Magnite, Inc. (NASDAQ:MGNI) Q2 2021 Earnings Conference Call August 5, 2021 4:30 PM ET Company Participants Nick Kormeluk ??? Head-Investor Relations Michael Barrett ??? Chief Executive Officer David Day ??? Chief Financial Officer Conference Call Participants Shyam Patil ??? SIG Jason Kreyer ??? Craig-Hallum Nick Zangler ??? Stephens Vasily Karasyov ??? Cannonball Research Matt Thornton ??? Truist Shweta Khajuria ??? Evercore ISI Matt Swanson ??? RBC Capital Markets Operator Good afternoon, and welcome to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 10-Q __________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-36384 __________________ MAGNITE, INC. (Exac ...

Magnite, Inc. (NASDAQ:MGNI) Q1 2021 Earnings Conference Call May 10, 2021 4:30 PM ET Company Participants Nick Kormeluk - Head of Investor Relations Michael Barrett - President and Chief Executive Officer David Day - Chief Financial Officer Conference Call Participants Laura Martin - Needham & Company Jason Kreyer - Craig-Hallum Capital Group LLC Shyam Patil - Susquehanna International Group, LLP Nicholas Zangler - Stephens Inc Vasily Karasyov - Cannonball Research Matthew Thornton - Truist Securities Opera ...

Magnite ø Financial Highlights Qø ù÷ùø May ø÷, ù÷ùø CONFIDENTIAL | © MAGNITE © MAGNITE Safe Harbor FORWARD-LOOKING STATEMENTS This presentation and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________ FORM 10-Q __________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-36384 __________________ MAGNITE, INC. (Exa ...

Magnite ø Financial Highlights Qû ù÷ù÷ February ùû, ù÷ùø CONFIDENTIAL | © MAGNITE © MAGNITE Safe Harbor FORWARD-LOOKING STATEMENTS This presentation and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by t ...

Magnite, Inc. (NASDAQ:MGNI) Q4 2020 Earnings Conference Call February 24, 2021 4:30 PM ET Company Participants Nick Kormeluk - Head of Investor Relations Michael Barrett - President and Chief Executive Officer David Day - Chief Financial Officer Conference Call Participants Laura Martin - Needham Jason Kreyer - Craig-Hallum Shyam Patil - Susquehanna Vasily Karasyov - Cannonball Research Kyle Evans - Stephens Matthew Thornton - TRUIST Securities Operator Good afternoon, and welcome to the Magnite Fourth Quar ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) Magnite operates a sell-side advertising platform, expanding through mergers and focusing on CTV while navigating competition and privacy changes - On **April 1, 2020**, the company completed a stock-for-stock merger with **Telaria, Inc.**, creating what is believed to be the **world's largest independent sell-side advertising platform**[20](index=20&type=chunk) - On **February 4, 2021**, Magnite entered into an agreement to acquire **SpotX, Inc.** for **$560 million** in cash and **14 million shares** of common stock, expected to create the **largest independent CTV and video advertising platform**[21](index=21&type=chunk) - The **COVID-19 pandemic** negatively affected revenue in the **first half of 2020** due to reduced advertising budgets, but trends improved significantly in the **third and fourth quarters** with a return to positive growth[26](index=26&type=chunk) - The company is actively developing and supporting open identity solutions through **Prebid.org** and other industry initiatives to address the elimination of **third-party cookies** by major platforms like Google and Apple[40](index=40&type=chunk) Revenue by Channel (2020) | Channel | Revenue (in thousands) | Percentage of Total | | :--- | :--- | :--- | | CTV | $ 34,319 | 15% | | Desktop | $ 78,956 | 36% | | Mobile | $ 108,353 | 49% | | **Total** | **$ 221,628** | **100%** | [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the SpotX acquisition, ongoing COVID-19 impacts, intense competition, evolving data privacy regulations, and reliance on key buyers - The completion of the **SpotX acquisition** is subject to customary closing conditions, including regulatory approvals, and failure to complete it could materially adversely affect the company's stock price and financial condition[110](index=110&type=chunk)[111](index=111&type=chunk) - The **COVID-19 pandemic** has adversely affected economies and caused advertisers to reduce budgets, directly impacting the company's revenue, with its duration and severity remaining highly uncertain[126](index=126&type=chunk)[127](index=127&type=chunk)[129](index=129&type=chunk) - The industry's move to phase out **third-party cookies by 2022** poses a significant risk, as the development and adoption of new identity solutions may disrupt the ecosystem and cause platform performance to decline[174](index=174&type=chunk) - Evolving and stringent data privacy laws, such as the **GDPR** in Europe and the **CCPA/CPRA** in California, create significant compliance costs and risks of enforcement actions, which could adversely affect the business model[176](index=176&type=chunk)[178](index=178&type=chunk)[181](index=181&type=chunk) - The company relies on a concentrated number of buyers, with **two buyers** indirectly contributing to approximately **40% of revenue** in 2020, making the company vulnerable if these relationships are reduced[204](index=204&type=chunk) [Unresolved Staff Comments](index=42&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - None[262](index=262&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) The company's corporate headquarters are in Los Angeles, with a new lease commencing in May 2021, and it maintains additional global offices and data centers - Corporate headquarters are located in **Los Angeles, California**, with a new lease for **38,754 square feet** beginning in **May 2021** and expiring in **April 2031**[263](index=263&type=chunk)[264](index=264&type=chunk) - The company maintains **two offices in New York** with leases expiring in **2029** and **2030**, along with additional facilities in North America, South America, Europe, Australia, and Asia[264](index=264&type=chunk)[265](index=265&type=chunk) [Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings but anticipates no material adverse effect on its financial condition as of December 31, 2020 - The company is subject to routine legal proceedings but does not believe any pending matters will have a **material adverse effect** on its financial condition as of **December 31, 2020**[266](index=266&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - Not applicable[268](index=268&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=44&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Magnite's common stock moved to Nasdaq in June 2020, and the company has never paid or anticipates paying dividends in the foreseeable future - On **June 8, 2020**, the company voluntarily delisted from the **NYSE** and began trading on **The Nasdaq Global Select Market**, changing its name to **Magnite, Inc.** and its ticker symbol to **'MGNI'** on **June 30, 2020**[270](index=270&type=chunk) - The company has never declared or paid any cash dividends and does not plan to in the foreseeable future, with its credit facility also containing restrictions on dividend payments[272](index=272&type=chunk) [Selected Financial Data](index=45&type=section&id=Item%206.%20Selected%20Financial%20Data) Selected financial data shows revenue growth to **$221.6 million** in 2020, alongside a widened net loss of **$53.4 million**, with total assets significantly increasing to **$939.0 million** due to the Telaria merger Selected Financial Data (in thousands) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | Revenue | $221,628 | $156,414 | $124,685 | | Loss from operations | $(54,234) | $(27,583) | $(63,608) | | Net loss | $(53,432) | $(25,478) | $(61,822) | | Total assets | $938,960 | $395,120 | $360,012 | | Total liabilities | $557,347 | $283,184 | $241,999 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a **42%** revenue increase to **$221.6 million** in 2020, a widened net loss of **$53.4 million** due to merger costs, and strong liquidity with **$117.7 million** in cash Results of Operations (in thousands) | | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | $221,628 | $156,414 | | Loss from operations | $(54,234) | $(27,583) | | Net loss | $(53,432) | $(25,478) | | Adjusted