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Sep 30, 2024

Magnite Q3 2024 Earnings Report

Reported revenue increased and net income improved year-over-year, driven by growth in CTV and DV+ segments.

Key Takeaways

Magnite reported strong Q3 2024 results, with revenue up 8% year-over-year and Contribution ex-TAC up 12% year-over-year. The company supported Netflix's initial programmatic CTV ad launch and saw growth in both CTV and DV+ segments. Net income improved significantly compared to the previous year.

Revenue grew by 8% year-over-year, reaching $162.0 million.

Contribution ex-TAC increased by 12% year-over-year, amounting to $149.4 million.

CTV Contribution ex-TAC grew by 23% year-over-year, totaling $64.4 million.

Net income was $5.2 million, a significant improvement from the net loss of $17.5 million in Q3 2023.

Total Revenue
$162M
Previous year: $150M
+7.9%
EPS
$0.17
Previous year: $0.12
+41.7%
Adjusted EBITDA
$50.6M
Previous year: $40.3M
+25.5%
Gross Profit
$99.5M
Previous year: $65.2M
+52.5%
Cash and Equivalents
$387M
Previous year: $311M
+24.7%
Free Cash Flow
$77.3M
Previous year: $77.7M
-0.4%
Total Assets
$2.74B
Previous year: $2.45B
+12.0%

Magnite

Magnite

Magnite Revenue by Segment

Forward Guidance

The company expects Total Contribution ex-TAC for Q4 2024 to be between $182 million and $186 million and Adjusted EBITDA operating expenses for Q4 2024 to be between $102 million and $104 million.

Positive Outlook

  • 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(5) growth to approximately 20% for 2024
  • Net income and earnings per share to be positive for 2024 on a GAAP basis

Revenue & Expenses

Visualization of income flow from segment revenue to net income