Summary of Magnite Conference Call - December 09, 2025 Company Overview - **Company**: Magnite (NasdaqGS:MGNI) - **Industry**: Digital Advertising Technology - **Position**: Leading independent sell-side platform, serving major digital publishers like Hulu, New York Times, and Spotify [4][5] Core Insights and Arguments - **Market Conditions**: - Observed vertical softness in technology and home & garden sectors in October, leading to a conservative outlook for Q4 [5][6] - Automotive sector remained soft, but overall market conditions were stable [5][6] - **Advertiser Behavior**: - Post-tariff expectations showed surprising strength in upfront advertising commitments, indicating confidence among marketers [8][9] - The impact of geopolitical events on advertising planning was noted, but overall spending remained stable [7][9] - **DSP-Related Headwinds**: - Issues with Trade Desk's Kokai platform caused temporary disruptions, but recovery is underway with 85% of the transition completed [15][17] - Estimated impact of Trade Desk issues on revenue was around $1 million, viewed as a temporary challenge rather than a crisis [17][18] - **Industry Dynamics**: - The blurring lines between buy-side and supply-side platforms were discussed, with Magnite maintaining its independence and value proposition for publishers [18][19] - Anticipated outcomes from the Google AdTech trial could favor independent SSPs, with expectations of behavioral remedies being beneficial for Magnite [20][21][22] Growth Opportunities - **Connected TV (CTV)**: - Strong relationships with major players like Netflix and Disney, with expectations of growth driven by increased programmatic adoption and international expansion [24][25] - SpringServe ad server enhances programmatic capabilities, providing a competitive edge in CTV [26][27] - **Retail Media and Commerce Media**: - Shift from retail media networks to a broader commerce media approach, focusing on partnerships with companies like Pinterest and United Airlines [30][32] - Recognition of the strategic nature of sell-side platforms in the evolving advertising landscape [33] - **AI Integration**: - Excitement around AI applications in ad tech, with a focus on improving user interfaces and optimizing programmatic inventory transactions [34][36] - Recent acquisition of Streamr.ai aimed at expanding the addressable market by attracting new advertisers to streaming [38][39] Financial Outlook - **Cost Management**: - Transitioning CTV operations from cloud to on-premises to reduce costs, with expectations of improved margins in 2026 [43][44] - Investments in engineering and AI to enhance product offerings and operational efficiency [46][47] - **Durability and Consistency**: - Magnite's resilience in the face of market volatility was emphasized, with a strong free cash flow generation and consistent performance [52][53] Additional Important Points - **International Expansion**: - Growth in international markets as major streaming services expand globally, creating new programmatic opportunities [25][26] - **Live Inventory Monetization**: - Emphasis on the importance of ad servers in managing live inventory, particularly in high-value contexts like sports [28][29] This summary encapsulates the key points discussed during the Magnite conference call, highlighting the company's position, market dynamics, growth opportunities, and financial outlook.

Core Insights - The Trade Desk (TTD) is focusing on expanding its revenue streams beyond connected TV (CTV), with audio advertising emerging as a significant growth driver [1][10] - TTD's AI-powered platform, Kokai, is enhancing performance in audio campaigns, leading to improved metrics for clients [2][3][10] - TTD faces increasing competition from major players like Amazon and independent ad-tech companies such as Magnite [4][5][10] Group 1: Business Expansion and Performance - TTD is seeing audio advertising grow, currently representing about 5% of its business, with expectations for further increases due to the premium nature of these channels [1] - Consumers are spending approximately three hours daily on music and podcasts, expanding the market for digital audio ads [1] - Kokai has shown significant performance improvements, with 26% better cost per acquisition, 58% better cost per unique reach, and 94% better click-through rates compared to previous platforms [3] Group 2: Competitive Landscape - Amazon's digital advertising services are rapidly growing, with projected revenues of $56.2 billion in 2024 and a 22% year-over-year increase in Q3 revenues to $17.6 billion [5][6] - Amazon's DSP platform is gaining traction, providing advertisers access to over 300 million ad-supported audiences across various platforms, including Spotify and SiriusXM [6] - Magnite reported Q3 revenues of $179 million, an 11% increase year-over-year, with a strong adjusted EBITDA margin of 34% [7] Group 3: Strategic Initiatives - TTD's OpenPath and OpenAds initiatives are designed to enhance transparency and efficiency in the advertising supply chain [3][10] - The company is leveraging partnerships and technology to strengthen its competitive position in the digital advertising space [8]

