MGNI - Earnings call transcript Q1 2021

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Operator

Good afternoon. Welcome to Magnite First Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, that this event is being recorded. I would now like to turn the conference over to Nick from Investor Relations. ahead. go Please

Nick Kormeluk

and quarter operator, everyone. to Welcome Thank earnings good conference first XXXX call. Magnite's you, afternoon,

As a Telaria reminder, XX-Q the comparisons you will include quarter XXXX. financial first as see the results the of for of reported, in the

the For do Telaria of X, not date results XXXX. the merger of the include quarter April first XXXX, given

it our During and we with in SpotX unaudited comparisons results as to including quarter reported, was our also When period. associated April are to XX, additional detailed and as When management order acquisition, the insights of to XX-Q. the date comparisons, call, basis it provide preliminary including in for SpotX Telaria we acquisition when business comments evaluate pro The this course that for make our relates year-over-year to -- the closing refer we're the results result the referring referring of as first to information we also forma XXXX the are discussing relevant phrase the uses of as reported of performance. to pro XXXX. forma we SpotX

X will in a for for XXXX As our out only months quarter. of reported include keep that the QX X results result, mind please

revenue referencing unaudited results are and for results preliminary be will QX We and change. are SpotX for XXXX. These subject to

being As reminder, recorded. call conference a is this

to Michael are accompany today CFO. our that and out like to Relations CEO; to call have would highlight website today's the Barrett, posted David on me point Investor slides Joining I we presentation. our financial Day,

be and future to anticipated and to, will but remarks remind current include Report our actual reflect statements forward-looking as statements, be to known and our results or are assumptions statements and respect achievements results, cause of other and these well views on by as unknown not is company's limited different assumptions impact are to questions other uncertainties including, future business synergies of performance. for our performance and periodic that strategic expect SEC projected factors forth estimates the to guarantees we started, concerning the are considered They get SpotX from XX-Q Before our benefits acquisition expectations be and to I prepared will update XX-K that may and potential forward-looking our of undertake concerning uncertainties to the including statements statements there obligation XXXX. risks. performance based with QX A on risks, risks, COVID-XX implied from. or our to we information materially events objectives, financial that Annual relevant reports no in and on set might including not forward-looking or answers statements. realize or and potential the discussion subject our and filed Form XXXX and of These We with you

found in may one-time provide offer Please greater referred metrics our metrics -- the non-GAAP will but financial the for the non-GAAP excluding also SpotX standardize or be update financial commonly that maybe to on and press additional and on measures between We’ve to for can provide on release response of preliminary of now we encourage in access today's to questions, may our incremental highlights our our learn website to more to in non-GAAP -- more nature used the future pro using about call of earnings forward may is you your not turn for business. I EBITDA, deck Revenue Revenue to per this forma Investor that on over and terminology. advised results we and this to today metrics. this going press Michael. to replay Investor the release, and commentary net our QX results share and will Magnite. these reports dynamics Relations our our Our detail to visit include periodic the Relations acquisition that these traffic go website. At I respect will used GAAP to income webcast with SpotX expectations previously ahead. revenue into be time revenue metric, an Reconciliations reported insights deck Michael, SEC comparisons the XXXX call non-GAAP and in includes future please we results ex-TAC. posted of including ex-TAC be financial in all highlights, term costs adjusted

Michael Barrett

Thank you, Nick.

the us talk CTV the opportunity. attractive about past in heard You've

to us development. technology a ad dollars accelerate powerful independent CTV move Following ex-TAC leading this capability I the technology us and and additional basis. in us our in forma which with Samsung, acquisition pro team our because specifically SpotX, Revenue ecosystems. exciting, relationships of capabilities us CTV we a even in brings clearly more we greater services than very traction recent more doubles CTV team QX SpotX with to Fubo, XX% was leading business. a to access and ramp pool very in our a Discovery, with service It of are larger combined to platform. ViacomCBS, from to and industry accelerate gives the solutions transformative managed believe and linear and on much customers than more for managed NBC, OLED with Scripps, the business, Roku with it a TV to pleased is customers data is CTV have broadened business identity combination like immediately creates support and It and close gets clients serve critical gives and CTV us very a our scale our scale Vizio deeper and onboarding Pluto, SpotX prowess immediately software of strategic Prior others CTV, very attractive adding Disney. business, dev and services the as which CTV best-in-class direct would triples customers We it and size represented gives transformational, offering, of tremendous But giving to mass to believe relationships resources in our help like

QX Let's now shift and dig into for revenue results both gears companies.

Magnite was included QX forma results on from QX million QX XX% as year-over-year basis. basis, forma inclusive for of results SpotX's QX XX% revenue CTV preliminary basis on a Magnite. of up XXXX increase standalone $XX.X and of an and which standalone on high unaudited pro an reported million Revenue pro XXXX, including for and included for XX% XXXX, revenue representing First ex-TAC XX% a $XX.X on of Telaria. $XX pro million, Revenue million up CTV $XX.X attributable CTV, up XX% XX% forma basis, QX in combined of growth. would XX% in total ex-TAC, have year-over-year, million a At had year-over-year of a year-over-year $XX we SpotX Revenue to up representing representing growth level million, year-over-year. ex-TAC, $XX

core they programmatic reflected clear results on managed in growth high expectations and executing TV combined services. are from their CTV. linear and software They contribution company financial help growth their strong with momentum. of captured the across business results dollars CTV and healthy profitability SpotX's the business strategy, and exceeded had signs expansion. revenue These highlight service showed Our margin power especially channels show well ad that far results our in through

We billion the in $X.X adjusted feature line in EBITDA XXs. XXXX of margins with sight have of over for ex-TAC well Revenue

our only SpotX's industry doesn't Our strategy scale and for with CTV surety, pairing, change amplifies leadership. feature executional

to strategy revenue Our twofold. CTV grow is

First are channels. to direct that by is sold convert deals reps part CTV in-house being currently into programmatic

to CTV. facilitate linear ad dollars TV to and accelerate over moving is Second,

offering very or in step success strategy. our share platform, first powerful for come particularly strategy, winning scale, publishers and With advertisers transacting the with with accelerating linear scatter now CTV second programmatic have SpotX, to has on used digital shift dollars. product managed It of robust programmatic and TV digital a CTV. one linear service more that into comfortable first TV resources, market Together, CTV. CTV our ad orders roadmap, purchasing traditional Hulu opportunity from tools more insertion our growth. greater programmatic giving capturing the industry a us the development clear industry the more prong additional and of much As brings CTV much, are diversity, has Tubi. within the accelerated leader, the greater these have provides ad partner that support SpotX This aimed drive Pluto, bucket, directly dollars upfront inventory, been efficient the are of is we to acquisition and through to ramp largely we like effective much at within independent of a

in a managed with for our elimination percent front, relies we which feel dovetails makes future. the on important [ph] continues very side the our more solution and or significantly to importantly, The our of the as third-party identity pub we consented for past. by our identifiers publishers audience Most well grow business perfectly first-party prepared CTV. strategy marketplace, role of On cookies than are

We also identity have a saw well-positioned and yet. very help to the into change not new, discernible come we observed we community framework. play is ad couple to of any But weeks IDFA are ago. restrictions just impact pivot new This

broader was spend, sectors grow. in also recovery convinced experienced through. theatres, stimulate ad to year-over-year as after a unpack clear. is resurgence begun. typically recent This of coming marketers to sectors relates a wanted of lot this David recent shown quarter Since as largely deployed are drought. more has staging the ad excess awaited in seen is a looking continue has key auto in demand, is sell very business back Our lot to forma pro budgets to when and park CTV our from a room broadly follow spend U.S strong Travelers And economic sports, it a things travel bookings, in ad airlines of in business improvement combined with Entertainment trends. long very tied There our but The there to QX. movie and detail, guidance. make few growing a customer to theme in are comeback engagement cover following very multiple to recovery is the relative a as seats large will is and concerts, XX% reopening to this with of commentary the live XX% prior evident audiences seen in to in globally. all basis, and spend. On long in to QX I

was standalone that, rate CTV Although material bit expectations for growth QX, seen the second a to us raise the allowing our softer in we've acceleration Magnite than quarter.

to year seeing on full be track exceed to well. as for industry for CTV rates is continue growth and CTV strength SpotX the We continued

powerful help closing, Lastly, broader will the growth of set expect have David, within can the customers. fast performing as lot go and in with work financial ahead teams efforts growing these and further over SpotX that, and CTV integrating performance serve into results the strong of The two that of us accelerate a attractive company you a a market us hand will expectations. high With I detail we greater and David? programmatic very will just now might separates of more to and from to regarding already be competition. who scaled of things

