Ad firm Magnite Q2 revenue beats expectations
Overview
Sell-side advertising firm Magnite Q2 revenue rises 6% yr/yr, beating analyst expectations, per LSEG data
Adjusted EPS for Q2 beats consensus, reaching $0.20, per LSEG data
Adjusted EBITDA up 22% yr/yr, exceeding guidance, reflecting strong margin improvement
Outlook
Magnite expects Q3 2025 Contribution ex-TAC between $161 mln and $165 mln
Company forecasts Q3 2025 CTV Contribution ex-TAC of $71 mln to $73 mln
Magnite anticipates mid-teens growth in full-year 2025 Adjusted EBITDA
Company reinstates full-year 2025 Contribution ex-TAC growth above 10%
Result Drivers
CTV GROWTH - Driven by new partnerships, SMB advertisers, and success in live sports, per CEO Michael G. Barrett
DV+ PERFORMANCE - Exceeded guidance, marking twenty consecutive quarters of growth
CONTRIBUTION EX-TAC - Increased 10% yr/yr, driven by strong performance in CTV and DV+ segments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $173.30 mln | $157.30 mln (11 Analysts) |
Q2 Adjusted EPS | Beat | $0.2 | $0.17 (8 Analysts) |
Q2 Net Income |
| $11.10 mln |
|
Q2 Adjusted EBITDA | Beat | $54.40 mln | $46.60 mln (13 Analysts) |
Q2 Adjusted EBITDA Margin |
| 34.0% |
|
Q2 Gross Profit |
| $108.40 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advertising & marketing peer group is "buy"
Wall Street's median 12-month price target for Magnite Inc is $23.58, about 5.1% above its August 5 closing price of $22.37
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nGNX6czZTj
