Last week (we’re late, we’re sorry!), Magnite reported Q3 earnings, and they were, in journalistic terms, quite good. The company had projected Q3 2024 revenue to land between $146 million and $150 million, but the final number came in at $162 million, up 8% year-over-year compared to Q3 2023.
This follows a similar pattern from Q2, which was projected at $142 million to $146 million but ultimately reached $163 million. Despite slightly lower revenue from Q2 to Q3 ($163 million in Q2 versus $162 million in Q3), Magnite continues to exceed its projections.
Q4, however, is expected to show significant growth. Magnite is forecasting Q4 revenue between $182 million and $186 million, which would represent about 20% year-over-year growth.
“Once again we beat the high end of our CTV top line guidance in the third quarter,” said Michael Barrett, President and CEO of Magnite.
In the last 5 days, Magnite’s stock price is up nearly 31%.
Why This Matters:
Magnite’s earnings call featured two major names prominently/frequently—Netflix, mentioned nine times, and Disney, mentioned 20 (!) times.
On the Netflix front, Magnite highlighted the continued rollout of Magnite-powered programmatic solutions, noting that they anticipate key revenue growth from the partnership through 2025. “We’re the sole programmatic partner on the sell-side,” said Barrett. “As they expand into foreign markets, we’re going with them. The implementation has been seamless to date. They’re in the very early stages of selling programmatic themselves. But we stand by the estimate that, when 2025 dust settles, Netflix could very well be one of our, if not the biggest, customer of Magnite.”
With Disney, Magnite recently extended its partnership for another two years, marking their sixth year working together. Under the renewed agreement, Magnite remains Disney’s preferred SSP, helping monetize all ad-supported inventory and serving as the primary connection to over 30 DSPs.
Addressing Disney’s in-house ad platform DRAX, Barrett said, “Disney has gotten very comfortable with what they want to do proprietary and what they want to be able to offer their customers but don’t necessarily want to build it themselves.” He emphasized that Magnite’s long-standing relationship and technology support, including proprietary software built for Disney, complements DRAX rather than competing with it.
Experts React:
Interesting analyst info/material dump from Rose Han:
Our Take:
It’s a solid week for Magnite, which also earned a favorable spot in Forrester’s latest Forrester Wave SSP evaluation. For more, AdTechGod gives an excellent overview here:
