MGNI - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the Magnite Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Nick Kormeluk of Investor Relations. Please go ahead.

Nick Kormeluk

Thank you, operator, and good afternoon, everyone. Quarter Conference Fourth Magnite's to XXXX Call. Earnings Welcome

is a reminder, recorded. conference this As being

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

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

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

Michael Barrett

in that of right results of the contribution were you, record adjusted and our Thank We all are processed top billion. our making CTV spend $X year once made of $XXX EBITDA although highs DV+ demonstrate Nick. free million that are line long-term million growth the of produced. part QX. terrific results progress. in We team the on again ad focused $XXX proud tremendous and very we investments We over the I'm QX And right have of exceeded generated guidance cash for for and $XXX generated disappointing, These Magnite. of flow, million market ex-TAC

confident very are our We in future.

by average to In stabilizing overall XX% and growth to better a expected to to results momentum. election. business That has and we we're of a spend And DV+ range. post XXXX, in XX%. his Performance take at contribution continued rebounded grew to DV+, through contribution ad in with unusual mix. in XX% XX%. start CTV happy illustrating was product This QX ex-TAC guidance DV+ in come our ex-TAC year-over-year, QX growth lighter X% CTV of patterns contrast, remarks. caused will that outpacing full QX, contrast walk said, report For year-over-year grow a CTV our more details XXXX, for contribution increased than business our spend to some significant as came below David ex-TAC our rate, year In nicely result total driven

growth QX Walmart, Netflix they continues Warner and a from Fox, remain significantly tier Disney, to revenue. and of platform the in programmatic global Paramount. partner had sports significant ad XXXX. rollout ramp, opportunity our They Discovery ad key grow that in corresponding LG, most will bullish as expand their to expect VIZIO, strong Roku, and as be quarter, in ad about continue. came they growth Netflix fourth Our and the Live their we we

and football NCAA the We are of pending become on Disney's TV sports subscriber Fubo largest by live bases. QX of their acquisition encouraged focus one specifically market's and in to live

with addition FIFA partners, strengthen Zealand. sports Sky our to international the continue including New of and new also business We

opportunities. use these great of work leveraged SpringServe TV. Lastly, additional And and Horizon, our will own GroupM their working their a platform, we expand and leading buyers which provide in ClearLine, leverage buying. of buying streaming of do in throughout but differentiated sellers, spend by product, for efforts continue their on announced end-to-end private allowing direct The a revenue showing Magnite data, also buyers and These our ClearLine, to power XXXX. agencies posted are product satellite with contribute our our with label only marketplaces promise marketplaces, a our our and offering in growth agency are direct nicely when strong platform along brands QX ClearLine, to XXXX. growth for and also agency agencies deal partnership very with We self-service we among for is believe business marketplaces. to receive to establish to top we many media. ramp more the to with not fee with connections go use DIRECTV others,

DV+. to Now

growing more this new XXXX, a mentioned to deals, digits. the rebound solid benefits to business at that ad growth we revenue. single seen we a experienced. across pace after start from partners and be us driver, our trend see some unusual we're in on mid footprint, We've resumed Audio, believe business earlier, high programmatic continues part and the which leading of ramping has and to our normalized to has seeing the the QX healthy I focusing As verticals, more broadly also supply DV+ is

Spotify opportunities as this growth as such this partners iHeart beyond and We about of and are the channel grows. year excited

I'd to we like initiatives. to turn where exciting really new AI, have Now some

We to long centers history more reduce tools machine costs spend the optimize our neural of have data buyers, and ad Magnite. for learning, using sophisticated them day. efficiently process and allowing data per These networks science and a across of to requests trillions our cost

operational we AI. a scenes, number power by addition, powered generative for these clients client-facing be new that In in releasing will tools tools behind efficiencies the XXXX, of

launched that allow easily our product Demand include buyers the improving match a Manager AI-powered optimization rates. example, tools an CTV, automating their beta, header we quickly Other DV+, bidding in optimal tool engine and in and to solution and for standardizing signals. As for while for a our a yield recently AI to content goals in identify meet generative audiences feature classification Curator marketing