David Day

Thanks, the SpotX acquisition. business Michael. on announce a and QX, update SpotX on since on details performance an We're trends solid pleased for an very overview then, accelerating to financing

delivered basis. at year-over-year As mentioned, pro at on by growing basis. Growth we on QX, from CTV basis, forma and OLV up as revenue a of both XX% pro Michael an on with led $XX.X forma XX% up QX million, XX% reported XXXX was XX%, for a

the that CTV growth reflected than our improvement mobile a in in a QX. This QX audio guidance, formats. robust is a and in quarter. particular have full continues we've this into increased to moved basis, XX% grew While on growth OLV XX% cognizant driven liked. mobile our QX for seen mobile forma app CTV And and and outpace would from very lighter our March with as market. performance by trend revenue We're noticeable desktop year we outlook SpotX supply, we ad was pro had

versus expenses from case expenses, desktop. $XX.X for revenue of quarter quarter, the SpotX as mix million in On for were first and resulting basis, EBITDA includes the were our $XX.X for expenses merger in driven primarily Telaria revenue Our including level Operating QX and merger. XXXX, XX% mobile costs CTV, cost $XX revenue which expenses. of XXXX the cost addition EBITDA from QX adjusted resulting QX operating related million XX% XX% compared operating was the $XX.X The in also and relative expenses, operating inclusion million revenue the in first increases of to to Telaria a the primarily amortization were XXXX. by pre-acquisition of to the from period same increased due the Telaria in cost million similar the driven $XX year-ago. by Adjusted of were million increases some

quarter XXXX. share million of of resulting XX%, was basic share originally reported slightly XXXX not XX.X XXX.X Non-GAAP calculation GAAP Net in software benefits quarter our Free property There additional for XXXX. than based up loss were XXXX the first was million of in the development reported QX approximately XXXX was quarter diluted and shares the in of Capital a the -- $X.X first an for million costs million expected internal share first outstanding $X.X flow margin first define in was the quarter per as we of for XX%, of weighted due as average for per $X.X the loss of less adjusted higher expenditures, expense the EBITDA quarter quarter, was the quarter of XXXX. share was period compared of revenue with positive in capitalized in was in million, gross compared on $X.XX both the compared quarter shares on XX% as first from The $XX.X in Our loss slightly were QX in net both $X.XX line loss equipment a in were EBITDA anti-dilutive per the side. period for to GAAP XXXX and CapEx. purposes loss shares. the XXXX, $X.XX margin of cash million use that XXXX. and expectations. per in which same same purchases $X.XX for GAAP income to non-GAAP basis. first and to was counted to first of Adjusted

consisted our date cash, value the on billion and Our value of $X.XX for of acquisition on of SpotX million million closed $XXX on of XX.XX in shares a based consideration approximately April Total of XX. stock total closing. the

the notes of offering issuance of from due proceeds of XX after bear SpotX million payable issued. $XXX increase to of as $XXX of the million acquisition purchase We net XXXX component for million and this -- of the to senior convertible end issuance received We $XXX the our The consisted financing loan. notes million were Our million of senior transaction in of completed $XXX senior term secured and the notes, convertible prior QX. of $XX million expenses. purchase correspondingly in a proceeds cash per agreement, of offering and arrears. the have shares reduced price $XXX semi-annually the number used points are in the interest basis the

payable points. acquisition, bears facility. principal XX LIBOR we in X-year also XXX capped $XX senior of the and We the conversion loan with also million the the floor close call, secured to loan of increasing premium points, quarterly. share. the basis utilized annual convertible $XXX to plus the of term end per payments X% the close the a or concurrent to $XX.XX term interest also The The requires million effectively at Subsequent proceeds on loan basis of quarter XXX% notes the purchase senior with

of current [ph] also credit secured with $XX.X we of our SCV financing, the revolving senior part credit million replaced X-year line a facility. As

notes our secured to related can found XX-Q facilities details X-K senior be convertible in our and Additional filings. and

will million cash $X.X on end total of average Our Quarterly on $XXX,XXX. in QX, interest had in At blended sheet. would quarterly current an cash the amortization of and principal be rate cash X.X%, $XXX interest interest resulted the equivalents million, expect interest approximately we be quarterly which component. payments -- the balance including financing million of we rates, At $X.X of expense fees. financing interest of overall the

by year-end noted, As increase financing. driven note the convertible from was the

expenses. XXXX expenses in million $XX in million, QX of the We expect $XX legal million fees, for financing -- equal approximately consisting for $X deal in used related debt costs, million banking and in related $XX to cash and other

