Q2 2025 Magnite Inc Earnings Call
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Thank you operator, and good afternoon, everyone. Welcome to <unk> second quarter 2025 earnings Conference call. As a reminder, this conference is being recorded joining me on the call today are Michael Barrett CEO and David Day, our CFO I would like to point out that we have posted financial highlight slides on our Investor relations website to accompany today's presentation.
Before we get started I'll remind you that our prepared remarks and answers to questions will include information that might be considered to be forward looking statements, including but not limited to statements concerning our anticipated financial performance and strategic objectives, including the potential impacts of macroeconomic factors on our business. These statements are not guarantees of future performance. They reflect our current views with respect.
Future events and are based on assumptions and estimates and subject to known and unknown risks uncertainties and other factors that may cause our actual results performance or achievements to be materially different from expectations or results projected or implied by forward looking statements a discussion of these and other risks uncertainties and assumptions is set forth in the company's periodic reports filed with.
Birthday and welcome to the Magnite Q2 2025 earnings conference call.
All participants will be in listen-only mode.
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After today's presentation, there will be an opportunity to ask questions.
The SEC, including our first and second quarter 2025 quarterly reports on Form 10-Q, and our 2024 annual report on Form 10-K, we undertake no obligation to update forward looking statements or relevant risks. Our commentary today will include non-GAAP financial measures, including contribution ex Tac or less traffic acquisition costs adjusted EBITDA.
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And non-GAAP income per share reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our earnings press release and in the financial highlights deck that is posted on our Investor Relations website.
At times in response to your questions. We may offer additional metrics to provide greater insights into the dynamics of our business. Please be advised that this additional detail maybe onetime in nature, and we may or may not provide an update on the future of these metrics I encourage you to visit our Investor Relations website to access our press release financial highlights that periodic SEC reports and the webcast replay of today's call.
Thank you, operator and good afternoon everyone. Welcome to magnite second quarter 2025 earnings conference call. As a reminder, this conference is being recorded joining me on the call. Today are Michael Barrett CEO and David day our CFO. I would like to point out that we have posted financial highlights slides on our investor relations website. To accompany today's presentation,
To learn more about bag night I will now turn the call over to Michael. Please go ahead Michael.
Before we get started or remind you, that our prepared remarks and answers to questions will include information. That might be considered to be forward-looking statements including but not limited to statements concerning our anticipated financial performance and strategic objectives, including the potential impacts of macroeconomic factors on our business.
Nic Q2 came in strong and we exceeded total top line guidance with CTV contribution ex Tac growing 14% or 15%, excluding political and TV plus growing 8%. Adjusted EBITDA also came in significantly above expectations at $54 million growing 22%.
With a margin of 34% versus 30% in Q2 last year.
Our CTV business continued to produce strong results driven by new and expanding partnerships.
Positive SMB trends growth in agency marketplaces, and programmatic growth in live sports, Let's go one by one starting with the industry's largest streamers, where we continued to deepen our relationships. Our most significant growth came from Roku, Netflix LG Warner Brothers discovery and Paramount This corner.
These statements are not guarantees the future performance. They reflect our current views with respect to future events, and are based on assumptions and estimates and subject to known and unknown risks, uncertainties and other factors that may cause our actual results performance or achievements to be materially different from expectations or results, projected or implied by forward-looking statements, it discussion that these and other risks and uncertainties and assumptions is set forth in the company's periodic reports filed with the SEC, including our first. And second quarter, 2025 quarterly reports on form, 10 q and our 2024, annual report, informed 10K. We undertake no obligation to update forward-looking statements or relevant risks or commentary. Today will include non-gaap Financial measures including contribution x-tac or less traffic, acquisition costs, adjusted, Evita and non-gaap income for
Share reconciliations between gaap and non-gaap metrics for a reported results can be found in our earnings, press release and in the financial highlights deck that is posted on our investor relations website.
Warner Brothers Discovery announced their neo platform during the Upfronts in Q2. This is a new programmatic AD platform that allows CTV buyers direct access to <unk> entire premium video inventory through one simplified and intuitive user interface the <unk>.
Dramatic component is powered by magnate.
One of the most compelling future sources of CTV growth will be mid sized direct to consumer brands and we see that trend gaining momentum now this segment of the market has been unlocked by a number of critical factors the technology to run programmatically is matured and been implemented by the largest pub.
At times in response to your questions, we may offer additional metrics to provide greater insights into the Dynamics of our business. Please be advised. That this additional detail may be 1, time in nature and we may or may not provide an update on the future of these metrics. I encourage you to visit our investor relations website to access. Our press release financial highlights, that periodic SEC reports and the webcast replay of today's call to learn more about magnite. I will now turn the call over to Michael. Please go ahead Michael.
Thank you, Nick.
<unk> inventory has scaled and cpm's have normalized to drive higher return on ad spend.
Additionally.
G2 came in strong and we exceeded total tap line guidance with CTV contribution, x-tac growing 14% or 15% excluding political and DV Plus growing 8%. Adjusted EBITDA also came in significantly above expectations at $54 million, growing 22% with a margin of 34% versus 30% in Q2 last year.
<unk> dramatically reduced AD creative production costs, and targeting EES, all making CTV become desired and high performing channel delivering strong results for digital first advertisers.
Our CTV business continued to produce strong results, driven by new and expanding Partnerships.
Positive SMB trends.
Growth and agency marketplaces and programmatic growth and live sports.
We are very pleased to see an SMB focused DSP partner Mountain go public this quarter.
Which further shows that the entry of SMB.
Smbs into CTV is very real we see the SMB segment exploding over the next three to five years through newer specialized dsp's like TV scientific vibes streamer and more and they all need access to premium CTV supply through an integrated AD server and SSP, that's exactly where magnate.
Let's go one by one, starting with the industry's largest streamers, where we continue to deepen our relationships. Our most significant growth came from Roku, Netflix, LG, Warner Bros. Discovery, and Paramount in this corner.
Is positioned to lead with its spring serve product.
We continue to deepen our partnerships with the largest agency holdco as we recently announced another buyer marketplace with dentsu in EMEA.
Warner Bros. Discovery announced their Neo platform during the upfront and Q2. This is a new programmatic ad platform that allows CTV buyers direct access to WBD's entire premium video inventory through one simplified and intuitive user interface. The programmatic component is powered by Magnite.
This continues to show our unique strength with agencies, who can leverage our end to end technology to create curated packages of CTV inventory to drive greater returns for their clients.
Next I'll talk about live sports.
You've heard me say that we are in the early days and that remains true. However, each year, we cycled sports season programmatic grows as an effective go to market tool to sell more inventory.
1 of the most compelling future sources of CTV growth will be mid-size direct to Consumer Brands and we see that Trend gaining momentum. Now the segment of the market has been unlocked by a number of critical factors the technology to run programmatically has matured and been implemented by the largest Publishers, inventory is scaled and cpms have normalized to drive higher return on ad spend.
I would position this as a growth opportunity that has great promise with most of the leading players choosing magnate due to our unparalleled tech and continued commitment to invest in this area.
Additionally AI is dramatically reduced ad, creative production costs and targeting. Ease all making CTV become a desired and high-performing Channel delivering strong results for digital first. Advertisers
Our newly announced deal with <unk> Sports network, who produces over 3000 live sporting events year round in local markets is yet. Another example of a partner who chose magnate and is already operating at scale.
We are very pleased to see an SMB focused, DSP partner Mountain, go public this quarter.
This further shows that the entry of SMBs into CTV is very real.
On the CTV technology friend, we move to general availability for our combined CTV platform with streaming and AD serving now branded as spring serve as a reminder, this is a unique combination of our AD server and streaming platform that truly gives us a competitive advantage.
We see the SMB segment exploding over the next 3 to 5 years through newer. Specialized dsps like TV scientific Vibes streamer and more. And they'll all need access to premium. CTV Supply through an integrated ad server and ssk. That's exactly where a magnet is positioned to lead with its spring serve product.
While improving our internal operating efficiency.
Now to <unk>, plus TV plus contribution ex Tac was up 8% this quarter driven mostly by new product functionality and also by early contributions from recently announced partners.
Leverage, our end-to-end technology to create curated packages of, CTV inventory to drive greater returns for their clients.
<unk> publisher launches that are expected to start a ramp this year includes Spotify T mobile in redfin.
Next, I'll talk about live sports.
We're also seeing share gains in TV plus from some of the largest DSP.
You've heard me say that we are in the early days and that remains true. However, each year, we cycle a sport season, programmatic grows as an effective go-to Market tool to sell more inventory.
We have also seen significant success in the Commerce media space, our expanding partner list now includes Western Union, Paypal and connected media by United Airlines, as well as recently announced Remax.
I would position this as a growth opportunity. There is great promise, with most of the leading players choosing Magnite due to our unparalleled tech and continued commitment to invest in this area.
We will be monetizing remax has onsite digital inventory and activating their homebuyer by our curation tools look for commerce media to be a continued growth area for magnate.
Our newly announced deal with FanDuel Sports Network, which produces over 3,000 live sporting events year-round in local markets, is yet another example of a partner who chose Magnite and is already operating at scale.
And then on the DSP side Magnum continues to benefit from supply path optimization.
<unk> is a rapidly consolidating their spend to a handful of platforms platforms that can provide access to all types of programmatic media in a safe and transparent environment.
Magnate is uniquely positioned to capitalize on this bank consolidation.
On the CTV. Technology front. We moved to General availability. For our combined. CTV platform with streaming and AD serving now. Branded as spring serve. As a reminder, this is a unique combination of our ad server and streaming platform, that truly gives us a competitive advantage while improving our internal operating efficiency.
A great example of this is our growing partnership with Amazon, both as a DSP and a publisher we've mentioned before that Magna is one of the things is one of only three platforms approved for Amazon DSP spend which has resulted in significant growth.