tools forward are that leading AI-driven just to help optimistic These advancements XXXX. further value releases additional We significant solidify drive partners product these will SSP. and independent us the throughout will look for our as

have that in but are critically irrelevance. most blame the will inefficient taken inventory inform systems. which that market Moreover, none its head the yield our that be in It's like of to reality, have no of weeks the avoids of turn an amazing to the SSPs. first, middleman. most the fee regarding In programmatic industry's has that you inefficient. big as We unnecessary our charges undifferentiated our need hacked which contention, space, streaming be that U.S. are to disadvantageous the streaming a low-value X to reach don't management us outdated. practice. access because as competitors SSPs the it's inherently is to Large have and and SSP capacity. of it our advertising address OpenPath and their for think for earnings X be streaming layer. over efficient sellers households platform inventory displace display ultimately Trade XX% on their call just our reseller now presumption and and them agreement. in-house. doesn't seller technology SSP YouTube. households because if in they're each technology this by million reams But their How would obvious purpose-built using efficient? addition before acting argues OpenPath our Most most I OpenPath that it XX rely about in the can't not platform data every sellers SSPs healthy comments CTV own direct thinking for ago can server, major This inefficient wrong. are a on with argument would into side. other Because more with non-unique very also build claim working open CTV the fees flawed Trade over is XX countries, incredibly I expensive tech SpringServe use ad sellers call I conducting than tech parts initiative a point for David, server, to or of space served OpenPath more for earned publishers. of headed because buy Desk the fact relationships Magnite tech ad leading Desk fees a are model and European own on over this economics including CTV. flat is misses CTV Magnite's EMEA's in limited million the reselling or their get they unchanged points is is Yet, is mediation they Trade offerings management. But wouldn't the better have to It's XX% or Meanwhile, and Building of in into pricing it. Desk to I'd the and Before yield

SpringServe. be OpenPath to As the Desk sellers importance argument to the table. far why in likely ignores of connecting money is the a demand. enormous value to sellers Trade This find result, would on diversity of Further, using leave more continue

represent for world's every one use While they obviously all demand are case. can geo and player, huge the no a DSP

level. of of That In sellers Magnite built or to sources doesn't on seeing accessible a for. aren't is essential SMBs dozens what through of connections. management is addition to and These demand all performance an yield it's and mediation established are think DSPs, for tap put, impractical direct Simply by explosion OpenPath, replace need the focused we exactly into advertisers. and them DSPs integrating OpenPath managing will

CTV used valued interest by OpenPath in dominated vast a still So even technology grows, best not about Magnite's and OpenPath future OpenPath let's clear. the talks sellers. will of the is majority Trade Desk as be objectivity, but in lot a be of transactions. But publishers by

that transaction marketing DSP, It's of data. both platform. We've their every side. providing inventory about OpenPath allegiance commoditization accelerating is runs when to getting industry player As more seen It's their value Despite and the and what effort, end not always through dominant sellers. a the side their about the buy the the end one about on the of happens fees stick. of short lies up extracting buy with long-term sellers' sellers too this becomes sell and from

Magnite's strong be by sellers. negatively results between company, we it Trade quarterly to Like be spending sell-side interest SpringServe like there we'll being overall impacted with that's thrive, a but always must delivered of closing, healthy open owners. the CTV that we believe in buyers Internet, DV+'s media towards. pause. That's to As Desk, technology fair protect In working a post-election the for mission enables, we value the and The future exchange results also believe future and QX and is the that

world's that investments recent strategic The as our us we've give we've of made a programmatic DV+ trends However, the in leading trends structural to not headwinds normalization are create QX. comfort David? paying are more turn off, With of the clearly excited financials. the I'll on the and call to are for detail David platform CTV that, remainder over we incredibly XXXX. for seen

