• Magnite Reports Fourth Quarter and Full-Year 2024 Results

    Source: Nasdaq GlobeNewswire / 26 Feb 2025 16:05:01   America/New_York

    Total Revenue up 4% & Contribution ex-TAC(1) up 9% in Fourth Quarter

    Contribution ex-TAC(1) from CTV Grows 23% in Fourth Quarter

    Adjusted EBITDA Margin(2) of 42% in Fourth Quarter

    NEW YORK, Feb. 26, 2025 (GLOBE NEWSWIRE) --  Magnite (NASDAQ: MGNI), the world's largest independent sell-side advertising company, today reported its results of operations for the fourth quarter and year ended December 31, 2024.

    Recent Highlights:

    • Revenue of $194.0 million for Q4 2024, up 4% from Q4 2023
    • Contribution ex-TAC(1) of $180.2 million for Q4 2024, an increase of 9% from Q4 2023
    • Contribution ex-TAC(1) attributable to CTV for Q4 2024 of $77.9 million, which exceeded guidance of $75 to $77 million, and was up 23% year-over-year
    • Contribution ex-TAC(1) attributable to DV+ for Q4 2024 of $102.3 million, an increase of 1% year-over-year
    • Net income for Q4 2024 of $36.4 million, or $0.24 per diluted share, compared to net income of $30.9 million, or $0.16 per diluted share for Q4 2023
    • Adjusted EBITDA(1) of $76.5 million in Q4 2024 representing a 42% Adjusted EBITDA margin(2), compared to Adjusted EBITDA(1) of $70.4 million for Q4 2023
    • Non-GAAP diluted earnings per share(1) of $0.34 for Q4 2024, compared to non-GAAP diluted earnings per share(1) of $0.29 for Q4 2023
    • Operating cash flow(3) in Q4 2024 of $64.4 million
    • Contribution ex-TAC(1) attributable to CTV for the full-year 2024 of $260.2 million, an increase of 19% year-over-year, representing 43% of total Contribution ex-TAC(1)
    • Adjusted EBITDA(1) for the full-year 2024 of $196.9 million, an increase of 15% from the full-year 2023
    • Ended 2024 with $483.2 million in cash and cash equivalents

    Expectations:

    • Total Contribution ex-TAC(1) for Q1 2025 to be between $140 and $144 million
    • Contribution ex-TAC(1) attributable to CTV for Q1 2025 to be between $61 and $63 million
    • Contribution ex-TAC(1) attributable to DV+ for Q1 2025 to be between $79 and $81 million
    • Adjusted EBITDA operating expenses(4) for Q1 2025 to be between $111 and $113 million
    • Total Contribution ex-TAC(1) growth above 10% for the full-year 2025
    • Excluding political, total 2025 Contribution ex-TAC(1) growth in the mid-teens
    • Adjusted EBITDA margin(2) expansion of at least 100 basis points for 2025
    • Mid-teens percentage growth of Adjusted EBITDA(1) for 2025
    • High-teens to 20% growth in free cash flow(5) for 2025

    “CTV performed well above expectations based on strength from our partnerships with many of the largest industry players. Our DV+ business grew modestly in Q4 due to marketers pausing campaigns after the election, but has rebounded since the start of 2025 and resumed growth in the mid-to-high single digits. We are very encouraged with partner and agency traction to start 2025, and have also made strides to improve efficiency across our business.” said Michael G. Barrett, CEO of Magnite. “We look forward to a solid growth year in 2025, despite a mixed ad spend environment and political comps. We continue to balance top-line growth and profitability to drive free cash flow, which is reflected in our outlook for 2025. Key areas of investment will be live sports, ClearLine, agency marketplaces, curation, AI and overall platform efficiency.”

