Magnite (NASDAQ: MGNI), the world's largest independent sell-side
advertising company, today reported its results of operations for
the quarter ended June 30, 2024.
Q2 2024 Highlights:
- Revenue of $162.9 million, up 7%
year-over-year
- Contribution ex-TAC(1) of $146.8
million, up 9% year-over-year
- Contribution ex-TAC(1) attributable to
CTV of $63.0 million, up 12% year-over-year, compared to guidance
of $59.0 to $61.0 million
- Contribution ex-TAC(1) attributable to
DV+ of $83.8 million, up 7% year-over year, compared to guidance of
$83.0 to $85.0 million
- Net loss of $1.1 million, for a loss
per share of $0.01, compared to a net loss of $73.9 million, for a
loss per share of $0.54 for Q2 2023
- Adjusted EBITDA(1) of $44.7 million,
representing a 30% Adjusted EBITDA margin(2), compared to Adjusted
EBITDA(1) of $37.3 million in Q2 2023
- Non-GAAP earnings per share(1) of
$0.14, compared to non-GAAP earnings per share(1) of $0.09 for Q2
2023
- Operating cash flow(3) of $29.6
million
Expectations:
- Total Contribution ex-TAC(1) for Q3
2024 to be between $146 million and $150 million
- Contribution ex-TAC(1) attributable to
CTV to accelerate to 18%-22% year-over-year for Q3 2024 to be
between $62 million and $64 million
- Contribution ex-TAC(1) attributable to
DV+ for Q3 2024 to be between $84 million and $86 million
- Adjusted EBITDA operating expenses(4)
for Q3 2024 to be between $101 million and $103 million
- Reaffirming Contribution ex-TAC(1) to
grow at least 10% for the full-year 2024, with CTV growing faster
than DV+
- Reaffirming Adjusted EBITDA margin(2)
expansion for 2024 to 100-150 basis points
- Reaffirming Adjusted EBITDA(1) growth
for 2024 to be in the mid-teens, and even higher growth in free
cash flow(5)
- Total capital expenditures for 2024 to
be approximately $50 million
- Net income and earnings per share to be
positive for 2024 on a GAAP basis
“We once again beat the high end of our total and CTV top line
guidance in the second quarter, with contribution ex-TAC for CTV
exceeding the high end of our range. After partnering with Netflix
in late May, we are working closely with them in support of their
growing advertising business with their expanded programmatic
launch this summer, and more broad rollout in 2025. We are also
seeing great progress across many of our largest partners, such as
Roku, accelerating their move to programmatic CTV, and we are very
encouraged by our recent win in commerce media with United Airlines
as well as the continued traction we are seeing in live sports. Ad
spend trends from the first half continue to be positive, and we
remain optimistic this momentum will carry forward as Magnite
growth accelerates in the back half of 2024,” said Michael G.
Barrett, President and CEO of Magnite.
| Second
Quarter 2024 Results
Summary |
|
|
|
|
|
|
|
|
|
|
| (in millions, except
per share amounts and percentages) |
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2024 |
|
June 30, 2023 |
|
ChangeFavorable/
(Unfavorable) |
|
June 30, 2024 |
|
June 30, 2023 |
|
ChangeFavorable/
(Unfavorable) |
| Revenue |
$162.9 |
|
$152.5 |
|
7% |
|
$312.2 |
|
$282.7 |
|
10% |
| Gross profit |
$100.3 |
|
$22.4 |
|
348% |
|
$183.7 |
|
$27.7 |
|
563% |
| Contribution ex-TAC(1) |
$146.8 |
|
$134.7 |
|
9% |
|
$277.3 |
|
$250.7 |
|
11% |
| Net loss |
($1.1) |
|
($73.9) |
|
99% |
|
($18.8) |
|
($172.6) |
|
89% |
| Adjusted EBITDA(1) |
$44.7 |
|
$37.3 |
|
20% |
|
$69.8 |
|
$60.7 |
|
15% |
| Adjusted EBITDA margin(2) |
30% |
|
28% |
|
2 ppt |
|
25% |
|
24% |
|
1 ppt |
| Basic and diluted loss per
share |
($0.01) |
|
($0.54) |
|
98% |
|
($0.13) |
|
($1.27) |
|
90% |
| Non-GAAP earnings per
share(1) |
$0.14 |
|
$0.09 |
|
56% |
|
$0.20 |
|
$0.13 |
|
54% |
|
Footnotes: |
|
(1 |
) |
Contribution ex-TAC, Adjusted
EBITDA, and non-GAAP earnings per share are non-GAAP financial
measures. Please see the discussion in the section called "Non-GAAP
Financial Measures" and the reconciliations included at the end of
this press release. |
|
(2 |
) |
Adjusted EBITDA margin is
calculated as Adjusted EBITDA divided by Contribution ex-TAC. |
|
(3 |
) |
Operating cash flow is calculated
as Adjusted EBITDA less capital expenditures. |
|
(4 |
) |
Adjusted EBITDA operating
expenses is calculated as Contribution ex-TAC less Adjusted
EBITDA. |
|
(5 |
) |
Free cash flow is defined as
operating cash flow (Adjusted EBITDA less capital expenditures)
less net interest expense. |
Second Quarter 2024
Results Conference Call and Webcast:
The Company will host a conference call on August 7, 2024
at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its
second quarter of 2024.