David Day

fourth The unusual was quarter Magnite. for Michael. Thanks,

We in very and top in expectations our momentum with in of contribution CTV high significant came continued with XX% ex-TAC. line above end growth the business year-over-year

normal saw impressions DV+ CPMs unusual down the the business experienced our to election, flat nonpolitical to with fourth of election, and year-over-year. quarter. CPMs run-up we an XX% during In however, the mentioned, pause the business post-election end in of through levels Michael the our the CPMs quarter. Immediately dropped significantly, in following roughly paid we As XX%

from and in is and and result, resulting our quarter DV+ compared In DV+ health consumer normal the cycles, pullbacks trend soft weaker-than-expected the spot This bright Other was a the in said vertical X% and we both different all in for did and this beverage. retail, categories expectations. industry the automotive was in of XX by When not results our political, the ramp to As see holiday food XXXX consistent was reported demand we growth track. and XX underachievement in other categories, from with and we than our players. in other saw business, election XXXX the we open experience the Internet fitness, done, particular, only benefit witnessed the technology. radically

highlight As results I'll us anomaly. to growth were Michael mentioned returned in DV+ in as mid QX which to single-digit gives has that an lower-than-expected QX, comfort in guidance, and DV+ high some

Turning now generated to ex-TAC over million full and $XXX year ad spend $X record of results. processed We contribution billion. of

been of $XXX of and with and X.Xx. free million in We to million We ratio $XXX net million also generated ended cash, reduced cash record the $XXX adjusted EBITDA leverage our has flow. year

QX revenue top growth was year, up ex-TAC from fourth quarter XXXX. range. again year-over-year end for ad last fourth from Our million, DV+ discussed. CTV drove X%. we above outperformance business Ad performing strong ex-TAC million, contribution up million, was momentum was $XXX as the well, X% XX% $XX capital our our contribution million, $XXX and guidance an increase of and is Contribution Total our in is was the robust. quarter. X% up spend $XXX QX and of SpringServe serving ex-TAC the with the structure

on for ex-TAC cost XX% as vertical From perspective, desktop. the quarter X.X% CTV, expenses, operating fourth category political revenue for slight contribution of million, mobile of performing at XX% Total mix was strongest which includes approximately and from a were the a as period last XX% cloud and we from ex-TAC. quarter, like increase expected $XXX year last contribution discussed was Our QX expense for $XXX increase by and CTV same was year. I'd primarily initiatives our the impact for fourth the personnel, within $XX profitability particularly cost costs. stack our was million EBITDA touch tech last $XXX range. Adjusted operating software quarter driven to scale. million The and million that our guidance

continues per with ad team modest increases and has to significant allowed our increases. costs, First, this DV+ our cloud in have which tech CTV. in request end, decreased cost XX% ad unit volume XXXX manage XX% per reducing in make us to in cost gains request To

of Our our on and focus improvement and scale XXXX. efforts one priorities, efficiency top in continue is will these

focus to on cloud on-prem. additional functions increasing to optimizing addition efforts, unit per from In our our cost hybrid structure we've to been also move our cloud

to increasing expansion year. some that expect XXXX potential second beyond We rates with these for initiatives in will the lead of in margin benefit and half this

Net We will the $XX XX%, grew have was compared quarter million, margin to for to Adjusted year. reflecting EBITDA a more income of to million last report for year-over-year of net in quarter $XX coming XXXX. quarters $XX $XX on million to of compares X% these income efforts. the which million fourth

XXXX. fourth in end and grew increased for million to total the Non-GAAP end quarter, internal income and EBITDA QX. of full year. $XX adjusted which including software expenditures, earnings use last As percentage $XX of we for a included at and of our bringing the $XXX $X.XX QX as purchases CapEx, XXXX per QX the XXXX $X.XX million calculate a non-GAAP was quarter. was increase define are GAAP share reminder, quarter we from for $X.XX was the $X.XX the diluted flow, capitalized and contribution non-GAAP the the very per of share margin cash Operating million of ex-TAC. Cash our quarter, for year. million, to to per fourth quarter and XX% earnings was release. the compared the development less $XX XX% as cash press Reconciliations share costs XX% adjusted earnings fourth compared in to an fourth and million the results of $XX with quarter strong were both balance for Capital generation was of EBITDA or property of equipment

