Education
About Us
Working with TipRanks
Follow Us
Magnite (MGNI)
NASDAQ:MGNI
Top Page
Magnite
(NASDAQ:MGNI)
Rating:74Outperform
Price Target:
$18.50
▲(14.91%Upside)
Positive Factors
Financial Performance
Revenue ex-TAC of $146 million was ~$4 million ahead of the street, indicating a strong business model with significant growth potential.
Growth Opportunities
MGNI believes that more CTV ad inventory will shift to MGNI-sold, which would accelerate revenue growth.
Partnerships
Magnite announced an integration into Amazon Publisher Services, providing expanded access to all Amazon streaming inventory across Fire devices.
Negative Factors
Financial Guidance
MGNI's estimates are lowered due to the suspension of its financial guidance.
Market Position
MGNI could benefit significantly if GOOGL's Ad Server or SSP is spun off, as even a small increase in market share could greatly boost their revenues.
Revenue Composition
Managed service CTV revenues are down to 3-5% of total CTV revenues and on their way to 0%, with very high take rates.
Magnite (MGNI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.17B
Dividend YieldN/A
Average Volume (3M)2.56M
Price to Earnings (P/E)77.5
Beta (1Y)1.85
Revenue Growth5.59%
EPS GrowthN/A
CountryUS
Employees905
SectorCommunication Services
Sector Strength93
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.12
Shares Outstanding141,110,570
10 Day Avg. Volume1,906,792
30 Day Avg. Volume2,556,337
Financial Highlights & Ratios
PEG Ratio2.81
Price to Book (P/B)2.77
Price to Sales (P/S)0.00
P/FCF Ratio11.33
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue0.86
Enterprise Value/Gross Profit5.59
Enterprise Value/Ebitda5.48
Forecast
1Y Price Target
$19.41Price Target Upside20.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
Magnite Business Overview & Revenue Model
Company DescriptionMagnite, Inc. (MGNI) is a leading independent sell-side advertising platform that specializes in programmatic advertising. The company operates in the digital advertising sector, providing technology solutions to publishers and broadcasters to manage and optimize their ad inventories. Magnite offers services across various channels, including desktop, mobile, audio, and connected TV (CTV), enabling media owners to maximize their advertising revenue through real-time auctions and sales automation.
How the Company Makes MoneyMagnite makes money primarily through fees charged on transactions conducted via its platform. The company earns revenue by taking a percentage of the ad spend that flows through its platform, which includes fees for facilitating the buying and selling of digital advertising inventory. Key revenue streams include supply-side platform (SSP) services for publishers, where Magnite provides the technology and infrastructure to manage and sell ad space programmatically. Additionally, Magnite benefits from strategic partnerships with media companies and broadcasters, which enhance its inventory offerings and attract more advertisers. The company's growth is supported by the increasing shift towards programmatic advertising and the rising demand for CTV and digital video advertising solutions.
Magnite Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, indicating which areas are most profitable and where there might be opportunities or challenges in the market.
Analyzes revenue from different business segments, indicating which areas are most profitable and where there might be opportunities or challenges in the market.
Data provided by:
Main Street Data
Main Street DataMagnite Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 29.53%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The call highlighted strong financial performance and growth in CTV and DV+ segments, as well as significant opportunities from the Google antitrust ruling. However, there are concerns about macroeconomic uncertainty and potential impacts from tariffs on future growth.Q1-2025 Updates
Positive Updates
CTV Growth and Partnerships
CTV contribution ex-TAC grew 15% year-over-year, driven by partnerships with major players like Netflix, Roku, and Warner Bros. Discovery.
Adjusted EBITDA Performance
Adjusted EBITDA came in at $37 million, growing 47% year-over-year, with a margin of 25% compared to 19% in Q1 last year.
DV+ Business Rebound
DV+ contribution ex-TAC increased by 9%, showing a strong recovery after previous slowdowns.
Google Antitrust Ruling Opportunity
Magnite is well-positioned to gain market share from Google due to the recent antitrust ruling, which could significantly benefit its DV+ business.
Technology and AI Investments
Magnite continues to invest in AI and technology to drive operational efficiencies and product enhancements.
Negative Updates
Macroeconomic Uncertainty
There is a potential dampening of growth rates due to tariff-related economic uncertainty, particularly affecting higher-risk verticals like auto, retail, and travel.
Potential Impact of Tariffs
Magnite has widened its guidance range for Q2 due to concerns over tariffs, which could affect ad spend in the coming months.