| Live conference
call |
|
| Toll free number: |
(844) 875-6911 (for domestic
callers) |
| Direct dial number: |
(412) 902-6511 (for
international callers) |
| Passcode: |
Ask to join the Magnite
conference call |
| Simultaneous audio
webcast: |
http://investor.magnite.com under "Events and
Presentations" |
| |
|
| Conference call
replay |
|
| Toll free number: |
(877) 344-7529 (for domestic
callers) |
| Direct dial number: |
(412) 317-0088 (for
international callers) |
| Passcode: |
5546887 |
| Webcast link: |
http://investor.magnite.com under "Events and
Presentations" |
About MagniteWe’re Magnite (NASDAQ: MGNI), the
world’s largest independent sell-side advertising company.
Publishers use our technology to monetize their content across all
screens and formats including CTV, online video, display, and
audio. The world's leading agencies and brands trust our platform
to access brand-safe, high-quality ad inventory and execute
billions of advertising transactions each month. Anchored in
bustling New York City, sunny Los Angeles, mile high Denver,
historic London, colorful Singapore, and down under in Sydney,
Magnite has offices across North America, EMEA, LATAM, and
APAC.
Forward-Looking Statements:
This press release 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 "may," "might," "will," "objective,"
"intend," "should," "could," "can," "would," "expect," "believe,"
"design," "anticipate," "estimate," "predict," "potential," "plan"
or the negative of these terms, and similar expressions.
Forward-looking statements may include, but are not limited to,
statements concerning the Company’s guidance or expectations with
respect to future financial performance; acquisitions by the
Company, or the anticipated benefits thereof; potential synergies
from the Company's acquisitions; macroeconomic conditions or
concerns related thereto; the growth of ad-supported programmatic
connected television ("CTV"); our ability to use and collect data
to provide our offerings; scope and duration of client
relationships; the fees we may charge in the future; our
anticipated financial performance; key strategic objectives;
anticipated benefits of new offerings; business mix; sales growth;
benefits from supply path optimization; the development of identity
solutions; client utilization of our offerings; our competitive
differentiation; our market share and leadership position in the
industry; market conditions, trends, and opportunities; certain
statements regarding future operational performance measures; and
other statements that are not historical facts. These statements
are not guarantees of future performance; they reflect our current
views with respect to future events and are based on assumptions
and estimates and subject to known and unknown risks, uncertainties
and other factors that may cause our actual results, performance or
achievements to be materially different from expectations or
results projected or implied by forward-looking statements.
We discuss many of these risks and additional
factors that could cause actual results to differ materially from
those anticipated by our forward-looking statements under the
headings "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations," and elsewhere in
this press release and in other filings we have made and will make
from time to time with the Securities and Exchange Commission, or
SEC, including our Annual Report on Form 10-K for the year ended
December 31, 2023 and subsequent filings. These forward-looking
statements represent our estimates and assumptions only as of the
date of the report in which they are included. Unless required by
federal securities laws, we assume no obligation to update any of
these forward-looking statements, or to update the reasons actual
results could differ materially from those anticipated, to reflect
circumstances or events that occur after the statements are made.
Without limiting the foregoing, any guidance we may provide will
generally be given only in connection with quarterly and annual
earnings announcements, without interim updates, and we may appear
at industry conferences or make other public statements without
disclosing material nonpublic information in our possession. Given
these uncertainties, investors should not place undue reliance on
these forward-looking statements. Investors should read this press
release and the documents that we reference in this press release
and have filed or will file with the SEC completely and with the
understanding that our actual future results may be materially
different from what we expect. We qualify all of our
forward-looking statements by these cautionary statements.
Non-GAAP Financial Measures and Operational
Measures:
In addition to our GAAP results, we review certain non-GAAP
financial measures to help us evaluate our business on a consistent
basis, measure our performance, identify trends affecting our
business, establish budgets, measure the effectiveness of
investments in our technology and development and sales and
marketing, and assess our operational efficiencies. These non-GAAP
measures include Contribution ex-TAC, Adjusted EBITDA, Non-GAAP
Income (Loss), and Non-GAAP Earnings (Loss) per share, each of
which is discussed below.