Core Insights - Magnite reported a revenue of $179.5 million for Q3 2025, representing an 11% year-over-year increase, and exceeded guidance expectations [5][7] - Contribution ex-TAC reached $166.8 million, up 12% year-over-year, with a notable 18% growth in CTV contributions [5][4] - The company anticipates continued growth in the upcoming quarters, with expectations for total Contribution ex-TAC to be between $191 million and $196 million [5][4] Q3 2025 Highlights - Revenue of $179.5 million, up 11% from $162.0 million in Q3 2024 [7] - Contribution ex-TAC of $166.8 million, up 12% year-over-year, exceeding guidance [5][7] - Net income of $20.1 million, a significant increase from $5.2 million in Q3 2024 [5][7] - Adjusted EBITDA of $57.2 million, up 13% year-over-year, maintaining a 34% margin [5][7] Q4 2025 Expectations - Total Contribution ex-TAC expected to grow between 6% to 9%, or 13% to 16% excluding political contributions [5] - Contribution ex-TAC from CTV projected to be between $87 million and $89 million, indicating a growth of 12% to 14% [5] - Adjusted EBITDA margin expected to expand to approximately 35% [5] Full-Year 2025 Expectations - The company expects total Contribution ex-TAC growth above 10%, with mid-teens growth excluding political contributions [5] - Adjusted EBITDA is anticipated to grow in the mid-teens percentage range [5] Financial Performance Summary - For the nine months ended September 30, 2025, revenue totaled $508.6 million, up 7% from $474.2 million in the same period of 2024 [7] - Contribution ex-TAC for the nine months reached $474.6 million, an 11% increase year-over-year [7] - Non-GAAP earnings per share for Q3 2025 were $0.20, compared to $0.17 in Q3 2024 [5][7]

Core Insights - ITN and Magnite have launched the first Local Linear TV Private Marketplace, aiming to bridge the programmatic gap for local broadcast [1][3] - This initiative allows buyers to utilize digital-like workflows for local linear TV, enhancing flexibility, visibility, and automation while maintaining local stations' control over their inventory [1][3] Group 1: Collaboration and Technology - Local linear TV inventory is now accessible through Magnite's ClearLine platform, enabling buyers to discover, package, and activate video ad campaigns in one place [2] - The integration of local broadcast's scale and cultural impact with digital execution's efficiency marks a significant advancement towards independent local TV programmatic activation [3][4] - Future enhancements will include advanced capabilities for spot TV, direct-to-station access, and precision audience targeting, solidifying linear TV's role in the programmatic landscape [5] Group 2: Features and Benefits - Bid multiplier forecasting allows for impression-based planning in linear delivery, improving precision and efficiency in media activation [4] - ITN has introduced advanced campaign management tools that provide buyers with digital-like control and transparency throughout the campaign process [4][6] - Buyers can now activate live local linear TV alongside streaming and digital video through real-time bidding, creating a converged media strategy [7] Group 3: Company Profiles - ITN is recognized for its automated activation technology and aims to redefine local TV activation across various channels, enhancing operational efficiency for agencies [8] - Magnite, as the largest independent sell-side advertising company, provides technology for publishers to monetize content across multiple formats, ensuring access to high-quality ad inventory [9]

Core Insights - SurgePays, Inc. has announced a strategic partnership with QorPay Inc. to integrate its ClearLine marketing platform into QorPay's payment processing solution, creating a new growth channel and recurring revenue opportunity [1][2] Company Overview - SurgePays, Inc. is a wireless and fintech company focused on providing mobile connectivity and financial services to underserved communities, operating as both a mobile virtual network operator (MVNO) and mobile virtual network enabler (MVNE) [5] Partnership Details - The integration of ClearLine's SaaS-based marketing tools into QorPay's payment ecosystem will enable retailers to engage customers from the moment of transaction, enhancing customer loyalty and engagement [2][3] - This partnership is expected to create new recurring revenue streams for both SurgePays and QorPay while providing value-added functionality to merchants and resellers [2][3] Market Impact - The collaboration is designed to transform routine merchant transactions into measurable revenue opportunities by embedding marketing capabilities directly into the point-of-sale experience [3] - The partnership expands SurgePays' addressable market and deepens its presence across retail and fintech channels, introducing a differentiated offering for independent sales organizations (ISOs) and software vendors (ISVs) [3] Future Plans - Beta testing of the integrated solution is currently underway, with a full commercial release planned for early 2026 [4]

Core Insights - Magnite has announced the evolution of ClearLine, aimed at unifying curation and activation across its omnichannel advertising platform, enhancing the discovery and activation of inventory for buyers and curators [1][2] - The integration of AI assistance and agentic workflows into ClearLine is part of Magnite's strategy to leverage technology from its recent acquisition of streamr.ai [1] Product Features - ClearLine is built on the same infrastructure as Magnite's SpringServe, allowing for curated campaigns to be executed closer to the impression, which results in higher data fidelity and reduced signal loss [2] - Buyers and curators can define deal terms, pricing, and targeting directly, with the flexibility to package deals using first and third-party audiences through Magnite Access [2] Market Positioning - The evolution of ClearLine is positioned to create a frictionless path between advertisers and audiences, particularly in streaming TV, where advertisers can reach 109 million US ad-supported households [3] - ClearLine's capabilities are expected to drive greater performance and unlock new opportunities across connected TV (CTV) and omnichannel video [3] Client Benefits - Clients have expressed that ClearLine simplifies access to inventory, enhances efficiency, and allows for better performance in campaign activation [3] - The platform enables centralized management of data and inventory, streamlining programmatic monetization and maintaining transparency [3] Company Overview - Magnite is recognized as the world's largest independent sell-side advertising company, facilitating monetization across various formats including CTV, online video, display, and audio [4] - The company operates globally with offices in major cities across North America, EMEA, LATAM, and APAC, executing billions of advertising transactions each month [4]

Core Viewpoint - SurgePays, Inc. has successfully deployed its ClearLine digital advertising platform across all 17 Market Basket Food Stores in North Carolina, enhancing in-store advertising capabilities and creating new revenue streams through a subscription-based model [1][2][5]. Group 1: ClearLine Platform Deployment - The ClearLine platform transforms mounted flat screens into connected retail media hubs, enabling real-time video ads, promotions, and coupons [2][4]. - This deployment is seen as a validation of SurgePays' strategy to enhance shopper engagement and create subscription-based advertising revenue streams [3][4]. - The technology allows for dynamic advertising campaigns tailored to specific times of day and inventory levels, improving customer experience and driving sales [8]. Group 2: Market Basket's Experience - Market Basket faced challenges with previous digital signage efforts, which were unreliable and required a tech-savvy partner to function effectively [6]. - The ClearLine platform was selected to replace outdated signage, allowing for better content management and promotional capabilities [8]. - The successful implementation of ClearLine across all Market Basket stores demonstrates its effectiveness in boosting sales and enhancing brand loyalty [4][8]. Group 3: Future Growth and Strategy - SurgePays aims to expand ClearLine across its nationwide wireless retail network, which includes thousands of locations, to drive predictable SaaS revenues and increase market share [5]. - The company is positioned to accelerate installations into additional convenience and independent grocery chains, enhancing long-term shareholder value [5]. - The deployment of ClearLine is part of a broader strategy to leverage AI-powered marketing for maximum consumer engagement [3].

Core Insights - The digital advertising market is projected to grow at a CAGR of 15.4% from 2025 to 2030, driven by mobile penetration, social media, and programmatic advertising [2] - The Trade Desk (TTD) and Magnite (MGNI) are key players in this space, with TTD focusing on demand-side solutions and MGNI on supply-side solutions [1][3] Company Analysis: The Trade Desk (TTD) - TTD reported a record-breaking spend of over $12 billion on its platform in Q4 2024, indicating strong advertiser demand [4] - The introduction of the Ventura Operating System for Connected TV (CTV) aims to enhance efficiency and targeting capabilities [4][5] - TTD's acquisition of Sincera is expected to improve its programmatic advertising platform by integrating data quality insights [5] - The company faces operational challenges due to maintaining two platforms, which could impact performance if delays occur in adopting the new Kokai platform [6] - TTD is under pressure from macroeconomic uncertainties and competition from major players like Google and Amazon [7] Company Analysis: Magnite (MGNI) - MGNI's contribution from CTV increased by 19% year-over-year for 2024, generating $607 million in contribution ex-TAC and processing over $6 billion in ad spend [8] - The company sees Netflix as a significant opportunity for growth as it expands its ad tier, expecting contribution ex-TAC growth of over 10% in 2025 [9] - MGNI's partnerships with major companies like Disney and its expansion into live sports are expected to drive further growth [10] - The SpringServe ad server and streaming SSP platform are key catalysts for MGNI, enabling direct relationships with major streaming platforms [12] - MGNI's costs per ad request have decreased significantly, with a 26% reduction for DV+ and a 45% reduction for CTV in 2024 [12] Market Performance - Both TTD and MGNI shares have declined due to a tech sell-off, with MGNI down 28.5% and TTD down 54% over the past three months [14] - TTD is considered overvalued with a Value Score of F, while MGNI has a Value Score of B [15] Valuation and Earnings Estimates - TTD's forward 12-month price/earnings ratio is 28.37X, compared to MGNI's 12.83X [17] - Analysts have revised TTD's earnings estimates downward, while MGNI's estimates remain unchanged [18][20] Investment Recommendation - MGNI is viewed as the smarter pick due to its stronger valuation, diversified partnerships, and expanding CTV footprint [21]