Now to DV plus DV plus contribution. X Tac was up 8%. This quarter driven mostly by new product functionality, and also by early contributions from Recently announced partners.
As a publisher we're thrilled they chose us to help monetize their owned inventory on their fire platform. We believe this is a strong indication of how important magnet is to generating demand in the CTV ecosystem.
Additional publisher launches that are expected to start or ramp this year include Spotify, T-Mobile and Redfin.
We're also seeing share gains in TV plus from some of the largest dsps.
We're pleased to report continued growth in our curated product our curated marketplace enables global holding companies data providers and specialized curators, where they focus on contextual targeting optimization or advanced creative execution.
We have also seen significant success in the Commerce media space. Our expanded partner list now includes Western Union, PayPal and connected media by United Airlines as well as recently announced Remax.
Top right and scale their business is seamlessly on our platform across all inventory types and screens.
Since the start of Q2, we on boarded almost 50 curators with the vast majority transacting across multiple formats, including CTV display and online video.
We will be monetizing. Remax is on-site digital inventory and activating their home buyer by our curation tools. Look for Commerce media to be a continued growth area for magnetite.
On the on the DSP side, magnet continues to benefit from Supply path optimization.
This momentum underscores the market demand for sophisticated curation tools that live on the supply side.
DSPs are rapidly consolidating their spend to a handful of platforms that can provide access to all types of programmatic media in a safe and transparent environment.
Shifting to an update on AI.
We continue to develop and embed AI capabilities as a core product focus.
Magnite is uniquely positioned to capitalize on this bank consolidation.
I will provide an update on some of the capabilities, we highlighted on our previous call as well as some new offerings.
Yeah.
First we expanded our neural net and machine learning systems to shape. The outbound connections to our CTV buyers are industry, leading traffic shaping sends the most relevant available supply to bandwidth constrained DSP.
A great example of this is our growing partnership with Amazon both as a DSP and a publisher we've mentioned before that magnet is 1 of the is 1 of only 3 platforms approved for Amazon DSP spend which has resulted in significant growth.
Allowing them to more efficiently discover inventory and increase their spend on our platform.
As the publisher we are thrilled. They chose us to help monetize their own inventory on their fire platform. We believe this is a strong indication of how important magnet is to generating demand in the CTV ecosystem.
Second our AI powered audience discovery feature within our curated marketplace tool is expanding to incorporate third party data. In addition to our proprietary segments, making it even easier for users to identify high value audiences aligned with their campaign objectives.
We're pleased to report continued growth in our curator product, our curator Marketplace enables Global holding companies data providers and specialized, curators whether they're focused on contextual targeting, optimization or Advanced creative execution.
Objectives.
To operate and scale their businesses seamlessly on our platform across all inventory types and screens.
And third we are in the process of launching an L. L. M that uses AI to automatically categorize CTV inventory into contextual segments, making it more addressable and driving increased campaign reach and monetization compared to current manual categorization methods.
Since the start of Q2 we've onboarded almost 50, curators with the vast majority transacting across multiple formats, including CTV display and online video.
This momentum underscores the market demand for sophisticated curation tools that live on the supply side.
We're very excited with the progress we've made in incorporating AI into our technology and we will continue to rollout AI agents and automated authorization as core components of our product roadmap.
Shifting to an update on AI.
The last topic I want to briefly cover is the antitrust ruling against Google in the Doj case, which we believe will likely change the entire landscape of the open Internet and drive significant upside for our television business.
We continue to develop and embed AI capabilities as a core product Focus. I'll provide an update on some of the capabilities. We highlighted on our previous call, as well as some new offerings.
As a reminder, the court found that Google had engaged in illegal monopolistic practices with respect to its AD server in AD exchange also known as an SSP.
First, we expanded our neural net and machine Learning Systems to shape the outbound connections to our CTV. Buyers our industry-leading traffic shaping sends the most relevant available Supply to bandwidth, constrained dsps, allowing them to more efficiently, discover inventory and increase their spend on our platform.
It's clear that for years, Google has been engaging in illegal practices that resulted in an unfair auction within its AD server.
Which disproportionately drove volume through its SSP at the expense of rival Ssp's Lake magnate.
The court also found that Google had illegally leverage their control of advertising demand to artificially prop up their own AD exchange and prevent publishers from freely choosing what ssp's, our AD server to work with.
Second, our AI powered audience, Discovery feature within our curator Marketplace tool is expanding to incorporate third-party data. In addition to our proprietary segments, making it even easier for users to identify high-value audiences aligned with their campaign adjective objectives.
To automatically categorize, CTV inventory into contextual segments.
We are highly encouraged by the court's ruling and believe that it will drive beneficial changes see open Internet and result in a more fair and transparent process that yields greater returns for publishers and advertisers.
Making it more addressable in driving increased campaign, reach and monetization compared to current manual categorization methods.
We remain focused on preparing our business for potential outcomes of the remedy phase, which is set to commence on September 20 <unk>.
We're very excited about the progress we've made in incorporating AI into our technology, and we'll continue to roll out AI agents and automated authorization as core components of our product roadmap.
And their initial filings the Doj is seeking both structural and behavioral remedies on the structural side. They are seeking a divestiture of both google's SSP and AD server.
The last topic I want to briefly cover is the antitrust, ruling against Google and the doj case.
Which we believe will likely change the entire landscape of the open internet and drive significant upside for our DV plus business.
On the behavioral side. They have proposed a series of remedies to address google's unfair auction practices as well as prohibitions preferential routing of advertising demand or tying demand access to publishers you use a Google supply side products.
As a reminder.
The court found that Google had engaged in a legal monopolistic practices with respect to its ad server and AD exchange, also known as an SSP.
While the specific timing and nature of the remedies remain uncertain and Google has already indicated an intent to appeal. The decision. We believe any remedy that results in a more level playing field will be highly beneficial for our business and significantly improve our opportunity to monetize publishers inventory and correspondingly.
It's clear that for years. Google has been engaging in illegal practices that resulted in an unfair auction within its ad server.
Which disproportionately drove volume through its SSP at the expense of rival, ssps like magnite.
Greece our win rate.
It's very possible that market share could begin to shift away from Google as soon as early 2026.
The court also found that Google had illegally leveraged, their control of advertising, demand to artificially prop up their own ad exchange, and prevent Publishers from freely, choosing, what ssps or add server to work with.
As there have been indications that behavioral remedies will be implemented even during an appeals process.
We estimate Google's exchange currently controls close to 60% share in the <unk> market.
We are highly encouraged by the Court's ruling and believe that it will drive beneficial changes to the open internet and result in a more fair and transparent process. That yields greater returns for Publishers and advertisers
As the second largest player in this space with share only in the mid single digits and given our leading technology and deep publisher relationships. We believe that we are exceptionally well positioned to capture any shift in market share that occurs as a result of Google ceasing its illegal practices without any meaningful changes.
We remain focused on preparing our business for potential outcomes of the remedy phase, which is set to commence on September 22nd.
In their initial filings. The doj is seeking both structural and behavioral remedies. On the structural side, they are seeking a dive of both Google's SSP and add server.
To our existing cost structure.
Based on our estimates of the market, we would expect that every 1% share shifts in the market could result in $50 million of additional contribution ex Tac on an annualized basis.
One last thing to note, while the court's findings or focus on equitable remedies going forward any civil damages that we could potentially realize would require us to file a separate action.
On the behavioral side, they have proposed a series of remedies to address. Google's unfair auction practices as well as prohibitions on preferential routing of advertising demand or tying demand access to Publishers use of Google supply side products.
We believe has significant merit.
Before turning the call over to David I want to point out that even with some lingering tariff pressures, we're expecting to see second half 2025 growth rates accelerate especially when looking at CTV ex political.
Well, I was specific timing in nature of the remedies remain uncertain and Google is already indicated in intent to peel the decision. We believe any remedy that results in a More Level Playing Field will be highly beneficial for our business and significantly improve our opportunity to monetize Publishers, inventory, and correspondingly increase, our win rate
It's very possible that market share could begin to shift away from Google as soon as early 2026.
We also intend to continue to invest in our live TV clear line and curation offerings. As we believe these represent a very attractive growth area, where we can increase our market share.
As there have been indications, that behavioral remedies will be implemented even during an appeals process.
With that I'll turn the call over to David for more details on the financials.
We estimate Google's exchange currently controls close to a 60% share in the DB Plus market.
Thanks, Michael.
As Michael mentioned, we had strong revenue growth in Q2 as macro downsides were not as pronounced as initially feared.
We saw stronger than market growth in TV, plus due to several product enhancements and momentum from a number of recent deals we signed.
As the second largest player in the space with share only in the mid-single digits and given our leading technology in deep publisher relationships, we believe that we are exceptionally well positioned to capture any shift in market share that occurs as a result of Google ceasing its illegal practices, without any meaningful changes to our existing cost structure.
Adjusted EBITDA was also significantly above guidance growing 22% over the second quarter of last year with a margin of 34% compared to 30% last year.
Based on our estimates of the market. We'd expect that every 1% share shift in the market could result in 50 million of additional contribution xstack on an annualized basis.
We're very pleased with these results and in particular, the continued strong growth in DD plus.
While some tariff related pressures persist the overall AD spend environment appears less volatile.
1 last thing to note, while the Court's findings are focused on Equitable remedies going forward, any civil damages that we could potentially realized would require us to file a separate action.
Given our current view and assuming that this level of stability continues.
Which we believe has significant Merit.
We are reinstating our expectations for full year results, which I will cover in more detail later in my remarks.
Total revenue for Q2 was $173 million up 6% from Q2 of 2024.
