Financial Data and Key Metrics Changes - Total revenue for Q2 was $173 million, up 6% from 2024, with contribution ex TAC at $162 million, an increase of 10% [24] - Adjusted EBITDA grew 22% year over year to $54 million, reflecting a margin of 34%, compared to 30% last year [27] - Net income was $11 million for the quarter, compared to a net loss of $1 million for 2024 [26] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $72 million, up 14% year over year, or 15% excluding political contributions [24] - DV plus contribution ex TAC was $90 million, an increase of 8% from the second quarter last year [24] - Contribution ex TAC mix for Q2 was 44% CTV, 39% mobile, and 17% desktop [25] Market Data and Key Metrics Changes - The strongest performing verticals were technology, health and fitness, and financial, while the auto sector was the weakest [25] - The company is seeing significant growth in the commerce media space, with new partnerships including Western Union and PayPal [13] Company Strategy and Development Direction - The company is focused on expanding its CTV business through new partnerships and technology enhancements, particularly in programmatic advertising [7][10] - There is a strong emphasis on AI integration within the company's products to enhance targeting and inventory categorization [17][18] - The company is preparing for potential market share shifts due to the antitrust ruling against Google, which could benefit its DBplus business significantly [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, expecting growth rates to accelerate, particularly in CTV [21] - The overall ad spend environment appears less volatile, allowing the company to reinstate its full-year guidance [23][30] - Management remains cautious but confident in navigating the current environment, with a focus on strategic investments in growth areas [31][32] Other Important Information - The company reported a cash balance of $426 million at the end of Q2, with net leverage remaining at 0.6x [28] - Capital expenditures for the year are expected to be approximately $60 million, with a focus on transitioning to on-premises infrastructure [31] Q&A Session Summary Question: Can you discuss the recent partnerships and market momentum? - Management highlighted strong traction in the marketplace, particularly in CTV, and noted a modular approach to product offerings that has been successful [35] Question: What is the potential impact of the Google antitrust case? - Management indicated that while the specifics of the remedies are uncertain, they believe any changes will create a more level playing field that could benefit Magnite significantly [36][70] Question: What is driving the reiteration of the prior guidance? - Management noted that the ad spend market has stabilized more than initially feared, allowing for a more optimistic outlook [40][41] Question: How is the company positioned regarding AI developments? - Management discussed the integration of AI capabilities to enhance inventory discovery and targeting, which is expected to drive revenue growth [102] Question: What are the expectations for live sports contributions? - Management acknowledged that while live sports are still in early stages, there is significant potential for growth as more events transition to programmatic sales [54]

Financial Data and Key Metrics Changes - Total revenue for Q2 was $173 million, up 6% from 2024 [24] - Contribution ex TAC was $162 million, up 10%, exceeding the high end of guidance [24] - Adjusted EBITDA was $54 million, growing 22% with a margin of 34% compared to 30% last year [28][23] - Net income was $11 million for the quarter compared to a net loss of $1 million for 2024 [27] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $72 million, up 14% year over year or 15% excluding political [24] - DV plus contribution ex TAC was $90 million, an increase of 8% from the second quarter last year [24] - Contribution ex TAC mix for Q2 was 44% CTV, 39% mobile, and 17% desktop [25] Market Data and Key Metrics Changes - Significant growth came from partnerships with Roku, Netflix, LG, Warner Bros. Discovery, and Paramount [7] - The SMB segment is expected to explode over the next three to five years, driven by specialized DSPs [10] - The company is seeing share gains in DV plus from some of the largest DSPs [13] Company Strategy and Development Direction - The company is focused on deepening partnerships with major agency HoldCo's and expanding its CTV technology [10][12] - Continued investment in live TV, Clearline, and Curation offerings is planned as these areas represent attractive growth opportunities [21] - The company is preparing for potential outcomes from the antitrust ruling against Google, which could shift market share [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic downsides were not as pronounced as initially feared, leading to stronger than expected growth [23] - The company expects growth rates to accelerate in the second half of 2025, particularly in CTV ex political [21] - Management remains cautious with Q3 and full year expectations but is optimistic about the overall ad spend environment stabilizing [30] Other Important Information - The company is developing AI capabilities as a core product focus, including audience discovery and inventory categorization [16][17] - The cash balance at the end of Q2 was $426 million, with plans to pay off convertible notes at maturity [29] - The company intends to continue its share repurchase program, with $88 million remaining [30] Q&A Session Summary Question: Can you discuss the broader momentum and new partnerships? - Management highlighted the traction in the marketplace, particularly in CTV, and the success of their modular product approach [36] Question: What is the base case regarding the Google antitrust case? - Management stated that it is difficult to predict outcomes until remedies are ruled by the judge, but they see merit in potential civil actions [37] Question: What is driving the reiteration of the prior guidance? - Management noted that the ad spend market has stabilized, leading to comfort in reiterating full year expectations [40][41] Question: How do you view the impact of AI on your business? - Management expressed confidence that AI tools will enhance inventory discovery and targeting, leading to increased revenue [102] Question: What is the outlook for live sports contribution? - Management indicated that while it is still early, they are optimistic about the potential contributions from live sports partnerships [53] Question: How is Magnite positioned with platform companies? - Management noted that there is a realization among platform owners that they are under-monetizing inventory without third-party demand [58] Question: What are the implications of the Google antitrust ruling? - Management believes that any remedies resulting in a more level playing field will be beneficial for their business and could shift market share [20][21]

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]