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Magnite (NASDAQ:MGNI), the largest independent sell-side advertising company, today announced an agreement with Western Union to support growth of the financial services company's new Media Network business. In doing so, Magnite will provide Western Union with technology to buy media as an advertiser and monetize its owned media. To further increase direct access to streaming inventory, Western Union Media Network is the first commerce media company to leverage M ...

Financial Data and Key Metrics Changes - Magnite generated contribution ex-TAC of $607 million and processed ad spend of over $6 billion, achieving record highs for the company [9][10] - Adjusted EBITDA reached $197 million, with free cash flow of $118 million, both record figures [10][39] - Total revenue for Q4 was $194 million, up 4% from Q4 2023, while contribution ex-TAC was $180 million, an increase of 9% [39][40] - Net income for the quarter was $36 million, compared to $31 million for Q4 2023, with GAAP earnings per diluted share increasing 50% to $0.24 [45][46] Business Line Data and Key Metrics Changes - CTV contribution ex-TAC increased 23% year-over-year, while DV+ contribution ex-TAC grew only 1% due to unusual spending patterns post-election [11][40] - CTV accounted for 43% of contribution ex-TAC, with mobile at 40% and desktop at 17% [41] - The company reported strong growth in CTV driven by ad spend growth and a stabilizing year-over-year average take rate [12] Market Data and Key Metrics Changes - Significant growth in CTV was noted from partners like Roku, LG, Vizio, and Netflix, with expectations for continued growth in live sports [13][14] - The DV+ business experienced a post-election spending pause, leading to a drop in CPMs by 15% to 20% [36][37] - Political advertising contributed approximately 6.5% to contribution ex-TAC in Q4, while for the full year it was 3.2% [41][123] Company Strategy and Development Direction - The company is focused on expanding its CTV platform and enhancing its technology stack, including the introduction of generative AI tools [20][21] - Magnite aims to differentiate itself from competitors by emphasizing its unique technology and direct relationships with major streaming platforms [24][30] - The company is optimistic about the growth of its agency marketplaces and the potential for new revenue streams from data initiatives [16][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the rebound of the DV+ business and the overall strength of the CTV market [17][38] - The company anticipates total contribution ex-TAC to grow above 10% in 2025, with adjusted EBITDA expected to grow in the mid-teens [51][52] - Management highlighted the importance of maintaining a healthy value exchange between buyers and sellers in the open Internet ecosystem [31][87] Other Important Information - The company ended the year with $483 million in cash and a net leverage ratio reduced to 0.4% [39][48] - Capital expenditures for 2024 were $52 million, with expectations of approximately $60 million for 2025, primarily focused on tech stack efficiency [47][80] Q&A Session Summary Question: Context on Q1 guidance and early 2025 trends - Management noted a rebound in DV+ growth in the mid to high single digits, while CTV typically sees lower growth in Q1 [56][57] Question: SMB participation in CTV - Management indicated that new entrants need to couple CTV ads with DV+ metrics to assess efficacy, highlighting a significant appetite for CTV [60][62] Question: Medium-term growth expectations for CTV - Management expects to outpace market growth, projecting closer to 20% CTV growth when excluding political contributions [66][72] Question: GenAI strategy and CapEx implications - The focus of new tools is to enhance existing client efficiency and revenue, with CapEx aimed at optimizing tech stack costs [78][80] Question: OpenPath economics and CPM pressures - Management clarified that OpenPath does not significantly change publisher revenue, and CPMs dropped due to reduced demand in Q4, with a rebound seen in early 2025 [94][96] Question: CTV business mix and future contributions - Management expects a stable mix in CTV revenue, with potential shifts as more publishers rely on Magnite for demand [128][130]