These non-GAAP financial measures are not intended to be
considered in isolation from, as substitutes for, or as superior
to, the corresponding financial measures prepared in accordance
with GAAP. You are encouraged to evaluate these adjustments, and
review the reconciliation of these non-GAAP financial measures to
their most comparable GAAP measures, and the reasons we consider
them appropriate. It is important to note that the particular items
we exclude from, or include in, our non-GAAP financial measures may
differ from the items excluded from, or included in, similar
non-GAAP financial measures used by other companies. See
"Reconciliation of Revenue to Gross Profit to Contribution ex-TAC,"
"Reconciliation of net loss to Adjusted EBITDA," "Reconciliation of
net loss to non-GAAP income," and "Reconciliation of GAAP loss per
share to non-GAAP earnings per share" included as part of this
press release.
We do not provide a reconciliation of our non-GAAP financial
expectations for Contribution ex-TAC and Adjusted EBITDA, or a
forecast of the most comparable GAAP measures, because the amount
and timing of many future charges that impact these measures (such
as amortization of future acquired intangible assets,
acquisition-related charges, foreign exchange (gain) loss, net,
stock-based compensation, impairment charges, provision or benefit
for income taxes, and our future revenue mix), which could be
material, are variable, uncertain, or out of our control and
therefore cannot be reasonably predicted without unreasonable
effort, if at all. In addition, we believe such reconciliations or
forecasts could imply a degree of precision that might be confusing
or misleading to investors.
Contribution ex-TAC:
Contribution ex-TAC is calculated as gross profit plus cost of
revenue, excluding traffic acquisition cost ("TAC"). Traffic
acquisition cost, a component of cost of revenue, represents what
we must pay sellers for the sale of advertising inventory through
our platform for revenue reported on a gross basis. Contribution
ex-TAC is a non-GAAP financial measure that is most comparable to
gross profit. We believe Contribution ex-TAC is a useful measure in
assessing the performance of Magnite and facilitates a consistent
comparison against our core business without considering the impact
of traffic acquisition costs related to revenue reported on a gross
basis.
Adjusted EBITDA:
We define Adjusted EBITDA as net income (loss) adjusted to
exclude stock-based compensation expense, depreciation and
amortization, amortization of acquired intangible assets,
impairment charges, interest income or expense, and other cash and
non-cash based income or expenses that we do not consider
indicative of our core operating performance, including, but not
limited to foreign exchange gains and losses, acquisition and
related items, gains or losses on extinguishment of debt, other
debt refinancing expenses, non-operational real estate and other
expenses (income), net, and provision (benefit) for income taxes.
We also track future expenses on an Adjusted EBITDA basis, and
describe them as Adjusted EBITDA operating expenses, which includes
total operating expenses. Total operating expenses include cost of
revenue. Adjusted EBITDA operating expenses is calculated as
Contribution ex-TAC less Adjusted EBITDA. We adjust Adjusted EBITDA
operating expenses for the same expense items excluded in Adjusted
EBITDA. We believe Adjusted EBITDA is useful to investors in
evaluating our performance for the following reasons:
- Adjusted EBITDA is widely used by
investors and securities analysts to measure a company’s
performance without regard to items such as those we exclude in
calculating this measure, which can vary substantially from company
to company depending upon their financing, capital structures, and
the method by which assets were acquired.
- Our management uses Adjusted EBITDA in
conjunction with GAAP financial measures for planning purposes,
including the preparation of our annual operating budget, as a
measure of performance and the effectiveness of our business
strategies, and in communications with our board of directors
concerning our performance. Adjusted EBITDA is also used as a
metric for determining payment of cash incentive compensation.
- Adjusted EBITDA provides a measure of
consistency and comparability with our past performance that many
investors find useful, facilitates period-to-period comparisons of
operations, and also facilitates comparisons with other peer
companies, many of which use similar non-GAAP financial measures to
supplement their GAAP results.
Although Adjusted EBITDA is frequently used by investors and
securities analysts in their evaluations of companies, Adjusted
EBITDA has limitations as an analytical tool, and should not be
considered in isolation or as a substitute for analysis of our
results of operations as reported under GAAP. These limitations
include:
- Stock-based compensation is a non-cash
charge and will remain an element of our long-term incentive
compensation package, although we exclude it as an expense when
evaluating our ongoing operating performance for a particular
period.
- Depreciation and amortization are
non-cash charges, and the assets being depreciated or amortized
will often have to be replaced in the future, but Adjusted EBITDA
does not reflect any cash requirements for these replacements.
- Impairment charges are non-cash charges
related to goodwill, intangible assets and/or long-lived
assets.
- Adjusted EBITDA does not reflect
certain cash and non-cash charges related to acquisition and
related items, such as amortization of acquired intangible assets,
merger, acquisition, or restructuring related severance costs, and
changes in the fair value of contingent consideration.