Our quarter million. net $X the expense was interest for

the from end As mentioned, ratio the X.Xx at our leverage at net sequential of improvement a QX, X.Xx was of QX. end

focus on managing lowered leverage. successfully our continue after dilution We having to shareholder

million. effectively repurchase year to withhold by the million cover and our For for full reduced shares activity $XX XXXX, X.X program dilution have

the our in for end look the our I'll compared we total first result, strategically. increase was to to expectations of thoughts shares the outstanding have a million currently remaining full of authorized share repurchase now the XXXX X% XXXX. current As to in which will program, limited XXXX We at the $XXX about quarter of deploy year. our share end and

$XX the first ex-TAC million, contribution to ex-TAC $XXX the million of which million, between million XX% to over million range to range For of adjusted Contribution million the and midpoint. we the operating ex-TAC contribution to of million, EBITDA to $XX $XXX in DV+ margin we and quarter, be of in implies expenses million, to the EBITDA be to CTV be $XXX for be attributable attributable $XX at to expect to range in $XX $XXX anticipate QX adjusted

XX% total mid-teens, points year, anticipate expand grow full cash margin basis ex-TAC to to the high to the at we in with in EBITDA over the grow teens For least to or free adjusted excluding political, EBITDA contribution XX%. grow adjusted to and mid-teens, above flow XXXX XXX

We and let's for stack is significant line cost the also year. we And beyond. of and cutting-edge industry-leading the set about are that, team efficiency our Q&A. this In strong noted despite our add year, to and capabilities fourth our for efforts, set. high addition, year were be XXXX future CapEx excited supporting had The Overall, significant XXXX $XX to post-selection what including a open wins tech we Magnite volatility the efficiency tech well, the in expect continue made and holds priority quarter performing strides million, CTV total and as approximately We've on the tool the some unexpected in I Netflix with full earlier. to the DV+ very stack results. during have

Operator

[Operator Instructions] question first Kreyer Jason with comes The Craig-Hallum. from

Jason Kreyer

guide the slowdown on obviously, So a but QX TV, of to in ended a there. strong a note year reflect little bit for Connected the seems

just wondering you what context you're seeing early of if on So can in here a stages get 'XX. the little

David Day

take I'll that. Yes,

nice seeing -- let's the in DV+, there. actually QX. split a rebound, think We're well, I from businesses especially

mentioned, in digits. mid- single And so the to growth as we're seeing current high

so typically our of if nicely. point anything And is a Michael, growth. to CTV, year-over-year don't know I had And think, got you want QX else, that's we've in low we And add. running you kind

Michael Barrett

Yes, expectations. think it's I it's yes. representative, pretty market within No,

Jason Kreyer

kind to highlighted wanted cohort SMBs, to talked that some greater of some hasn't that. give allow CTV access them I you industry had that about, with online partners kind working bring in stuff touch of the you on of budget of and to participated in past the to the

you if your participate. of is you're entities wondering can and for about to just the role So timing like talk and those what seeing able what kind there be to what looks

Michael Barrett

Great Yes. Jason. question,

think relatively a I There's early kind X-putt we're move. stages right? of it's there, --

on bring First, time these on coupled newer are there going of big the have whether the is to need the a same streaming. to for think shift dollar journey. But and not from CTV with from kind the ability hey, right? linear a dollar is earlier weighing to if even these And every at board you looking we're or to couple of DV+ be earnings DV+ ad to the successful their of of advertisers or ton to impact read hope on, pinned tech expand like metrics of we're the the performance the generally entrants advertising I if the QX used world, pie of companies. that appetite. more they've so not just all We efficacious to And streamers, any start that's

into they're not so leaning And XX,XXX advertisers, XXX advertisers. really world of a

into There's is that supply supply industry that. create directly, the bring our can in great all relationships, kind way And that So direct is specifically to them. no plug role can to leaning they globally. access whole of we the

our But so in we're SSP a the And mediation all layer a as that with top uniquely our SSP mentioned programmatic giving quintessential respect. in streamers. script, advantaged I

Operator

The Company. next Dan The from Benchmark with question comes Kurnos

Daniel Kurnos

wins? ex-TAC -- hard. on how of growth to be think medium Netflix that just mean, maybe obviously, the Michael, the over your going you I we CTV have with business it's just lumpy about all and now these should is timing term

story? drive utilizing that So a business to new on maybe can kind improve the of spread sort us we business the are some initiatives, incremental revenue rate. of that you then to normalized we more about get out wins? talking are data of actually the conversion data can Or lines add have And talking so you growth for or the

Michael Barrett

Dan, great Yes, question.