               
    Magnite Fourth Quarter 2024 Results Summary
    (in millions, except per share amounts and percentages)
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 Change
    Favorable/
    (Unfavorable)    		 December 31,
    2024    		 December 31,
    2023    		 Change
    Favorable/
    (Unfavorable)
    Revenue$194.0  $186.9 4% $668.2  $619.7 8%
    Gross profit$126.2  $116.9 8% $409.3  $209.8 95%
    Contribution ex-TAC(1)$180.2  $165.3 9% $606.9  $549.1 11%
    Net income (loss)$36.4  $30.9 18% $22.8  ($159.2) NM
    Adjusted EBITDA(1)$76.5  $70.4 9% $196.9  $171.4 15%
    Adjusted EBITDA margin(2) 42%  43% (1) ppt  32%   31% 1 ppt
    Basic earnings (loss) per share$0.26 $0.22 18% $0.16  ($1.17) NM
    Diluted earnings (loss) per share$0.24 $0.16 50% $0.16  ($1.17) NM
    Non-GAAP earnings per share(1)$0.34 $0.29 17% $0.71  $0.54 31%
                 

    NM = Not meaningful

    Notes:
    (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.
       

    Fourth Quarter 2024 Results Conference Call and Webcast:

    The Company will host a conference call on February 26, 2025 at 1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its fourth 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:1991482
    Webcast link:http://investor.magnite.com, under "Events and Presentations"

    About Magnite
    We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising platform. 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; macroeconomic conditions or concerns related thereto; the growth of ad-supported programmatic connected television; our ability to use and collect data to provide our offerings; the scope and duration of client relationships; the fees we may charge in the future; key strategic objectives; anticipated benefits of new offerings; business mix; sales growth; benefits from supply path optimization; our ability to adapt to advancements in artificial intelligence; the development of identity solutions; client utilization of our offerings; the impact of requests for discounts, rebates or other fee concessions; 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, 2024 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 financial 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 income (loss) to Adjusted EBITDA," "Reconciliation of net income (loss) to non-GAAP income (loss)," and "Reconciliation of GAAP earnings (loss) per share to non-GAAP earnings (loss) 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 facilitating 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 certain non-operational real estate and other (income) and expense, net, which consists of transactions or expenses that are typically by nature non-operating, one-time items, or unrelated to our core operations.
    • Adjusted EBITDA does not reflect changes in our working capital needs, capital expenditures, 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).

     
    MAGNITE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (unaudited)
     
     December 31, 2024 December 31, 2023
    ASSETS   
    Current assets:   
    Cash and cash equivalents$483,220  $326,219 
    Accounts receivable, net 1,200,046   1,176,276 
    Prepaid expenses and other current assets 19,914   20,508 
    TOTAL CURRENT ASSETS 1,703,180   1,523,003 
    Property and equipment, net 68,730   47,371 
    Right-of-use lease asset 50,329   60,549 
    Internal use software development costs, net 26,625   21,926 
    Intangible assets, net 21,309   51,011 
    Goodwill 978,217   978,217 
    Other assets, non-current 6,378   6,729 
    TOTAL ASSETS$2,854,768  $2,688,806 
    LIABILITIES AND STOCKHOLDERS' EQUITY   
    Current liabilities:   
    Accounts payable and accrued expenses$1,466,377  $1,372,176 
    Lease liabilities, current 16,086   20,402 
    Debt, current 3,641   3,600 
    Other current liabilities 9,880   5,957 
    TOTAL CURRENT LIABILITIES 1,495,984   1,402,135 
    Debt, non-current, net of debt issuance costs 550,104   532,986 
    Lease liabilities, non-current 38,983   49,665 
    Other liabilities, non-current 1,479   2,337 
    TOTAL LIABILITIES 2,086,550   1,987,123 
    STOCKHOLDERS' EQUITY   
    Common stock 2   2 
    Additional paid-in capital         1,433,809   1,387,715 
    Accumulated other comprehensive loss (4,421)  (2,076)
    Accumulated deficit (661,172)  (683,958)
    TOTAL STOCKHOLDERS' EQUITY 768,218   701,683 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$2,854,768  $2,688,806 
     


     
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)
    (unaudited)
     