- Adjusted EBITDA does not reflect cash
and non-cash charges and changes in, or cash requirements for,
acquisition and related items, such as certain transaction
expenses.
- Adjusted EBITDA does not reflect cash
and non-cash charges related to certain financing transactions such
as gains or losses on extinguishment of debt or other debt
refinancing expenses.
- Adjusted EBITDA does not reflect
changes in our working capital needs, capital expenditures,
non-operational real estate expenses or income, or contractual
commitments.
- Adjusted EBITDA does not reflect cash
requirements for income taxes and the cash impact of other income
or expense.
- Other companies may calculate Adjusted
EBITDA differently than we do, limiting its usefulness as a
comparative measure.
Our Adjusted EBITDA is influenced by fluctuations in our
revenue, cost of revenue, and the timing and amounts of the cost of
our operations. Adjusted EBITDA should not be considered as an
alternative to net income (loss), income (loss) from operations, or
any other measure of financial performance calculated and presented
in accordance with GAAP.
Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per
Share:We define non-GAAP earnings (loss) per share as
non-GAAP income (loss) divided by non-GAAP weighted-average shares
outstanding. Non-GAAP income (loss) is equal to net income (loss)
excluding stock-based compensation, cash and non-cash based merger,
acquisition, and restructuring costs, which consist primarily of
professional service fees associated with merger and acquisition
activities, cash-based employee termination costs, and other
restructuring activities, including facility closures, relocation
costs, contract termination costs, and impairment costs of
abandoned technology associated with restructuring activities,
amortization of acquired intangible assets, gains or losses on
extinguishment of debt, non-operational real estate and other
expenses or income, foreign currency gains and losses, interest
expense associated with Convertible Senior Notes, other debt
refinance expenses, and the tax impact of these items. In periods
in which we have non-GAAP income, non-GAAP weighted-average shares
outstanding used to calculate non-GAAP earnings per share includes
the impact of potentially dilutive shares. Potentially dilutive
shares consist of stock options, restricted stock units,
performance stock units, and potential shares issued under the
Employee Stock Purchase Plan, each computed using the treasury
stock method, and the impact of shares that would be issuable
assuming conversion of all of the Convertible Senior Notes,
calculated under the if-converted method. We believe non-GAAP
earnings (loss) per share is useful to investors in evaluating our
ongoing operational performance and our trends on a per share
basis, and also facilitates comparison of our financial results on
a per share basis with other companies, many of which present a
similar non-GAAP measure. However, a potential limitation of our
use of non-GAAP earnings (loss) per share is that other companies
may define non-GAAP earnings (loss) per share differently, which
may make comparison difficult. This measure may also exclude
expenses that may have a material impact on our reported financial
results. Non-GAAP earnings (loss) per share is a performance
measure and should not be used as a measure of liquidity. Because
of these limitations, we also consider the comparable GAAP measure
of net income (loss).
Investor Relations ContactNick Kormeluk(949)
500-0003nkormeluk@magnite.com
Media ContactCharlstie Veith(516)
300-3569press@magnite.com
|