So around seen I pretty we've think to or rate, in we expectation bounced has market outgrow folks That that given mid-teens. have the think consistent quarters the the I number economic every the last saying of market. we But all we've latest backdrop CTV growth been use so. X

relates to that go-to-market stand about strategy it largest again, our there'll to to that originally David exiting that a statements they'll add be specifically that for coming our differences, said point be so that's And as on the partners. basis, control, and as newer as comfortable largely that very online, our of in one clients. just of quarter had market market outpace our we expect project is fully streaming far it's feel year comps. CTV full it's some but respect. And the we some sure, hard inventory of out Netflix, XXXX, But a to and of XXX% some because

David Day

about was not out for to knowing going you closer you year. to CTV what the guide, and XXXX and comp, I I of imply others, our think conservative, strip our next would say if growth would political, say, just guide the political if Netflix Yes, ramp also, -- XX% guide

And so mind. comp to just in that political important keep

Michael Barrett

piece Dan, the on opportunity it's data lastly, us. revenue of it, bucket of for yes, a And data, new

& from in in next if utilizing Laura that data surcharges can warehouse, Company. tools Needham data participate on storefront. most our in the data us at a you we're sales occurred As the with or economics. Operator: buyers data And of level and our and those seeing will, And comes coming know side. our instance, you buy curation uptake question DSP have and well, Martin our The very big publishers

Laura Martin

interested, related in of I to wanted per drill do is that's AI. of And did million XXXX. How bring My sounds And bunch you increase of client in clients you model because first existing CapEx I'm $XX the you large on those going AI, It housed like then stuff one there a much a to -- little more. new do introducing the with to churn? Amazon very or Gen 'XX. expect in client of is lot to down lower to side revenue Google surprised you're at I'm Gen Gen you're a this or AI a language cost on-prem over at products OpenAI.

curious So your on-prem I'm cloud. as versus -- to the on-prem on bringing using increasing CapEx

more question So little that's my AI about Gen a you strategy in please? is, could your XXXX, first talk

Michael Barrett

You to eye David question existing make the to have part. an answer that the bet, we are with on spend launching would let first have to on say, easier, it and clients generally second of speaking, Jump pad towards efficient the the them and part tools more their make more. the definitely that I Laura. are life launched and

increase So the is wave focus I say with existing of generation the would first to general clients. revenue

David Day

applications bringing related on-prem. to activities today Xx CapEx, can efforts. be business more And up as unit expect more about actually do as $XX you AWS our for runs in And primarily primarily certain those to That's per expensive they're on on than XXXX. optimized, in Gen really AWS. the to It's million highlighted, million we AI costs, not CapEx in had that CTV the XXXX. related $XX being we even

significant the so And a from on-prem. ability some ROI actually that there's spend incremental of to and CapEx very that bring activity

us -- tech future it's more margins the CapEx much of opportunity and optimization in expensive our we expand our to AWS more stack cheaper costs actually as swap costs. on-prem giving efforts is to our out So about really greater cloud the

Michael Barrett

the can tools we as And talked the push packaging economic tools user. of end the the those the specific believe servers specific tools you of for cost about, those additional onto to relates it

millions to costs because don't LLMs. of incremental usage we of anticipate of as therefore, so relates And it tens cloud

Laura Martin

usefulness you you And are I Okay. And war the healthy? the SSPs the is were is, sort by your the feel relative ecosystem? growth, comments. open Trade an about do services, you Do the more part now required. public why the of of open of then layer pushback their and rise a still is friction words of Super my picture in one open helpful. they question I And feel sort but sort of Internet understand Internet largest among SSP ecosystem. second appreciated like today's threatening open just of I big have feel world? slowing largest I'm are the creating competitive Internet healthy is, the We Desk which my guess wondering, the on and that of is DSP provoked Amazon's Internet you is in

