Magnite (MGNI) 7 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to Magnite's Third Quarter 2024 Earnings 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.

Thank you, operator, and good afternoon, everyone. Welcome to Magnite's Third Quarter 2024 Earnings Conference Call.

conference being this reminder, a call recorded. is As

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

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

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

you, Nick. Thank

pleased year of adjusted a We another deliver quarter to are to strong CTV numbers. boost us on allowing full and strong growth EBITDA, beat

by to quarter, the rate and For strength adoption ad increasing driven from year-over-year a from programmatic CTV CTV growth overall from performance XX% QX. Strong was and rate contribution largest growth, solid ex-TAC spend the by our serving industry's growth ad accelerated political. in XX% players, contribution

a have Our mix growth in broad contribution Robust CTV across set stabilization also is ad CTV showing a adoption and take from partners. rates programmatic rate. significantly spend our and ex-TAC narrowed, of continuing corresponding in

Roku, programmatic trends and didn't more historically programmatic of As on programmatic layering selling volumes these inventory Discovery powerful are segment play data is audiences. reach us expanding persist, to CPM and them for scale fully increasingly believe industry all linear. important It very help pressures utilize to clients for their partners value continue Warner demand our accessible Paramount, sources, to and to including to include by are add these in our target to and in critically SMB embracing We TAM. looking advertisers Disney. Netflix, that growing Partners usage

through the partnership XXXX. Netflix solutions We the X-year our region Next, and expands sports relationship partnership college revenue expansion to include I our contribution football, continues and and to The ramp, extension rollout a live podcasts we grow now like want with Disney. deal our signed Disney American News. Magnite-powered of Latin and announced recently ABC programmatic ESPN and recently to anticipate of highlight in Netflix's partnerships. to for

make will inventory also available Disney and through years will to the Disney partner continue We for key be our to partnership. to Magnite ClearLine. come, are pleased we in broaden a further

summer This market NFL to from unmatched. programmatic We is live a are and from beginning that college and growth its offering, football, real-time industry-leading the with to monetize seeing fall. internationally. our Recent scale also top is nice inventory and combined are is boost a sports of areas MVPDs journey our tech this Olympics

and expect key live a years. investment with partners in company. the focus in more and sports We more coming TV This for is continue growth live to sports the

optimistic the this commerce powerful are media We working vehicle long-term in growth a and I'm opportunities many driver, about being space. new

progressing this partnership is summer Our Airlines with United well. announced

XX efforts. I on through ad CTV serving our from now to to ClearLine business, which screens expanding seatback now to include want are XXXX. the device self-service We ad look impression agencies beyond traction. volume and a at buying year is personal continue to brands platform, on our powering to ad twice been hundreds double-click have buying and than continuing nearly entertainment on has and gain and direct We forward more devices of ClearLine, in ago. ramp operating personal their grow planes serving

go-to-market software as provide sticky partner to workflows embedded monetization. very and allows core It's comparable software solutions within enterprise their is solutions. and superior overall Our our us part operations, deeply to a of

the and is the Disney partner is our first with market Fox, to will lead VIZIO. and and stronger, innovative competitive combination, of a deep Roku, Our a Warner comes streaming LG. LG and Brothers Warner of Roku, our differentiator. Samsung, major Paramount Magnite included quarter likes fastest-growing a accounts SSP Discovery, which this The partnerships gives on position solid extremely as into A growth services portion from remain our this SpringServe Brothers this that get and and continues advantage CTV us and Evidence programmatic focused Disney, of Discovery, Netflix, evolving leadership we future. in extend features

to to in finished growth native, Contributing digital expectations growth our podcasts Now investments of emerging in again as X%. once QX formats line audio, such are and out-of-home. with DV+. ex-TAC with contribution

volume by to coming much continue request Our and XX% ad cost our approximately down get grow, per to efficient ad we more versus of requests continues with last year.