MAGNITE, INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(In
thousands)(unaudited) |
| |
June 30, 2024 |
|
December 31, 2023 |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
326,464 |
|
|
$ |
326,219 |
|
|
Accounts receivable, net |
|
1,122,396 |
|
|
|
1,176,276 |
|
|
Prepaid expenses and other current assets |
|
19,376 |
|
|
|
20,508 |
|
|
TOTAL CURRENT ASSETS |
|
1,468,236 |
|
|
|
1,523,003 |
|
| Property and equipment,
net |
|
62,939 |
|
|
|
47,371 |
|
| Right-of-use lease asset |
|
62,034 |
|
|
|
60,549 |
|
| Internal use software development
costs, net |
|
24,923 |
|
|
|
21,926 |
|
| Intangible assets, net |
|
35,848 |
|
|
|
51,011 |
|
| Goodwill |
|
978,217 |
|
|
|
978,217 |
|
| Other assets, non-current |
|
11,008 |
|
|
|
6,729 |
|
| TOTAL ASSETS |
$ |
2,643,205 |
|
|
$ |
2,688,806 |
|
| LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
| Current liabilities: |
|
|
|
|
Accounts payable and accrued expenses |
$ |
1,299,231 |
|
|
$ |
1,372,176 |
|
|
Lease liabilities, current |
|
20,014 |
|
|
|
20,402 |
|
|
Debt, current |
|
3,650 |
|
|
|
3,600 |
|
|
Other current liabilities |
|
6,219 |
|
|
|
5,957 |
|
|
TOTAL CURRENT LIABILITIES |
|
1,329,114 |
|
|
|
1,402,135 |
|
| Debt, non-current, net of debt
discount and debt issuance costs |
|
549,025 |
|
|
|
532,986 |
|
| Lease liabilities,
non-current |
|
50,294 |
|
|
|
49,665 |
|
| Deferred tax liability, net |
|
287 |
|
|
|
680 |
|
| Other liabilities,
non-current |
|
1,522 |
|
|
|
1,657 |
|
| TOTAL LIABILITIES |
|
1,930,242 |
|
|
|
1,987,123 |
|
| STOCKHOLDERS' EQUITY |
|
|
|
| Common stock |
|
2 |
|
|
|
2 |
|
| Additional paid-in capital |
|
1,418,931 |
|
|
|
1,387,715 |
|
| Accumulated other comprehensive
loss |
|
(3,177 |
) |
|
|
(2,076 |
) |
| Accumulated deficit |
|
(702,793 |
) |
|
|
(683,958 |
) |
| TOTAL STOCKHOLDERS' EQUITY |
|
712,963 |
|
|
|
701,683 |
|
| TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY |
$ |
2,643,205 |
|
|
$ |
2,688,806 |
|
|
MAGNITE, INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
amounts)(unaudited) |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Revenue |
$ |
162,880 |
|
|
$ |
152,543 |
|
|
$ |
312,199 |
|
|
$ |
282,693 |
|
| Expenses (1)(2): |
|
|
|
|
|
|
|
|
Cost of revenue |
|
62,606 |
|
|
|
130,175 |
|
|
|
128,508 |
|
|
|
255,003 |
|
|
Sales and marketing |
|
42,240 |
|
|
|
45,131 |
|
|
|
85,929 |
|
|
|
98,180 |
|
|
Technology and development |
|
25,829 |
|
|
|
23,383 |
|
|
|
52,720 |
|
|
|
47,598 |
|
|
General and administrative |
|
22,631 |
|
|
|
25,649 |
|
|
|
49,296 |
|
|
|
46,737 |
|
|
Merger, acquisition, and restructuring costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,465 |
|
| Total expenses |
|
153,306 |
|
|
|
224,338 |
|
|
|
316,453 |
|
|
|
454,983 |
|
| Income (loss) from
operations |
|
9,574 |
|
|
|
(71,795 |
) |
|
|
(4,254 |
) |
|
|
(172,290 |
) |
| Other (income) expense: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
6,793 |
|
|
|
8,520 |
|
|
|
14,751 |
|
|
|
16,695 |
|
|
Foreign exchange (gain) loss, net |
|
516 |
|
|
|
(304 |
) |
|
|
(1,799 |
) |
|
|
(71 |
) |
|
(Gain) loss on extinguishment of debt |
|
— |
|
|
|
(5,427 |
) |
|
|
7,387 |
|
|
|
(13,976 |
) |
|
Other income |
|
(1,284 |
) |
|
|
(1,358 |
) |
|
|
(2,576 |
) |
|
|
(2,671 |
) |
| Total other (income) expense,
net |
|
6,025 |
|
|
|
1,431 |
|
|
|
17,763 |
|
|
|
(23 |
) |
| Income (loss) before income
taxes |
|
3,549 |
|
|
|
(73,226 |
) |
|
|
(22,017 |
) |
|
|
(172,267 |
) |
|
Provision (benefit) for income taxes |
|
4,627 |
|
|
|
663 |
|
|
|
(3,182 |
) |
|
|
354 |
|
| Net loss |
$ |
(1,078 |
) |
|
$ |
(73,889 |
) |
|
$ |
(18,835 |
) |
|
$ |
(172,621 |
) |
| Net loss per share: |