Michael Barrett

Internet. Trade very a he back going is world to with this of to Well, between thinks I going and the think that a has clear it's isn't how out, it's think alley end and Jeff very fight healthy, thinks Desk. he Laura. also us open And I play some view thriving

in is a buying on of being world, open very is the buyer Internet out Amazon and DSP and spoils of We yes, open have buying more, suck would that. But enjoys sophisticated that may Internet. as speaking, the the We same general we're seeing gets so-called largest more exact they and it are include dollars to But can inventory. how They have largely to Amazon the of there have but differ who Internet capabilities, world inventory. what incredibly intent view. open

than growing with they're is tight open and platform. very them, think And the I fast of that trying someone our a have to more they're we So underpin partnership validation on Internet of it. a

Operator

Research. from with Wolfe Khajuria next The Shweta comes question

Shweta Khajuria

should up revenue please. was my X, versus whether a about try of a about getting end OpenPath. Magnite me talked same a I Let I how irrespective gave the through guess, for very that -- you we an publishers lot amount good needed. Michael, much color, of think SSP think I great about and On OpenPath, so you is, -- question guess or you of they go

that? And see quarter right we Is try are So understand back function us incrementality you drove February? to should bit the simply see helpful. guidance the please confidence a partnerships? you is how your did gives on Any you how CPMs second And XXXX a help that? versus things please that And be -- the trend you us And Could date? what you CPMs. comment unpack pressure How fourth did these and could normal? third what CPM back then you there it to new quarter? could help can are January think bouncing now? do I the in through So if What on a comment of please of one. little degree from about to any would

Michael Barrett

I'll economics. OpenPath hit the

was costs. with to think our as I mid-single there by a for what That it's engages Trade charged fee Desk a the that type provide as broadly is of CTV high a digits. Depending Trade swap high wasn't range absolute are on can understood Desk. fee OpenPath, to they service of costs out we publisher publisher, that mid-single an just when digits

multiple unchanged the publisher. in terms economics heard of So the chain, publishers. supply We've the of to in this the and of from fees terms tightening really are

So for ultimately, publishers. there's huge advertisers here no savings and/or

for statement was I the one that a what that that's so is light recalibration is bringing it sweeping of And efficiency, this player. to

it to defer the relates data. he the all David, to As CPMs, I'll has

David Day

Yes.

DV+ where less in there to February, fact having speculate. to rebound. was a hard One just we and and demand there seen business. In the election quarter But results up I a that significant in a messy at it's highest that mean, or from, speculate the in -- think just level, was holidays can the have November drop running came in about there fourth January the are the demand I December. concerns was where

CPMs So that improved. have back, come has demand

going helps And unusual And forward. confidence so us it's at that gives an also it year-end. --

extra have month We an where reporting. we're

we're So our into X months quarter.

that. incrementality don't deals, gives we have from our has the in for and from perspective, part so timing about the sustained of And question, reasonable what deals. very could it be. of We terms this visibility new talked guidance our of third a rebound we've I control additional good impact a that mean, deals some general us some that And then with confidence. a quarter, of

the And attempt we're conservative be to in so we guidance giving. that somewhat

about financial EBITDA that growth baseline talking from flow-through higher profile, rates, top revenue through we but much interesting at you're flow-through, that If a revenue a a flows rate. certain on is have what current to and incrementality of at incremental

you'll And the extent better upside, have to we EBITDA. so and impact see on the better on impact proportionality

Operator

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

Matthew Swanson

a Maybe December. were Just similar in drop November impacted saw but following the you didn't dynamic, guardrails the where on to did seem really put David, you in it and outperformed it due trying just like Or that. some CTV? there, strength? anyway see up kind around It just of demand you to

David Day

impact. really in. a demand different with it I the is same mean coming we No, very didn't see of lots world

some of it was if we're feel by And gainer kind in demand. so share space. masked there was in impact, certainly other we And a like -- growth that there's

CPMs in see activity we didn't in of So have quarter? that grown could a Maybe. drop similar it or kind in CTV. any But higher