Before turning the call over to David, I want to point out that even with some lingering tariff pressures. We are expecting to see second half 2025, growth rates accelerate, especially when looking at CTV ex-political.
Contribution ex Tac was $162 million up 10% exceeding the high end of our guidance range.
TV contribution ex Tac was $72 million up 14% year over year or 15%, excluding political and at the top end of our guidance range.
We also intend to continue to invest in our live TV, clear line and curation offerings. As we believe these represent a very attractive growth area where we can increase our market share.
TV plus contribution ex Tac was $90 million, an increase of 8% from the second quarter last year and above the top end of our guidance range.
Our contribution ex Tac mix for Q2 was 44% CTV, 39% mobile and 17% desktop.
From a vertical perspective technology health and fitness and financial were the strongest performing categories, while auto was the weakest.
Total operating expenses, which includes cost of revenue were $151 million a decrease from $153 million for the same period last year.
Adjusted EBITDA operating expenses for the second quarter was $108 million better than we expected and an increase from $102 million in the same period last year.
The majority of the favorability in our guidance was driven by lower cloud computing costs and other employee related expenses.
Appears less volatile.
As we've discussed our technology team continues to make strong progress in reducing per unit cloud costs.
Allowing us to vantage significant increases in AD requests volumes with only modest cost increases.
Given our current View. And assuming that this level of stability continues, we are reinstating our expectations for full year results, which I will cover in more detail later in my remarks.
Improving scale and operational efficiency remains one of our top priorities for 2025 and I'm very pleased with the progress our tech team is delivering.
Both revenue for Q2 was 173 million up 6% from Q2 of 2024?
The majority of our 2025 capital expenditures will be used to support our hybrid infrastructure strategy as we shift additional functions from the cloud to on premises.
Contribution X Tac was 162 million up to 10% exceeding, the high end of our guidance range.
We expect these initiatives to drive meaningful margin expansion in 2026 and beyond and we're seeing some early benefits now.
CTV contribution X Tac was 72 million up 14% year-over-year for 15%, excluding political, and at the top end of our guidance range,
Our net income was $11 million for the quarter compared to net loss of $1 million for the second quarter of 2024.
DV plus contribution. Next Tac was 90 million and increase of 8% from the second quarter last year. And above the top end of our guidance range,
As highlighted in my intro adjusted EBITDA grew 22% year over year to $54 million, reflecting a margin of 34%, which compares to $45 million and a margin of 30% last year.
Our contribution x-tac mix for Q2 was 44%, CTV, 39% mobile and 17% desktop.
This was a result of both higher revenue and disciplined investment and cost management efforts.
From a vertical perspective, technology, health and fitness, and financial were the strongest performing categories, while auto was the weakest.
As a reminder, we calculate adjusted EBITDA margin as a percentage of contribution ex Tac.
GAAP earnings per diluted share was <unk> <unk> for the second quarter of 2025 compared to a loss of <unk> <unk> for the second quarter of 2024 non.
Total operating expenses which includes cost of Revenue. We're 151 million a decrease from 153 million for the same period last year.
non-GAAP earnings per share for the second quarter of 2025 of 20 <unk>.
Adjusted. Eva operating expenses for the second quarter was 108 million better than we expected and an increase from 102 million in the same period last year.
Compared to <unk> 14 last year.
Reconciliations to non-GAAP income and non-GAAP earnings per share are included with our Q2 results press release.
The majority of the favorability in our guidance, was driven by lower cloud, computing, costs, and other employee related expenses,
Our cash balance at the end of Q2 was $426 million a slight decrease from $430 million at the end of the first quarter decrease was due primarily to small timing differences in working capital flows.
as we've discussed our technology, team continues to make strong progress in reducing per unit, Cloud costs,
Operating cash flow, which we define as adjusted EBITDA less capex was $34 million.
Allowing us to manage significant increases in ad request volumes with only modest cost increases.
Capital expenditures, including bulk purchases of property and equipment and capitalized internal use software development costs were $20 million.
Improving scale and operational efficiency remains one of our top priorities for 2025, and I'm very pleased with the progress. Our tech team is delivering.
Net interest expense for the quarter was $5 million net.
Net leverage was <unk> six at X at the end of Q2, no change from the end of the first quarter.
The majority of our 2025 Capital expenditures will be used to support our hybrid infrastructure strategy as we shift additional functions from the cloud to on-premises.
As a reminder, the $205 million principal amount of our convertible notes is now classified as a current liability on the balance sheet as the notes mature in March of 2026.
To drive, meaningful margin expansion in 2026 and Beyond. And we're seeing some early benefits now,
We intend to pay off the converts with cash at maturity and have ample liquidity to do so.
Our net income was 11 million for the quarter compared to net loss of 1 million for the second quarter of 2024.
During the quarter, we repurchased are withheld over 800000 shares for approximately $11 million.
As of today, we have $88 million remaining in our authorized share repurchase program, which we will continue to deploy opportunistically.
As highlighted my intro adjusted Eva dog route 22% year-over-year to 54 million reflecting a margin of 34%, which compares to 45 million in a margin of 30% last year. This was result of both higher revenue and disciplined investment and cost management efforts.
I'll now share our thoughts about the third quarter and outlook for the full year.
As a reminder, we calculate adjusted debit on margin as a percentage of contribution x-TAC.
While the macro appears to have stabilized somewhat we remain cautious with our Q3 and full year expectations.
Gap. Earnings per diluted. Share was 8 cents for the second quarter of 2025 compared to a loss of 1 cent. For the second quarter of 2024,
Given the concentration of political spend in the third and fourth quarters last year we.
We will also provide our guidance with both with and without political contribution ex Tac to show underlying business performance.
Non-gaap earnings for share for the second quarter of 2025 was 20 cents compared to 14 cents last year.
The reconciliations to non-gaap income and non-gaap earnings for share are included with our Q2 results press release.
For the third quarter, we expect contribution ex Tac to be in the range of $161 million to $165 million, which is 9% growth at the midpoint and 13% when excluding political.
Our cash balance at the end of Q2 was 426 million. The slight decrease from 430 million at the end of the first quarter decreases due primarily to small timing differences in working capital flows.
Contribution ex Tac attributable to CTV to be in the range of $71 million to $73 million.
Operating cash flow which we Define as adjusted. Eva left capex was 34 million
Which is nearly 12% growth at the midpoint, but over 18% growth when excluding political.
Contribution ex Tac attributable to BB plus to be in the range of $90 million to $92 million.
Capital expenditures, including both purchases of property and equipment and capitalized internally. Use software development costs were 20 million dollars.
At interest expense for the quarter was 5 million.
Which is 7% growth at the midpoint and 10% when excluding political.
Net leverage was 6X at the end of Q2. No. Change from the end of the first quarter.
And we anticipate adjusted EBITDA operating expenses to be between 109 and $111 million.
For the full year, we anticipate total contribution ex Tac growth above 10% or mid teens, excluding political adjusts.
as a reminder, the 205 million principal amount of our convertible notes is now classified as a current liability on the balance sheet as the notes mature in March of 2026,
We intend to pay off the converts with cash at maturity and have ample liquidity to do so.
Adjusted EBITDA to grow in the mid teens.
And we are increasing our adjusted EBITDA margin expansion guidance to at least 150 basis points from a 100 basis points previously.
During the quarter, we repurchased our withheld over 800,000 shares for approximately $11 million.
And free cash flow to grow high teens to 20% <unk>.
As of today, we have 88 million remaining in our authorized share repurchase program, which we will continue to deploy opportunistically.
In addition, we expect total capex to be approximately $60 million for the year.
I'll now share our thoughts about the third quarter and outlook for the full year.
Although we continue to opportunistically evaluate and acceleration of incremental Capex investment.
As we transition to on Prem.
While the macro appears to stabilize somewhat, we remain cautious with our Q3 and full year expectations.
We are pleased with our second quarter results with our continued execution on strategic initiatives and we're confident in our ability to successfully navigate through the current environment.
Given the concentration of political spend in the third and fourth quarters last year.
I'm also pleased with the progress our team continues to make in our tech stack cost efficiency efforts, which will help expand margins and support investments in growth areas.
To show underlying business performance.
With that let's open the line for Q&A.
for the third quarter, we expect contribution X Tac to be in the range of 161 to 165 million, which is 9% growth of the midpoint and 13% when excluding political
We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
Contribution X Tac attributable, to CTV to be in the range of 71 to 73 million.
If you are using a speakerphone please pick up your handset before pressing the keys.
Which is nearly 12% growth of the midpoint. But over 18% growth, when excluding political
If at any time. Your question has been addressed and would like to withdraw. Your question. Please press Star then two.
Contribution X to a tributable to DB plus to be in the range of 90 to 92 million.
which is 7% growth of the midpoint and 10% when excluding political
At this time, we will pause momentarily to assemble our roster.
Okay.
and we anticipate adjusted Eva operating expenses to be between 109 and 111 million dollars.
Yeah.
The first question comes from Sean.
For the full year, we anticipate total contribution X-TAC growth above 10% or mid-teens, excluding political.
<unk> of Susquehanna go ahead. Please.
Adjusted Eva to grow in the mid teens.
Hey, guys, congrats on a great quarter and outlook.
I had a couple of questions.
First one.
and we're increasing our adjusted EV down margin expansion, guidance to, at least 150 basis points from 100 basis points, previously
You guys have had a lot of exciting new partnerships and customer wins over the past few quarters and it really seems like your positioning in the market.
And free cash flow to grow High, Teens to 20%.
It is being validated pretty strongly if not inflicting upward.
Maybe Michael can you talk about this and just the broader momentum you're seeing and then my second question.
In addition, we expect total capex to be approximately 60 million for the year. Although we continue to opportunistically evaluate an acceleration of incremental capex investment as we transition to on-prem
Michael I know you talked about Google.
