Magnite (MGNI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 8% year-over-year to $162.0 million, with Contribution ex-TAC up 12% to $149.4 million and Adjusted EBITDA rising 26% to $50.6 million (34% margin).

• Net income reached $5.2 million, reversing a net loss of $17.5 million in Q3 2023; non-GAAP EPS was $0.17, up from $0.12.

• CTV contribution ex-TAC grew 23% year-over-year to $64.4 million, driven by increased ad spend, programmatic adoption, and key partnerships with Netflix and Disney.

• Supported Netflix's initial programmatic CTV ad launch and secured major renewals and partnerships, including Disney.

• Cost of revenue declined 26% due to lower depreciation/amortization and traffic acquisition costs, while operating expenses were well managed.

Financial highlights

• Q3 2024 revenue: $162.0 million (up 8% year-over-year); Contribution ex-TAC: $149.4 million (up 12%); CTV: $64.4 million (up 23%); DV+: $85.0 million (up 5%).

• Adjusted EBITDA for Q3 2024: $50.6 million (34% margin), up from $40.3 million (30% margin) in Q3 2023.

• Net income for Q3 2024: $5.2 million; basic and diluted EPS: $0.04, compared to $(0.13) in Q3 2023.

• Operating cash flow for Q3 was $40.2 million; cash and equivalents at quarter-end were $387.2 million.

• Gross profit for Q3 was $99.5 million, up from $65.2 million in Q3 2023; gross margin improved to 61%.

Outlook and guidance

• Q4 2024 Contribution ex-TAC expected between $182–186 million; CTV to grow ~20% year-over-year to $75–77 million.

• Full-year 2024 Contribution ex-TAC growth raised to 11–12%; Adjusted EBITDA margin expansion to 150–200 bps; Adjusted EBITDA to grow over 15% year-over-year.

• Free cash flow growth for 2024 raised to ~20%; CapEx to exceed $50 million; positive GAAP net income and EPS expected for 2024.

• Expectation of stable cash flows from operations and flat investing activity for the rest of 2024.

• Cost of revenue, technology and development, and general and administrative expenses projected to remain relatively flat; sales and marketing to increase.