MGNI - Earnings call transcript Q3 2021

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Operator

Good afternoon and welcome to the Magnite Third Quarter 2021 Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Nick Kormeluk, Investor Relations. Please go ahead.

Nick Kormeluk

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

for you in financial X, the the a XXXX, of reminder, given as results July see acquisition comparisons the but QX SpotX for the As do XX-Q not of or and will reported dates and of SpringServe XXXX third XX include respectively. the quarter SpotX SpringServe XXXX, results the include April

as the When associated comparisons, prior for estimated phrase to it the this SpotX of when refer we and in year-over-year call, referring comparisons quarterly and the pro SpringServe in with and comments comparison. reported, During order unaudited. as and provide the XXXX course to including are third a to as results to quarter mind Please are we relates are we we SpringServe reported results SpotX to referring acquisitions, of like-to-like forma basis our make in keep XX-Q.

call being As a is recorded. reminder, conference this

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

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

include to of Michael. now turn our ahead. periodic reports will per nature acquisition in that non-GAAP posted our website. highlights incremental call to I the our advised reported and commentary highlights Reconciliations revenue our ex-TAC financial Our and earnings is please Relations access more Michael, release, today will results be At additional our these or Investor SEC found questions, press and update financial or encourage to go this Please provide detail replay to share. press financial non-GAAP learn one-time Relations website we in I release be not into Investor EBITDA Magnite. and visit adjusted in in insights deck to deck, webcast income an call non-GAAP and metrics response traffic dynamics provide business. times, metrics. of may GAAP to measures, metrics the greater offer be about the between our including today’s your the you for can on costs, that over on may we less may may future

Michael Barrett

missed, or our since which as up on highly busy since you just if reported to September we review. hosted X a were I XX our It’s for you Nick. you, all channels, on XX% and last encourage of [Technical formats XX% Day, Difficulty] especially Thank pro months been a basis. combined would you spread call, which Investor forma

Our CTV strong advertising QX on fourth related political chain we results have cancellations, early grew quarter. were cover still exhibited year, quick we last from experienced tough in which temporary the with as comp quarter. performance XX% results are first supply basis. as some also forma pro I tempered ad a some very again this financial Despite will but headwind ex-TAC late highlights. strong, this a well revenue

DV+ mid-teens forma XX% revenue came businesses, we a margins grew basis, and revenue expectations $XX desktop cash our generated respectively. adjusted a we at DV+ EBITDA XX% million and in comprised XX% CapEx. Adjusted on EBITDA flow, basis operating as grew business above pro less define ex-TAC which on and mobile free in Our which is year-over-year of ex-TAC

position now course, only across we virtual as monetization deeper, strategic, we repeating the strengthened different Discovery bears more creating independent such and significantly and serve as services represented fuel that serve programmers of a quarter, and the Samsung, closing ad The an we leading such and have as now an growth products of such After has platform. to to with to end-to-end we OEMs addition gain position, Fox, the and with our strategic partnerships. as of set business. future have and acquisition broad widened Roku This the quarter, such durable the Pluto CTV portion XX% of Sling ex-TAC types stronger CTV revenue and customer Hulu, are segments in server. the more in and device share and a of capture customer many market and ability major represents as largest this done industry platforms, even created work Tubi, It CTV SpringServe with broadcasters MVPDs, digital-first

affected revenue, service offering we transaction ad service touch managed types. Magnite In participate and And expanded auctions, from revenue addition, managed fees buying direct through want over sold but the is XX% service CTV and only upfront fees now managed meaningfully programmatic in not we players. I And of are serving we includes has removal our value-added on that fees some iOS It XX.X industry of in part also technology adoption of direct, despite well process, be have one we them seeing have and our our service IDFA platform. solutions our our inventory more publisher also not every clear deals, clear CTV to from to fees. offering.