improving efficiency shaping Our is by filtering, and traffic AI. driven

terms, our commonly audience tailwind aiding of a ad audiences In a importance miss. might practice is data as DV+ packaging advertisers of is audience curation curation. referred inventory Another that they reach and otherwise the aggregation, increased businesses using CTV simple help selective is to sell-side to

on gone have it unsold. For might sellers, impressions higher means driving yields that substantially

ongoing devices. is home the and on and lie part changes better for side, publishers by easiest side, privacy add they'd there's it's there's more being due recently where their to an industry on data shift collection AdAge individually. We'd signal getting a to loss it's As harder in curation browsers where with restricted becoming spend to than no demand that toward noted, time the sell have in the for attract SSP, peers this the sell curation within side, premium to fueled

given grown from and to XXX% for It's audiences foreseeable growth set our footprint. In future strong anticipate early publisher we has publisher year-over-year. unrivaled curating continue tool and this fact, days, the Magnite's revenue over

themselves. highest evaluating Forrester our I'm off, we how proud critical the score our omnichannel and another and QX the investments the exciting of of gains. In Not and we made programmatic scales offering. It's to prioritize curation, finish guide. results a say both SSPs drive is no an confident example and week, footprint market else thousands programmatic leadership only of of should strong evolution about strong also differentiate did are in as the The evolves report CTV of we've that for curation last as publishers the to the and is we the and drive for one enable outsized bring industry role of create to overall delivered higher for and one to and Magnite possible in Expanding for highlighted DV+ buyers. to top CTV world's platform yields will strategic achieved a advertising capabilities clearly new receive has are but XX the Just the and time totality will year. score QX capabilities leading share paying highest our X current CTV curation closing,

optimistic and existing the as new ramp are programmatic ClearLine. With and We Thanks, partners that, about call David? for financials. CTV, in detail XXXX continues continued on in up more also we to sports the Michael. I'll acceleration over gain growth see steam of to David turn further and

The third quarter exceeding another CTV of for top EBITDA high line the end Magnite, expectations. strong and quarter expectations adjusted beating was

free results flow cash Our very during strong the drove quarter.

dilution equity leverage net allowed refinancing focus early have strong Our management. on tighter of performance, debt for and financial ratio a goals achievement

a in again, Our above is million, position, business XXXX. up XX%. was from and ex-TAC strong $XXX solid up which Contribution are $XXX QX revenue is was guidance. Total reflected XX% our year-over-year set up million, in and, contribution was ex-TAC $XX.X updated very in contribution the spend from the our the programmatic DV+ growth X% momentum third drove $XX quarter. ex-TAC QX, X% for up we CTV million, the a top QX for Ad of with and outperformance growth increase to third or last compared above -- range. quarter and our the an $XX line top end year. million, was strong SpringServe guidance serving million ad

perspective, CTV, XX% as and XX% political mix was performing ex-TAC at the a for contribution XX% category expected, of Our approximately desktop. From vertical was strongest mobile contribution ex-TAC. X.X% QX

became approximately increase costs, were primary Categories well million the same intangible rent-related The of quarter of the fitness. Total expense were was in net retail a was expenses quarter primarily software of as a XX% the fully third XX% the last in the million of our $XX of temporary grew perform Adjusted EBITDA operating a was of was which $X.X for year well. below guidance $XX.X for the were million income low year. QX, and and costs assets of costs. Net and end lower quarter from for and cloud the and not last which from million that The strong $XX $XXX result margin expenses, million, margin and million. was year-over-year the $XX year. of SpotX we a did million, our driver last compares range. operating that with by from health quarter X the for of Adjusted News In EBITDA acquired beverage food year. last $X.X compared the million benefit decrease third for personnel $XXX includes million $XX revenue quarter driven of had amortized to offices. to cost a loss XXXX decrease third and period of XX%, as well third

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

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

We're net Loan of that $XXX This from to capital was on B less repriced very QX. successfully after We that debt X.Xx SOFR our at at a to our than focused decrease solidified the will million dilution improvement at of ratio the a ahead our result we schedule. I'd are expense end Term basis QX, having also structure. annually. point of by achieves shareholder interest X.XX%, X.Xx XX highlight like pleased million sequential managing roughly our report leverage goal This of Xx reduction. plus end $X.X

to withhold for million million million quarter, by third for by shares approximately the November dilution shares. Year-to-date During Magnite X.X $XX through shareholders utilized $XX million. have X, to repurchase activity effectively effectively our program reduce cover dilution reduced X.X and

be program. I'll to of program. the have share XXXX guidance $XXX updated net plenty X, additional X%, authorized repurchase under dilution share November with in capacity expect for We repurchase our activity and approximately fourth expectations our the year. excluding full in for million remaining potential we additional quarter now Through the