Prepared remarks.
Maybe whats your thinking in terms of kind of base case on what happens in and kind of the benefit to magnify and then you talked about civil damages and just kind of curious what that could look like as well. Thank you guys.
We're pleased with our second quarter results with our continued execution on strategic initiatives. And we're confident in our ability to successfully navigate through the current environment.
I'm also pleased with the progress. Our team continues to make in a text stack cost, efficiency efforts which will help expand, margins and support investments in growth areas.
Yeah. Good questions. So, yes, we have posted up a number of exciting wins.
With that. Let's open the line for Q&A.
We will now begin.
And really thrilled with the traction in the marketplace.
I think if you broadly look at them, particularly the ones.
Star then 1 on your touchtone phone.
On the CTV side, but not just.
Related to CTV, youre seeing a trend where folks are utilizing pieces of our product stack.
If you are using a speakerphone, please pick up your handset before pressing the keys.
On to help build their programmatic business is on and just kind of modular approach that we can approach the marketplace is quite unique and it's not just a one size fits all.
if at any time your question has been addressed and you would like to withdraw your question, please press star then 2
At this time, we will pause momentarily to assemble our roster.
Broach and so I think what we're finding is.
Success in that approach success in the investments that we've made in our product the acquisitions that we've made and we find ourselves in.
The first question comes from Sean Patel of cesco Hannah. Go ahead please.
Relatively rarefied air where the competitive set is quite lean at that point and.
Hey guys, uh, congrats on the great quarter in Outlook.
I would expect to see more continued success in that area.
As it relates to Google.
Kind of difficult to Crystal ball. It just given the fact that the remedies are out there, but have you been ruled by the judge.
So I would imagine at that juncture when.
I had a couple of questions. Um, first 1, uh, you guys have had a lot of exciting new Partnerships and customer wins over the past few quarters. And it really seems like your positioning in the market, um, is being validated pretty strongly if not inflecting upwards. Um, maybe Michael can, can you talk about this in just a broader momentum? You're seeing and then my, my second question.
When the remedies are put forth.
We'll probably have.
A stronger opinion as to what it might look like.
And as it relates to any.
Possible litigation and the civil action.
I just will.
We'll stick with the verbiage that we used in the script and that is we're looking at it and we think there is a lot of merit there.
Um Michael I know you talked about Google um in the prepared remarks just maybe what what's your thinking in terms of kind of base case on what happens and, and kind of the benefit to magnite and then you talked about civil damages and just kind of curious what that could look like as well. Thank you guys.
Great. Thank you guys.
Yeah.
The next question comes from.
Cause urea of Wolfe Research go ahead. Please.
Hi, This is Ken offer sweater. Thank you for taking my question.
Just one from me what ascribing the reiteration of the prior guide given raise in Q3. Thank you.
Uh yeah, good question. Um, so yeah, we have posted up a number of exciting wins uh and really you know, thrilled with the traction in the marketplace. I I think if you broadly look at them, particularly the ones uh on the CTV side, but not just uh, uh related to CTV you're seeing a trend where, uh, folks are utilizing pieces of
Of our uh, product stack.
Yes.
Take that.
Yes, I think it's interesting.
After our last earnings call.
As we went through.
May and June I think the overall AD spend market.
Sort of moderate soft to moderate but it was much more at least stable than what we had feared so I think we kind of had bigger fears.
Throughout that quarter and there is even though the AD spend market isn't.
Robust at this point of time, it's become much more stable and so that's given us comfort to reiterate or to put back into place.
Prospective for the for the full year.
We're also super excited about.
Of course that the growth in CTV and see some of the acceleration in <unk>.
Um, to help build their programmatic businesses on and just kind of modular approach that we can approach the marketplace is quite unique and it's not just a 1 size, fits all, uh, approach. And so, I think what we're finding is, uh, success in that approach success in the Investments that we made in our product, the Acquisitions that we've made, and we find ourselves in, you know, relatively rarefied air where, um, the competitive set is, is, is quite lean at that point. And, um, I would expect to see more continued success in that area, um, you know, as it relates to Google it, it's it's kind of difficult to Crystal Ball. It just given the fact that, um, the remedies um, are out there but haven't been ruled by the judge. Um, and so I would imagine that that juncture, uh, when the remedies are, uh, are put forth. Uh, we'll probably have a
We gave some numbers to back out.
Political so you can see that the kind of organic growth.
What it might look like. Uh, and as it relates to any, um, possible litigation in the civil action. Um, I just
And acceleration in that business, but we're particularly happy with with the Divi plus business. We were initially more concerned that that that business can be more volatile.
Will stick with the uh verbage that we use in the script. And that is, we're looking at it and we think there's a lot of Merit there.
Great. Thank you guys.
And with potentially more downside.
But the team has really done a fantastic job, we've got some new product releases, we're getting some similar momentum on some of our recent deals and so there is there's actually more strength I think in that DB plus than we even anticipated and so.
Question comes from shweta. Kajura of wolf research. Go ahead please.
This is Ken offi, thank you for taking my question.
Combination of all those factors.
<unk> helped us to feel comfortable that we could.
Just 1 from me. What is driving? The reiteration of the prior god-given the race in Q3 thank you.
To get something out there for the for the full year again, assuming that this current environment continues the way that it's going right now.
Yeah, I'll take that. Um,
Thank you very much that's my only question.
Thanks, Ken.
Our next question comes from Dan.
Yeah, I, I think, you know, it's interesting, uh, you know, after our last earnings call, um, as we went through, uh, May and June. I think the overall ad spend Market, you know, was sort of moderate soft to moderate, but it was much more at least stable than what we had feared. So I think, you know, we kind of had bigger fears, um, throughout that quarter. And there's a even though the the the ad spend Market isn't.
Of the benchmark company go ahead please.
Alright, Thanks, Scott, obviously, great quarter again, guys. So Michael I mean, I guess I'll start it off and just say, yes, google's getting soon they're also trying to stop the divi plus industry into an AI load box. So.
And we can debate, whether or not they should be allowed to put their crawler and their AI on one.
Holidayed platform, but how do you guys think about the development of <unk> in the marketplace and your ability to continue to monetize and DDA plus that would become an increasing source of traffic and usage from consumers.
And then you just got.
Had a good amount of time talking live sports on I appreciate that and I guess, we've got.
ESPN DTC, we've got Fox DTC and Peacock just at an absolute killer upfront and so how should we think about the contribution this year from last sports dumped all being done programmatically now or at least the newer offerings. So just help us think through potential even as early as this year.
Um, robust at this point of time, it's become become much more stable. And so that's given us, uh, Comfort to re reiterate or to put back into place our perspective for the, for the full year. Uh, we're also super excited about, um, you know, of course, the, the growth, uh, in CTV, you can see some of the acceleration and we, you know, we gave some numbers to to back out, uh, you know, political so you can see the, the kind of organic growth, uh, and and, and acceleration in that business. But we're particularly happy with with the Divi plus business. We were initially more, you know, concerned that that, that business could be more volatile, um, and with potentially more downside, uh, but the team, you know, has really done a, a fantastic job. We've got some new product releases. We're getting some some more momentum on some of our recent deals. And so there's, there's actually more strength. Uh, I think in that DV plus than we even anticipated,
On that platform. Thank you.
Yeah. Thanks for the question is Dan.
Yes so.
It and so, um, combination of all those factors, uh, helped us to feel comfortable that we could, uh, kind of get something out there, uh, for for the full year again, assuming that, that this current environment, you know, kind of continues the way that it's going right now.
Yes definitely.
Genting chat.
<unk>.
Tools that the consumers are using businesses are using there is no question that search referral traffic has gone down.
Thank you very much. That's my only question.
For our clients.
Primarily browser based web sites.
Thanks. Thanks.
It's important to note and David gave the mix before in his part of the script.
Our next question comes from Dan kernos of the beachmark company. Go ahead, please.
Our business is pretty well diversified.
We have a lot of mobile App business, obviously CTV is impacted by this directly.
And if you note the types of publishers, we have we haven't quite a lot of.
Top brand globally known brands media companies, where they they truly are destination sites in warrant as reliant upon search referrals.
So there's a there's a bit of.
Protection there for them in terms of their future prospects for the business and lastly, we.
We do work with a broad broad swath of top publishers.
Producers.
Awful lot of that inventory.
Process, plus trillion and a half AD requests today I love to say, we sell every one of those requests, but obviously we don't.
And therefore, even if there was some deterioration in terms of traffic, which led to less adds going to auction.
All right. Uh, thanks. Good afternoon, obviously, great quarter again, guys. So Michael. I mean, I guess I'll, I'll start it off. And just say, yeah, Google's getting sued. They're also trying to stop the home TV plus industry into an AI mode box. So, um, you know, we can debate whether or not they should be allowed to put their crawlers and their AI on 1, uh, consolidated platform. But how do you guys think about the development of injecting in the marketplace and your ability to continue to monetize and DB? Plus if that becomes an increasing source of of traffic and usage from consumers? Uh, and then, um, you spent a good amount of time talking live sports, uh, Michael and I appreciate that and I guess we've got ESPN D to see. We got Fox doozy and peacock. Just had an absolute killer upfront. And so how should we think about the contribution this year from live sports? Because it's almost all being done programmatically? Now, like the or at least the newer offerings, um,
So just to help us think through potential, you know, even as early as this year from that platform. Thank you.
It probably just kind of increases our win rate as a percentage of traffic that we bring.
Also probably lowers our processing costs.
We haven't seen budgets shift we haven't seen a buyers.
I away from open web and so I think.
We feel pretty good about where we stand today and lastly, it's pure conjecture, but you know I don't think every one of these popular.