ex-TAC have limiting in iOS shift exposure. advertising, Our app and participate business to a point, our from doesn’t Android seen social better and and very underpinning little have downloads we Further we this spend thus than mid-single-digits zero and our in than CPMs in CTV expected iOS. approximately there in Keep opt-ins. mind a total revenue iOS is revenue iOS the is revenue from lower as XX% that percentage opt-outs, of

in reminder, Chrome the Google cookie the on a end third-party eliminate front, As to XXXX. plan to toward third-party continues of cookies

driving We SSPs solutions segments publisher a continue will that positioned be transition. a and an well. believe behind the collected are This privacy in of extremely identity to will we area is that compliant this first-party manner future force be where

X-year Now, in a group and in the up sectors to to health very I and XX% compared all detail I retail garden, to XX% also are year-over-year rates regarding to QX. XX%, a pre-COVID this components sectors above rates ad These stacked a high and go the be would from of is to of strongest will sectors jointly significant growth levels, range Year-over-year comprise portion start and greater spend XX%. TV spend. and and entertainment, our return Tech, the performing with which productions, ad strongest of sports growth over year-over-year. of that industry with home QX performing top up the on strong of was One additional this movies, continued the provide strength XX% QX XXXX. verticals to financial into fitness, like live additional showed in color. vertical arts and was

ran particular political, a started last performing relative us The Travel Titans, live campaigns in food this another beverage. large pace through and entered XX% over down and Tennessee from CTV in low works in with over Face. with these focused and a for QX with leading weakest we on level, and is North were moving big on high to, base and REI over advertisers, in linear we us still in we smaller national to a X-year budgets At year. are CDW, Parts stack, GroupM, CTV, the CTV moving hobbies large, QX, off CTV also but respect expect and also QX. by up are last in to double-digits mid-market to advertisers seeing Advanced TV into sports QX tripled trends increase for of regional automotive, While quarter campaigns. is who we traction to QX. in sequential advertising year Auto QX, persist sectors

in for large the brand of agency the the as with our and that full-service busy preferred in focus programmers our and specifically, commitment shortages and home number Fubo Quigley a preferred programmatically key on to to advanced in Network The leveraging mentioning. see been us a marketers’ in performance COVID the our spend team quarter deliver linear retail, with X SSP; effectively and quarter weakness strength CTV. chip Simpson, manage strength CTV selected specializing is during to solution TV wins Australia ongoing travel Desk by serve We in Magnite needs. tools AMC used allows ads conjunction addressable and in We auto events. new in address marketing, and to continue bursts sporting Networks, of selected agency’s this live live inventory as on a due there announced to performance successfully has very made a garden TV. concerns. more driven this its sports SSP and during a to worth tech in Trade platform Olympics,

Exchange these York. Awards proud two In announce in New wins, Magnite won I’m at to week addition big to client last Programmatic I/O Ad

technology our the which platform powerful video innovative tech best and facing the Suppliers space. swept in for First, Media publishing recognizes CTV Award, video

in Trade Our work our with Desk. metrics from entry included AMC Networks the success

Demand and speed, with ad the weather and diversification Second, and illustrates how solution. that we rendering our excel Manager stronger award seller-focused the scale. businesses demand build publishers sustainable best vendors helping Award manager spend recognizes This for more in won Technology company, their helped

can you customers to our team, it’s to a a quarter continue very see, for deliver been valuable Magnite. efforts highly Thanks productive and As solution. we differentiated tireless and the of busy Magnite the

continue into will gain confident we solution in over regarding the will will We in go things are expectations. CTV David DV+ share the omni-channel only our financial hand With grow and who independent and that, and come. detail quarters to to and to greater market I that in scaled performance

David Day

Thanks, Michael.

million XX% to pleased ex-TAC on on $XXX.X was a grew We’re some million, comprise for Mobile a million or other. detail up from call combined outlook very results revenue and and QX ex-TAC XX% XXXX QX Total solid on both basis. QX forma a a XXXX, what grew was for revenue million. up on and XX% QX. video now provide forma up Mobile growth DV+ more announce Revenue year-over-year, ex-TAC was quadrupled as-reported our basis. and CTV XX% in desktop pro pro revenue ex-TAC XX% revenue $XX.X and provide in almost QX $XX.X last $XXX.X to on we basis display, forma was basis. an and desktop from year all pro

EBITDA inclusion primarily cost for revenue by third XXXX, the driven reduced spend addition same for a million case, driven the lower to mobile QX expected, $XX.X $XX.X which for entertainment year travel operating than million between in were costs. return XX% also ex-TAC as the anticipated SpotX. million versus expenses, of $XX.X event the the basis by lower XX% ago. Increases marketing XXXX to adjusted $XXX.X a Our and desktop. were quarter on ex-TAC mix EBITDA Operating were of XX% difference SpotX. compared by period QX expenses, driven includes and and and postponement Adjusted QX an which revenue our of in represents CTV, in were of primarily was our Costs million office, revenue,

The margin costs, income used million future. synergies per was addition, is an margin average in as The the increase SpotX acquisition-related XXXX, weighted expectations. XXXX. realized same EBITDA acquisition. half targeted. In of period adjusted for that XXXX, best-in-class was growth SpotX. quarter, XXXX for in on Note was the million loss addition in $X.XX of continued of of of GAAP income goals, in expenditures, revenue Net compared the for third track ex-TAC. XXXX. expected cost period $XX the run and with to diluted $X.XX and resulting right of loss in of were XXXX. percentage the property reported quarter XX% loss platform and compared of of CTV of basic $X driven million synergy There share as XXXX and of CapEx. million, quarter third loss in the third purchases or capitalized share both the XXXX average we EBITDA was million the SpotX of outstanding flow as internally in of phase of was our savings margin of migrate of the $X.XX an to net quarter $XX.X increase free related as our the current we’ve which like as to equipment million XXXX. cash many quarter publishers the per EBITDA quarter million for shares the million a revenue compared our adjusted $X.XX software occur in XXX.X environment that in less loss synergy by to legacy in longer we than XX% calculate quarter third Adjusted including by adjusted were in our share in third in third rate regarding acquired talent $XX.X business share is and we Non-GAAP taking XXX $XX a in more EBITDA per the Capital next million GAAP line of companies, one net of to the per hiring buyers we amortization a $XX intangibles same third to to development non-GAAP quarter the in attributable of weighted shares, Operating for $XX.X compared in was to primarily the define

acquisition reminder, with our As closed X SpringServe on $XX a of cash million. of July consideration

had primarily $X.X end million which reduction from for QX million on expense the in and from roughly interest operations. of $XXX cash cash. acquisition QX sheet. At XXXX costs, was the offset by we $X paid interest million, $XX million was for Our slight the of balance cash The generated was QX, SpringServe the by impacted flow cash

we to As amount I our disproportionately net a will reminder, business gross swing balances expectations. revenue up can now sellers down pay and our since collect run of flow-through our of while both the rate cash our share future basis. and primarily we compared record to a the on

of be ex-TAC $XXX to We $XXX million. for expect quarter revenue the fourth million to in the range

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

automotive have will on factors QX growth transitory will with strong abnormally believe in to finish CTV that expect solid We as We improve QX, even Michael and travel are spend, political an XXXX. and tough these mentioned, and pressure XXXX. in comps

leases. return cloud due million. EBITDA expenses cost adjusted seasonality, primarily $XX operating that office to to sequential marketing QX of some in increase new The in office-related expect will $XX to QX is due increased We expenses be to and costs million expenses related computing

we operating and to operating and per our costs marketing million $X that midpoint year. million ranges, EBITDA the to expenses reminder, adjusted return on a Based travel quarter an adjusted add incremental of will in XX%. expect expect expense in approximately $X we margin be As QX revenue expected office, ex-TAC next EBITDA to

expect for will QX roughly be We XXXX million. the $X CapEx

the in be in million $XX CapEx XXXX to million. expect We range of to $XX

XX% growth ex-TAC target of XX%. long-term EBITDA margins XX% We over annual revenue continue to adjusted revenue ex-TAC to of and

companies, strong With have model, our and working let’s with that, We remotely. and expansion all especially our adjusted leverage for are QX to we to merged making, line open thrilled teams in with our that the that margin Q&A. EBITDA three integrate all to with while growth. continue considering progress are had accomplish they our financial show revenue business the with comes have powerful the acquired

