Magnite ( NASDAQ: MGNI ) has slipped 8.5% postmarket after some solid revenue growth but a decline and miss in fourth-quarter earnings per share amid higher expenses.
Revenues rose 9% overall to $175.4M, and revenue ex-traffic acquisition costs jumped 10% to $156.6M. Analyst expectations had been for revenue of $153.5M.
Expenses rose 29%, though, and the company swung to an operating loss of $28.5M from a year-ago gain of $3.6M. Net profits swung to a loss as well, of $36.4M vs. year-ago net income of $0.5M.
Adjusted earnings before interest, taxes, depreciation and amortization fell to $64.2M from $67.5M, with a 41% margin.
Connected TV was a bright spot: Revenue ex-TAC attributed to CTV for the fourth quarter was $64.6M, up 20%.
“We delivered a strong fourth quarter with total and CTV revenue at the high end of our guidance ranges,” President/CEO Michael Barrett said. “For the full year, we also exceeded revenue targets and continue to build on our leading independent market position by growing both the CTV and the DV+ business."
"We are excited to introduce Magnite Streaming, which is our new industry leading CTV & OTT platform, and continue to grow and expand our partnerships, especially on the CTV side of the business, to accelerate the programmatic growth in the industry that remains ahead," he added.
The company's guiding for Q1 revenue ex-TAC of $109M-$113M, and for full-year revenue ex-TAC to grow vs. 2022, while EBITDA for the full year is expected to be flat (but with meaningful margin improvement in the back half of the year thanks to CTV consolidation).
It's also forecasting 2023 capital expenditures of $40M or less, and total free cash flow over $100M.
Conference call to come at 4:30 p.m. ET .
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Magnite dips 9% as higher expenses drive miss on fourth-quarter profitability