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

expand that our EBITDA now to free adjusted than We're points to flow And ex-TAC For for raising between the approximately expectations to year-over-year we're million. XXX expectation XXXX. will above now $XX to raising grow raising more XX%. and we total now our XX% adjusted our CapEx be grow to for full year, and raising margin XX%. expectation expectations grow We're cash XX% XXX basis EBITDA over for contribution our expect

be the for and consistent for We another year pleased on full results. our positive also was EPS and expect QX a very GAAP net with to Magnite, income solid I'm basis. quarter

opportunities for ahead, I'm XXXX. With we to line Q&A. significant and the the for let's expect open momentum strong have looking that, We forward and finish

first Our Needham is Company. Instructions] from with [Operator Laura question Martin &

Net time. Are your free guys X.Xx. you flow. on It we all are strong guys. you numbers, way like given our at same to Great X X? are the leverage, questions these Great. feels levered My cash

is second that's my So AI. first question. My question on generative

that that growing is One generative of their costs revenue. AI slower much seeing using are the we're companies growing are things than their

what for get I'm guys generative like and can is AI how so operating the cost are that wondering growth leverage road into you more map using So we the model.

This really where structure first I'll capital one. is David. sheet we're our Great. Yes. in point No, or this at the take balance happy with is time.

to net in we're to to pivot get our a bit I leverage was happy is goal or Xx think at. Xx turning where We're And of dilution our some -- below. little ways, with equity management. ratio

repurchases. suspect I over leverage also that on net ratio down And could so, our be will but will time, there come a focus share

a as Yes, company. a look engineering, Laura, take journey generative of the the that a cetera, product, us task tools company are as so for within force our own I'll question. go-to-market folks, comprised And it's development. at of Yes. et out as AI well We started there, to a slew

AI we As speak really that's doing of our a of you know, true machine the generative cost as large pointed have efficiencies science that out. lot team kind we're it's and data a to but where isn't learning we driving of, very

customers have et Our has through learning, of to that talked volume well that's of lifts cetera. And but on continues Manager form going some because the roughly about XX%, customers. XX% we largely go machine Demand processing over our and of we've DV+ in up filtering, our revenue creating AI cost to pushed come platform of very to the the for roof, down our

say it's a on more software our most work and a internally but lot So be going the a team's have efficiencies probably the it's gained to like we on through quarters. we'll are in companies, in -- front, progress, coming of development to see that

(sic) ] Sean with from next Our Patil question Susquehanna. Patil is [ Shyam

if prepared win, On on talked great quarter. just a relationship. wanted these in of I a more to Michael, both about, great, Netflix, see remarks. I little I obviously, job topics color. could had give couple great Nice the questions. maybe you think, a of your you

them to year Just on what really see if that? a more provide you Disney, just about could guess, in XQ expect And just led I beyond any to just how to to of do then color time? related that really of this and you you the just ramp kind wondering from select good bit next the and and talk partnership expansion. company that revenue also to the kind could technology just little just about Magnite on that relationship of kind what that, for areas these maybe expect growth and further guess over they you I led renewal. And liked additional -- then

Yes. questions. Great

to about, than of the relates messaging business lot about it to Netflix A there. more doing we very so we're on on folks careful you're as Netflix, not us read-through As read-through our talked get lot a I'm and a a ad but on ask Magnite's business. Netflix, suggesting that,

sole So with stand by we're partner side. is I sell programmatic think that we're what the on them, we

if that the full-blown want just that DRAX. opposed very RFP. customers to to they all with And what more them. to markets, to themselves. The very think But stages that it's the software Disney, had be dust in themselves. use a estimate it settles the well for you do we seamless offer could foreign to of as build going very I has they build our of Magnite. And date. it as under are the to into and with that early of able relationship think they comfortable we've of want biggest by expand at got proprietary internally customer Disney implementation the gotten But Disney They're that programmatic them length of of with that our, stand be want I the they an selling we've helped and what X but when Netflix As I has been don't to look extension XXXX we relationship to not relates their necessarily think

is are be very for those come. theirs And the to trusted good I to the indicators look start you years at so, of will of Magnite that partner think a relationship, as and expansion