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.01 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.13 |
) |
|
$ |
(1.27 |
) |
| Weighted average shares used
to compute loss per share: |
|
|
|
|
|
|
|
|
Basic and diluted |
|
140,551 |
|
|
|
136,164 |
|
|
|
139,924 |
|
|
|
135,429 |
|
| (1) Stock-based compensation
expense included in our expenses was as follows: |
| |
Three Months Ended |
|
Six Months Ended |
|
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Cost of revenue |
$ |
478 |
|
$ |
459 |
|
$ |
978 |
|
$ |
927 |
| Sales and marketing |
|
7,972 |
|
|
7,093 |
|
|
16,208 |
|
|
14,498 |
| Technology and development |
|
4,889 |
|
|
5,473 |
|
|
10,305 |
|
|
10,919 |
| General and administrative |
|
6,321 |
|
|
5,682 |
|
|
13,000 |
|
|
11,507 |
| Merger, acquisition, and
restructuring costs |
|
— |
|
|
— |
|
|
— |
|
|
143 |
|
Total stock-based compensation expense |
$ |
19,660 |
|
$ |
18,707 |
|
$ |
40,491 |
|
$ |
37,994 |
| (2) Depreciation and amortization
expense included in our expenses was as follows: |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Cost of revenue |
$ |
11,438 |
|
$ |
81,336 |
|
$ |
22,154 |
|
$ |
161,727 |
| Sales and marketing |
|
2,589 |
|
|
7,292 |
|
|
5,199 |
|
|
22,336 |
| Technology and development |
|
124 |
|
|
187 |
|
|
271 |
|
|
392 |
| General and administrative |
|
85 |
|
|
124 |
|
|
179 |
|
|
279 |
|
Total depreciation and amortization expense |
$ |
14,236 |
|
$ |
88,939 |
|
$ |
27,803 |
|
$ |
184,734 |
|
MAGNITE, INC.CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS(In
thousands)(unaudited) |
| |
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
| OPERATING ACTIVITIES: |
|
|
|
|
Net loss |
$ |
(18,835 |
) |
|
$ |
(172,621 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
27,803 |
|
|
|
184,734 |
|
|
Stock-based compensation |
|
40,491 |
|
|
|
37,994 |
|
|
(Gain) loss on extinguishment of debt |
|
7,387 |
|
|
|
(13,976 |
) |
|
Gain on disposal of property and equipment |
|
(13 |
) |
|
|
(39 |
) |
|
Provision for doubtful accounts |
|
292 |
|
|
|
4,649 |
|
|
Amortization of debt discount and issuance costs |
|
2,149 |
|
|
|
3,269 |
|
|
Non-cash lease expense |
|
(1,236 |
) |
|
|
167 |
|
|
Deferred income taxes |
|
(3,101 |
) |
|
|
219 |
|
|
Unrealized foreign currency gain, net |
|
(3,112 |
) |
|
|
(1,974 |
) |
|
Other items, net |
|
— |
|
|
|
2,696 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
52,146 |
|
|
|
48,144 |
|
|
Prepaid expenses and other assets |
|
1,120 |
|
|
|
1,386 |
|
|
Accounts payable and accrued expenses |
|
(76,104 |
) |
|
|
(52,190 |
) |
|
Other liabilities |
|
169 |
|
|
|
765 |
|
|
Net cash provided by operating activities |
|
29,156 |
|
|
|
43,223 |
|
| INVESTING ACTIVITIES: |
|
|
|
|
Purchases of property and equipment |
|
(15,040 |
) |
|
|
(12,734 |
) |
|
Capitalized internal use software development costs |
|
(7,516 |
) |
|
|
(5,800 |
) |
|
Net cash used in investing activities |
|
(22,556 |
) |
|
|
(18,534 |
) |
| FINANCING ACTIVITIES: |
|
|
|
|
Proceeds from issuance of 2024 Term Loan B Facility, net of debt
discount |
|
361,350 |
|
|
|
— |
|
|
Repayment of 2021 Term Loan B Facility |
|
(351,000 |
) |
|
|
— |
|
|
Payment for debt issuance costs |
|
(4,510 |
) |
|
|
— |
|
|
Repayment of debt |
|
(913 |
) |
|
|
(1,800 |
) |
|
Repurchase of Convertible Senior Notes |
|
— |
|
|
|
(74,989 |
) |
|
Proceeds from exercise of stock options |
|
187 |
|
|
|
2,096 |
|
|
Proceeds from issuance of common stock under employee stock
purchase plan |
|
1,983 |
|
|
|
1,922 |
|
|
Repayment of financing lease |
|
— |
|
|
|
(276 |
) |
|
Taxes paid related to net share settlement |
|
(12,743 |
) |
|
|
(9,677 |
) |
|