We combined expect $XXX CapEx and end of for deal term for QX XXXX loan for accounting the be including our the of cash payment million $XXX at expenses balance in SpotX to to when range the operating fees, million. company the

our both we to to revenue, with since higher our net and gross we record SpotX and cash rate flow compared forward. while balances with the amount of business, a pay basis of our reminder, collect swing a primarily As run sellers, down more revenues up through can disproportionally even so on going and the

SpotX Michael As ex-TAC $XX.X for on XXXX, Revenue $XX.X attributable XX% covered, basis up briefly QX up million, which CTV, of XX% generated a year-over-year. standalone of million was year-over-year, to

and details of with for be growth will rate which April SpotX by as first of excess basis, regarding also on expectations XXth. we be June operating We to had quarter, will since close, provide realized if for within in combined CTV of than I expectations on rate run CTV X to do operations. includes providing more cost the million pro future. insight half closed expectations expectations the revenue $XX performance. we May the start second closed on forward of the quarter more the target the anticipate additional Due continue synergies, April synergies will QX. to We a quarter now that to We'll the even caused only in share looking our on specific for complexities providing forma revenue year targeted in at SpotX acquisition a not certain provide mid be

quarter $XX million. second We million expect be range of $XX Revenue ex-TAC in to for the the to

CTV quarter for million expect Revenue second to to ex-TAC million. We $XX $XX the of in be to the attributable range

CTV QX occurred if grow X, is year-over-year acquisition to XXXX. April ex-TAC than greater XX% quarter XXXX. We full That as expect on SpotX forma to the Revenue attributable for pro

will million. revenue to of expect We $XX QX, $XX that expenses in operating be EBITDA including cost adjusted million

the consisting related COVID close, of travel QX. SpotX base our and our event we're office parts acquisition quarter mid expectations for and synergy Given adjusted increasing operating moving some to SpotX the for initiatives, recovery cost EBITDA cost also additional acquisition many providing QX, related including in expense costs costs

continued EBITDA We're QX, We raising greater CTV will we've our be a in expenses million. on to the of targets. range from long-term in of of adjusted targeted financial SpotX our synergy now as and business, we our to to high financial our plus Shifting acquisition. XX% XX% now of XX% keeping ex-TAC SpotX long-term leverage, the to our operating those mix, expect are driven revenue based profitability $XX XX% $XX $XX targets margin million raised targets annual call, the addition On closed by target to adjusted last million including EBITDA cost margin and Revenue growth CTV, savings. the is long-term that of

to We forward our have and SpotX executing from closed the to are new teammates our and look working integration thrilled acquisition plans. with SpotX on

combined to We look increased it to the as financial and quarterly the the a that, forward in sustainable and and first that line Q&A. for will QX. results business, our bring sharing also company CTV acceleration our open let's With to margins of

Operator

[Operator is from Instructions] first Go Our Martin ahead. question Needham. from Laura

Laura Martin

XX% the Hi, on different Roku I at there. interested be Thank much you in the basis? with guys higher. would if like And question. down comment Thanks about at is forma at why XX%, XXX% much your year-over-year pro is to care growth you. on a basis growth for thoughts pro why a the Michael, forma CTV taking very up level you so SpotX

Michael Barrett

of a so Laura. March a the bit Thanks was us for hi, Magnite. I Yes, question. for Yes, at disappointment think,

bit linear something going business, forward, other of said, out its and range we able at think growth products, that marketplace. in I but that with to have Magnite, look if few QX talked at extract acceleration the of we XX% build into you're QX. as greater line kind for about managed the the capability a just saw a in address CTV you're the attractive as products. We severe dollars Magnite's CTV a for combined, plus products you But two did at service sliver incredibly company along which of going SpotX business, if not different a to combined each was look you

those different is as there. and metrics. business is And operated model platforms of I kind owned business concerned, as have think So, of different a so all well Roku far

tough this the us think platform well. position in same it's So Obviously, reflect about independent as but web. that shared, think that to business Roku. to the really I as reflect the good that numbers our leading directly And I long-term open margins that the we David compare for the category, and feel

