Magnite (MGNI) Stock Surges: Strong Q3 Earnings and Netflix Deal Drive Gains

Magnite, Inc. (MGNI), the world's largest independent sell-side advertising company, saw its stock price surge last week following the release of its strong Q3 2024 earnings report and the announcement of a significant partnership with Netflix. The company's shares rose by nearly 11% week to date, despite a brief dip after an executive from a key business partner made a comment that was perceived negatively by investors.

Magnite's Q3 2024 earnings report, released on November 7, 2024, showed impressive results. The company's revenue grew by 8% year-over-year to $162.0 million, while Contribution ex-TAC (a key metric for the company) grew by 12% to $149.4 million. Notably, Contribution ex-TAC attributable to CTV (Connected TV) grew by 23% year-over-year to $64.4 million, beating the company's guidance of $62.0 to $64.0 million. Net income for the quarter was $5.2 million, compared to a net loss of $17.5 million in the same period last year. Adjusted EBITDA for the quarter was $50.6 million, representing a 34% Adjusted EBITDA margin, compared to Adjusted EBITDA of $40.3 million and a 30% margin in Q3 2023.