Payment of indemnification claims holdback |
|
— |
|
|
|
(2,313 |
) |
|
Net cash used in financing activities |
|
(5,646 |
) |
|
|
(85,037 |
) |
| EFFECT OF EXCHANGE RATE
CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
|
(709 |
) |
|
|
257 |
|
| CHANGE IN CASH, CASH
EQUIVALENTS AND RESTRICTED CASH |
|
245 |
|
|
|
(60,091 |
) |
| CASH, CASH EQUIVALENTS AND
RESTRICTED CASH — Beginning of period |
|
326,219 |
|
|
|
326,502 |
|
| CASH, CASH EQUIVALENTS AND
RESTRICTED CASH — End of period |
$ |
326,464 |
|
|
$ |
266,411 |
|
| |
|
|
|
| RECONCILIATION OF CASH, CASH
EQUIVALENTS AND RESTRICTED CASH TO CONSOLIDATED BALANCE SHEETS |
|
|
|
| Cash and cash equivalents |
$ |
326,464 |
|
|
$ |
266,364 |
|
| Restricted cash included in
prepaid expenses and other current assets |
|
— |
|
|
|
47 |
|
| Total cash, cash equivalents
and restricted cash |
$ |
326,464 |
|
|
$ |
266,411 |
|
| |
|
|
MAGNITE, INC.CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS-(Continued)(In
thousands)(unaudited) |
| |
Six Months Ended |
| SUPPLEMENTAL DISCLOSURES OF
OTHER CASH FLOW INFORMATION: |
June 30, 2024 |
|
June 30, 2023 |
|
Cash paid for income taxes |
$ |
1,938 |
|
$ |
3,069 |
| Cash paid for interest |
$ |
17,854 |
|
$ |
17,944 |
| Capitalized assets financed by
accounts payable and accrued expenses and other liabilities |
$ |
9,132 |
|
$ |
1,382 |
| Capitalized stock-based
compensation |
$ |
1,298 |
|
$ |
1,092 |
| Operating lease right-of-use
assets obtained in exchange for operating lease liabilities |
$ |
11,020 |
|
$ |
3,277 |
|
MAGNITE, INC.RECONCILIATION OF REVENUE TO GROSS
PROFIT TO CONTRIBUTION EX-TAC(In
thousands)(unaudited) |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Revenue |
$ |
162,880 |
|
$ |
152,543 |
|
$ |
312,199 |
|
$ |
282,693 |
|
Less: Cost of revenue |
|
62,606 |
|
|
130,175 |
|
|
128,508 |
|
|
255,003 |
| Gross Profit |
|
100,274 |
|
|
22,368 |
|
|
183,691 |
|
|
27,690 |
|
Add back: Cost of revenue, excluding TAC |
|
46,489 |
|
|
112,314 |
|
|
93,625 |
|
|
223,041 |
| Contribution ex-TAC |
$ |
146,763 |
|
$ |
134,682 |
|
$ |
277,316 |
|
$ |
250,731 |
| |
|
|
|
|
|
|
|
|
MAGNITE, INC.RECONCILIATION OF NET LOSS TO
ADJUSTED EBITDA(In
thousands)(unaudited) |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Net loss |
$ |
(1,078 |
) |
|
$ |
(73,889 |
) |
|
$ |
(18,835 |
) |
|
$ |
(172,621 |
) |
| Add back (deduct): |
|
|
|
|
|
|
|
|
Depreciation and amortization expense, excluding amortization of
acquired intangible assets |
|
6,662 |
|
|
|
10,259 |
|
|
|
12,640 |
|
|
|
19,625 |
|
|
Amortization of acquired intangibles |
|
7,574 |
|
|
|
78,680 |
|
|
|
15,163 |
|
|
|
165,109 |
|
|
Stock-based compensation expense |
|
19,660 |
|
|
|
18,707 |
|
|
|
40,491 |
|
|
|
37,994 |
|
|
Merger, acquisition, and restructuring costs, excluding stock-based
compensation expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,322 |
|
|
Non-operational real estate and other (income) expense, net |
|
(7 |
) |
|
|
122 |
|
|
|
17 |
|
|
|
238 |
|
|
Interest expense, net |
|
6,793 |
|
|
|
8,520 |
|
|
|
14,751 |
|
|
|
16,695 |
|
|
Foreign exchange (gain) loss, net |
|
516 |
|
|
|
(304 |
) |
|
|
(1,799 |
) |
|
|
(71 |
) |
|
(Gain) loss on extinguishment of debt |
|
— |
|
|
|
(5,427 |
) |
|
|
7,387 |
|
|
|
(13,976 |
) |
|
Other debt refinancing expense |
|
— |
|
|
|
— |
|
|
|
3,140 |
|
|
|
— |
|
|
Provision (benefit) for income taxes |
|
4,627 |
|
|
|
663 |
|
|
|
(3,182 |
) |
|
|
354 |
|
| Adjusted EBITDA |
$ |
44,747 |
|
|
$ |
37,331 |
|
|
$ |
69,773 |
|
|
$ |
60,669 |
|
|
MAGNITE, INC.RECONCILIATION OF NET LOSS TO
NON-GAAP INCOME(In
thousands)(unaudited) |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