Chat agents are going to be able to stand up and add business. The size of Google's every one of them hiring five to 7000 salespeople the technology involved in it. They will obviously have to have an AD play and I fully anticipate that we'll be able to play in that game is there.
As publishers and asset sources of demand so it could be newfound publishers for us.
And as for live sports, Yes. It is early and look at it super encouraging that.
Brand globally, uh, known uh Brands uh, media companies, where they, they truly are a destination sites and and and weren't as Reliant upon search referrals. Um, and so there's a, there's a bit of, um,
These sports rights are being won by streamers.
Consumers.
And they voted that streaming is the way to go on defendable isn't insignificant as you know there are a huge regional sports network.
In baseball and we are participating in that as we speak and so I think that.
We will be able to dimensionalize.
The numbers are in the not too distant future, but it's still pretty early days in terms of contribution.
Thanks, Michael.
Thanks, Dan.
The next question comes from Jason <unk> of Craig Hallum Go ahead. Please.
Uh, protection there for them in terms of their future prospects for the business. And lastly um you know, we do work with uh a broad broad swath of uh top Publishers, um, produces a awful lot of AD inventory. You know, we'll process plus a trillion and a half ad requests today. I'd love to say we'd fill every 1 of those requests, but obviously, we don't. Um, and therefore even if it was some deterioration in terms of traffic, which led to less ads going to auction, um, it probably just kind of increases our win rate, uh, as a percentage of of traffic that we bring.
Great. Thank you guys ask a question on the Divi plus side, you've seen some really interesting engagements with platform companies.
Earlier this year Pinterest last quarter are companies that have historically filled AD slots internally. So just curious.
What is happening on that front and in wireless magnate finally, getting a seat at the table, where you haven't before and if you think this trend continues to other platforms.
Yes, great question Jason.
Also, probably lowers our processing costs. Um, we haven't seen budgets shift, we haven't seen buyers, uh, shy away from open web. And so, I think, uh, we feel pretty good about where we stand today. And lastly, it's pure conjecture. But, you know, I don't think everyone of these popular uh uh, chat agents are going to be able to stand up and add business. The size of Google's, you know, every 1 of them hiring 5 to 7 thousand sales people, the techn
From our observation.
I think one of the things that are.
Folks who have come to realize that owned platforms like that that maybe we're trying to run.
And of a walled garden approach and that only demand source by their direct teams or any self serve tools that they would have with the only demand that could come and I think there's just.
Two two kind of revelations number one you're severely under monetizing your inventory. If you are not plugging in third party demand and I think folks.
Some folks have learned the hard way and the second is there's less and less of.
It desire among the advertising community.
Kind of do these direct kind of.
Technology involved in it. They'll obviously have to have an ad play and I fully anticipate that we'll be able to play in that, uh, game as them as Publishers and us as sources of demand. So it could be Newfound Publishers for us. Um and as for live sports, yeah, it it is early in in, look at its super encouraging that, um, these Sports rights are being won by streamers, uh, consumers have cut cord and they voted. That streaming is the way to go. Um, the FanDuel is an insignificant. As, you know, they have a huge Regional Sports Network, um, in baseball and, uh, we are participating in that as we speak. And so, I think that
Historically high Cogs way of interacting with.
<unk> sales folks and so I think programmatic is definitely desired by agencies' desire by marketers.
Um, you know we'll be able to Dimension uh, the numbers uh in the not too distant future, but it's still pretty early days in terms of contribution.
Thanks man.
And you know they have gotten very comfortable working with a handful of partners thankfully magnates one of them. So when folks do go to open up and they talk to their agency partners and their marketers they tell them well most of our business runs a magnate and so it kind of puts us in a position a pole position to be there.
The next question comes from Jason Cryer of Craig Callum. Go ahead, please.
<unk> partner as they open up.
Yes, we're thrilled with the announcements we made in.
Great. Thank you guys. Uh, so question on the DV plus side, you've seen some really interesting engagements with with platform companies. Um, X earlier this year Pinterest, last quarter, uh, companies that have historically, filled ad slots internally. So, just curious, you know, the, the, like, what is happening on that front. And, and why is
Good.
We expect more announcements to come.
Magnate finally getting a seat at the table where you haven't before. And if you think this trend continues to other platforms,
I appreciate that and then just a quick follow up so Netflix is fully rolled out the Netflix add suite just curious as your integrated and that how that process has gone for magnet and if there's been any incremental visibility into what your role looks like.
Yeah, great question Jason. I mean from our observation um I think 1 of the things that uh
Yes.
It continues to be an incredible partnership.
We're thrilled to be a.
A part of their story.
Emphasizing the fact that it is their story so.
uh folks have come to realize um that own platforms like that that maybe we're trying to run a kind of a Walled Garden approach and that only demand Source by their direct teams or any self-serve tools that they would have which is the only demand that could come. And I think there's just a
We.
Just reiterate the things that David talked about and you're right about the rollout and our participation in that rollout.
And we maintain what we said all along that there are very important revenue client for us and as we exit the year, we feel comfortable in saying that they could be one of our biggest clients on a run rate basis.
To to kind of Revelations, number 1, you're severely, under monetizing your inventory, if you're not plugging, in third-party, demand. And I think folks, uh, some folks have learned it the hard way and the second is, there's less and less of a desire among the advertising Community to kind of do these direct kind of, uh,
I appreciate that thanks, Michael.
Thanks, Dave.
The next question.
Mark rocket.
Go ahead please.
Okay, great. Thanks for taking the question.
I wanted to probe a little bit more some of the antitrust commentary.
Which obviously holds out.
A transformational kind of opportunity for you guys.
Which makes the commentary about 2026 kind of interesting.
Historically, uh, hi cogs way of interacting with um, sales folks. And so I think programmatic is definitely, um, desired by uh, agencies desired by marketers. Uh, and you know, they have gotten very comfortable working with a handful of Partners. Thankfully magnates 1 of them. So when folks do go to open up and they talk to their agency partners and their marketers, they tell them well most of our business runs on magnite and so it kind of puts us in a position a pulp
The idea that behavioral remedies could be implemented while an appeal is outstanding.
What is your basis for suggesting that is that some commentary from the judge or some interpretation of legal precedent. What is your basis for thinking that that could in fact happened and we could in fact begin to see this next year.
Position to be there uh inaugural partner as they open up. Uh, and uh yeah, we're thrilled with the uh, announcements we made and uh, it would completely expect more announcements to come.
Barton as luck would have it I have.
General counsel in the room and Aaron is going to answer that for you.
How has that process gone for Magnite, and if there's been any incremental visibility into what your role looks like?
Great.
Everyone, Yes, I would say that in a case like this where the court has found that there is a legal practices that need to be rectified if there were.
<unk> put in place now pending an appeal. There is no reason why a court wouldnt want those remedies would take place as soon as possible to memory the illegal conduct notwithstanding the appeal.
That being said, there's obviously a lot of unknowns here as well. So we're like everyone else anxiously awaiting the decision, but I think that based on guidance. We've received there is a very realistic possibility that the behavioral remedies would be in place during the stay of any appeal.
Uh, yeah. You know, it continues to be an incredible partnership. Uh, we're thrilled to be uh, a part of their story, um, and besides in the fact that it is their story. So we um, just reiterate the things that they've talked about and you're right about the roll out and our participation in that role out and you know, we maintain what we said all along that there are very important Revenue client for us. And as we exit the year, we uh feel comfortable in saying that they could be 1 of our biggest clients on a run rate basis.
I appreciate that. Thanks Michael.
Thanks s.
Okay. So you've received some guidance that supports us.
The next question.
mark,
Okay and then in terms of just on the legal front since we have the attorney here.
go ahead, please.
The idea of looking at in the mirror of Civil litigation for the damages that you guys.
Okay, great. Thanks for taking the question. Um, I wanted to probe a little bit more some of the antitrust commentary.
Have suffered.
um, you know which obviously holds out, um,
What would be kind of the ideal timing to think about that knowing that <unk> already filed and knowing that there could be a statute of limitations.
Transformational kind of opportunity for you guys.
Um, which makes the commentary about 2026 kind of interesting?
And yet there is some benefit to having violations found by the Doj. So.
One would be your sense of what would be kind of the sweet spot in terms of timing if one were to pursue something like this.
Yes, I think just as Michael said at this time, we can't really comment any further on timing or specific intentions other than we're obviously considering all our options and we do think there's a lot of merit and as you've mentioned there have been other participants that have already filed suits or we're clearly aware of that and monitoring it.
Um, the idea that behavioral remedies could be implemented while an appeal is outstanding, um, what is your basis for suggesting that, is that some commentary from the judge or some interpretation of legal precedent? You know what, what is your basis for thinking that, that could, in fact happen? And we could, in fact, begin to see this next year.
Barton is luck. Would have it. I have our general counsel in the uh room and uh Aaron is going to answer that for you.
Great.
Okay, Alright, and then if I could switch a little bit to kind of a related issue. So.
TV plus.
Has been.
Trending positively.
While the network business that Google reports has been negative.
Do you think those two things are related and are we already beginning to see some of that benefit to TV plus from the market digesting.
The issues that Google.
Yes.
Testing question Barton.
I don't believe so.
Everyone. Yeah, I would say that in a case like this, where the court has found that, there's a legal practices that need to be rectified. If there were remedies put in place now, pending an appeal, there's no reason why a court wouldn't want those remedies to take place as soon as possible to remedy the illegal conduct notwithstanding the appeal. But that being said, there's obviously a lot of unknowns here as well. So we're like everyone else, anxiously awaiting the decision. But I think that based on guidance, we've received there's a very realistic possibility that the behavioral remedies would be in place during the state of an appeal.
I think there are.
Not correlated.
Okay. So, you've received some guidance that supports us.
This has come from a lot.
As you know or.
Relatively new soybean.
<unk> has been.