Matthew Swanson

marketplaces. color about for comfortable drivers we for being but lot think called investments on should year, maybe monetizable then with? guys of you agency how are curation, time of how question. growth that CTV, those this of kind one just in they a AI spent Shweta's of you you And a terms out in XXXX, in different that's We The talked we are whatever of version secular both ClearLine

Michael Barrett

mean Yes. I handle I'll opener. the

term, A these through. fully our very selling terms upon I partnerships we partnerships, -- longer partner lot it dependent very talked think these are of strategic midterm in we about, be ramp. with many of they're will as to and of

I first for going And X and years. concept to roaring to a example X marketplace. that for years, now it's clients. Their with with was that. We've maybe GroupM think pitched a of close the great it marketplaces it working agency dabbled been a their clients are now was

of in take these so MediaOcean, play out. the like just think I even cetera, And these examples Uniteds a of the longer Netflix, lot world, to et

growth happening stick just quarter of and any in general kind in hockey for add particular a any of XXXX. anticipate to anticipate wouldn't that grow these. the simply They revenue we I So

Operator

question next Susquehanna. Shyam The from comes with Patil

Unknown Analyst

XQ to the How demand that did and to post is compared on you and severe, do on starters, I more saw think wanted prior double-click that? volatility what you cycles? This just Shyam. election in drop-off caused that election. saw CPM was the for if you that DV+ for Aaron Maybe And

David Day

was and that. cycles. we it think Yes, XXXX than I'll Yes, earlier, take XXXX I as mentioned very different

cycles, we So in -- the CPMs those increased did -- was really there actually did not drop.

the from the the wanted that be the whether stay speculate political the as again, we've cause, and what it election challenging But just as assuming drop, folks different so output to know what turmoil One to may. can saw we was is. just seen you the cause, out after far the dramatically there'd or as perspective. And we now of market, really And recovery. that

have than others And else. a don't don't I anything might what know, speculate. if there's better Michael, insight so lot I

Michael Barrett

and No, to political political. It spend. consumer political it's pretty just out look, season, crowds it's any -- spend against like we gets tough compete know expensive ad

advertisers kick advertising get to didn't because, So the them. day just it's in general have the election, the the CPMs, theories all then phenomenon. And after election. or kind in fact resumed kind us of unique point we that at we're for this it's happened of pause fingers December this more hard any election, and advertising January fact exactly a see the cratering to We quite that. any that common of definitive to other after but larger had frankly, see in seasonal some the and with And the -- their it's

level. another We is have correlation. Causation

Unknown Analyst

differentiators I SSP Trade X would a the question. guess hear Got what and it. appreciated the I to response of the I could OpenPath Desk. top from Michael, second you comments if I'd be Magnite curious OpenPath? And versus then X to highlight the as or ask commentary

Michael Barrett

pretty valuable begins OpenPath and Well, lifeblood It I of think it's a demand. that the source But is very clear is demand for publishers. there. ends

just yield a yield the with this, kind as out, has feed have you're data And the And disagree pointed management. have publisher your if Jeff we we of that going build to you yield management, alone vociferously one DSP. build let as management publisher. it's own do to better However, the capability to

world's biggest DSP the America. Trade bring in demand. every So largely global the We say, OpenPath demand. speaking, The Desk Latin under bring We above bring even I would we operating isn't our is sun. value

We are.

and demand So we all yield management absolutely it. we can add to bring this

making we're sure buyers that publishers getting And keeping the so are honest rate. we're and the the best possible

OpenPath yield same And is. world's and Desk you a get demand so that the valuable demand, for OpenPath what demand, the of not is argue I think Trade is but optimization. with fee, we could just pipe

Operator

comes question Martinuzzi with next Lake from The Street. Eric

Eric Martinuzzi

one Just question/clarification.

political mentioned in for it You at What contribution X.X% was ex-TAC of year? QX. the

David Day

it year, was X.X%. the For

Operator

The Zach FBR. next Cummins Riley question comes from with B.

