Summary of Magnite (MGNI) FY Conference Call - August 18, 2025 Company Overview - **Company**: Magnite (MGNI) - **Industry**: Digital Advertising, specifically focusing on Supply-Side Platform (SSP) for Connected TV (CTV) and programmatic advertising Key Points and Arguments 1. **Investment Case**: Magnite is positioned for growth despite a challenging macro ad environment, with a revenue growth of over 10%, EBITDA growth of 15%, and free cash flow growth of 20% in recent years [6][7][8] 2. **Market Position**: Magnite is the second-largest SSP with a 6% market share, significantly behind Google at 60% but ahead of PubMatic at 4% [12] 3. **Growth Drivers**: The company has seen improved growth rates due to exclusive partnerships and a shift in how publishers view SSPs, moving from multiple partners to a single trusted partner for monetization [10][15][16] 4. **Connected TV (CTV) Revenue**: CTV accounted for 44% of revenues last quarter, with expectations for continued growth in this segment [24][26] 5. **Programmatic Advertising**: The shift towards programmatic advertising is accelerating, with significant growth opportunities as more businesses, including SMBs, enter the market [21][22] 6. **SpringServe Platform**: The integration of SpringServe enhances operational efficiency and customer retention, with a 75% crossover of customers using both ad serving and SSP services [40][41] 7. **Market Conditions**: The overall marketplace is stable, with growth driven by unique deals and partnerships, despite some caution due to broader economic conditions [52][53] 8. **Antitrust Context**: The upcoming Google antitrust trial is seen as a potential catalyst for market share shifts, with expectations that behavioral remedies could lead to significant share gains for Magnite [61][68][70] Additional Important Insights 1. **Long-Tail Publishers**: The decline in click-through rates due to AI search trends primarily affects lower-quality publishers, while Magnite's business remains insulated due to its focus on premium publishers [28][30][34] 2. **Market Share Potential**: If Google’s market share were to decline due to antitrust actions, Magnite could potentially capture a significant portion of that share, translating to substantial revenue increases [67][69] 3. **Clearline Initiative**: This initiative aims to provide a more competitive pricing structure for programmatic guaranteed deals, allowing for more direct transactions between buyers and publishers [46][50] 4. **Future Outlook**: The company is optimistic about future growth, citing a strong pipeline of new partnerships and the ability to convert these into revenue [78] This summary encapsulates the key insights from the conference call, highlighting Magnite's strategic positioning, growth potential, and the implications of the evolving digital advertising landscape.

汇量科技(01860)涨超11%，截至发稿，涨11.46%，报11.67港元，成交额3.09亿港元。 消息面上，移动应用广告平台Applovin最新业绩显示，该公司二季度营收12.59亿美元，同比增长77%， 胜市场预期；纯利8.2亿美元，同比飙升164%；调整后EBITDA为10.18亿美元，同比增长99%；调整后 每股盈利2.39美元，优于市场预期的2.32美元。中信证券近期研报指出，生成式AI正将广告网络从"流量 竞争"推向"算法飞轮"时代。AppLovin AXON2.0、汇量科技Mintegral等独立平台凭算法壁垒穿越周期， 收入与分成率同步向上，并向电商、CTV等新场景外溢。预计未来五年程序化广告仍保持较高增长，头 部平台保持领先。 今年一季度，汇量科技程序化广告平台Mintegral表现亮眼，录得收入4.208亿美元，同比大幅增长 48.4%。汇量科技称，自2023年集团发展基于AI和机器学习的智能出价体系以来，包括Target ROAS在 内的智能竞价产品持续得到广告主认可，报告期内，智能出价产品贡献的收入占Mintegral总收入的比例 已超过80%，成为推动Mintegral收入和利润增 ...