Operator

[Operator Laura question Martin comes Needham. Your first from with Instructions]

Laura Martin

first question growth Hi, guys. on drivers for Congratulations on CTV. good My numbers. the is

customers twice of you that in So getting was getting you are the premium your larger the the is – or tell are you driving CTV new of it is CTV you the gets growth budgets average. forma entity? – growth pro revenue getting that’s CTV more Xx are average that Could CTV, ARPU, us,

Michael Barrett

Yes. it’s additional color. Michael. jump little and Hey, bit above. on a can think first David it’s will that I Laura, I of all provide Yes, the

or a we’re as if clients, CPM to that’s used kind complementary, it. more is to sales, just inventory. when that, start that know is freed what some is result not, publisher, and than board. direct monetization a that that? same-store have think you’re of supply programmatic of CTV is you if And reticence that whether a with if that you’re we’ve enter and if by you’re up the area that even increasing natural publishers terms evolution or in seeing rate we the into direct there you for will, sold higher think I in talked the is little have see you like inventory about, growth world, not, little, in a David, on programmatic if the I I you of opportunities don’t that further on color anything sell And

David Day

I – don’t plus know, No been the they throughout have very there. to we year. CPMs there strong I in CTV. $XX range significant the typically think high, No, add. are anything all in consistently as changes But have

Laura Martin

back in competitive freewill. that into position some for wins independent them hoping business us Okay, second And you’re yet? queue only we SpringServe, your you away and new that Do the sort I’ll question, now great. update any inroads end-to-end. my you make then would is then from Any get were of on have with

Michael Barrett

allow know, that, marketplace definitely programmatic idea again, of we the in part share and of or access this primarily going traction that private and present freewill. that guaranteed PG for more and have as it and really on. to replace that’s to get a options as deals now, as bearing to CTV deals will about talk It wasn’t as out, wouldn’t we’re to we Magnite itself go SpringServe publishers right was inventory us to rip to have but the would the able more – benefit of before. access a be complement And well that color quarters you the ad-serving positive but is None others, Laura,

Laura Martin

very Thanks much.

Michael Barrett

Thank you.

Operator

next Your Susquehanna. comes Shyam Patil with question from

Shyam Patil

guys. Hi,

in just in talk could up about for it you in show that? mean, David, programmatic, a I And verticals it – a with you if couple your some was were if of were prepared concern you. curious out little talked quarter, just Just issues. across of you now, talked And some the the show elaborate in Michael, chains question, do you all space. I CTV just seeing around you I Do would global positioning the your certain kind then your of worse take think kind a you think on on just but curious think first, not of CTV. fourth And the you areas headwinds the other execution about Thank fourth think remarks, had where was you up? think quarter get questions. wondering just Could areas would those and the those? you each where supply in would you of bit the you’re the some disruptions, you I be just board? about do out but in with to and little feeling I just just called you guys bit of a called how second few? about for

