Magnite (NASDAQ:MGNI) Releases Earnings Results, Beats Estimates By $0.02 EPS

Magnite (NASDAQ:MGNI) issued its quarterly earnings results on Wednesday. The company reported $0.13 EPS for the quarter, topping analysts’ consensus estimates of $0.11 by $0.02, FiscalAI reports. The company had revenue of $164.37 million for the quarter, compared to analyst estimates of $159.24 million. Magnite had a net margin of 21.96% and a return on equity of 8.61%. Magnite’s revenue was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.12 earnings per share.

Here are the key takeaways from Magnite’s conference call:

• Magnite beat expectations in Q1 with $164M revenue (+6%), contribution ex?TAC up 10% to $161M, Adjusted EBITDA of $43M (+16%) and GAAP net income of $4M.
• CTV accelerated materially — contribution ex?TAC grew 30% y/y and now represents 51% of the mix, driven by SpringServe integration and wins with major publishers, which management says is sustainable.
• Magnite DV+ declined 5% but outperformed expectations and showed signs of stabilization, with pockets of growth in mobile in?app (+8%), audio and building commerce media partnerships (21 partners, 13 deployed).
• Margins are improving earlier than expected — Q1 Adj. EBITDA margin rose and management raised full?year margin guidance to ?35.5%, citing durable cloud cost savings and early AI productivity gains supporting mid?30% free cash flow growth.
• CFO David Day will retire Sept. 30; the company repaid convertible debt, ended Q1 with $185M cash after $29M of repurchases and plans to return ~50% of free cash flow to shareholders with ~$186M remaining repurchase authorization.

Magnite Trading Down 0.0%

Shares of Magnite stock traded down $0.01 on Friday, hitting $13.99. 2,652,304 shares of the company’s stock traded hands, compared to its average volume of 2,315,661. Magnite has a one year low of $10.82 and a one year high of $26.65. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.02 and a quick ratio of 1.02. The company has a fifty day moving average of $12.75 and a two-hundred day moving average of $14.28. The company has a market capitalization of $2.00 billion, a price-to-earnings ratio of 13.44, a price-to-earnings-growth ratio of 0.83 and a beta of 2.33.

Insiders Place Their Bets

In other Magnite news, insider Adam Lee Soroca sold 21,529 shares of Magnite stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $12.00, for a total value of $258,348.00. Following the completion of the sale, the insider directly owned 388,425 shares in the company, valued at approximately $4,661,100. The trade was a 5.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 3.80% of the company’s stock.

Institutional Trading of Magnite

Several large investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Magnite by 4.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 74,847 shares of the company’s stock valued at $854,000 after acquiring an additional 3,267 shares during the period. Millennium Management LLC grew its holdings in Magnite by 113.7% in the first quarter. Millennium Management LLC now owns 434,479 shares of the company’s stock worth $4,957,000 after purchasing an additional 231,213 shares during the period. Jones Financial Companies Lllp increased its stake in Magnite by 24.3% in the first quarter. Jones Financial Companies Lllp now owns 7,276 shares of the company’s stock valued at $83,000 after purchasing an additional 1,423 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Magnite by 9.8% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 404,717 shares of the company’s stock valued at $4,618,000 after purchasing an additional 36,097 shares during the period. Finally, Intech Investment Management LLC raised its holdings in shares of Magnite by 103.6% during the first quarter. Intech Investment Management LLC now owns 109,992 shares of the company’s stock valued at $1,255,000 after purchasing an additional 55,971 shares during the period. Institutional investors and hedge funds own 73.40% of the company’s stock.

Analyst Ratings Changes

MGNI has been the topic of several recent research reports. Wells Fargo & Company lifted their target price on Magnite from $13.00 to $15.00 and gave the stock an “equal weight” rating in a report on Friday. Royal Bank Of Canada lowered their price objective on Magnite from $23.00 to $20.00 and set an “outperform” rating for the company in a research report on Thursday. Rosenblatt Securities reaffirmed a “buy” rating and issued a $39.00 price objective on shares of Magnite in a research note on Thursday, February 26th. Benchmark reduced their target price on Magnite from $31.00 to $30.00 and set a “buy” rating on the stock in a report on Thursday, February 26th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Magnite in a research report on Thursday, January 22nd. Eight research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $24.33.

About Magnite

Magnite, Inc (NASDAQ: MGNI) operates as an independent sell-side advertising platform that enables publishers and digital media owners to monetize their inventory through programmatic advertising. Formed in 2020 through the merger of Rubicon Project and Telaria, Magnite combines technologies for desktop, mobile, connected television (CTV) and digital out-of-home (DOOH) ad exchanges. The company provides an end-to-end solution designed to help media owners optimize yield across open marketplaces, private marketplaces and programmatic guaranteed deals.

At the core of Magnite’s offering is its supply-side platform (SSP), which connects publishers’ ad impressions to demand-side platforms (DSPs) through real-time bidding (RTB).