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    Revenue$193,968  $186,932  $668,170  $619,710 
    Expenses (1)(2):       
    Cost of revenue 67,786   70,025   258,838   409,906 
    Sales and marketing 40,628   37,575   166,142   173,982 
    Technology and development 22,262   23,183   95,243   94,318 
    General and administrative 23,074   21,025   96,860   89,048 
    Merger, acquisition, and restructuring costs —   —   —   7,465 
    Total expenses 153,750   151,808   617,083   774,719 
    Income (loss) from operations 40,218   35,124   51,087   (155,009)
    Other expense:       
    Interest expense, net 5,433   8,100   27,032   32,369 
    Foreign exchange (gain) loss, net (6,303)  3,495   (5,083)  1,953 
    (Gain) loss on extinguishment of debt —   (8,348)  7,706   (26,480)
    Other income (1,170)  (1,287)  (5,052)  (5,304)
    Total other (income) expense, net (2,040)  1,960   24,603   2,538 
    Income (loss) before income taxes 42,258   33,164   26,484   (157,547)
    Provision for income taxes 5,851   2,250   3,698   1,637 
    Net income (loss)$36,407  $30,914  $22,786  $(159,184)
    Net earnings (loss) per share:       
    Basic$0.26  $0.22  $0.16  $(1.17)
    Diluted$0.24  $0.16  $0.16  $(1.17)
    Weighted average shares used to compute net earnings (loss) per share:       
    Basic 141,106   138,212   140,557   136,620 
    Diluted 152,434   143,793   146,810   136,620 
     


    (1) Stock-based compensation expense included in our expenses was as follows:


     

    		Three Months Ended Year Ended
    December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    Cost of revenue$423 $436 $1,924 $1,809
    Sales and marketing 7,473  6,394  31,436  27,263
    Technology and development 3,617  4,624  18,210  20,542
    General and administrative 5,845  5,701  24,949  22,860
    Merger, acquisition, and restructuring costs —  —  —  143
    Total stock-based compensation expense$17,358 $17,155 $76,519 $72,617
     


    (2) Depreciation and amortization expense included in our expenses was as follows:


     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    Cost of revenue$13,538 $13,901 $47,570 $211,956
    Sales and marketing 2,473  2,628  10,157  27,584
    Technology and development 88  188  460  779
    General and administrative 71  103  323  501
    Total depreciation and amortization expense$16,170 $16,820 $58,510 $240,820
     


      
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (unaudited)
      
     Year Ended
     December 31, 2024 December 31, 2023
    OPERATING ACTIVITIES:   
    Net income (loss)$22,786  $(159,184)
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:   
    Depreciation and amortization 58,510   240,820 
    Stock-based compensation 76,519   72,617 
    (Gain) loss on extinguishment of debt 7,706   (26,480)
    Provision for doubtful accounts 587   4,666 
    Amortization of debt discount and issuance costs 4,119   6,279 
    Non-cash lease expense (4,772)  (1,712)
    Deferred income taxes 95   (2,379)
    Unrealized foreign currency (gain) loss, net (7,001)  1,266 
    Other items, net 23   3,007 
    Changes in operating assets and liabilities:   
    Accounts receivable (26,024)  (220,102)
    Prepaid expenses and other assets 1,980   1,004 
    Accounts payable and accrued expenses 97,380   294,677 
    Other liabilities 3,293   (112)
    Net cash provided by operating activities 235,201   214,367 
    INVESTING ACTIVITIES:   
    Purchases of property and equipment (32,810)  (26,764)
    Capitalized internal use software development costs (14,260)  (10,619)
    Other investing activities (432)  — 
    Net cash used in investing activities (47,502)  (37,383)
    FINANCING ACTIVITIES:   
    Proceeds from the Term Loan B Facility refinancing and repricing activities, net of debt discount 413,463   — 
    Repayment of the Term Loan B Facility from refinancing and repricing activities (403,113)  — 
    Payment for debt issuance costs (4,547)  — 
    Repayment of debt (1,823)  (3,600)
    Repurchase of Convertible Senior Notes —   (165,518)
    Proceeds from exercise of stock options 572   2,166 
    Proceeds from issuance of common stock under employee stock purchase plan 3,589   3,513 
    Taxes paid related to net share settlement (22,472)  (11,814)
    Purchase of treasury stock (14,573)  — 
    Repayment of finance leases —   (276)
    Payment of indemnification claims holdback —   (2,313)
    Net cash used in financing activities (28,904)  (177,842)
    EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH (1,794)  575 
    CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 157,001   (283)
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period 326,219   326,502 
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period$483,220  $326,219 
     