Laura Martin

my Great. for business would really Thank of doing and CTV you're these Samsung And have behind in continue consolidation in you you. SSPs Could to be talk names you follow-up opportunity. Magnite as lot with whether Fubo, then [indiscernible] past? a you are the like quality about see high your

Michael Barrett

but if have less Yes, when into SSPs are keep more have bidding -- that used the ones certainly necessarily thanks, outsized Laura. legacy frequently of are Yes, much broader you inventory. bidder scale, SSPs go handful -- that share I will start and -- the CTV display go you see the world, do you Rubicon, in a header to think you a the used business, header and of popularity business, on a that wallet that platforms and of by

going and we're These about So that -- think our anyone in the good the position. That very company We else we've from will And that with us acceleration. competition. feel really be industry. creates now think we separates separation market it built I to SpotX. the

Laura Martin

much, Thank Michael. you very

Michael Barrett

Laura. Thanks,

Operator

ahead. question Craig-Hallum. is from Go Jason next Our from Kreyer

Jason Kreyer

taking of your question, right. the to guys. All view Thanks Michael, major your with get differentiation just for wanted competitors.

the You year. [indiscernible] past in folded into SpotX

you talent. the with been of has guys discussed the things One I've engineering

Just engineers this of curious development competitive and advantage? massive you wider at turn teams a how network into

Michael Barrett

Jason. great for question, Yes, Thanks asking.

the specifically, we It's our by any say much publisher, direct as CTV this This harness it that past, talent highly buy to for the by whereas the company buyers going a programmatically. world relates the inventory. want we view talked publishers, nuanced in any to we've that is prized was think I if to view world and that it's walk valuable in technology display just traditionally as job I world. in first But in software -- be is of about a life. it that, CTV would sold more engineering demand more lot

So marketplace, are paid want do they're that going meeting it it. will want software to demand appropriately to over but publishers buyers so be greater able much control themselves, They're going for and that. -- to in the get to

And will be able to roadmap we the Magnite of start to that cited, [ph] we the we pound had will talent there's that the I out standalone. you software laundry list, can numbers, really so in roadmap the innovation, the I teams that at SSP as And the look unlike other think that better, -- anyone when lot else a and the extra create -- in look in in nickel. the in at display, size, bring industry. tripling you both And SpotX's are oftentimes combine and or of those sheer as you world, well algos separation and

going accelerate. there's in to think that able that as the other be development we're this tangible product with cycle to to it world, to software in us folks benefits working I replicate relates can't

So really, about that. excited really

Jason Kreyer

Perfect.

in feel IDFA. On We and haven't the anything business is with on deprecation, people is you you if that position being But that on into And commentary give you've privacy, thought like, I curious, seen just winning with know a now? been right early you shared us wondering there. to still but We've more that publishers just talk can enviable you buyers. to? it's translating that an for days cookie

Michael Barrett

to early tell. Yes, it's just Jason, too I think,

operating operating operating digits folks device of the think of single XX.X, bought in system XX.X We're percentage system has for terms in system. is or iOS installed. [ph], that I have the that the new a of terms downloaded In the the

mean, doing marketplace So on course, that it. prepared think audience pretty the it's that too is IDFA, things business, -- exposure just do hasn't we've know, the your main. been The our been great. of side all publishers, it our that's with obviously, And well it's not marketplace CTV to in for to you I the I early working in tell. as

that So, of there impact confident forecasts that to any will feel not revenue material have IDFA that our out a we put our we exist. predictions

Jason Kreyer

to you QX CTV growth. wanted to question organic the I mean, on you revenue on the CTV the go to guys And commented alluded lighter back that I think QX, of increasing too. have I Laura's kind

So TV, contribute there out what I'm just to contributing any wondering, legacy to in that? for expect guidance terms like, versus Magnite of parse what on Connected QX you SpotX way your is is to

Michael Barrett

specifics growing where of kick say, its and is there, terms some. to Magnite of in David then suffice I'll we to it but thought to back always it on the -- be some would

do So, that -- And isn't I a will, been case this made and if in of for, March coming exceptionally that? kind has slowdown are growing particularly more both show, I think to SpotX David, any think Magnite than the of saving up you that in well. witness have in qX, you but in any we more color bring to

David Day

covers it. that I think No,

Jason Kreyer

you, Thank gentlemen.