Company Guidance
During the Magnite Q1 2025 Earnings Conference Call, the company provided robust financial guidance and detailed performance metrics. Magnite exceeded its guidance for Q1, with Connected TV (CTV) growing by 15% and Display Video Plus (DV+) by 9%, showcasing a significant rebound in ad spend. Adjusted EBITDA was notably higher than expected, reaching $37 million, representing a 47% increase and a margin of 25%, compared to 19% in Q1 of the previous year. The company's CTV business excelled, driven by strong partnerships with major industry players like Roku, Netflix, and Disney. Additionally, Magnite's new generation of SpringServe, which integrates ad server capabilities with the Magnite Streaming SSP, is set to launch in July, enhancing efficiency and transparency for buyers and media owners. The company is also optimistic about its role in the potential market shift following the antitrust ruling against Google, which could level the playing field and increase Magnite's market share in the digital video space.Magnite Financial Statement Overview
Summary
Magnite presents a compelling financial profile with strong revenue growth, improved profitability, and effective cash flow management. The company maintains a stable balance sheet with low leverage and sufficient equity. While profitability metrics show improvement, there is potential for further enhancement in return on equity. Overall, Magnite is positioned well within the traditional media industry with a trajectory towards sustained financial health.Income Statement
Magnite's income statement shows a strong revenue growth rate of 7.82% from 2023 to 2024, with a significant improvement in profitability. The gross profit margin stands at 61.25%, and the net profit margin has improved to 3.41% in 2024 from a net loss in previous years. The company has also managed to achieve positive EBIT and EBITDA margins of 7.64% each, indicating efficient operations and cost management.75
Positive
Balance Sheet
The balance sheet reflects a solid equity base, with a debt-to-equity ratio of 0.08, suggesting low financial leverage. The company has a strong equity ratio of 26.91%, indicating a stable financial structure. Return on equity is modest at 2.97%, highlighting room for profitability improvement. Overall, the balance sheet shows financial stability with manageable debt levels.68
Positive
Cash Flow
Magnite's cash flow statement indicates strong free cash flow growth and efficient cash management. Operating cash flow to net income ratio is robust at 10.32, and the free cash flow to net income ratio is impressive at 8.89, demonstrating healthy cash generation relative to net income. The free cash flow growth rate from 2023 to 2024 is 14.36%, highlighting the company's ability to generate liquidity.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 668.17M | 619.71M | 577.07M | 468.41M | 221.63M | Gross Profit |
| 409.33M | 209.80M | 269.90M | 266.75M | 143.88M | EBIT |
| 51.09M | -155.01M | -100.00M | -6.20M | -16.91M | EBITDA |
| 51.09M | 115.64M | 109.72M | 71.40M | 12.57M | Net Income Common Stockholders |
| 22.79M | -159.18M | -130.32M | 65.00K | -53.43M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 483.22M | 326.22M | 326.25M | 230.40M | 117.68M | Total Assets |
| 2.85B | 2.69B | 2.71B | 2.71B | 938.96M | Total Debt |
| 608.81M | 606.65M | 813.86M | 809.25M | 42.09M | Net Debt |
| 125.59M | 280.43M | 487.61M | 578.85M | -75.58M | Total Liabilities |
| 2.09B | 1.99B | 1.92B | 1.83B | 557.35M | Stockholders Equity |
| 768.22M | 701.68M | 791.30M | 880.76M | 381.61M |
| Cash Flow | Free Cash Flow | |||
| 202.39M | 176.98M | 148.15M | 97.46M | -34.02M | Operating Cash Flow |
| 235.20M | 214.37M | 192.55M | 126.59M | -12.06M | Investing Cash Flow |
| -47.50M | -37.38M | -65.15M | -691.00M | 32.64M | Financing Cash Flow |
| -28.90M | -177.84M | -30.17M | 678.05M | 7.35M |
Magnite Technical Analysis
Positive
16.10
Price Trends
12.65
Positive
14.64
Positive
14.39
Positive
Market Momentum
1.00
Negative
65.67
Neutral
34.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNI, the sentiment is Positive. The current price of 16.1 is above the 20-day moving average (MA) of 14.48, above the 50-day MA of 12.65, and above the 200-day MA of 14.39, indicating a bullish trend. The MACD of 1.00 indicates Negative momentum. The RSI at 65.67 is Neutral, neither overbought nor oversold. The STOCH value of 34.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGNI.
Magnite Risk Analysis
Magnite disclosed 57 risk factors in its most recent earnings report. Magnite reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Programmatic advertising presents unique challenges for CTV sellers, and CTV sellers may not adopt or may be slow to adopt programmatic solutions that transact in biddable auction environments. Q4, 2024
Magnite Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.17B | 77.46 | 4.30% | ― | 5.59% | ― | |
74 Outperform | $1.31B | 28.03 | 4.80% | ― | 13.84% | 1494.51% | |
69 Neutral | $1.37B | 10.42 | 13.46% | ― | -1.18% | 100.33% | |
68 Neutral | $1.35B | 20.07 | 4.12% | ― | 3.24% | 36.80% | |
63 Neutral | $1.33B | 972.55 | 0.19% | ― | 9.86% | ― | |
62 Neutral | $867.38M | ― | -0.29% | ― | 88.81% | 99.16% | |
61 Neutral | $14.08B | 5.95 | -4.18% | 3.68% | 2.79% | -36.29% |
* Communication Services Sector Average
Performance Comparison
MGNI
Magnite
16.10
3.89
31.86%
ZD
Ziff Davis
32.10
-22.56
-41.27%
STGW
Stagwell
4.96
-1.96
-28.32%
QNST
Quinstreet
15.23
-2.84
-15.72%
CRTO
Criteo SA
25.56
-13.80
-35.06%
IAS
Integral Ad Science
7.96
-1.76
-18.11%
Magnite Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Magnite Reduces Loan Interest Rate by 75 Basis Points
Positive
Mar 18, 2025
On March 18, 2025, Magnite, Inc. announced the successful repricing of its $363 million senior secured term loan facility, reducing the interest rate by 75 basis points to Term SOFR + 3.00%. This adjustment, which follows a previous refinancing in February 2024, results in annual interest savings of over $2.7 million, with no changes to the loan’s maturity or other terms, enhancing Magnite’s financial efficiency.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.