Michael Barrett

David’s or that interesting. – for will to I a it’s rather. because Sure. go related standpoint so comments from why Yes, don’t guidance, specifically CTV it were QX And into dovetail first forecast

supply I our advertisers. we’re is and not think exacerbates there what when to it talk – we which chain, and agency partners speaking, generally sensing are if that’s

regional by pretty business, large a focuses which sensing with there, of have they platform, the CTV, spread It’s managed and We’re team. if I vertical auto of middle And by evenly sector a there we market the the to Why don’t they big are supply And rooftop one supply one on that are biggest know, service maybe in that advertisers. go-to-market the very a found or – and it some in impacted exception, to here DV+, immune sectors dealerships. the challenges large, others this chain you affected largest of that out is as advertisers across and chain car – point sell. are sectors, Well, mean, lot justify have percentage and are those advertising. have verticals have kind that? that enjoy the difference disproportionate by is And severely inventory CTV, that they there we hard contribution to it. immensely,

little CTV it’s of tourism a the and so in number as pretty regional on the but over-indexed And bit team through a rare exception, index significantly much is well. board, travel, with across – that mid-market the team higher auto

one color So COVID, those hurt share. you’d by more if like one by supply two David, sectors disproportionately. I you being have particularly CTV impacts know, on don’t that, chain. It to that

David Day

Yes.

a bit. And our in great it feel – a that about Let into is XX% quantify if we were little remove QX, from perspective, a comp a political CTV. straight our From strong to guide about heading growth XXXX guide year-over-year momentum be quarter. up first, so we our like QX, you me will feel

us If the year-over-year perhaps And growth a if we million if Michael that $X comp, XXs QX. to to you CTV look growth the you were $X automotive, rate. travel, low about we million get remove factor believe XX% weakness to at the a that’s year-over-year in at in in impacting mentioned in, to you that in scenario. in we’re political And

from so a feel little QX. with what think are chain helps that to good And comp that the bit. supply a hopefully, And quantify issues about and with impact we this perspective, – we issues transitory

Shyam Patil

helpful, That’s Thank guys. was Yes. you.

Operator

comes from with Craig-Hallum. Jason Kreyer next question Your

Jason Kreyer

one David, for guys. Thanks, want to off Alright. with start I you.

it Michael’s of kind QX. guide, QX. curious of go idea of recognized sounds like maybe disruption tail end Just the we’re you you the if as And month an per started can QX commentary, the at you us of about that because into a only into obviously, some methodology the maybe give

of how than So it’s bit a guide, you’re having verticals what factoring just you’re maybe more of anticipating QX now? saw in continuation whether little you late you’re curious a a or that if the seeing into right some hiccup

David Day

yes, that some we’ve Jason, those guide softness we’ve sectors. guide anticipates in the of our rest our includes of in in softness and And assumes September year. mentioned, October seen and throughout what seen continue the as it that – the you that and assumes

And so it’s been – we think guide that’s been our stable in in October, and for that’s what we’ve reflected quarter. the

Jason Kreyer

Got for one how that because you’ve is you, of fully now it. us give to a market for there out acquired understanding that market you obviously, go SpringServe, greater than SpringServe. is Michael, for maybe share little there can there Magnite with you solution,

So market to kind grow there? the ad of volume promote how Magnite utilize and SpringServe try to your or do usage you server

Michael Barrett

that a in And a the is case. interesting going when introduction. effort deep talking with Where lead and that demand very call, in will. relationship business where go-to-market publisher, by Magnite right? the a carry a is make Great it’s business Jason. with respect. by SpringServe Yes. And and represented that that business about from strong large, a utilize asserting is it’s The it in and through coordinated you stand-alone folks SpringServe card, clients Magnite gets the of cases in relationship standpoint, working much then has that’s Obviously, and is we’re flight, if Magnite Magnite still SpringServe with business that – with that as belief we

the And Magnite have, we but so in about the is being investment and globally. of the product to also current of not just great hundreds access part product roadmap, expansion that folks SpringServe part engineers

in been not big in we has largely in know, footprint markets. APAC, big footprint you those a SpringServe As a have EMEA.