|
Net loss |
$ |
(1,078 |
) |
|
$ |
(73,889 |
) |
|
$ |
(18,835 |
) |
|
$ |
(172,621 |
) |
| Add back (deduct): |
|
|
|
|
|
|
|
|
Merger, acquisition, and restructuring costs, including
amortization of acquired intangibles and excluding stock-based
compensation expense |
|
7,574 |
|
|
|
78,680 |
|
|
|
15,163 |
|
|
|
172,431 |
|
|
Stock-based compensation expense |
|
19,660 |
|
|
|
18,707 |
|
|
|
40,491 |
|
|
|
37,994 |
|
|
Non-operational real estate and other (income) expense, net |
|
(7 |
) |
|
|
122 |
|
|
|
17 |
|
|
|
238 |
|
|
Foreign exchange (gain) loss, net |
|
516 |
|
|
|
(304 |
) |
|
|
(1,799 |
) |
|
|
(71 |
) |
|
Interest expense, Convertible Senior Notes |
|
422 |
|
|
|
(176 |
) |
|
|
843 |
|
|
|
1,489 |
|
|
(Gain) loss on extinguishment of debt |
|
— |
|
|
|
(5,427 |
) |
|
|
7,387 |
|
|
|
(13,976 |
) |
|
Other debt refinancing expense |
|
— |
|
|
|
— |
|
|
|
3,140 |
|
|
|
— |
|
|
Tax effect of Non-GAAP adjustments (1) |
|
(5,603 |
) |
|
|
(4,212 |
) |
|
|
(16,939 |
) |
|
|
(6,232 |
) |
| Non-GAAP income |
$ |
21,484 |
|
|
$ |
13,501 |
|
|
$ |
29,468 |
|
|
$ |
19,252 |
|
|
(1 |
) |
Non-GAAP income includes the
estimated tax impact from the reconciling items between net loss
and non-GAAP income. |
|
MAGNITE, INC.RECONCILIATION OF GAAP LOSS
PER SHARE TO NON-GAAP EARNINGS PER SHARE(In
thousands, except per share
amounts)(unaudited) |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
| GAAP loss per share (1): |
|
|
|
|
|
|
|
|
Basic and diluted |
$ |
(0.01 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.13 |
) |
|
$ |
(1.27 |
) |
|
|
|
|
|
|
|
|
|
| Non-GAAP income (2) |
$ |
21,484 |
|
|
$ |
13,501 |
|
|
$ |
29,468 |
|
|
$ |
19,252 |
|
| Non-GAAP earnings per
share |
$ |
0.14 |
|
|
$ |
0.09 |
|
|
$ |
0.20 |
|
|
$ |
0.13 |
|
| |
|
|
|
|
|
|
|
| Reconciliation of
weighted-average shares used to compute net earnings (loss) per
share to non-GAAP weighted average shares outstanding: |
|
|
|
|
|
|
|
| Weighted-average shares used
to compute basic earnings (loss) per share |
|
140,551 |
|
|
|
136,164 |
|
|
|
139,924 |
|
|
|
135,429 |
|
|
Dilutive effect of weighted-average common stock options, RSUs, and
PSUs |
|
4,972 |
|
|
|
4,071 |
|
|
|
4,672 |
|
|
|
3,843 |
|
|
Dilutive effect of weighted-average ESPP shares |
|
55 |
|
|
|
9 |
|
|
|
60 |
|
|
|
13 |
|
|
Dilutive effect of weighted-average Convertible Senior Notes |
|
3,210 |
|
|
|
5,313 |
|
|
|
3,210 |
|
|
|
5,668 |
|
| Non-GAAP weighted-average
shares outstanding |
|
148,788 |
|
|
|
145,557 |
|
|
|
147,866 |
|
|
|
144,953 |
|
| |
|
|
|
|
|
|
|
| (1) Calculated as net income
(loss) divided by basic and diluted weighted-average shares used to
compute earnings (loss) per share as included in the condensed
consolidated statement of operations. |
| (2) Refer to reconciliation of
net loss to non-GAAP income. |
|
MAGNITE, INC.CONTRIBUTION EX-TAC BY
CHANNEL(In
thousands)(unaudited) |
| |
Contribution ex-TAC |
| |
Three Months Ended |
|
Six Months Ended |
| |
June 30, 2024 |
|
June 30, 2023 |
|
June 30, 2024 |
|
June 30, 2023 |
| Channel: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CTV |
$ |
62,953 |
|
43 |
% |
|
$ |
56,084 |
|
42 |
% |
|
$ |
117,847 |
|
43 |
% |
|
$ |
102,496 |
|
41 |
% |
|
Mobile |
|
57,713 |
|
39 |
% |
|
|
53,392 |
|
39 |
% |
|
|
111,012 |
|
40 |
% |
|
|
100,289 |
|
40 |
% |
|
Desktop |
|
26,097 |
|
18 |
% |
|
|
25,206 |
|
19 |
% |
|
|
48,457 |
|
17 |
% |
|
|
47,946 |
|
19 |
% |
| Total |
$ |
146,763 |
|
100 |
% |
|
$ |
134,682 |
|
100 |
% |
|
$ |
277,316 |
|
100 |
% |
|
$ |
250,731 |
|
100 |
% |
Magnite (NASDAQ:MGNI)
過去 株価チャート
から 7 2024 まで 8 2024
Magnite (NASDAQ:MGNI)
過去 株価チャート
から 8 2023 まで 8 2024
