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Dec 31, 2023

Magnite Q4 2023 Earnings Report

Magnite's Q4 2023 earnings were reported, with revenue up 7% and Contribution ex-TAC up 6%.

Key Takeaways

Magnite reported a strong fourth quarter with both CTV and DV+ revenue exceeding the high end of guidance. Total revenue was $186.9 million, up 7% year-over-year, and Contribution ex-TAC was $165.3 million, up 6% year-over-year.

Revenue for Q4 2023 reached $186.9 million, a 7% increase compared to Q4 2022.

Contribution ex-TAC for Q4 2023 was $165.3 million, exceeding guidance and up 6% from Q4 2022.

Net income for Q4 2023 was $30.9 million, or $0.16 per diluted share, compared to a net loss of $36.4 million in Q4 2022.

Adjusted EBITDA for Q4 2023 was $70.4 million, representing a 43% Adjusted EBITDA margin, compared to $64.2 million and 41% margin in Q4 2022.

Total Revenue
$187M
Previous year: $175M
+6.6%
EPS
$0.29
Previous year: $0.24
+20.8%
Gross Profit
$117M
Previous year: $64.4M
+81.6%
Cash and Equivalents
$326M
Previous year: $326M
+-0.0%
Free Cash Flow
$79.5M
Previous year: $75.9M
+4.7%
Total Assets
$2.69B
Previous year: $2.71B
-0.9%

Magnite

Magnite

Magnite Revenue by Segment

Forward Guidance

The company expects Total Contribution ex-TAC for Q1 2024 to be between $122 and $126 million, with CTV Contribution ex-TAC between $49 and $51 million, and DV+ Contribution ex-TAC between $73 and $75 million. They anticipate approximately 10% Total Contribution ex-TAC growth for the full-year 2024, with CTV growing faster than DV+, and Adjusted EBITDA margin expansion of 100 basis points for 2024.

Positive Outlook

  • Total Contribution ex-TAC for Q1 2024 to be between $122 and $126 million
  • Contribution ex-TAC attributable to CTV for Q1 2024 to be between $49 and $51 million
  • Contribution ex-TAC attributable to DV+ for Q1 2024 to be between $73 and $75 million
  • Total Contribution ex-TAC growth of approximately 10% for the full-year 2024, with CTV growing faster than DV+
  • Adjusted EBITDA margin expansion of 100 basis points for 2024

Challenges Ahead

  • Adjusted EBITDA operating expenses for Q1 2024 to be between $106 and $108 million
  • Adjusted EBITDA operating expenses for Q2 2024 to be between $101 and $103 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income