Michael Barrett

Thanks, Jason.

Operator

ahead. from question is Shyam Patil Susquehanna. from Our Go next

Shyam Patil

on a the on I you the think just Michael, if trends March I you had you've wondering couple trends. what know specifics could I talked questions it's some I in on And about May. elaborate CTV. so I you caused guys. driving was Thanks, about things then, know you talk March. nicely since and in what's in talk than it seems like the just that acceleration? are know, about what's driving more Can that comps. have April accelerated Could acceleration? far maybe just

Michael Barrett

and at publishers. of is programmatic inventory direct channel, sold that marketplace so, any you're X nascent There's the instances in it cycle. Yes. nascent outside it more finding We for look apart of CTV programmatic kind to the months question. certainly tore I to some and blips of be is in of these Thanks going aberrational the think that obviously there's and I’m nascent. really for some --

line CTV didn't did. have them of our as mean, as had the pieces folks I as before, sorry, cited I'm business I As in -- wasn't programmatic SpotX Telaria as many products -- to the

the capabilities opportunities. or those in our to for of areas acquiring part increase more revenue thesis say, it's So SpotX

is I certainly in kicking So ad that overall, pandemic would being that. because again, lagging categories those beneficiary market the as of think of of that, some you back CTV QX, the key forward, are and go were strengthening

is there, again, it, we March. handful systemic had going I of rose would was So, of in and reasons the have CTV a in, terms probably thought strong the attractiveness or weaker in behaving marketplace. say that in what but a of what would or that and of that nothing position takes the then into QX excess QX our And, anything bloom that going off

Shyam Patil

then just just And clarify. I want a Right. follow-up, to

already When of past, it, about of is but hinted look that? kind talked your kind out, changed anything the you in in of you've kind your do think CTV, I on of view the or growing to ability higher. range at you've kind XX%

Michael Barrett

at nothing no, No, all.

look think at there, I in the XX% you have QX. -- -- if had combined the acceleration of QX, rate companies growth in you were would excess two that

So, feel about no, that. we good

Shyam Patil

Great. guys. Thank you,

Michael Barrett

you. Thank

Operator

is Our Go Nick next ahead. Zangler from Stephens. question from

Nicholas Zangler

guys, in for first-party taking data. interested I'm future of the Hey, thanks the really question. potential utilizing

utilizing this your And way are maybe of you then elimination previously opportunity wondering what IDFA cookies that close And first-party close value exchange Thanks. guys comment if et might the as penetration just improves, this the think Magnite's be? of could you we effectively that you the from Chrome. data publishers, cetera? publishers? with have how I'm in given within and what you around of mean given XX% stated future rising push talk to take with within the grow value forward future be by to rates, there's -- size could ecosystem, how tech for stickiness, revenues and over first-party customer overall I and on ad any sourced that expected are ad data overall about publishers would relationship given can up

Michael Barrett

can what as to, color number them chime it a revenue? ago, to share quarters All and the quoting David, in Yes. when increased, we're think of hit think cadence an every sizing I'll of we means wanted, questions. a Thanks, quarter. our I relates to more is in David I think number is a since I any it terms going there as a we out specific just broke don't to of it be in but couple good to don't it some well. was give Nick. attempt

David Day

Yes.

talked that certainly we greater quarters away steadily of -- party think continue XXXX, revenue I or opportunity few ways supported to growing in so grow. it, and from Google, about now being And of still third cookies. a talked XXXX. to about ago of we in accelerates removing XX% we XX% with that our We're So

And it'll rapidly that. so, occurs, that accelerate beyond when

Michael Barrett

for whole Awesome. of you and I on And in it, that crisis, is identity, touched there, deprecation before really certainly this cookies and important Magnite, by value call addressability terms speaking and generally exacerbated then the think IDFA. point of I that Nick, think third-party a

thought of never just supply Strategic think was we side, demand for a category, I the aggregator we're advice data of as perhaps and the the clients side. side were the to from demand the inventory. their is because implementation that the closer

the ad strategic it's marketplace. certain And certainly so partner. those as people it the consent that it's understanding that do indeed speaking, and a Google, if And to this first-party do things case, And secure -- consented, with buyers, make so are the was that things relationship. can being put publisher, get there's SSP And help you taxonomies. the that that. I whether you them role the SSP by normalize really the to only you're that they their to is able Apple, view think being more It's that information, then only in the think piece individual, can that to use they see attributed All the an is, need that, where was of have in matter the to generally cookies. growing in DSPs publishing the a can to of what that, world able understood well I whether help value if person you SSP if level of then buying create no fall now, that solution the smarter, because buyers was

for So we a in industry first-party. and the crossroads in the given Magnite, though as from for terrific shift of just the third-party we're particular, feel here to evolution