Craig-Hallum with Jason Our next question from is Group. Capital Kreyer

connections on lot last couple the of a direct over focus been there's of quarters. Michael,

if evolve revisit can wondering give us that Just connections thoughts your direct over the how you and maybe long-term. on

X-pipe little you platforms, pre-bid kind publishers. well So as different a Yes. I software of a little has used bit the to pipe Trade we and for pipe Jason, because deployed, is kind all in connection in continue both been direct area. Desk that right? large from the unified much Desk easier dust a connection, And of second mean, spend amounts being the the auction for in of as strategy do to direct Trade compete prebid unified of to settled by hasn't the auction kind one has there. DV+ the bit see said, change know, there prebid that DV+, It's of predominantly

it to there CTV, prebid, speak. relates As is so no to

And kind of server in And ad DSP to ad through would the connect server. are server. so, bespoke or know, many player's it's to programmatic either you by cases, layer as we we're connection primary the which a each the ad the

a And with loss by economics in much in connection so, direct Trade X-pipe a we in case, dealing ergo, those ad serving nonproprietary in scenario. for scenario see Desk don't players. even CTV Magnite CTV in you're the And

think Trade about in seeing very So CTV in oh, UID is which of Roku. Desk at one success is gets things mind, look greater with But think, slightly that keep think Roku, I them a connect very, how to far UID instance, through the serviced the Roku that from is conflated and UID. truth. in generate Trade the equals direct more UID revenue lot UID Desk connection, is direct of Desk through by the I helping pipe. that Magnite Like people and is Trade And the the matching for it's with talks

the out if from and the gets sometimes mentioned, people cut And Magnite think so, I UID think picture, truth. of far it's is

good A lot of color.

audience, little too. a curated talked You bit about

relatively like curious, as CTV talk adoption curated publishers where can something would audience terms kind think you there's success that and in at of early scale there. some of nascent are DV+ far as the solution? Just that, about that's I But of looking a

you, Yes. it's I'll tell incredible.

are continue targeting hindrance whole they the what's sell really to though it the the third-party side. been to And there's chrome of going this been publishers But to until into did. the transact that cookie that right? of cookies, moving audience still it. the we've third-party about think goes most hey, way is, And I deprecation that Jason, away, are now like, kind I leaning they to cookies, So, talking always feel away, even hiccup I'm is going with that

is and a explosion seen to it So early from early in but we've seen it's reality. theory days we've it -- and big a revenue,

you're And group sudden, I take so, can data bit a together in many that left-handed a of looking segment this you're is, a X,XXX and mean, buyers left-handed of only but course, seeing so advantage there's would you that now of publishers audiences, finite scaled publisher world is and a curated if adopting respect. all publishers, any is have can quite lot in have, And that. And now Magnite jugglers. it. again, for everything juggler curated is that of first-party almost that CTV, of curation

buy So that those we think how is operated it's we've of outcome loss economics. think since That's participate a very and cookies to a opportunity been for be to third-party the when of Magnite their able encouraging about, We the dawn goes publishers talking like has what and go the really is this DSPs. logical in partners away. signal side away,

in. very but in it's direction the heading days, encouraging early So

question Macquarie. Our with from next Tim Nollen is

with an talk I It and lot advertising only bidded tools, you, take industry, rate. for which update of upfront just being year the TV on linear of shift a shift was likes on the should bidded toward time. what's which and the on a transitions or more CTV. you linear coincided There's and if for give ago Amazon And business advertising I in you Prime so sales, us from in the still programmatic? supply using of with a soft. fluctuation now sort there's direct is a And bit think the could or little please. that soft lot more market But a Michael, demand transfer your lot good into I your -- about happening be so think weird this more for there sorry, of wonder could TV a was more more the at been

for certainly, publishers of biddable -- wanted buys because to a very Yes. fashion that, really I have programmatic always good observation. to be able to in used the buyers they're mean, they advertisers. publishers reluctant kind driven And Tim, -- done have activate and to have And in just reasons, game been that's largely number their top value not derives historically. premium they've play for that by a it think what of

it they prefer surplus everything was So where behavior still leaning direct. And we've players. -- the but conduct opposed sell fast, shift they to you they're And a to much ago big biddable seeing programming still becoming that the programmatic -- surprisingly try you at seeing streaming-first definitely to of And I -- buyers X the way think it when business the certainly what in constrained, years you're plus if the had occur streamers, seeing OEMs, towards is into, inventory the you're more the when broadcast more premium an with as the CTV not environment then something you're folks, look had supply on want. of bidding not prevalent legacy buyers.