      
    MAGNITE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS-(Continued)
    (In thousands)
    (unaudited)
      
     Year Ended
     December 31, 2024 December 31, 2023
    SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:   
    Cash paid for income taxes$3,870 $5,357
    Cash paid for interest$36,863 $37,028
    Capitalized assets financed by accounts payable and accrued expenses and other liabilities$6,742 $1,690
    Capitalized stock-based compensation$2,459 $2,012
    Operating lease right-of-use assets obtained in exchange for operating lease liabilities$13,628 $4,017
    Operating lease right-of-use assets reduction and corresponding adjustment to operating lease liabilities from lease terminations$4,622 $—
    Non-cash financing activity related to Amendment No. 1 to the 2024 Credit Agreement$311,974 $—
          


     
    MAGNITE, INC.
    CALCULATION OF BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
    (In thousands, except per share data)
    (unaudited)
     
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
      
    Basic and Diluted Earnings (Loss) Per Share:       
    Net income (loss)$36,407 $30,914  $22,786 $(159,184)
    Weighted-average common shares outstanding used to compute basic earnings (loss) per share 141,106  138,212   140,557  136,620 
    Basic earnings (loss) per share$0.26 $0.22  $0.16 $(1.17)
            
    Diluted Earnings (Loss) Per Share:       
    Net income (loss)$36,407 $30,914  $22,786 $(159,184)
    Adjustments:       
    Interest expense, Convertible Senior Notes, net of tax 517  508   —  — 
    Gain on extinguishment of debt, net of tax —  (8,151)  —  — 
    Net income (loss) for calculation of diluted income (loss)$36,924 $23,271  $22,786 $(159,184)
            
    Weighted-average common shares used in basic earnings (loss) per share 141,106  138,212   140,557  136,620 
    Dilutive effect of weighted-average restricted stock units 5,044  545   3,731  — 
    Dilutive effect of weighted-average common stock options 2,012  1,156   1,811  — 
    Dilutive effect of weighted-average performance stock units 1,037  —   669  — 
    Dilutive effect of weighted-average ESPP shares 25  15   42  — 
    Dilutive effect of weighted-average convertible notes 3,210  3,865   —  — 
    Weighted-average shares used to compute diluted net earnings (loss) per share 152,434  143,793   146,810  136,620 
    Diluted net earnings (loss) per share$0.24 $0.16  $0.16 $(1.17)
     


     
    MAGNITE, INC.
    RECONCILIATION OF REVENUE TO GROSS PROFIT TO CONTRIBUTION EX-TAC
    (In thousands)
    (unaudited)
     
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    Revenue$193,968 $186,932 $668,170 $619,710
    Less: Cost of revenue 67,786  70,025  258,838  409,906
    Gross Profit 126,182  116,907  409,332  209,804
    Add back: Cost of revenue, excluding TAC 54,016  48,373  197,610  339,343
    Contribution ex-TAC$180,198 $165,280 $606,942 $549,147
            


     
    MAGNITE, INC.
    RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
    (In thousands)
    (unaudited)
     
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    Net income (loss)$36,407  $30,914  $22,786  $(159,184)
    Add back (deduct):       
    Depreciation and amortization expense, excluding amortization of acquired intangible assets 8,698   9,198   28,376   38,330 
    Amortization of acquired intangibles 7,472   7,622   30,134   202,490 
    Stock-based compensation expense 17,358   17,155   76,519   72,617 
    Merger, acquisition, and restructuring costs, excluding stock-based compensation expense —   —   —   7,322 
    Non-operational real estate and other expense, net 1,597   20   1,579   310 
    Interest expense, net 5,433   8,100   27,032   32,369 
    Foreign exchange (gain) loss, net (6,303)  3,495   (5,083)  1,953 
    (Gain) loss on extinguishment of debt —   (8,348)  7,706   (26,480)
    Other debt refinancing expense —   —   4,103   — 
    Provision for income taxes 5,851   2,250   3,698   1,637 
    Adjusted EBITDA$76,513  $70,406  $196,850  $171,364 
     