智通财经APP获悉，汇量科技(01860)涨超11%，截至发稿，涨11.46%，报11.67港元，成交额3.09亿港 元。 消息面上，移动应用广告平台Applovin最新业绩显示，该公司二季度营收12.59亿美元，同比增长77%， 胜市场预期；纯利8.2亿美元，同比飙升164%；调整后EBITDA为10.18亿美元，同比增长99%；调整后 每股盈利2.39美元，优于市场预期的2.32美元。中信证券近期研报指出，生成式AI正将广告网络从"流 量竞争"推向"算法飞轮"时代。AppLovin AXON2.0、 汇量科技Mintegral等独立平台凭算法壁垒穿越周 期，收入与分成率同步向上，并向电商、CTV等新场景外溢。预计未来五年程序化广告仍保持较高增 长，头部平台保持领先。 今年一季度，汇量科技程序化广告平台Mintegral表现亮眼，录得收入4.208亿美元，同比大幅增长 48.4%。汇量科技称，自2023年集团发展基于AI和机器学习的智能出价体系以来，包括Target ROAS在 内的智能竞价产品持续得到广告主认可，报告期内，智能出价产品贡献的收入占Mintegral总收入的比例 已超过80%，成为推动Min ...

Core Viewpoint - Liou Co., Ltd. has launched its first MCP application, "Pangu Engine - Pangu Optimization Assistant," which is designed for programmatic advertising and enhances human-machine collaboration in advertising operations [2][3]. Group 1: MCP Application Launch - The "Pangu Engine - Pangu Optimization Assistant" integrates MCP Server, MCP Host, and MCP Client, specifically tailored for programmatic advertising scenarios [2][3]. - MCP (Model Context Protocol) is a protocol for managing and coordinating context in large language models (LLMs), improving reasoning and decision-making capabilities [2]. Group 2: Development and Integration - Liou Digital introduced MCP services in April 2023, providing API support to bridge large language models and AI agents [3]. - The "Pangu Engine - Pangu Optimization Assistant" marks the beginning of a comprehensive intelligent transformation of self-developed programmatic advertising tools [3]. Group 3: Future Enhancements - In July 2023, Liou Digital plans to gradually open more MCP tool capabilities based on frontline business department needs, aiming to enhance human-machine collaboration in advertising operations [4]. - The company aims to accelerate the intelligent transformation of the programmatic advertising market by establishing a unified protocol standard [4].

Group 1: Sales Performance and Product Development - The Tom Cat AI emotional companion robot has received over 98.5% positive feedback from thousands of initial experience officers, with online sales in April increasing by 100% compared to March [3] - The product's monthly sales on Douyin have surged over 300% within 30 days, indicating strong market demand [3] - The company plans to enhance its marketing strategy by launching the product on major e-commerce platforms and preparing for promotional events like the 6.18 shopping festival [3] Group 2: Pricing Strategy - The high-priced version of the AI robot, priced at 1999, accounts for over 90% of sales in the official Douyin store, demonstrating a competitive advantage [4] - The company aims to introduce lower-priced variants of the AI robot to cater to a broader consumer base while maintaining high quality and functionality [4] Group 3: Future Product Upgrades - The company has conducted over 480 updates to the first-generation AI robot since its launch, showcasing rapid iteration [5] - Future product development will focus on expanding the product matrix with different IP characters, portable designs, and enhanced functionalities for various scenarios [5] Group 4: Business Growth Drivers - The company plans to launch multiple new IP products in the gaming sector in 2025, which are expected to optimize the profitability of its gaming business [6] - The AI robot's sales have shown consistent growth, with Douyin sales revenue increasing over 100% for two consecutive months [7] - The establishment of Aurion11, a subsidiary focused on programmatic advertising, aims to enhance the company's advertising revenue through advanced technology [7][8] Group 5: Advertising Revenue Generation - The company collaborates with major advertising service providers like Google and Meta to secure high-quality advertising orders, leveraging its extensive user base [8] - The self-built advertising aggregation platform, Mediation, allows the company to optimize ad placements and maximize revenue through a mixed bidding model [9]