grow a standpoint. long a Magnite saying, there, from in of lot a of still room is think I which So there's way good to economic

more bit evolves? rate initially work, bidded your and this actually a online few what's that And for where should am was little the your versus as take now be years I it right rate to thinking with take mobile positive ago, dilutive CTV in a

Yes.

you're right. I think

that that Plus always from very we've to take a it's namely sold among rate point made the bringing think product sourcing programmatic, Magnite it has I type take saying that's been just vis-a-vis pressure evolves, under it carries extreme popular we're the and been publisher rate It's which As services publishers. low the marketplace. not demand of those that of

I right. So think exactly you're

in on think will of the only low as more biddable take that I rate historic end improve activated. becomes CTV, and our we're

question America. Dessouky from Omar is with next Bank Our of

at talk So bit any wondering about prior the the absolute take in or economics. could in there about of I Disney. if other the you changing had kind this so deal in of just if you rate exchanges do extension were happy with them, particular, versus possibly relative you to terms, terms And kind And little can't was the the in a of is Or the relationship extension? all? value hear

Yes. great to suffice Disney bands other detail it that. premier is clients. take the carry rate go into to that Omar, that Disney on obviously are -- can't with we sell products similar say, But to

So in other take Disney again team, rate. their programmatic it's is sourced it's our low through their that's in words, if predominantly demand a And range of or cases, whether sold. very own direct those sales

of some As expansion take the And you our it demand attractive concept at bringing of look a at happens, the comes in. rate, opportunities, expansion just those carry of publisher. opportunities more for with that Magnite it when like it would any other

of more probably attractive opportunities it. with our and partnership importantly, it does But it expansion when start they validates to are I economics more the It up. think the strength So great. light carry

So in net-net, years we the for Magnite revenue as Disney view grower a I think big come. to

this to been asked Do good again question given, free kind I ask before. hear. if I asked And the of already. decisions your decisions you been update SSPs? skip apologize Okay. could feel question Please and That's follow-up. And quick to guess, a if has any regarding if this on it's Google recent just regulatory views have and really I court

coming the no it No, argued be going hasn't Omar, remedies Obviously, ad the is, been of real update. piece to trial asked. it are soon. tech And

not the think to Magnite as listen, settles, dust it. slight successful competing the might on But We impossible making more DV+ there's delay marketplace in all compete worked going think it's Google the I growth where very when an in side. been out, the significant able in inefficiencies know, in on about them we in be there's we the settles. side, DV+ to on a stranglehold against can't dust in of the this to side. think that think the in. imagine CTV heading the direction tell be. get I we has is We've share positive industry for the been to a we're quite it's that that all some But be before years on attractive But all, structural when for several opportunity once

Our Dan Company. next with question is from Benchmark The Kurnos

Michael this. on has touched of kind

lean issue, think up very your would You on there. has between been the prevalence X, on of kind of you you test. much better I how think confusion raised the X. argued between tech XP Maybe XP every be out guys the ends much increasing win obviously, who think updated they is it on, being pretty given there's how the signal And split much ad helpful of thoughts A/B if noise have volume of that And sort I you strength prevalent stacks, guys you XP. the which versus

So love they're to there. And separately, of willing Uber, to test your then, thoughts hear e-com kind we from that continue out other hear to more guys, programmatic. Lyft, example, I'd for

cases So to what the do incremental it programmatic. the e-com, of like what move about feels love whole in ecosystem surface scratching to but use is of more as continues hear just broader thinking just United you you're can kind

Yes. Thanks, Dan.

in you third-party So buckets. X I at have data, on the first-party think to it data versus look

DV+. think be I in third-party very will that data prevalent

a even the And consumer a aren't they look nearly as of you do CTV world. as that whereas credit not fidelity card relationship. relationship publisher, it's content, at therefore, relationship the strong registered to or were of If you a if a is their And DV+ the that some the the logged-in the obviously, end with user, have signals obviously logged-in consumes traditional have relationship. oftentimes,

of And will advertiser. And it I be the so, coming that's world. from will you think CTV, predominantly a cases in think I in third-party, see the first-party

lot specifically create audience audience activity BofA. with of of where to in Paramount real-life a America clean a a matching and there's Bank you're So And an that's rooms It's trying just customers thing. segments not for example.