And lead so a presence as SpringServe was in to to normally opposed in to start huge that start on the base a would cold opportunity kind third of occur as of as see we Magnite. marketplace that part through Magnite’s

Jason Kreyer

I connected am going TV. in And one on last sneak to to one Perfect. try

time, IDFA because safety talked not and from flight things I this IDs. cookies pressure are not you like And but represent you seeing markets, your because CTV to it’s it’s still seeing aren’t and by and potentially do a market, believe haven we flight about longer disruption that obviously, we mobile think as per in type other So seeing I have that seeing some to being are of get do over happening these end – comments, safe any but some being that, some understand, you by impacted are? can isn’t safety kind impacted the that verticals of that maybe that channels disrupted CTV like whatnot, in or term of are market we

Michael Barrett

are spend do that advertising, mobile advertisers. whole I Yes. also a might read probably think are edges, Instagram, Jason. larger funnel. They of are that think have etcetera. much they are take spend sophisticated marketers the world I about a extraordinarily slew video To campaigns, and their up stock having that I a bit other a a mean then account social the set CTV for the that lot the is spend of perfect. Those those We into $X,XXX day Facebook, have that of guys there a day, $X,XXX the brand that they because into is team right that that guys And opportunity really on And campaigns think challenging for that But a is a time working our with or on stretch. extremely attribution, that, are CTV. there is world lot or stalled decreased jump of attribution customer acquisition from etcetera. costs, lower advertisers

the success we national We transfer those team that having after of goes have have brands, and a it’s it to can a democratization good not over, going bearing have deal think It’s budget the and we that that line kind as itself CTV of be has is M&As. of We advertisers, a think we It’s of stays saying advertising. that XX,XXX that been performance-oriented that brands out. XXX kind top are just there. with

Jason Kreyer

Guys. Got it. Thanks

Operator

comes ISI. Your question from with Khajuria Evercore next Shweta

Unidentified Analyst

major in there Is up want the they for Shweta. a of Ben I those and from to way content by first segments CTV. OEMs, new partnerships terms you way to groups, break your like were is various This MVPDs fastest on talked publisher revenue are can any existing which break just contribution relative Hi. like size You revenue any up? with CTV growing? then ask and to of on that producers, you to about question

David Day

really more slowly, significantly, haven’t segment Yes, this not that – – would is quickly David. than is more Yes, externally. really And that or breakout any we others. I those there shared the that’s growing

momentum board. got the We have across really really

Unidentified Analyst

I could ask – XX% of Manager that I adoption Demand just Day, you shared Okay. Do request. think, you your on about like you valuable. how think lot a there? being at total more Can can Prebid another using XX% Analyst at about spend If one stat that you you Demand there, a talk plus. I advertisers are that Manager understand get spend get that to the progress just

Just any provide there? color you could

Michael Barrett

Yes, sure.

be the our as heard but wedge in yes, get standalone bullish PG Day, as publishers, of at more So Investor business incredibly you so Demand to we area. as primarily from able also PMP are kind to Manager product, this a about the

first Prebid direct so the we own, of marketplace a as Demand afford the about its back, can weren’t internal run they – Manager themselves, of that years to saw couple publishers were we when had team sweet sophisticated on that right. resources so a And was talk that spot but sales large the

sales but of and were they if cycle middle-sized chain, terms in size. were a further like be kind longer the of folks little down was going to so the big low-hanging the fruit, will, kind they the you to quickly to And and bit those weather, enterprise pay they for for that cycles they of costs the while and have take using product going and was product. development improved on a free a to internal understand the why the then understand are it And would we how

right. you so, how the knocking realm of and area And we this enterprise publishers are to think are these in we that’s I get new NAS, down kind XX%, exciting that in where

If as of folks, the number you achieve flows clients versus through guys of don’t nearly smaller need that those the win that. of in many system terms you impressions the one

having publishers battle solution, that much really moves – page make the And Demand even so incentive provides as work And tough Manager. sense we to greater with from positioned. really a well road think as having doesn’t extraordinarily cookie, complete bidding a are a for that to anymore we think header manage we to becomes that on tough So, server-to-service themselves. the

Unidentified Analyst

you. Thank

Operator

Your comes RBC next from with Matt Swanson question Capital Markets.

