 M $257.4 M (21)% Mobile a
Slide 7: Cash Flow and Balance Sheet Highlights
CASH FLOW AND BALANCE SHEET HIGHLIGHTS Cash Flow Highlights Balance Sheet Highlights ($MM) ($MM) June 30, December 31, YTD YTD 2017 2016 June 30, 2017 June 30, 2016 Financial measure: Financial measure: Net cash provided by $12.8 $33.3 Cash & equivalents $165.2 $149.4 operating activities Less capit
Slide 8: Depreciation & Amortization / Amortization Schedule
DEPRECIATION & AMORTIZATION / AMORTIZATION SCHEDULE Income Statement includes Depreciation and Amortization as follows: ($MM) Q2 2017 Q2 2016 Cost of revenue $ 8.0 $ 6.7 Sales and marketing 0.3 2.0 Technology and development 0.3 0.6 General and administrative 0.2 0.5 Total Depreciation and Amortizat
Slide 9: 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 Reconciliation of Net Income (Loss) to Adjusted EBITDA ($MM) Q2 2017 Q2 2016 Financial Measure: ($MM) Net income (loss) ($11.6) ($2.7) Add back (deduct): Depreciation and amortization, excluding acquisition o
Slide 10: Reconciliations of GAAP Revenue to Non-GAAP Net Revenue & Net Income (Loss)
RECONCILIATIONS OF GAAP REVENUE TO NON-GAAP NET REVENUE & NET INCOME (LOSS) TO NON-GAAP NET INCOME Reconciliation of GAAP Revenue to Non-GAAP Net Revenue ($MM) Q2 2017 Q2 2016 Financial Measure: GAAP revenue $42.9 $70.5 Less amounts paid to sellers reflected in cost of revenue(1) - $5.4 Non-GAAP net
Slide 11: Additional Reconciliations of Non-GAAP Financial Measures to GAAP
ADDITIONAL RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP Revenue & Advertising Spend Split by Channel Q2 2017 Q2 2016 Financial Measure: ($MM) Mobile Desktop Total Mobile Desktop Total GAAP Revenue $19.2 $23.7 $42.9 $24.4 $46.1 $70.5 Plus amounts paid to sellers(1) 66.7 94.8 161.5 60.6 126.
Slide 12: Revenue Highlights As Adjusted: Excluding Static and Intent Marketing
REVENUE HIGHLIGHTS AS ADJUSTED: EXCLUDING STATIC AND INTENT MARKETING(1) Key Metrics As Adjusted: Three Months Ended Excluding Static and Intent Marketing(1) 6/30/2017 6/30/2016 Change GAAP revenue(2) $42.2 M $59.4 M (29)% Non-GAAP net revenue(2) $42.2 M $59.4 M (29)% Advertising spend $203.7 M $237