to deprecation There's see we'll I be of so, to a to center be in start And one look play CTV, And think cookies. at the in in very, replace of in signal going to role be world, signals and to solution. portfolio strong front going big going But killer very and DV+ the going first-party a I that's a data that third-party think part when but portfolio creating be you're world, that. that's world. it not you will very we'll

Commerce across travel kind that Media, through per to United win see a you're good a give see are ad real appetite business. have expertly I RFP that their very own screens, to contested look of the Media get se. and we can of think As of a the to Anyone into the video with it example relates as it Commerce owns -- you with all a you industry positioned Uber, server. you we And starting

the have video We in programmatic area. capabilities monetization

We extremely are and them. can for demand experienced stuff, we in this bring

in of some very And initial much media business forays retail focused positioned to I this so, networks, I that. the travel network capitalize that And we're think a will think sell-side be kind of on I commerce think very unlike business. well

is next question from Wolfe Our with Shweta Khajuria Research.

quarter. for is Congrats Kraska Shweta. Brian on This the on

update there's gaining on DV+ accelerated you're an in any if the share that and you're growth. see I could quarter you first mentioned you impact seeing to Trade wanted if and provide know OpenPath, in Desk there. Just

any on the commentary? Just update that quarter. on we appreciate the color then, in And verticals the

how color have Just see on those you trend wanted to any incremental if date. quarters to

here no -- I'll the Again, side. to verticals. it's on I'll participate take let OpenPath the share Brian. first, DV+ on And our grow talk economics in the continues of We stay. about spend update on to Sure, CTV of with Desk David and the real the we OpenPath. side. have Trade Yes,

SSP. And as you more have well So if color we're positioned David, as of we omnichannel verticals. don't know on the feel any I leading kind though a

Yes. I of things. couple a I mean, think

we're specific -- us, to disproportionately dependent verticals. for verticals you when about not on think first think I

such advertising have big footprint a spend, that in tends spend overall mimic spend We general, our that. to

so They're on huge And always margin. we huge, and weaker when it's more drivers. about not verticals, talk strength the

So some context there.

political for other were being significant. of I the think, X.X% news total our And quarter revenue was obviously, strongest and the verticals. retail

Hurricanes little earlier. more and well. this were we as drove talking news about probably a News, politics

that's So that's think the I we insight -- have. that

with Cummins is B. next from question Riley. Our Zach

this Is update would appreciated. update of around be any something announced sort could sort earlier incremental it I you on any there provide any the that know partnership? of year, way was but incremental Mediaocean

Zach. Yes. Thanks,

cycle for of that before, activation had said both we and we with partnership it's a filled sales an take going As caution us. standpoint it's a think standpoint opportunity some we great But to from time. that

much think so would be. we right pretty I we're thought we And where

the have tool. sampling folks We

of the We have terms folks of activate next actively you coursing spend a of kind frame test kind spend through any substantial time in until it. And it's more QX, year. QX and get doesn't mode of into probably

in curious business Understood. realizing think forward here? go some that sustainable is that investing That's how side. DV+ way opportunities what's right near-term to in we maybe Just the incrementally the rate thinking about about growth that on you're facing from as headwinds, And of helpful.

handle David, do want to you that?

I We're that I spend, share we There's can't our level strength curation the the footprint share. and we and about earlier, the increase the be additional certainly think from and feel could space DV+. in Michael in formats think taking sure. that an that to that, new on also mentioned Yes, rates think and driver we they're think technology taker. continue depending us, and we be at that no that could Yes, we reason now. the the a of investing overall scale macro DV+ good the growth And both for the for have

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

on This is Simran on Swanson. for the Matt results. Congrats

in guys CTV. almost everyone it For you partnered have one, first with my seems like

strategy you from grow would partnerships So the what say these is to here?

