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Magnite Inc (MGNI) Q4 2024 Earnings Call Highlights: Record Growth in CTV and Strong Financial ...

In This Article:

  • Contribution ex-TAC: $607 million for the full year 2024.

  • Processed Ad Spend: Over $6 billion.

  • Adjusted EBITDA: $197 million for the full year 2024.

  • Free Cash Flow: $118 million for the full year 2024.

  • CTV Contribution ex-TAC: $78 million in Q4, up 23% year over year.

  • DV+ Contribution ex-TAC: $102 million in Q4, up 1% year over year.

  • Total Revenue: $194 million in Q4, up 4% from Q4 2023.

  • Net Income: $36 million for Q4 2024.

  • GAAP Earnings Per Share: $0.24 for Q4 2024.

  • Non-GAAP Earnings Per Share: $0.34 for Q4 2024.

  • Operating Cash Flow: $64 million for Q4 2024.

  • Cash Balance: $483 million at the end of Q4 2024.

  • Capital Expenditures: $12 million for Q4 2024, $52 million for the full year.

  • Net Leverage Ratio: 0.4x at the end of Q4 2024.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Magnite Inc (NASDAQ:MGNI) exceeded top-line guidance growth in Connected TV (CTV) for Q4, with a 23% year-over-year increase in CTV contribution ex-TAC.

  • The company achieved record highs in contribution ex-TAC of $607 million, adjusted EBITDA of $197 million, and free cash flow of $118 million for the year.

  • Magnite Inc (NASDAQ:MGNI) reported strong growth from major partners like Roku, LG, Vizio, Walmart, Disney, Fox, Warner, Discovery, and Paramount, with Netflix continuing to ramp up.

  • The company is optimistic about its AI initiatives, which include new client-facing tools powered by generative AI to enhance operational efficiencies and drive value for partners.

  • Magnite Inc (NASDAQ:MGNI) has a robust capital structure, ending the year with $483 million in cash and a net leverage ratio reduced to 0.4x.

Negative Points

  • The DV+ business experienced a disappointing Q4 with only 1% contribution ex-TAC growth due to unusual post-election spend patterns.

  • There was a significant drop in CPMs in the DV+ business post-election, leading to underperformance compared to expectations.

  • The company faced soft vertical demand in DV+ across 13 of the 18 categories tracked, with notable pullbacks in consumer categories, health and fitness, retail, automotive, and food and beverage.

  • Magnite Inc (NASDAQ:MGNI) anticipates a slowdown in CTV growth in Q1 2025, reflecting typical seasonal patterns.

  • The company faces competitive challenges from initiatives like Trade Desk's OpenPath, which could impact the SSP landscape.

Q & A Highlights

Q: Can you provide context on the expected slowdown in Connected TV (CTV) for Q1 2025? A: David Day, CFO, explained that Q1 is typically a low point for year-to-year growth in CTV. However, they are seeing a nice rebound in DV+ with growth in the mid to high single digits, which is running nicely.