Magnite (MGNI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 7% year-over-year to $162.9 million, with Contribution ex-TAC up 9% to $146.8 million and CTV Contribution ex-TAC up 12% to $63.0 million, exceeding guidance.

• Adjusted EBITDA rose 20% year-over-year to $44.7 million (30% margin), and net loss narrowed to $1.1 million from $73.9 million in Q2 2023.

• Major new and expanded partnerships include Netflix, United Airlines, Roku, Amazon Ads, Mediaocean, Spectrum Reach, and TELUS.

• Strategic investments in programmatic CTV, AI-driven features, and self-service platforms are driving differentiation and growth.

• No merger, acquisition, or restructuring costs incurred in 2024; prior year included $7.5 million related to platform consolidation.

Financial highlights

• Q2 2024 revenue: $162.9 million (+7% year-over-year); Contribution ex-TAC: $146.8 million (+9%); Adjusted EBITDA: $44.7 million (+20%).

• CTV Contribution ex-TAC: $63.0 million (+12% year-over-year); DV+: $83.8 million (+7% year-over-year).

• Net loss: $1.1 million, a 99% improvement from Q2 2023; Non-GAAP EPS: $0.14, up from $0.09.

• Operating cash flow: $29.6 million for Q2; cash and equivalents at quarter end: $326.5 million.

• Gross profit surged to $100.3 million in Q2 2024, up 348% year-over-year.

Outlook and guidance

• Q3 2024 Contribution ex-TAC expected at $146–$150 million; CTV at $62–$64 million (up 18–22% YoY); DV+ at $84–$86 million.

• Adjusted EBITDA margin for Q3 projected at ~31%; Q3 operating expenses forecasted at $101–$103 million.

• Full-year 2024 guidance: Contribution ex-TAC to grow at least 10%, CTV outpacing DV+, and positive GAAP net income and EPS expected.

• Full-year adjusted EBITDA margin to expand 100–150 bps, with mid-teens adjusted EBITDA growth and higher free cash flow.

• Capital expenditures for 2024 estimated at $50 million.