primary aren't programmatic their There too that observation. great folks partner. many Yes, aren't we

think is, partners. our So what with of I ride is the we the strategy maturation that programmatic

to advertising funnel traditionally or that's in performance vehicle, where OLV demand, significantly premium the the rates. bottom broadcast those almost web, right advertisers, is demand. take range advertisers on it middle test not the and funnel, they is have becomes a of But our in as sold we top pipe advertisers And more and take as open as lower improves by Plus We So publisher. for exclusively now services, of don't partners, our economics. but the bring as done in advertisers, kind CTV social linear use just programmatic our source it the that start the rate when that to biddable, particularly we start more

help that that's with and improve check And there, them is think the on to capabilities. partner which idea go substantially. I of with bring out economics there, the the now profile monetization journey So more you'll them occurred everyone and see the

Great. October? pressure momentum about looked see And towards more guidance? how then, in you QX thinking how that the spend? kind from speaking really And And end back have then That's for coming you X it X And me. continued? month Do Did into nonpolitical on of are that you of helpful. just has broadly, trends more see QX?

Yes.

was So shut amount on be And fact folks. speaking, in, the it country going the finite it comes that was dislocation, side, folks when most always given in out kind generally in programming, does times Also to ad the of There's political like of there's down this CTV. of that contentious, elections the quite mood political other something right? the on. of push

spend, of like you're a see to general there. we the return. QX Obviously, ad season, going been brand of shutdown which did we strength the always So has holiday into anticipate

that that, back. come anticipate we will So

of do it -- As the any question, as you have that? David, the to color to part relates second your

Yes.

the political mentioned, terms, the pre-election here. tense than I time in doubled over, more can In election of is we X.X% frame. total spend we I QX. talk the about And absolute since about QX guess, is As concentrated in revenue past our political in

those pan had if around and $XX so, in million of of in at we around political contribution I ex-TAC picture, came coming we right back for the expectations expectations. big And year,

is Evercore ISI. Robert with Our from next question Coolbrith

the also maybe ask in an advertiser on ask follow-up to a on I you perspective. wanted business curation, from quickly have managed of I quarter. to wanted if more update service any the And then,

uplift able and of is up take rate one terms preferred that? you advertisers a opportunity to Our and of if you the wondering or ahead solution, share could DSPs you're major use with get opportunity, be ID any SSP these data there's limitation you in And probably that? third-party share else be their a opportunity seeing of there's Are about to I'm lighting that policy of going audience understanding tell anything of the gain sort anything trying of isn't different on sort to solution if segments might us segments.

curation about Yes. Sure. you I'll take managed piece, service. and can talk David, then, the

but you your technology would they say, has use not but return, in for -- used of your player more some a were ton popularity. technology this of company ad say services, they to with video exchange networks, give give basically, that just again, gained major that curation be some a player going buyers, let's were continued technology were slots relative to would instead stages to So, network little models, had it. ton early But There of the I'm a model. or player really pay has for -- paying publisher you some a you technology, the they SPO a an as of in

of And unique and so there's of ad there's case then units. case a a technology

So some have that like just large the through place. we our that folks have conduct particularly exchange agencies we what soon unique spaces and on in is the saying relationships would are buyers page. Increasingly,

through marketplace and So Magnite Magnite you cetera. units, why don't these way. And special et way technology, common will special just one then go occurring. we'll then That's it that their quite buy therefore, to of the activate that

is it's to allowing it's advertiser the that DSP, of they're ones of vis-a-vis segments other audience us DSP finding DSP that and coming not restrictions se, are targeted banning them coming solution the from and The speaking, driving not demand. aware I'm any the the per together. a the from occur. Generally behind that but

success to thousands publishers. of stretch if would limit looking for quite So believe I feel to across finding that they're finite find they're of that they if trying it that able to hard-pressed the we audience and that weren't that's

was service X% total our managed the on year-over-year. down about And the and about service ex-TAC, XX% third front, managed of quarter, contribution in that's

perhaps expect forward those quarter, also to the even levels in look would down we to we As managed be greater. fourth or service

agencies of don't run to their going programmatically. ability what's you are buyers resources So buyers on, But helping who the in managed those and to mid-market is run as many sales and our primarily other services are who recall, programmatic. growing have in-house folks agencies

is, most they -- so, seeing programmatic. The And continued continue dollars to with of of us. shift we're into the news time, work those that's some good

team. seeing, a you slower expected, are But relationships managed as rate. are these programmatic, from that so becoming our is And activity very take which service at we important business

in it over term, take a programmatic their certainly short perspective. the a in the of players are us negative ex-TAC hurts contribution time. and time perspective going So rate to from component to we that these believe grow and over that continue offsets But