<unk> a journey for us and I just couldn't be more proud of the team behind it.
Uh, okay. And then in terms of, uh, just on the legal front since we have the attorney here, you know, the idea of, you know, looking at the Merit of civil litigation for the damages that you guys um, have have suffered
And you know it is.
<unk>, a whack a mole business it is.
<unk> thousand things that Youre Checklists, and then you go to the next check listen it's thousands of little things that matter and I think our teams is operating.
Um, what would be kind of the ideal timing to think about that, knowing that Genet's already filed and knowing that there could be a statute of limitations?
A high level and the magnate story resonates in the marketplace. So I really do think that if there are share shifts it isn't coming from Google that's coming from our direct competitors.
Um and you know, and yet there's some benefit to having uh violations found by the the doj. So
What would be your sense of what would be kind of the The Sweet Spot in terms of timing? If 1 were to pursue something like this,
Okay, Alright, that's great. That's good for me. Thank you very much.
Thank you.
The next question Laura.
Mark.
Go ahead please.
Hi, good morning, Congratulations on your numbers I'd like to start with the Amazon comments I was really intrigued by their Amazon com it depends by your point.
Yeah, I think just, uh, as Michael said, at this time, we can't really comment any further on timing or specific intentions, other than, you know, we're obviously considering all our options. And, uh, we do think there's a lot of merit and, as you've mentioned, there have been other participants that have already filed suits, or we're clearly aware of that in honoring it.
So.
Okay, all right. And then um you know, if I could switch a little bit um to kind of related issues, so
Their inventory and their DSP interact with people all the time Amazon can be a bigger client for you from a revenue point of view.
Hey, Laura it's Michael.
DV Plus has been trending positively, while the network business, according to the Google reports, has been negative.
Great observation.
It's hard to speculate.
Would think that.
That would be pretty far fetched to think that anytime soon.
Do you think those 2 things are related and are we already beginning to see some of the benefits of DV, plus from the market digesting? Um, the issues that Google
They would open up their owned and operated so that it would equal.
The Netflix opportunity, but we are elated to be a partner of theirs on both sides of the marketplace.
And.
It's certainly a meaningful relationship.
Okay.
That's helpful and then on mountain.
I'm very excited about the opportunity for small and medium businesses come into connected TV.
I thought it was interesting that you brought it up because I thought that mountain went direct and got direct AD units from <unk>.
Our mountain Peacock and then it sounds like from your comments that they are actually.
Their idea that they're at.
Buying at a minimum.
Hi, Matt.
Yes.
Can't speak for the entirety of their business, but for years now they've been a classic DSP running through magnate to get access to CTV to supply.
Yeah, interesting question Barton. Um, I don't believe so I I I I think there uh not correlated. I uh this has come from a lot of as you know or relatively new to the story but uh DV plus has been uh, a a journey for us and um, I just couldn't be more proud of the team behind it and you know, it it is a whack-a-mole business. It is a thousand things that your checklist and then you go to the next checklist and it's a thousand and it's the little things that matter. And I think our teams just operating at such a high level and the magnet story resonates in the marketplace. So I, I really do think that if there's share shift, it isn't coming from Google, it's coming from our direct competitors.
Thank you.
And you have to keep in mind, Laura you still own $5 and that debt when I bet that small to medium size businesses will make up a big part of CTV and you said they wouldn't.
I have one here.
Alright.
Thank you.
Yeah.
Good morning. Um, congratulations on your numbers. I'd like to start with the Amazon comments. I was really intrigued by their Amazon comments because like, your point you both can sell, um, their inventory and you can use their DSC interact with you. Do you think over time, Amazon could be a bigger client than Netflix for you from a revenue point of view.
The next question.
Okay.
Go ahead.
Great. Thank you.
David maybe we could start on the outperformance that we're seeing in the margins, especially on the sides youre talking about kind of getting your.
Our cloud and your on Prem data structure and order.
What about the margin improvement do you think is sustainable in terms of maybe extending kind of like a new a new base rate and is there anything about the outperformance this quarter year to date that is more onetime in nature. Thank you.
Oh hey Laura, it's Michael. Um, you know, great observation. Um, hard to hard to speculate. Uh, I I would think that um, that would be pretty far-fetched to think that anytime soon that it they would open up their owned and operated, uh, so that it would equal, um, the Netflix opportunity. Um, but we are, you know, elated to be a partner, there's on both sides of the marketplace and um, it it's certainly a meaningful relationship.
Um, that's helpful.
Yeah.
There's a couple of variables at play here.
The quarter's performance.
There was a component of that beat that I think is is sustainable.
Going forward.
Part of that was related to some personnel costs, which were more of a timing basis and so those will come back.
On Mountain. I, I, I agree with you. I'm very excited about the opportunity for small and medium businesses coming to connect to television. I, I thought it was interesting that you brought it up because I thought that mountain went direct and got direct ad units from Paramount and peacock and and it sounds like from your comments that they are actually. Um, they're a DSP that they're actually buying ad inventory from you. So can you just confirm that?
In Q3, and so we factored that into our guidance and then the other variable is.
We are adding some modest investment on our engineering and sales teams in the latter half of the year to really focus on some of our high.
Yeah, and and I can't speak for the entirety of their business. But for years now, they've been a classic DSP, uh, running through magnite to get access to CTV Supply.
Opportunity areas.
Clear line.
Curator live sports and so forth and so we'll still have some margin some of the of the gross margin benefits will be offset by some of those other investments and changes but overall.
And you have to keep in mind Laura that you you still owe me 5 dollars on that bet. When I bet that small to medium size businesses will make up a big part of CTV and you said they wouldn't
I was well on your way and I'm happy that you're right. And then I'm on, thank you.
We're still early in this process, that's first or second inning I think.
In our opportunity on the tech stack costs and so.
Go ahead, please.
There is a lot of work and analysis going on right now.
Looking at potentially accelerating some.
Some capex investment and other things.
And we'll now we're working through that and we'll have much better visibility as we get further towards the end of this year.
Great. Thank you. Um David. Maybe we could start on the outperformance that we've seen in the margins, especially on the sides. You're talking about kind of getting your um public cloud and your on-prem data structure in order.
That's really helpful.
And then Michael maybe a high level. The TV question I kind of think back.
2021 ish timeline when <unk> came in and it feels like so much of the way the markets develop just kind of the way that you are we all had hoped for with everyone being AD supported now yes, now partnered with 29 of the top 30 publishers being S&P spend come in live sports switching over like what.
What about the margin improvement? Do you think it's sustainable in terms of maybe like studying kind of like a new base rate? And is there anything about the outperformance this quarter year to date that is more one-time in nature? Thank you.
Yeah. Um,
Do you think are.
Major.
Limiting factors or I guess chokepoint.
Demand coming faster to CTV at this point.
Yes, Great question, Matt I think.
But when I put my finger on is.
Theres still linear.
Around I mean cord cutting continues to accelerate but so the largest players in the streaming market are also the largest broadcasters and therefore there is this balancing act of trying to feed two miles.
So it just isn't as pure swoosh coming over.
Go to market practices.
Re.
I there's a, you know, a couple variables at play here, uh, for the, the quarters performance. There was a component of that beat that I think is, is sustainable. Um, going forward, uh, part of that, uh, be was related to some Personnel costs, which were more of a, of a timing basis. And so, those will come back, um, in Q3. And so, we factored that into our guidance, and then the other variable is, um, we are adding some modest investment on our engineering and sales teams and the latter half of the year to really focus on some of our High, um, opportunity areas, uh in you know, clear line, uh, curator live sports and so forth. And so, we'll still have some, you know, margin some of the of the gross, you know, margin benefits, um, will be offset by some of those other, uh, Investments and changes. But overall, uh, we're still early in this process. But you know,
Kind of prohibit sometimes just buying streaming.
Goodbye the programming across both platforms.
And I also think some of them as the industry's own fault.
Streaming measurement.
It remains to be a big challenge right.
Going through it.
People right now with Nielsen's panel and the being able to tie the traditional measurement from linear to streaming is a challenge.
You know, first or second inning, I think, um, in our opportunity on the tech stack costs and so there's a lot of work and Analysis going on right now. Um, you know, looking at potentially accelerating some, you know, some, some capex investment and other things. Uh, and we'll, you know, we're working through that and and, you know, we'll have a much better visibility as uh, we get further, uh, towards the end of this year.
<unk> is something that everyone is working on but there has to be common standards. So some of it is.
The poor brand manager that for years has spent money on broadcast now spending it on linear and asking the right questions like well how impactful is it is it better is it worse is it the same.
And as an industry, we've got to work.
<unk>.
<unk> got to work harder at making that answer easy for folks who spend.
Uh, that's really helpful. Um, and then Michael maybe a high level CTV question, I I kind of think that, uh, you know, 2021 is timeline when Spa X came in and it feels like so much of the way the markets developed is kind of the way that you or we all had out for with everyone being that supported now. You guys are now partnered with, I think it's 29 of the top, 30 Publishers being SMB, spend come in live sports switching over. Like what, what do you think are the major? Um,
Thank you.
Okay.
Next question.
Robert.
Uh yeah great. Uh question Matt, I think uh the 1 I put my finger on is um
Oh go.
There's still.
Go ahead.
Hi, Thanks for taking my questions. Two please wanted to go back to <unk> question on the partner roster and the strength there may be adjacent to that if you had to take a weighted average right now across our partner set in terms of where they are on programmatic penetration further.
<unk>. However, you want to put it maybe if you could talk a little bit more about that in.
Why do you think can unlock or accelerate more engagement from those partners with programmatic.
And then a second one.
<unk> to the Google AD Tech outcomes, assuming you do get some meaningful remedies equitable remedy that as you put it are there any other product opportunities market segments or regional opportunities that you might choose to lean into.