Matt Swanson

more quarter Yes. for on the there or so on way much issues. If impact, trending exact Is so bit some or how mid-September. Thank maybe for a was little QX the you quantifying much just supply chain Thank little my deeper dig you any taking I can of QX a could questions. color we David, the impact. get the early

control the Just trying out the things quarter? in separate can of you can’t versus you to kind

David Day

the full think were of million the I mean to obviously, quantified month over those million Yes. quarter. trends we $X September. to a we And probably that really started I $X trends, over observe

of So levels, that’s those I I the I impact that’s guess. third quarter, guess a would that how, quantify third for

Matt Swanson

can I right. calculator. my out bust will figure I that one Alright. out,

to Day, back company So, of about more at TAM specific, so current talked your we mix. company-specific a XX% around of kind Investor going

little CTV that percentage, growth are market up you a guidance to have a of relative as Can talk XX% already to it just we CAGR a long-term X-year revenue? seeing that been as that now close like to think how as about of larger on XX%. takes CTV portion pretty So, given feels bit might over about go we be

David Day

Yes.

that level. Magnite a growth So, out just have with CTV for growth a others higher revenue growth, if XX% year, came at next

so can levels we sustainable share. we take – we And think and are those those think

also revenue expected notice will from perspective, quarter. XX% which grew be sort is in of desktop, an to flat, the You overall

in we areas share to CTV. other shows are that that addition in taking so And

growth strongly revenue as And will revenue And by our of achievable. being a have a definition, your of overall so for – over revenue feel that we point, revenue, to grow XX% overall total CTV upward growth continues as support that is to percentage rates.

Matt Swanson

Alright. Thank you.

Operator

with Your Nollen from Tim next question comes Macquarie.

Tim Nollen

on It’s well, TV broadly. so CTV more Thanks question. Hi. maybe taking for as much the

guess the You I AMC guys a in more have is measurement huge industry. TV. now deal, right position representing I great now interesting. much well, topic And see is a Thanks. CTV little this as TV My and you whole And about is pike so you bit and years? with linear inventory a Networks I such question across think use X and coming down could wondering things am next what if measurement think evolved services what of over the year measurement you the talk the you or how

Michael Barrett

great Yes, hit will and it. question, I

this own third-party. generally way. underneath with So, We and we way work with speaking, many We campaign want measured measured request. every come of this this the campaign that as an with sun exchange this want publisher, advocate their buyer the

work So, we everybody. have necessarily to with

a We of of not kingmaker. being in are kind business the

in the service. work particularly audience facile buyers, form have do segments support just requested open are that to and our their But the relationships service of there. several is measurement any area with measurement APIs with to upon able marketplace based role that’s again, with to to work a are create new measurement in to the credible I handful managed think it. be help We will person We and proactively any

extraordinarily relates it’s to going it interesting. it evolves, be As to how

and an a have Obviously, a You that have in vendor. like of folks you but companies. own in their RFP, measurement the newer CTV. the or NBC have Nielsen of then are which within their other so walled it, overall And with helping really outside that adoption doing RFP involved is Hulu aren’t of for lot garden new own sharing startups measurement isn’t Roku

even together, real growth acknowledged if a in of an that And the an say kind it’s I are the of with area be it’s industry able seeing propel to gets improvement. is will that think its growth, break act catalyst measurement when interest about we measurement, this further. So, be I of spread to area CTV flood would

Tim Nollen

related kind I and is ad And as Thanks. and if which tack goes reading maybe question, more been fraud kind help lately the space. status CTV that? you it what and can of you there of prevent can to comments terms in in on make of fraud, comes could Any which about bit the do a have ad on a I topic, about

Michael Barrett

Yes.