Nicholas Zangler

helpful. That's super

inventory the in just just here, be close premium market. market. underappreciated to a then pretty And lot still that's coming to obviously, more seems there CTV to think I

had last come Plus, Paramount we've Within the quarter, Plus, Discovery they've out.

And of winning are this overall you of you SpotX? impact are come is and as supply business As market, inventory Thanks of seemingly what's a seeing inventory increased? at the this impact more then the any there? new materially towards And out some existing has Magnite CPMs that's inventory into just the premium on lot.

Michael Barrett

no Nick. so It speaking, relatively still remains all. inventory. value declination -- The thanks at CPMs Yes, in scarce, high

So additional degradation. coming supply even with from haven't market, we price seen

strategies a sponsorship these services Plus of I lot think in sold, nature. launch around are of the direct centered

But opportunity more to doesn't be occurs, top our I tier going just obviously that the able become a access will supply, plus And instantly after initial ready. to think get phase to supply, programmatic be so we're that model. and business have inventory to for

Nicholas Zangler

Great, thank you.

Operator

Cannonball Our Karasyov next from Go from ahead. question Vasily Research. is

Vasily Karasyov

about Good on with that is afternoon. integrated. wanted increased Michael, opportunity SpotX I you. business remarks follow-up, now Roku, your Thank to

you're more know second access has talking can terms lot that's that. getting more sure apps? in advertisers nitty-gritty inventories? then help of that Roku because one Why I give So makes that to no if how a just And life a, So getting I'm detail? relationships And -- you SpotX pushing that their you Roku little difference is, if more you works, could more to makes you're why Is platform. the us or it us harder -- understand OneView is a if easier, wondering was whatsoever? your and with

Michael Barrett

a great Sure. It's question.

-- a that just given perhaps into community deal quarter, dive call, another So I the closed and we I'm going to implementations, for that that a into and this helpful rest But lines, the specific a in terms we of in OneView. products get there so business very as relates who question measurement. Roku, not try forward. a would as the and certainly job a a of is kind the with an the inventory to of the that Obviously, the the advertiser goal done done statics They've good number And on programming They answer mentioning recency their in has discovery of close. is it push is specifics -- outside viewed to place to relates script, to to in there stated their very Roku, goal inventory one but different Roku's defined of their to their relationship Roku involved again, it question, because a it to the to platforms, bring your products business, them. in And aggregate of distributes think you like products and it is it of and that defer SpotX going we job greater it including given be a be advertisers to far But a yes, when the to just have all try idea their next to that occurs, in etcetera. it initiatives, good and very, owe their that mentioned location as of one team pull. one all -- and deeper sell relates where product terms buying we side.

one channels a And relationships along make of so and it that adds easy all inventory content a inventory Roku distributed think Samsung Amazon where bring that time. an evolve inventory, inventory. location value. But to on have sorts all or aggregating SSP that's the just see of over this to Vizio premium with try desire, we amount for on really to in I buyers with other tremendous we'll buy their with it their along the And

Vasily Karasyov

Okay. Thank you very much.

Michael Barrett

You're welcome.

Operator

is Securities. Go from Truist Our next from ahead. Thornton Matthew question

Matthew Thornton

integration kind for business about can just you're one if just non-CTV? you're us for walk CTV branding, Maybe versus forward David, operating thinking could. one guys. the about it afternoon, And thinking here? for Is there. think gave for you Do David. How a just about going timeline I can how good of cash how Hey, $XXX you thinking David, through number Michael, Michael, that you're with I strategy to revenue million of what like? and kind ultimately $XXX then you SpotX, and you million. go-to-market drive think synergies to go-to-market looks

like want now, of the I that like? to sure exiting maybe deal flow the forma I too have thoughts might combined there'll color Meaning pro you as the early, right. EBITDA what And going XQ it's the number about that's business heard free but might kind conversion that you and be think for if for of cash cash the think look just business costs what Thanks, great. I forward? Any attempt I'm the out when make free curious guys. flow, way. combined conversion any at to all that look to

