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Dec 31, 2024
Magnite Q4 2024 Earnings Report
Magnite reported its financial results for the fourth quarter and full year ended December 31, 2024, showing growth in revenue and profitability.
Key Takeaways
Magnite reported a strong fourth quarter in 2024, with total revenue increasing by 4% and Contribution ex-TAC up by 9% year-over-year. CTV Contribution ex-TAC saw significant growth of 23%, exceeding guidance. The company also achieved a 42% Adjusted EBITDA margin for the quarter.
Total Revenue for Q4 2024 was $194.0 million, an increase of 4% from Q4 2023.
Contribution ex-TAC for Q4 2024 was $180.2 million, up 9% from Q4 2023.
CTV Contribution ex-TAC reached $77.9 million in Q4 2024, a 23% increase year-over-year and exceeding guidance.
Adjusted EBITDA for Q4 2024 was $76.5 million, representing a 42% Adjusted EBITDA margin.
Magnite
Magnite
Forward Guidance
Magnite anticipates continued growth in 2025, with total Contribution ex-TAC expected to grow above 10% and Adjusted EBITDA margin expansion of at least 100 basis points.
Positive Outlook
- Total Contribution ex-TAC for Q1 2025 is expected to be between $140 million and $144 million.
- Contribution ex-TAC attributable to CTV for Q1 2025 is projected to be between $61 million and $63 million.
- Total Contribution ex-TAC growth is expected to be above 10% for the full-year 2025.
- Excluding political, total 2025 Contribution ex-TAC growth is anticipated to be in the mid-teens.
- Adjusted EBITDA margin expansion of at least 100 basis points is expected for 2025.
Challenges Ahead
- DV+ business grew modestly in Q4 due to marketers pausing campaigns after the election.
- The ad spend environment is mixed.
- Political comps are a factor.
- The company continues to balance top-line growth and profitability.
- Key areas of investment will be live sports, ClearLine, agency marketplaces, curation, AI and overall platform efficiency, which may impact short-term profitability.