• Magnite, a leading independent supply-side ad platform (SSP), reported first-quarter financial performance for 2022 (Q1 2022). The firm achieved revenue ex-TAC (excluding acquisition costs) of USD 107.1 million (79% YoY growth) for Q1 2022, in line with company guidance of USD 105 million–109 million (75%–82% YoY growth). The strong revenue growth was attributable to growth in demand for connected TV (CTV), which grew by 253% YoY and accounted for ~40% of total ex-TAC revenue, displacing mobile, which accounted for the highest revenue share in Q1 2021. 

<ul><li>The firm recorded an adjusted EBITDA of USD 28.8 million (208% YoY growth) during Q1 2022, which represents an adjusted EBITDA margin of 27% (compared with 16% in Q1 2021). However, the firm’s net loss widened to USD 44.6 million in Q1 2022 (compared with a loss of USD 12.9 million), primarily due to amortization expenses relating to acquired intangibles of its SpotX acquisition, which took place in April 2021. During the quarter, Magnite also acquired Nth Party (customer data analytics) and Carbon RMP (ad measurement).</ul>

• For the 2nd quarter of 2022 (Q2 2022E), the firm expects to achieve a revenue ex-TAC between USD 123 million and USD 127 million and for CTV revenue to be between USD 51 million and USD 53 million (21%–25% QoQ growth). The firm also maintained its long-term targets and expects revenue ex-TAC to be above USD 500 million (~20%+ YoY growth), with a long-term growth rate of 25%+ and long-term adjusted EBITDA margin to be between 35% and 40%. 

<ul><li> Analyst QuickTake: The firm continues to record strong performance in CTV for the second consecutive quarter and has continued to expand its lead compared to other marketing channels, accounting for an increasing share of its total revenue. The management attributes this performance to its long-time expertise in the segment where it has a track record of producing custom solutions suitable for streaming TV (Pluto, Tubi), device manufacturers (LG, Samsung), virtual direct to video platforms (Hulu, DirecTV), and broadcasters (Disney, Discovery) as well as due to the wide range of its product offerings, which includes its proprietary yield management solution SpringServe.</ul>