Magnite(US:MGNI)2024-11-07 21:19Financial Performance - Revenue for the three months ended September 30, 2024, was $162.003 million, a 7.9% increase from $150.085 million in the same period last year[7]. - Net income for the three months ended September 30, 2024, was $5.214 million, compared to a net loss of $17.477 million for the same period in 2023[9]. - Total expenses for the three months ended September 30, 2024, were $146.880 million, down from $167.928 million in the prior year, representing a 12.5% decrease[7]. - The company reported a comprehensive income of $7.305 million for the three months ended September 30, 2024, compared to a comprehensive loss of $18.439 million in the same period last year[9]. - Net loss for the nine months ended September 30, 2024, was $13,621,000, a significant improvement compared to a net loss of $190,098,000 for the same period in 2023[15]. - Adjusted EBITDA for the three months ended September 30, 2024, was $50.6 million, a 26% increase from $40.3 million in the prior year[124]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $120.3 million, an increase of $19.4 million compared to the prior year[134]. Revenue Breakdown - Revenue recognized on a net basis for the three months ended September 30, 2024, was $141.969 million, representing 88% of total revenue, compared to $123.703 million (82%) in the prior year[30]. - The company’s revenue from Connected TV (CTV) for the three months ended September 30, 2024, was $76.217 million, accounting for 47% of total revenue, compared to $67.765 million (45%) in the same period of 2023[31]. - International revenue for the three months ended September 30, 2024, was $41.763 million, representing 26% of total revenue, consistent with the prior year[32]. - Revenue from CTV and mobile increased by $8.5 million, or 12%, and $3.5 million, or 6%, respectively, for the three months ended September 30, 2024[110]. - The United States contributed $120.2 million, accounting for 74% of total revenue, while international revenue was $41.8 million, making up 26%[32]. Expenses and Costs - Total expenses decreased by 13% to $146.88 million for the three months ended September 30, 2024, compared to $167.93 million for the same period in 2023[105]. - Cost of revenue decreased by 26% to $62.54 million for the three months ended September 30, 2024, compared to $84.88 million for the same period in 2023[105]. - General and administrative expenses increased by 15% to $24.49 million for the three months ended September 30, 2024, compared to $21.29 million for the same period in 2023[105]. - Technology and development expenses decreased by 14% to $20.26 million for the three months ended September 30, 2024, compared to $23.54 million for the same period in 2023[105]. - Operating lease expense for the nine months ended September 30, 2024, was $17.2 million, compared to $18.8 million for the same period in 2023, indicating a decrease of approximately 8.5%[58]. Cash and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2024, was $120,504,000, slightly down from $125,282,000 in the prior year[15]. - Total cash, cash equivalents, and restricted cash at the end of September 2024 was $387,244,000, an increase from $310,555,000 at the end of September 2023[17]. - The company believes existing cash and cash equivalents will be sufficient to meet liquidity requirements for at least the next twelve months[137]. - The company’s cash and cash equivalents balance is influenced by operating results, capital expenditures, and changes in working capital[138]. Stockholder Equity and Debt - The total stockholders' equity as of September 30, 2024, was $725.876 million, up from $701.683 million at the end of 2023[5]. - The accumulated deficit as of September 30, 2024, was $697.579 million, an increase from $683.958 million at the end of the previous year[5]. - As of September 30, 2024, the total debt of the Company is $553.8 million, compared to $536.6 million as of December 31, 2023, reflecting an increase of approximately 3.9%[67]. - The net carrying value of Convertible Senior Notes is $203.3 million as of September 30, 2024, consistent with the previous period[67]. - The company repurchased $9,006,000 worth of treasury stock during the nine months ended September 30, 2024[15]. Future Outlook and Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[7]. - The company expects revenue to continue increasing through the remainder of 2024, with CTV being the biggest growth driver, including political advertising[110]. - The company is investing in identity solutions to adapt to the decreased reliance on third-party cookies, enhancing audience targeting capabilities[91]. - The company aims to leverage its scale and expertise in CTV to advance a first-party identity model, creating value opportunities for clients[93]. Accounting and Compliance - The company expects the impact of adopting new accounting standards related to segment reporting to be limited to disclosing significant expenses starting with the annual period ending December 31, 2024[24]. - The company expects limited impact from the adoption of new accounting standards effective in 2024 and 2025, primarily related to segment disclosures and income tax information[24].