Magnite (MGNI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $194M, up 4% year-over-year, with record highs in Contribution ex-TAC ($607M), Adjusted EBITDA ($197M), and Free Cash Flow ($214.4M), despite DV+ underperformance post-election.

• CTV business exceeded top-line guidance with 23% year-over-year growth in Q4, driven by strong ad spend and partnerships with Netflix, Disney, Roku, LG, Vizio, and others.

• DV+ experienced a significant post-election demand drop but rebounded to mid-to-high single-digit growth at the start of 2025.

• Strategic investments in AI, tech stack efficiency, live sports, and agency marketplaces are expected to drive future growth.

• Major client wins included Netflix, Disney, United Airlines, LG, X, TCL, Samsung, and FIFA+.

Financial highlights

• Q4 Contribution ex-TAC was $180.2M, up 9% year-over-year; CTV contributed $77.9M (+23%), DV+ $102.3M (+1%).

• Net income for Q4 was $36.4M, up from $31M in Q4 2023.

• Adjusted EBITDA for Q4 was $77M (42% margin), up from $70M last year; full-year Adjusted EBITDA reached $196.9M (+15% year-over-year).

• GAAP EPS for Q4 was $0.24 (up 50%); non-GAAP EPS was $0.34 (up 17%).

• Cash balance at year-end was $483.2M, a $96M increase from Q3.

Outlook and guidance

• Q1 2025 Contribution ex-TAC expected between $140M–$144M; CTV $61M–$63M; DV+ $79M–$81M.

• Adjusted EBITDA margin for Q1 projected above 20%; Q1 operating expenses projected at $111–$113M.

• Full-year 2025: Contribution ex-TAC to grow above 10% (mid-teens excluding political), Adjusted EBITDA to grow mid-teens, margin to expand at least 100 bps, and Free Cash Flow to grow high teens to 20%.

• CapEx for 2025 expected at ~$60M, focused on tech stack optimization.