     
    MAGNITE, INC.
    RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP INCOME (LOSS)
    (In thousands)
    (unaudited)
     
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    Net income (loss)$36,407  $30,914  $22,786  $(159,184)
    Add back (deduct):       
    Merger, acquisition, and restructuring costs, including amortization of acquired intangibles and excluding stock-based compensation expense 7,472   7,622   30,134   209,812 
    Stock-based compensation expense 17,358   17,155   76,519   72,617 
    Non-operational real estate and other expense, net 1,597   20   1,579   310 
    Foreign exchange (gain) loss, net (6,303)  3,495   (5,083)  1,953 
    Interest expense, Convertible Senior Notes 421   508   1,686   2,620 
    (Gain) loss on extinguishment of debt —   (8,348)  7,706   (26,480)
    Other debt refinancing expense —   —   4,103   — 
    Tax effect of Non-GAAP adjustments(1) (5,339)  (10,218)  (32,806)  (23,740)
    Non-GAAP income$51,613  $41,148  $106,624  $77,908 
     


    (1)Non-GAAP income (loss) includes the estimated tax impact from the reconciling items reconciling between net income (loss) and non-GAAP income (loss).
      


     
    MAGNITE, INC.
    RECONCILIATION OF GAAP EARNINGS (LOSS) PER SHARE TO NON-GAAP EARNINGS PER SHARE
    (In thousands, except per share amounts)
    (unaudited)
     
     Three Months Ended Year Ended
     December 31,
    2024    		 December 31,
    2023    		 December 31,
    2024    		 December 31,
    2023
    GAAP net earnings (loss) per share (1):       
    Basic$0.26 $0.22 $0.16 $(1.17)
    Diluted$0.24 $0.16 $0.16 $(1.17)
            
    Non-GAAP income (2)$51,613 $41,148 $106,624 $77,908 
    Non-GAAP earnings per share$0.34 $0.29 $0.71 $0.54 
            
    Weighted-average shares used to compute basic net earnings (loss) per share 141,106  138,212  140,557  136,620 
    Dilutive effect of weighted-average common stock options, RSAs, RSUs, and PSUs 8,093  1,701  6,211  3,258 
    Dilutive effect of weighted-average ESPP shares 25  15  42  31 
    Dilutive effect of weighted-average Convertible Senior Notes 3,210  3,865  3,210  4,981 
    Non-GAAP weighted-average shares outstanding (3) 152,434  143,793  150,020  144,890 
     


    (1) Calculated as net income (loss) divided by basic and diluted weighted-average shares used to compute net income (loss) per share as included in the consolidated statement of operations.
    (2) Refer to reconciliation of net income (loss) to non-GAAP income (loss).
    (3) Non-GAAP earnings per share is computed using the same weighted-average number of shares that are used to compute GAAP net income (loss) per share in periods where there is both a non-GAAP loss and a GAAP net loss.
     


     
    MAGNITE, INC.
    CONTRIBUTION EX-TAC BY CHANNEL
    (In thousands, except percentages)
    (unaudited)
     
     Contribution ex-TAC
     Three Months Ended
     December 31, 2024 December 31, 2023
      
    Channel:       
    CTV$77,923 43% $63,530 38%
    Mobile 71,660 40   71,566 44 
    Desktop 30,615 17   30,184 18 
    Total$180,198 100% $165,280 100%
     


     Contribution ex-TAC
     Year Ended
     December 31, 2024 December 31, 2023
      
    Channel:       
    CTV$260,159 43% $218,494 40%
    Mobile 242,018 40   226,826 41 
    Desktop 104,765 17   103,827 19 
    Total$606,942 100% $549,147 100%

    Investor Relations Contact
Nick Kormeluk
(949) 500-0003
nkormeluk@magnite.com

Media Contact
Charlstie Veith
(516) 300-3569
press@magnite.com
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