In a scenario like that thank you.
Yes, Thanks Robert.
Yes on the first one.
If you go back to.
Two years ago.
The year was definitely the belief in the marketplace that upfronts were kind of the enemy of programmatic debt.
Linear uh, around. I mean cord cutting continuously but so the largest players in the streaming Market are also the largest broadcasters and therefore there's this Balancing Act of trying to feed um 2 males. Uh and so it just isn't as pure swoosh coming over. Um, you know, go to market practices, uh re uh kind of prohibit sometimes just buying streaming. Uh you have to buy uh, the programming across both platforms. Um, and I also think, you know, some of, it's the industry's own fault in streaming, you know, measurements. Um, it remains to be a, a big challenge, right? Um, you're going through a a upheaval right now with nielson's panel and the being able to tie the traditional measurement from linear to streaming, is a challenge attribution is something that everyone's working on, but there has to be common standards. So,
Marketers are committing upfront dollars and that necessarily means it's direct sold by the publisher and therefore, it's out of the hands of programmatic and if you fast forward.
You go to any agency any immediate companies upfront presentation.
The lead was programmatic capabilities.
You know, some of it is, you know, the poor brand manager. That's for years has spent money on uh, broadcast. Now, spending it on linear and asking the right questions like, well how impactful is it? Is it better? Is it worse? Is it the same? And um as an industry we've got to uh work. We've got to work harder at making that uh answer easy for uh folks to spend
So it's definitely getting their buyers wanted sellers.
thank you.
I want it as well.
It's just that there is you know.
Breaking cash Tv's been silver.
Well over 70 years and it's.
There is a way of doing it the industry set up to do that and.
There's obviously some hesitancy.
To win a 100% in.
Didn't see to play with Biddable, because hey upfront upfront bid.
<unk> might be better it may not be better, but little by little the guys are doing it and you see guys like Hulu that had been added for longer than anyone and how advanced that they become and new entrants that come into the.
Hi. Uh, thanks for taking our questions. Uh 2. Please, uh, want to go back to Shams, uh, question on the partner roster and the strength there, maybe adjacent to that if you had to take a weighted average right now across the partner side in terms of where they are on programmatic, penetration for the percentage ending, however, you want to put it. Maybe if you could, you know, talk a little bit more about that. And um, what you think uh can unlock or accelerate more engagement from those partners with programmatic,
Industry, whether it's Amazon or Netflix that are just more technology focused and programmatic first focus.
I think that.
You're seeing an acceleration.
And then a second 1 uh in relation to the Google adtech outcomes. Assuming you you we do get some uh, your meaningful remedies Equitable remedies as you put it, are there any other, uh, product opportunities market, segments, or Regional opportunities that you might uh, choose to lean into, uh, in a scenario like that? Thank you.
We really do believe in the future where they.
Yeah, thanks Robert. Um,
It can be bought and sold programmatically.
And it strained environment.
Yeah. Uh, on the first 1, you know, uh, uh,
It will be and then it will be biddable end.
if you go back 2 years ago, um,
It'll be performing for the advertiser and it'll be the best ROI for the publisher.
And I think every quarter marching closer to that world.
As it relates to Google.
The question was are there other opportunities that would be opened up and.
Thank you.
It's quite possible, but I really do believe that.
If all we do is stick to our knitting and there's a share shift of what we do today from their 60% and our.
High single digits.
That will keep us fine for a number of.
Quarters before we have to look at.
There's cases, where we could pick up additional revenue.
Got it thank you very much.
you know, it was definitely the belief in the marketplace that upfronts were kind of the enemy of programmatic that, uh, if, uh, marketers are committing upfront dollars. And that necessarily means it's direct sold by the, uh, publisher. And, therefore, it's out of the hands of programmatic. And if you fast forward, um, you go to any agency, any, uh, media companies, upfront presentation, um, they lead with programmatic capabilities. Um, so it, it's definitely getting their buyers want it, uh, sellers, uh, uh, want it as well. Um, it's just that there's, you know, uh, broadcast TV has been sold for, you know, well over 70 years and, um, it's, uh, there's a way of doing it at the industry setup to do that. And, um, you know, there's obviously some hesitancy uh, to lean 100% in hesitancy to play with biddable because hey, you know, upfront.
The next question.
Go ahead.
Yes, hi, good afternoon. Thanks for taking my question I was just curious.
AI capabilities here to help me on your own platforms can you just speak to specifically the yellow.
Talking about maybe if you can kind of use cases, you can drive on that whether it be efficiency our incremental revenue.
Yes. So in that particular instance, what we cited was the ability to crawl through content video content.
Primarily on the CTV platform and it really is amazing and it really does hold back spend how difficult. It is.
To find.
Consistent labeling of video.
Especially in libraries.
So part of the challenge has been if I want to be in a certain environment and a video show.
Up front. Um, biddable might be better. It might not be better, but little by little, the guys are doing it. And you see guys like Hulu that have been at it for longer than anyone and how advanced that they become. And, you know, new entrance that come into the, uh, uh, industry, whether it's Amazon or Netflix that are just, you know, more technology focused and, and, and programmatic first Focus. So I think that, uh, you know, you're seeing an acceleration in, um, you know, we really do believe in the future where if it can be bought and sold programmatically, uh, in a streamed environment, um, it will be and it will be biddable and, um, it'll be Perform It For The Advertiser and it'll be the best Roi for, uh, the publisher. Um, and I think we're every quarter marching uh, closer to that World. Um,
Hobbling that together.
Drew.
No.
Mechanical ways of looking at taxonomies taxonomies or different between our different media companies.
you know, as it relates to uh Google uh the question was, are there other opportunities that would be opened up and um you know I think that
So if you can.
Build this.
Agent that can despite all the content.
And pick up the signals that you are looking for and you can craft and create your own segments on the fly in real time, it saves a ton of time.
For discovery, and obviously, you're now getting a bigger targeting targeted audience, which will lead to more revenue spent on the platform. So super excited about that particular use of the <unk>, but there'll be many many more that we'll be able to tack on to that.
Believe that um, if all we do is stick to our knitting and there's a share shift of what we do today from their 60% in our you know High single digits um that that will keep us fine for for a number of a quarters. Uh before we have to look at um edge cases where we could pick up additional Revenue,
Got it. Thank you very much.
Great. Thanks for taking my questions and best of luck for the rest of the quarter.
Thanks, so much.
Hi, good afternoon. Uh thanks for taking my questions. Um I I was just curious about some of these AI capabilities here to develop me on your own platform. Can you just speak to specifically the llm? You were, you were talking about and kind of use cases, you could drive on on that product, whether it be efficiency or, or incremental Revenue,
That's right.
Yes.
Capital markets go ahead please.
Hey, guys. Thanks for taking my question and congrats on.
In regards to M&A are there any areas of the technology platform that are of particular interest.
Yes, Great question I think you know our stance on M&A hasn't really changed much in the last year and a half and that is we really truly believe we have all the assets that we need that our success can come organically.
Uh, yeah. So, in that particular instance, what we cited was the ability, um, to crawl through, uh, content, uh, video content, uh, uh, primarily on the CTV platform and it's it really is amazing. And it really does, uh, hold back, spend how difficult it is, um, to uh, find um, consistent labeling of video uh, even especially in libraries. Uh, and so part of the challenge has been if I want to be in a certain environment in a video show uh hobbling that together.
Together.
That said like any technology company, we have a roadmap that is far greater than what we can actually execute on it in any given quarter. So if we were able to come across an opportunity where we can advance that roadmap through.
Through acquisition, it's something we would definitely entertain but two to size that think aqua hire not swing for the fence huge.
Purchased again, we went through that phase very happy we went through that phase, but very happy we're not in that phase any longer. So I think thats, what you should expect from us from an M&A standpoint.
Awesome. Thank you that's it for me and congrats again.
Thanks, so much thank you.
This concludes our question.
I would now like.
Through, uh, you know, uh, mechanical ways of like, looking at taxonomies, the taxonomies are different between, uh, uh, uh, different media companies. Uh, so if you can build this uh, uh agent that can uh, Spider, all the content, um, and uh, pick up the signals that you're looking for and you can craft and create your own segments on the fly in real time, it saves a ton of time. Uh, for Discovery and obviously uh you're now getting a bigger targeting a targetable audience which will lead to more Revenue, spent on the platform. So, super excited about that particular use of the llm, but there'll be many, many more that will be able to uh, tack on to that.
Mark.
Great. Thanks for taking my questions and uh, best of luck with the rest of the quarter.
Thank you operator.
Thanks so much.
And thank you all for joining us and your support we feel very good about accelerating growth trends in the back half of the year aided this year in next by the numerous new and expanding partnerships. We're also excited about our D V plus opportunity as we look forward to the judge's ruling on remedies in the Google trial.
Go ahead.
I'll turn it back over to Nick to cover our upcoming marketing events. Nick Thanks, Michael We look forward to seeing many of you at our upcoming events coming up Evercore virtual at Drs Tomorrow. He bank's conference in Park City is on August 11th and 12th Cannon balls Virtual TMT conference on the 13th Rosenblatts Virtual technology summit on the 18th.
Hey guys thanks for taking my question and congrats uh in regards to m&a. Uh are there any areas of the technology platform that are of particular interest?
B Riley meetings in La and San Diego, and the 19th and 20th Wells Fargo meetings in Baltimore and Philadelphia on the 26 from 2007.
Bofa in New York on September 3rd Benchmark and city on September 4th B Riley Conference in New York on September 10th World Conference in San Francisco on September 10th, Yes, we will be in both cities at both times with different teams Lake Street Conference in New York on September 11th Craig Hallum meetings in Milwaukee, and Chicago in September 17th and 18th Stephens meetings in Houston.