Zach Cummins

relatively seems seen CTV within ask I just I any that It about mix the wanted mean, worth it's Have throughout XXXX. shift you business. to out calling like -- business? stable

So of beyond. moving that just you're thinking about how in mix curious and forward XXXX

Michael Barrett

Yes.

I lot perhaps opposed will upon upon on on that that a more think to demand what the mix from We accurate publishers for us quite if publishers be Like of plans relies where of it's rely statement. of bring you in more demand revenue the as pretty the comes media they the as a XXXX than the us look and that Magnite for programmatic. Disney bringing that's stable. been We think mix we'll publishers margin, from, types of our demand. the at us, use products sold think expansion

still I media as wants go ball So know, deals I premium bells are through everyone mix And guys, big prefer over direct. you in streamers the that time, their think that think to those as plans. that you But sell changing. we their of the programmatic XXXX, the totally anticipate

Zach Cummins

quick one just And Understood. follow-up.

over with announcement role Can potential talk your in about partnership you Just how curious that recent and of think your of should we that partnership time? X. about kind contribution from

Michael Barrett

that press the a announcement. partnership It announcement was article. wasn't a was partnership It Yes.

limited So to kind somewhat deal. describe the of we're

can I premature. but a again, you a little think what that does. anticipate reporter a information doing But downstream, reporter further probably was

Operator

The next America. Bank of question comes from Omar Dessouky with

Unknown Analyst

on is Omar. This for Arthur

So ad we to by, David, how predict cost about able to you on sounds DSPs. keep requests, that's efficiency should I your per going able to like, model requests in your it you lower wanted model I if about comment a of meaningfully How seeding think improvement? ad your to like are have send as be the optimizing to data ingest into different loop. more theory, guess, the feedback able DSPs Because getting being number better should various to touch request you respond on to that ad

I what that of seeding you do efficiency on Like see just think the notion? on like you are So you your where guess, your keep in do theory, efficiency should getting on thoughts that are And gain? Where curve? better. that

David Day

Yes.

couple actually for elements efficiency we've long a highlighted something it's of there's time. been those gains. think And that you a I to doing that interesting

request request of core a DSPs. that there's a to core So cost an processing and cost ad sending ad out of

efficiently there's it filter a what's brains that so where there's should to how And be core But you and cost that. sent. and behind valuable

relatively Streaming CTV Magnite to as the in the grow step actually going so gains and will and to cloud. last -- been with for and that And per we've utilizing significant continue and unit and couple part, been SpringServe. the that's them a on of some one, businesses part We're But that on time, in function to we've we've had put there's over new long success. working our cost time. And our together years of in that acquired improve

And And efficiently some in optimizing run phase And big function be now so activities is we there. much the continue there's then of the step more that. sorting just those that really really, -- upside of so and out certain can we're on-prem.

I that's over And come will time. biggest think gains so where the

saying very of answer of good a it's a lot way things happening. and so And long

more coming to think means that through and that I the I when, what have we'll quarters have further discuss think better the quantification get as we visibility. in of work

Michael Barrett

that And corresponding we are we the definitely cost. unit intend is But to continue improve to upon tripling volume. doubling, to

see to do And kind be It's able in to steady layer we're to our going a always much. of lifeblood going volume. as so And twice is cost. you're just auctions that

thing. good So that's a really

cost. You to shouldn't to go more more because to at expect this taking volume we're X be and an going on affordable

Operator

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

Michael Barrett

support. your and us joining for all you Thank Megan. you, Thank

and feel love ability you the upcoming in that about. to it We resilience very I look of like high many The of have team back to at XXXX a when bounce and ahead exciting very even a good very market our us speaking at our quickly. We events. is with I performing investor QX level, challenges Magnite our throws forward

are on Francisco XX great tomorrow, of Denver on Bank XX, We Boston Riley York March meetings XXth in the Thank RBC Susquehanna evening. meetings XX meetings in have on in all meetings and America and of and Minneapolis March March, joining, you XX. a Kansas in participating for San Benchmark in City and B. Conference March Craig-Hallum XXth on X, the in and Chicago meetings and on March New

Operator

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

disconnect. You may now

Magnite (MGNI) 26 Feb 252024 Q4 Earnings call transcript