Magnite shares were down today after the supply-side ad-tech platform provided poor forecast in its second-quarter earnings release, despite exceeding expectations. As of midday of U.S. session, after the announcement, the stock was down by 37%. Magnite reported that revenue increased by 11% in the quarter to $152.5 million. Contribution minus traffic acquisition costs (TAC) increased …
Magnite shares were down today after the supply-side ad-tech platform provided poor forecast in its second-quarter earnings release, despite exceeding expectations. As of midday of U.S. session, after the announcement, the stock was down by 37%.
Magnite reported that revenue increased by 11% in the quarter to $152.5 million. Contribution minus traffic acquisition costs (TAC) increased 9% to $134.7 million, slightly ahead of expectations of $134.3 million. Contributions from connected television (CTV) increased by 8% to $56.1 million, while contributions from digital video+ (DV+) increased by 10% to $78.6 million.
Gross profit fell from $72.8 million to $22.4 million in the quarter, owing to a $53 million non-cash accelerated-amortization expense from platform consolidation. EBITDA (earnings before interest, taxes, depreciation, and amortization) decreased from $41.3 million to 37.3 million, owing in part to a $4.5 million bad-debt charge following the bankruptcy of MediaMath, a demand-services platform (DSP). On the bottom line, the company reported adjusted profits per share of $0.09, a decrease from $0.14 in the prior-year quarter but an increase over the $0.03 projection.
The CEO of the group also mentioned that: “We had a strong second quarter, with both total contribution ex-TAC and CTV contribution ex-TAC increasing by double digits. We are expanding our market share in both CTV and DV+, while also introducing new products and services to better serve our partners.”
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