EBITDA | $43,065 | $25,694 | - Revenue increased by **$65.2 million (42%)** in 2020, primarily due to the **Telaria merger** which contributed **$60.1 million**, with overall growth significantly impacted by the **COVID-19 pandemic**[308](index=308&type=chunk) - Total expenses increased by **50%** to **$275.9 million** in 2020, driven by costs from the **Telaria merger**, including a **$31.5 million** increase in sales and marketing (including amortization of acquired intangibles) and **$17.6 million** in merger and restructuring costs[306](index=306&type=chunk)[316](index=316&type=chunk)[326](index=326&type=chunk) - The company's principal sources of liquidity are **$117.7 million** in cash and cash equivalents and a **$60.0 million** revolving credit facility, which management believes is sufficient to meet working capital needs for at least the next twelve months[338](index=338&type=chunk)[339](index=339&type=chunk)[341](index=341&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks including interest rate, foreign currency exchange, and inflation, with foreign currency risk potentially leading to a **$3.1 million** loss from a **10%** adverse change - The company's primary market risks are **interest rate**, **foreign exchange**, and **inflation**[385](index=385&type=chunk) - Foreign currency risk is present due to operations in currencies other than the U.S. Dollar, where a hypothetical **10% adverse change** in foreign exchange rates would result in a foreign currency loss of approximately **$3.1 million**[387](index=387&type=chunk) - Interest rate risk is minimal as cash and investments have short maturities, and the variable-rate credit facility had no outstanding balance at year-end[386](index=386&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2020 and the independent auditor's unqualified opinion, excluding Telaria from internal control assessment Consolidated Balance Sheet Data (in thousands) | | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $117,676 | $88,888 | | Accounts receivable, net | $471,666 | $217,571 | | Goodwill | $158,125 | $7,370 | | **Total Assets** | **$938,960** | **$395,120** | | **Liabilities & Equity** | | | | Accounts payable and accrued expenses | $509,315 | $259,439 | | **Total Liabilities** | **$557,347** | **$283,184** | | **Total Stockholders' Equity** | **$381,613** | **$111,936** | Consolidated Statement of Operations Data (in thousands) | | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | | :--- | :--- | :--- | | Revenue | $221,628 | $156,414 | | Total expenses | $275,862 | $183,997 | | Loss from operations | $(54,234) | $(27,583) | | Net loss | $(53,432) | $(25,478) | Consolidated Statement of Cash Flows Data (in thousands) | | Year Ended Dec 31, 2020 | Year Ended Dec 31, 2019 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(12,065) | $31,983 | | Net cash provided by (used in) investing activities | $32,636 | $(23,388) | | Net cash provided by (used in) financing activities | $7,354 | $(205) | | Change in cash, cash equivalents and restricted cash | $28,843 | $8,436 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=109&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[605](index=605&type=chunk) [Controls and Procedures](index=109&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2020, with Telaria's controls still being integrated - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of **December 31, 2020**[606](index=606&type=chunk) - The assessment of internal control over financial reporting excluded the recently acquired **Telaria, Inc.**, which represented **25% of the company's revenue** and **25% of total assets** for the year ended **December 31, 2020**[608](index=608&type=chunk)[611](index=611&type=chunk) - Based on its evaluation, management concluded that the company's internal control over financial reporting was effective as of **December 31, 2020**[612](index=612&type=chunk) [Other Information](index=110&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[613](index=613&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=110&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the **2021 Proxy Statement**[614](index=614&type=chunk) [Executive Compensation](index=111&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the **2021 Proxy Statement**[616](index=616&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=111&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the **2021 Proxy Statement**[617](index=617&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=111&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the **2021 Proxy Statement**[618](index=618&type=chunk) [Principal Accountant Fees and Services](index=111&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the **2021 Proxy Statement**[619](index=619&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=112&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and an index of exhibits filed with the Form 10-K, with no separate financial statement schedules provided - This section lists the consolidated financial statements and an index of all exhibits filed with the **Form 10-K**[620](index=620&type=chunk)[622](index=622&type=chunk) - No financial statement schedules are provided because the information is not required or is included in the financial statements or notes[621](index=621&type=chunk) [Form 10-K Summary](index=114&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[625](index=625&type=chunk)

Magnite Financial Highlights Qú ù÷ù÷ November Ā, ù÷ù÷ CONFIDENTIAL | © MAGNITE Safe Harbor FORWARD-LOOKING STATEMENTS This presentation and management's prepared remarks during the conference call referred to above include, and management's answers to questions during the conference call may include, forward-looking statements, including statements based upon or relating to our expectations, assumptions, estimates, and projections. In some cases, you can identify forward-looking statements by terms such as ...

Magnite, Inc. (NASDAQ:MGNI) Q3 2020 Earnings Conference Call November 9, 2020 4:30 PM ET Company Participants Nick Kormeluk ??? Head of Investor Relations Michael Barrett ??? Chief Executive Officer David Day ??? Chief Financial Officer Tom Kershaw ??? Chief Technology Officer Conference Call Participants Jason Kreyer ??? Craig-Hallum Laura Martin ??? Needham Shweta Khajuria ??? RBC Capital Markets Lee Krowl ??? B. Riley Securities Matthew Thornton ??? Truist Securities Michael Newton ??? Stephens Operator ...