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NEW YORK - Magnite (NASDAQ:MGNI), the independent sell-side advertising platform, reported mixed fourth quarter results, with revenue beating expectations but earnings falling short. The company’s shares slipped 1.8% following the announcement.
Magnite posted Q4 revenue of $194 million, surpassing the analyst consensus of $184.29 million and representing a 4% increase YoY. However, adjusted earnings per share came in at $0.34, missing the estimated $0.38.
The company’s Contribution ex-TAC, a key metric that excludes traffic acquisition costs, rose 9% YoY to $180.2 million. Notably, Contribution ex-TAC from connected TV (CTV) grew 23% YoY to $77.9 million, exceeding the company’s guidance of $75 to $77 million.
Magnite’s CEO Michael G. Barrett commented, "CTV performed well above expectations based on strength from our partnerships with many of the largest industry players."
For Q1 2025, Magnite expects total Contribution ex-TAC to be between $140 and $144 million, with CTV Contribution ex-TAC projected at $61 to $63 million.
The company anticipates total Contribution ex-TAC growth above 10% for the full-year 2025, with mid-teens growth excluding political advertising. Magnite also forecasts Adjusted EBITDA margin expansion of at least 100 basis points and high-teens to 20% growth in free cash flow for 2025.
Despite the earnings miss, Magnite’s Q4 Adjusted EBITDA increased 9% YoY to $76.5 million, representing a 42% margin. The company ended 2024 with $483.2 million in cash and cash equivalents.
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