Summary of Conference Call Records Industry Overview - The programmatic advertising market is experiencing continuous growth, currently accounting for 90% of the market share, with expectations for further increases due to tightening budgets and the critical importance of return on investment (ROI) in advertising strategies [2][1][3]. Company Insights: Applovin - Applovin has established itself as a leader in the programmatic advertising space within mobile gaming by integrating the entire industry chain through acquisitions, including supply-side, demand-side, mediation platforms, and third-party attribution platforms, creating data barriers [1][3][4]. - The company has acquired game studios to obtain first-hand data, integrated the Mopub bidding system, and utilized AppsFlyer for data analysis to optimize advertising efficiency and conversion rates [1][3][4]. - Future expansion plans include moving from the gaming market into the e-commerce sector, with expectations to transition from a billion-dollar market to a trillion-dollar market, indicating significant growth potential [1][5]. Competitive Landscape - Domestic companies comparable to Applovin include ByteDance (Douyin) and Focus Media, which are advancing towards programmatic advertising in both online and offline sectors to enhance advertising efficiency [1][5]. - In the AI and advertising sector, Tencent and Kuaishou are highlighted for their focus on improving ROI through AI, while companies like Mintegral and Epoint are targeting overseas markets to capture third-party market shares [6][1]. Market Dynamics - The programmatic advertising industry has shown steady growth, with a current market size of approximately $600 billion and an annual growth rate exceeding 10%. The share of programmatic advertising has increased from over 70% in 2017 to 90% currently [2][1]. - The structure of the programmatic advertising market differs between overseas and domestic markets, with major players like Meta and Google holding 60% of the overseas market, while domestic players like ByteDance and WeChat have a concentration of 90% [7][1]. Performance of Competitors - Mintegral, a platform by汇量科技, directly competes with Applovin, focusing on light gaming ads, while Epoint has 40% of its business in programmatic advertising, primarily serving e-commerce clients [8][1]. - Epoint's recent quarterly report exceeded expectations, indicating a shift in budget allocations from the U.S. to Europe and the Middle East, which may reduce risk exposure [9][1]. Future Outlook - There is an optimistic outlook for汇量科技 and Epoint, despite potential risks from the U.S. market and macroeconomic factors. The anticipated revenue release driven by AI and ROI improvements is expected to accelerate performance [10][1].

Core Viewpoint - AppLovin, a leading programmatic advertising company, faced a significant stock drop of 20% after a short-selling report by Muddy Waters, which accused the company of data theft and violating platform service terms, leading to a potential risk of being delisted [1][3][4]. Financial Performance - In Q4 2024, AppLovin reported revenues of $1.373 billion, a 44% year-over-year increase, with adjusted EBITDA of $848 million, up 78% [7]. - The company's net profit reached $599 million, reflecting a 247.9% increase compared to the previous year [7]. - For Q1 2025, AppLovin expects revenues between $1.36 billion and $1.86 billion, representing a year-over-year growth of 28.1% to 30.9% [7]. Stock Market Reaction - Following the short-selling report, AppLovin's market capitalization dropped by approximately $22.4 billion to $89 billion, marking the largest single-day decline since its IPO [2][6]. - Despite the recent negative reports, Wall Street analysts largely maintain a positive outlook on AppLovin, with 21 buy ratings and only one sell rating [6]. Business Strategy and Focus - AppLovin is transitioning its focus from app development to advertising, officially renaming its software business to advertising [7][8]. - The company is considering selling its mobile gaming division, estimated at $900 million, to further concentrate on its advertising business [8]. AI Integration and Future Outlook - AppLovin's AI advertising engine, Axon, is enhancing the efficiency of ad placements, with plans to develop more self-service and automated tools for advertisers by 2025 [8]. - The integration of AI in programmatic advertising is expected to improve cost efficiency and targeting precision, indicating a promising growth trajectory for the industry [9].