Michael Barrett

one We come to in half to as lot terms be a just a expect obviously, kicked company second year. one the Matt, level. in integration Hey, off high for completely of Yes. planning, the of very market company

talked a But, or where July, in the starting product? ad eventually, to in lot the as it in our exists Magnite brand yes, used is become CTV it I devil determined. platform of detail. a display. the well, be fashion one will as platform So, mean, SpotX it will the other combine Is we be and does different we've as engine about that does some than

will whether that both -- not integrate be of be no to sellers. a specific platforms highly there's three do it'll or dashboard because need that customers. two to for And they be the immaterial so unified platforms, it, do. none And final they There'll and what for integration, are our behind buyers there'll there's clients friction our or be

in looking company. is really first which we're one so milestone, forward that And go-to-market as to going July

David Day

the high from give looks what of take Matt, a yes, cash back, that range got right, that end just targeting. reaching to Yes, at that here order billion at flow to I revenue adjusted there of you perspective flow you've margin, through a think, level pegged talked from we're the and, kind the range can over From if quarter, the settles dust our we that EBITDA once the cash so flow, magnitude of perspective, is like. about XX% you in on you and free level that's calibrate perspective some plus $XXX step through growth a

specifically, of -- of As exact the far synergies. more we're to still place. There's pegging just bit our it's lot little -- some determining of some our go-forward a that a timing cost as structure getting work do with in We're early.

on provide come. we'll color be more that so, in I And able quarters to, think, to detailed

Operator

Evercore. from from ahead. question [indiscernible] is Our Go next

Unidentified Analyst

you. Okay, thank

in talk What please rate? you was is revenue driving about SpotX basis? a faster Magnite's second much anything out? fourth other much commentary you call growth? want than the Could really OLV CTV is growth so on or And please. in SpotX's quarter, March two, faster then try to was me healthy may than the very you on growth Thanks. why Let please is, could comment so particular, organic It the that

Michael Barrett

a is having you. a been division community it community the the lineup not street of deeper on of and SpotX. about as Yes, or we the in a company SpotX. entity we briefly upon And the ton public dive so I a known never before, being public Thank and owe into a touched said before product

that you. owe we definitely So to

managed And in dollars, of terms that an perhaps and came. extraction of it CTV of like so their into We growth evident will relates become mention linear is to some where services bringing the that in easy capabilities did it as on the ramp.

if programmatically you buy to to continue that there. not them, business find that folks CTV, markets and then developing desire to to them get buy it's You from acclimated but capabilities. some these want the a to in have great CTV And to the provide

QX, bringing unprecedented a and end in we that's we quarter, uptick the on piece differential CTV. other OLV amazing of with of along And as of them And big products juncture. into of the was the said OLV, rate kind at it some to towards kind So growth literally relates saw margins. grabbing linear which of that dollars the an as

because we it, So to share though two as the feel I if that. know, else the unusual difficult rates to comparing David, of it anything nature the you comparisons have some relates as -- of don't present but

David Day

add. No, to nothing

clears that think it. I

Unidentified Analyst

Michael. you, Thank Okay.

Michael Barrett

Thank you.

Operator

This back over closing to concludes would conference our Michael Barrett like for remarks. the session. question-and-answer to turn I

Michael Barrett

you, operator. Thank

month, revenue deal coming with gone SSP CTV now have without majority closing of areas our revenue to of the omni-channel concentration CTV investor Thank the good post work growth and of call. more market the the Needham, and through in and to XXXX, OLV. with market, OLV. from growth we for about a a Since from now, independent results SIG fastest really an integration of many the feel look QX by meetings We of future the Craig-Hallum, I ever presence Evercore has Susquehanna Magnite have in hosted with Cannonball the and high We our and pleased clear you and conferences evening. CTV bullish The be SpotX the next are Magnite. of begins you profile than Research, virtual us joining to forward talking December or for leader

Operator

The you presentation. conference has now concluded. Thank attending for today's

now may You disconnect.

Magnite (MGNI) 11 May 212021 Q1 Earnings call transcript