respect, them because get So is we publisher largely that they all is quality vendors the us the think fraud work to outside easier again, platform, Magnite the somewhat when exactly washed. is direct signal that inventory to and the – an we area, said we is relationships the a fraud that of we what standpoint inventory it it’s the from sure that this industry have I And leading from for so-called was. directly to a in with lot in the ensure that make that with run prevalent in

well Magnite, will it’s well think pretty – low So, you I environment. very on curated, that a fraud lit find low

Tim Nollen

Yes. lot. That makes sense. a Thanks

Operator

Your with question Zangler Stephens. next comes from Nick

Nick Zangler

you and like talked where – results media about believe shifted I open CTV a changes. earlier? of Obviously, guys. and kind does before, And Facebook but and totality at think alluded it sounds it about talked Hi felt Snap of benefit spend in did issue And play or you or for all, be could as to this social media don’t Apple’s you you of into the that the this ad Internet brunt that privacy players. out social do long-term

push a forward? catalyst for Internet the this So, as is open we

Michael Barrett

upon have CTV. reworked lived measurement not lifetime that relied so their not are having spend have Yes, to the on their IDFA advertisers expert to to question. models the of at are really this get They of advertiser But became heavily mobile that Nick, and unlike acquisition. that’s to measurements. ratings the linear and based Michael. in They ecosystem is there shift so a they is upon attribution overnight, Nielsen going that I grown trust a to long-term, from value those household conversion class of able right. an more be the All and advertising to just ecosystem, be things to yes. in believe Good used are used TV

the there there have new be And no will period treat evolutionary these a I will be I where is new with there. their an attribution will just web think get from question comfortable continue – an in open that. so – to methodology, models, from think beneficiary evolution marketers so, and

Nick Zangler

That makes sense.

a am partner for part obviously data, scarce Magnite to for Disney targeting Disney I Additionally, suit? advertiser a their following but And obviously, involved? room are clean created big you data read of match what is other guys. utilizing I CRM that just are efforts. first And data you details here? curious with that publishers Is envision implications now, right the do has

Michael Barrett

Yes.

business through the the that belief to pipes. that like you, flow Disney a not it’s would And specifically, if done and Magnite we with the pipes, have for them. because currently it’s be relatively talk relationships programmatically about So, that new would concept it’s

buyers the data sitting I They you information. world It’s are So, information to very in with but has really really ecosystem. consumer. to to room, be to more a They a a of us. seeing consumer. shift third-party have I target the acknowledged that don’t have starting to am user goes their – can ruled that. think show been good community. there are think impact I any mountain direct It’s this own right. be And a going publisher information, well. buying wouldn’t and I to see do clearly are every relationship hasn’t of cookie you with been publishers guarding about how is clean really publishers are going up they the think adverse Azelis their stand this to-date third-party on acknowledge consented able are it that

the a have think We our your be platforms but been normal-sized ago. publishers isn’t get so as room own their are going very more to do clean they streaming size do that large use obviously that, pluses otherwise toe the might see folks multiple years warrant of that ranges opposed of running to idea sophistication out like And but have level you the think I will and publisher. have and/or in, area, a in it X about room to as I and talked to clean you it. technology

Nick Zangler

of makes sense. Best Very luck forward. helpful. going That

Michael Barrett

Nick. Thanks

Operator

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

Michael Barrett

at many during to Thank keep these in the investor you, Thank of our company bring both Kayla. settings I so we And joining Stephens and scheduled. and worked and our team November XX, am tomorrow, day. you December a I us Have for for meetings many RBC has you and again our forward investor We on am conferences hosted by XX. on great call. you clients our serve remotely this proud joining. each November thrilled Needham wonderful QX Thanks updating are for on SIG, to progress, by on to X to XX how together talking virtual Craig-Hallum evening. look results January meetings on of

Operator

the call. has conference The for joining you concluded. now Thank

disconnect. now may You

Magnite (MGNI) 4 Nov 212021 Q3 Earnings call transcript