NASDAQ$MGNI

Magnite Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported strong results with total revenue ex-TAC and CTV revenue ex-TAC exceeding guidance, and Adjusted EBITDA exceeding expectations.

Magnite reported Q1 2023 results with revenue of $130.2 million, up 10% year-over-year, and revenue ex-TAC of $116.0 million, up 8% year-over-year. The company's net loss was $98.7 million, or $0.73 per share. Adjusted EBITDA was $23.3 million, representing a 20% Adjusted EBITDA margin. The company expects revenue ex-TAC for full-year 2023 to be in the high single-digits.

  • Revenue of $130.2 million, up 10% year-over-year
  • Revenue ex-TAC of $116.0 million, up 8% year-over-year
  • Revenue ex-TAC attributable to CTV of $46.4 million, up 10% year-over-year
  • Non-GAAP earnings per share of $0.04, compared to non-GAAP earnings per share of $0.08 for Q1 2022

Headline financials

Total Revenue

$130M

Previous: $118M+10.2%
EPS (adj)

$0.04

Previous: $0.08-50.0%
Adjusted EBITDA

$23.3M

Previous: $28.8M-19.1%
Adjusted EBITDA Margin

20.0%

Previous: 27.0%-25.9%
Capital Expenditures

-$4.4M

Previous: -$7.18M+38.7%
Free Cash Flow

-$103M

Previous: -$51.8M-99.2%
Net Income

-$98.7M

Previous: -$44.6M-121.4%
Operating Income

-$100M

Previous: -$39.8M-152.3%
Gross Profit

$5.32M

Previous: $58.7M-90.9%
Cash & Equivalents

$237M

Previous: $205M+15.6%
Total Assets

$2.43B

Previous: $2.52B-3.7%
Stock-Based Comp

$19.3M

Previous: $16.6M+16.3%

Revenue & EPS history

Magnite · Revenue · Quarterly

$130M

Q1 2023+10.2%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Magnite · $116M total across 3 segments · Q1 2023

  • Mobile
    $46.9M+22.5%
  • CTV
    $46.4M+9.7%
  • Desktop
    $22.7M-14.1%

Forward guidance

Magnite expects Revenue ex-TAC for Q2 2023 to be between $132 million and $136 million and Revenue ex-TAC attributable to CTV for Q2 2023 to be between $56 million and $58 million. The company expects Adjusted EBITDA operating expenses to be between $94 million and $96 million for Q2 2023. Magnite expects revenue ex-TAC growth for full-year 2023 to be in the high single-digits and Adjusted EBITDA for full-year 2023 will be comparable or better than 2022.

Tailwinds

  • Revenue ex-TAC for Q2 2023 to be between $132 million and $136 million
  • Revenue ex-TAC attributable to CTV for Q2 2023 to be between $56 million and $58 million
  • Expect revenue ex-TAC growth for full-year 2023 to be in the high single-digits
  • Expect Adjusted EBITDA for full-year 2023 will be comparable or better than 2022
  • Adjusted EBITDA margin will improve meaningfully in the second half of 2023

Headwinds

  • Adjusted EBITDA operating expenses to be between $94 million and $96 million for Q2 2023
  • Total capital expenditures for 2023 will be $40 million or less
  • Continue to expect free cash flow for the full-year 2023 to exceed $100 million
  • Uncertainty of estimates and expectations associated with new offerings
  • Potential negative impacts associated with the integration of our CTV platforms and the introduction of Magnite Streaming

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.2%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+3.8%

Avg return

30 days after

45%

22 / 49 earnings

Positive

+53.9%

Q3 2022

Best reaction

-43.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-1.8%+7.8%
Q4 2025+12.6%+15.0%-2.7%
Q3 2025-12.8%-13.6%-14.3%
Q1 2025+19.5%+31.2%+41.6%
Q4 2024-1.8%-13.1%-31.2%
Q3 2024+3.1%+23.5%+36.4%
Q2 2024-2.1%-5.1%+0.7%
Q1 2024-2.0%-3.0%+37.3%
Q4 2023+4.3%+2.3%-6.7%
Q3 2023+1.6%-3.5%+17.3%
Q2 2023-43.6%-39.5%-43.3%
Q1 2023+35.3%+31.5%+53.0%
Q4 2022-16.2%-14.9%-32.2%
Q3 2022+53.9%+69.5%+78.5%
Q2 2022-2.3%+4.0%-20.3%
Q1 2022+8.2%-9.9%+7.3%
Q4 2021+14.7%+24.5%+14.3%
Q3 2021-14.3%-9.8%-36.8%
Q2 2021+14.2%+10.7%+6.4%
Q1 2021-23.0%-30.3%-5.5%
Q4 2020-8.2%-1.0%-22.4%
Q3 2020-10.3%-6.9%+63.5%
Q2 2020+8.9%+6.0%-10.0%
Q1 2020-9.3%-28.7%+23.2%
Q4 2019-8.3%-5.2%-48.5%
Q3 2019-9.7%-12.1%-11.0%
Q2 2019+33.8%+27.5%+32.5%
Q1 2019+2.1%+1.2%+5.1%
Q4 2018+13.1%+16.8%+17.1%
Q3 2018+25.3%+31.3%+18.4%
Q2 2018+13.9%+16.7%+38.2%
Q1 2018-5.6%+5.6%+21.1%
Q4 2017+16.3%+15.7%+26.2%
Q3 2017-42.3%-42.9%-49.3%
Q2 2017-18.0%-16.6%-18.4%
Q1 2017-1.1%-3.2%+0.4%
Q4 2016-31.3%-33.6%-35.3%
Q3 2016-13.9%-10.7%-0.1%
Q2 2016+0.1%-1.8%-10.7%
Q1 2016+1.1%
Q4 2015+4.1%
Q3 2015+7.2%
Q2 2015-4.3%
Q1 2015-3.1%
Q4 2014-0.1%
Q3 2014-10.7%
Q2 2014+2.5%
Q1 2014-4.3%
Q4 2013-4.3%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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