Magnite, Inc. · NASDAQ:MGNI
Magnite — Q4 2015 Earnings Presentation
15 slides from Magnite's earnings presentation, Feb 23, 2016
Slide 1: Q4 and FY 2015 Financial Highlights
Leading the Automation of Advertising Q4 and FY 2015 Financial Highlights February 23, 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: Highlights for Q4 2015 and FY 2015
Highlights for Q4 2015 and FY 2015(1) Q4 2015 Highlights FY 2015 Highlights 100% YoY $36 M $59.5 M Growth in Non- Adj. EBITDA(3) Adj. EBITDA(3) $48.4 M GAAP Net Revenue(2) Free Cash Flow (Guidance $20M-$21M) (Guidance $43M-$44M) $20.4 M $1.08 43% GAAP Net Income Non-GAAP EPS(4) 26% Adj. EBITDA Adj.
Slide 4: Key business trends
Key business trends Increased use of RUBI’s complete advertising automation solution by Buyer 1 and Seller customers Mobile continues to grow rapidly, increasing to 31% of RUBI Managed Revenue(1) 2 in Q4 2015 from 26% in Q3 and 20% in Q4 2014 3 RTB growth remains strong, contributing to RUBI’s 100%
Slide 5: Revenue highlights
Revenue highlights Managed Revenue GAAP Revenue Non-GAAP Net Revenue ($MM) ($MM) $248.5 ($MM) $1,004.8 $227.3 $667.8 $125.3 $125.3 $94.0 $83.7 $336.0 $216.5 18.8% 22.6% $41.8 $41.8 19.3% 24.9% Primary focus + metric tracked in Wall Street estimates Fourth Quarter Full Year Fourth Quarter Full Year F
Slide 6: Adjusted EBITDA highlights
Adjusted EBITDA highlights Q4 and Full-Year Adjusted EBITDA Progress on Adjusted EBITDA Margin ($MM) ($MM) 30 to 35% $59.5 26% $36.0 15% 13% $19.1 $13.3 Fourth Quarter Full Year FY 2013 FY 2014 FY 2015 Target Model 2014 2015 6
Slide 7: Q4 2015 was an extraordinary quarter on all counts
Q4 2015 was an extraordinary quarter on all counts Quarterly Non-GAAP Net Revenue $83.7 Quarterly Adjusted EBITDA ($MM) ($MM) $36.0 $57.9 RUBI’s quarterly revenues and Adj. EBITDA reflect advertising $48.5 industry seasonality with Q4 being highest $41.8 $37.2 $32.2 $28.1 $28.3 $13.3 $12.6 $23.0 $20
Slide 8: EPS highlights: first full year of GAAP positive net income and GAAP EPS
EPS highlights: first full year of GAAP positive net income and GAAP EPS Q4 and Full-Year Non-GAAP EPS Q4 and Full-Year GAAP EPS (Diluted) ($MM) ($MM) $0.43 $1.08 $0.04 $0.01 $0.72 Fourth Quarter Full Year $0.25 $0.20 Fourth Quarter Full Year ($0.70) 2014 2015 2014 2015 8
Slide 9: Cash flow highlights: 2015 marks significant improvement in Free Cash Flow
Cash flow highlights: 2015 marks significant improvement in Free Cash Flow FY 2014 FY 2015 ($MM) ($MM) $76.8 $48.4 $6.7 ($12.8) ($19.5) ($28.4) Net Cash Provided by Operating Activities Capex Free Cash Flow 9
Slide 10: Managed revenue by channel, inventory type and geography
Managed revenue by channel, inventory type and geography Managed Revenue % by Channel Managed Revenue % by Inventory Type Managed Revenue % by Geography(1) ($MM) $336 ($MM) $336 ($MM) $336 5% 69% 66% $216 $216 $216 10% 77% 61% 80% Intl % decrease due to addition and growth of Buyer Cloud, which is c
Slide 11: Complete advertising automation solution and financials are differentiators
Complete advertising automation solution and financials are differentiators Criteria: Product and Service Capabilities Other Public Ad Tech? Strong capabilities as top provider in desktop and mobile Independent provider of complete Buyer and Seller solutions(1) None Monetizes all types of ad invento
Slide 12: Balance sheet highlights
Balance sheet highlights 12/31/2015 12/31/2014 Financial measure: ($MM) Cash & equivalents $ 116.5 $ 97.2 Marketable securities 36.7 ˗ Total cash and liquid assets $ 153.2 $ 97.2 Debt and capital lease obligations $ Nil $ 0.1 12
Slide 13: Appendix: reconciliation of Net Income (Loss) to Adjusted EBITDA
Appendix: reconciliation of Net Income (Loss) to Adjusted EBITDA Q4 Q4 FY FY 2015 2014 2015 2014 Financial Measure: ($MM) Net Income (Loss) $20.4 $1.4 $0.4 ($18.7) Add back (deduct): Depreciation & amortization expense, excluding amortization of acquired 3.9 3.9 15.3 11.6 intangible assets Amortizat
Slide 14: Appendix: reconciliations of GAAP Revenue to Non-GAAP Net Revenue and Net Income
Appendix: reconciliations of GAAP Revenue to Non-GAAP Net Revenue and Net Income (Loss) Attributable to Common Stockholders to Non-GAAP Net Income Q4 2015 Q3 2015 Q2 2015 FY 2015 Financial Measure: ($MM) GAAP Revenue $94.0 $64.3 $53.0 $248.5 Less amounts paid to sellers: 10.3 6.4 4.5 21.2 Non-GAAP N
Slide 15: Appendix: depreciation and amortization
Appendix: depreciation and amortization Income statement includes depreciation Q4 2015 Q4 2014 FY 2015 FY 2014 and amortization as follows: ($MM) Cost of revenue $5.3 $3.7 $19.3 $10.5 Sales and marketing $2.1 $0.3 $8.2 $0.7 Technology and development $0.6 $0.2 $1.8 $0.8 General and administrative $0