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Mar 31, 2024

Magnite Q1 2024 Earnings Report

Magnite's first quarter 2024 results were reported, with revenue up 15% and Contribution ex-TAC growing 12% year-over-year. CTV Contribution ex-TAC increased 18% year-over-year.

Key Takeaways

Magnite reported a strong start to 2024, exceeding top-line guidance in Q1. Contribution ex-TAC for CTV significantly surpassed expectations due to live sports and ad serving growth. DV+ also showed solid growth, contributing to overall positive momentum.

Revenue reached $149.3 million, a 15% increase year-over-year.

Contribution ex-TAC totaled $130.6 million, up 12% year-over-year.

CTV Contribution ex-TAC was $54.9 million, reflecting an 18% year-over-year growth and exceeding guidance.

Non-GAAP earnings per share were $0.05, compared to $0.04 in Q1 2023.

Total Revenue
$149M
Previous year: $130M
+14.7%
EPS
$0.05
Previous year: $0.04
+25.0%
Adjusted EBITDA
$25M
Previous year: $23.3M
+7.3%
Gross Profit
$83.4M
Previous year: $5.3M
+1473.6%
Cash and Equivalents
$253M
Previous year: $237M
+6.9%
Free Cash Flow
-$66.3M
Previous year: -$35.3M
+87.8%
Total Assets
$2.45B
Previous year: $2.43B
+1.0%

Magnite

Magnite

Magnite Revenue by Segment

Forward Guidance

Magnite expects continued growth in Q2 2024, with Contribution ex-TAC between $142 million and $146 million, and CTV Contribution ex-TAC between $59 million and $61 million. The company anticipates full-year Contribution ex-TAC growth of at least 10% and Adjusted EBITDA margin expansion.

Positive Outlook

  • Total Contribution ex-TAC for Q2 2024 to be between $142 million and $146 million
  • Contribution ex-TAC attributable to CTV for Q2 2024 to be between $59 million and $61 million
  • Contribution ex-TAC attributable to DV+ for Q2 2024 to be between $83 million and $85 million
  • Raising Contribution ex-TAC to now grow at least 10% for the full-year 2024, with CTV growing faster than DV+
  • Increasing Adjusted EBITDA margin expansion for 2024 to 100-150 basis points

Challenges Ahead

  • Adjusted EBITDA operating expenses for Q2 2024 to be between $101 million and $103 million
  • Total capital expenditures for 2024 to be in the mid to high $40 million range
  • Net loss of $17.8 million
  • Basic and diluted loss per share of $0.13
  • Decrease in cash and cash equivalents from $326,219 to $252,834

Revenue & Expenses

Visualization of income flow from segment revenue to net income