to smaller And believe to continue that so continue ex-TAC overall contribution our of we managed portion and become forward. we smaller service move will as a

with is Fargo from Brondolo Securities. Wells Alec question next Our

we request a pretty maybe reduction ad meaningful XX% per like the meaningful year-over-year? double-click That seems pretty -- on a cost in improvement. Could is it

gross the bit I spend just think in functionally in specifically any feedback maybe you time drivers as is changing the on little called elaborating a or how Could secondly, the X shaping filtering traffic more spend And be prepared ex-TAC to what helpful. quarter remarks. relative just what you that out would and then trended there? on means contribution

and you're and a about sending spend. essentially, different carries when the to that to when bring to request, -- and that run Yes. David on we have DV+ you gross But But ad and out talk it. costs DSPs, are ad efficiency cost the ad upon platform obviously exchange that cost then profile. an our auction expand that's Great. gains structure receive the multiple that on I'll request request an touch the

you out what auction been to a a have it's whether been is ones sought-after don't those escalate. are make that it So your costs type. they sure where device inventory the ad And whether that to an never that bought, it's do have for really make type, whether past, figure in purchased the it's the region, what most want requests,

hit most so, allocate this then we of shaping first of send a you And inventory rate. # because And ad door. win the will that DSP we'll DSP have #X front smartly loves them the higher the when type and we to the X trillions requests filtering occur inventory, think of because

XX much boxes. I has minutes know, efficient upon to or in all recalibrated of is this our that about day, So And us on you don't going based activity. add every with there gross spend. if have more to the David, really helped real so of every more on-prem become time minutes XX the trailing

perspective, a rates From you as roughly think an gross DV+ From at covered CTV CTV, at spend look growth, as has higher contribution our spend contribution and growth those similar as I has spend ad our at rates. contribution ad grow to about, it. continues but In talked perspective, rates -- separately. we've grows narrowed revenue general, ex-TAC our than a ex-TAC in run as lifted up ad our between the DV+ growth, closer rates ad we'll difference CTV No, Yes. spend our the to ex-TAC.

but And growth so a we're between bit starting seeing to still stabilization. gap There's little more a we're stabilization. those rates, more see

Max next from Our with Lake Markets. question Capital Street Michaelis is

your you go is taking comments we help me. weren't with I rate and understand, doing provide? something back doing? If to you Is the Disney? that. can Just new Disney any on guys for and take a me anywhere, Or higher own can that that X sourcing about talked you guess, you're demand previously you something renewal,

Yes.

good I Max, think, observation.

by just them. programmatic, relationship programmatic though it the pushed a of was X-fold. think the It much the more -- statement programmatically, a They defined it even it was advertiser, the in a set executed -- about I segment willingness biddable created just right? do very our in first they through was statement publisher, evolution the just into X-to-X to the growing was when they pipes. for it's audiences premium Number publishers' terms audience where knew publisher and one, pricing foray fashion, by was

bidding opportunities, kind segment, be biddable, that's into carries a the rung getting advertisers a by of in doing that scenario, of even even value, auctions, profile. when on now led providing So we're that publisher, but value higher And kind the perception it's could same the biddable XX invite-only you're it different of value. lower more you're if

biddable yield of is please way publishers. is of viable other a with just the to maturation acceptance unlike Disney relationship growing buyers. the the premium that So, not any have and increase There's a very the relationships we

in the are that properties And not A, our B, expanded in in programmatic that are in have either, or relationship might of lend or themselves Disney, demand the markets sourced same for being with that markets Some by particular, in that of footprint may more audio Magnite. you may to international say, naturally America. we they kind sales instance, emerging, North

Tim Nollen is question Macquarie. final with from Our

growth the ongoing With large including CTV... secular to drivers, shift

line? you are on Tim, the

had already We question Tim before.

and others, up. on next to ahead can the we can then go no one. If we Operator, there's wrap move

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

Thank you, Sherry.

hard wrapping team to around that their strong great for quarter work for would I world Magnite expectations. delivering up, the dedication thank very like another and exceeded Before the

Our team's recognized in is publicly by Wave current securing the success offering in report. category of the score the evaluated highest XXXX vendors sell-side the XX Forrester platform's QX

to the with upcoming So congratulations you to all many investor Magniters. We at speaking forward our events. look of

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