On September 20 <unk>.
Frozen bought meetings in Dallas, and Atlanta on September 23rd and 24th in Redburn meetings in Denver on the 30th Thank you and have a great evening.
Uh yeah, great question. I I think, you know, our stance on m&a, hasn't really, uh, changed much in the last year and a half and that is we really truly believe. We have all the assets that we need that. Our success can come organically, um, that said like any uh technology company. We have a roadmap that is uh far greater than what we can actually execute on at any given quarter. So if we were able to come across an opportunity where we could advance that road map, uh, through acquisition, it's something we would definitely entertain but to, to size that think Aqua higher not to swing for the fence huge. Um, purchase again, we went through that phase. Very happy, we went through that phase but very happy, we're not in that phase any longer. So I I think that's what you should expect from us from an m&a standpoint.
The conference has now concluded.
Thank you.
Awesome, thank you. Uh, that's it for me and congrats again.
Great.
Okay.
Thanks much. Thank you.
I would.
Thank you, operator. Uh, and thank you all for joining us and for your support. We feel very good about accelerating growth trends in the back half of the year 2023 and next year, driven by the numerous new and expanding partnerships. We're also excited about our DV+ opportunity as we look forward to the judge's ruling on remedies in the Google trial.
BFA in New York on September 3rd, benchmarking City on September 4th B. Riley's conference in New York on September 10th wolf conference in San Francisco, on September 10th. Yes, we will be in both cities at both times of different teams Lake Street conference in New York on September 11th. Craig Hall, meetings in Milwaukee in Chicago, on September 17th at 18, Stevens, meetings in Houston on September 22nd
Frozen bot meetings in Dallas in Atlanta on September 23rd and 24th in redbourn meetings in Denver on the 30th. Thank you and have a great evening.
Conference.
Thank you for attending today.
oh,
Birthday and welcome to the magnite.
Q2 2025 earnings conference call.
All participants will be in listen-only mode.
Should you need assistance please signal a conference specialist by pressing the star key followed by zero.
After today's presentation, there will be an opportunity to ask questions.
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Please note this event is being recorded.
I would now like to turn the conference over to Nick cormell an investor relations. Please go ahead.
Thank you, operator and good afternoon everyone. Welcome to magnite second quarter 2025 earnings conference call. As a reminder, this conference is being recorded joining me on the call. Today are Michael Barrett CEO and David day our CFO. I would like to point out that we have posted financial highlights slides on our investor relations website. To accompany today's presentation,
Before we get started, I will remind you that our prepared remarks and answers to questions will include information that might be considered to be forward-looking statements, including but not limited to statements concerning our anticipated financial performance and strategic objectives, including the potential impacts of macroeconomic factors on our business. These statements are not guarantees of future performance; they reflect our current views with respect to future events and are based on assumptions and estimates. They are subject to known and unknown risks and uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from the expectations or results projected or implied by forward-looking statements. A discussion of these and other risks, uncertainties, and assumptions is set forth in the company's periodic reports filed with the SEC, including our first and second quarter 2025 quarterly reports on Form 10-Q and our 2024 annual report on Form 10-K. We undertake no obligation to update forward-looking statements or relevant risks.
Or commentary today will include non-gaap Financial measures including contribution x-tac or less traffic, acquisition costs adjusted, Evita and non-gaap income per share, reconciliations between gaap and non-gaap metrics for a reported results can be found in our earnings, press release and then the financial highlights deck that is posted on our investor relations website.
At times, in response to your questions, we may offer additional metrics to provide greater insights into the dynamics of our business. Please be advised that this additional detail may be one-time in nature, and we may or may not provide an update on the future of these metrics. I encourage you to visit our investor relations website to access our press release financial highlights, periodic SEC reports, and the webcast replay of today’s call to learn more about Magnite. I will now turn the call over to Michael. Please go ahead, Michael.
Thank you, Nick.
C2 came in strong and we exceeded total tap line. Guidance with CTV contribution, X Tac growing 14% or 15% excluding political and DV plus growing 8%. Adjusted ibida also came in significantly above expectations at 54 million growing 22% with a margin of 34% versus 30% in Q2 last year.
Our CTV business continued to produce strong results, driven by new and expanding partnerships.
Positive SMB Trends growth and agency, marketplaces and programmatic growth in live sports. Let's go 1 by 1 starting with the industry's largest streamers where we continue to deepen our relationships. Our most significant growth came from Roku Netflix, LG Warner Brothers Discovery and Paramount this corner.
Warner Brothers, Discovery announced their Neo platform during the upfront and Q2, this is a new programmatic ad platform. That allows CTV buyers direct access to wbds entire premium video inventory through 1 simplified and intuitive user interface. The programmatic component is powered by magnet.
The segment of the market has been unlocked by a number of critical factors the technology to run programmatically has matured and been implemented by the largest Publishers, inventory is scaled and cpms have normalized to drive higher return on ad spend.
Additionally AI is dramatically reduced ad, creative production costs and targeting. Ease all making CTV become a desired and high-performing Channel delivering strong results for digital first. Advertisers
We are very pleased to see an SMB focused, DSP partner Mountain, go public this quarter.
Which further shows that the entry is c, c smbs into CTV is very real.
We see the SMB segment exploding over the next 3 to 5 years through newer. Specialized dsps like TV scientific Vibes streamer and more and they'll all need access to premium. CTV Supply through an integrated ad server and SST,
That's exactly where a magnet is positioned to lead with its spring serve product.
We continue to deepen, our Partnerships with the largest agency hold codes. As we recently announced another buyer marketplace with densu in Amia. This continues to show our unique strengths with agencies who can leverage our end-to-end technology to create curated packages of, CTV inventory to drive greater returns for their clients.
Next, I'll talk about live sports.
You've heard me say that we are in the early days and that remains true. However, each year, we cycle of sports season, programmatic grows as an effective go-to Market tool to sell more inventory.
I would position this as a growth opportunity. That is great promise with most of the leading players choosing magnite due to our unparalleled Tech and continued commitment to invest in this area.
Our newly announced deal with FanDuel Sports Network, who produces over 3,000 live sporting events year round. In local markets is yet. Another example of a partner who chose magnate and is already operating at scale.
On the CTV. Technology front. We moved to General availability. For our combined. CTV platform with streaming and AD serving now. Branded as spring serve. As a reminder, this is a unique combination of our ad server and streaming platform, that truly gives us a competitive advantage while improving our internal operating efficiency.
now, to DV, Plus
DV plus contribution, x-tac was up 8%, this quarter driven mostly by new product functionality and also by early contributions from Recently announced partners.
Additional publisher launches that are expected to start or ramp this year include Spotify, T-Mobile and Redfin.
We're also seeing share gains in TV plus from some of the largest dsps.
We have also seen significant success in the Commerce media space. Our expanded partner list now includes Western Union, PayPal and connected media by United Airlines as well as recently announced Remax.
We will be monetizing. Remax is on site digital inventory and activating their home buyer. Via our curation tools, look for Commerce media to be a continued growth area for magnetite.
On the on the DSP side magnetite continues to benefit from Supply path optimization.
Dsps are rapidly. Consolidating their spend to a handful of platforms platforms that can provide access to all types of programmatic media in a safe and transparent environment.
Magnet is uniquely positioned to capitalize on this Bank consolidation.
A great example of this is our growing partnership with Amazon both as a DSP and a publisher we've mentioned before that magnet is 1 of the only is 1 of only 3 platforms approved for Amazon DSP spend which has resulted in significant growth.
As a publisher we are thrilled, they chose us to help monetize their own inventory on their fire platform.
We believe this is a strong indication of how important magnet is to generating demand in the CTV ecosystem.
We're pleased to report continued growth in our curator product, our curator Marketplace enables Global holding companies data providers. And specialized curators whether focused on contextual targeting, optimization or Advanced creative execution, to operate, and scale. Their businesses seamlessly on our platform across all inventory, types and screens,
With the vast majority transaction across multiple formats, including CTV, display and online video.
This momentum underscores the market demand for sophisticated curation tools that live on the supply side.
Shifting to an update on AI, we continue to develop and embed AI capabilities as a core product focus.
I'll provide an update on some of the capabilities. We highlighted on our previous call, as well as some new offerings.
First, we expanded our neural net and machine Learning Systems to shape the outbound connections to our CTV. Buyers our industry-leading traffic shaping sends the most relevant available Supply to bandwidth, constrained dsps, allowing them to more efficiently, discover inventory and increase their spend on our platform.
Second, our AI powered audience, Discovery feature within our curator Marketplace tool is expanding to incorporate third-party data. In addition to our proprietary segments, making it even easier for users to identify high-value audiences aligned with their campaign adjective objectives.
And third, we're in the process of launching an llm that uses AI to automatically. Categorize CTV inventory into contextual segments.
Making it more addressable in driving increased campaign, reach and monetization compared to current manual categorization methods.
We're very excited with the progress we made in incorporating AI into our technology, and we'll continue to roll out AI agents and automated authorization as core components of our product roadmap.
The last topic I want to briefly cover is the antitrust ruling against Google in the doj case.
Which we believe will likely change the entire landscape of the open internet and drive significant upside for our DV plus business.
As a reminder.
The court found that Google had engaged in a legal monopolistic practices with respect to its ad server in ad exchange, also known as an SSP.
It's clear that for years. Google has been engaging in illegal practices that resulted in an unfair auction within its ad server.
Which disproportionately drove volume through its SSP at the expense of rival, ssps like magnite.
The court also found that Google had illegally leveraged, their control of advertising, demand to artificially prop up their own ad exchange, and prevent Publishers from freely, choosing, what ssps or add server to work with.
We are highly encouraged by the Court's ruling and believe that it will drive beneficial changes to the open internet, resulting in a more fair and transparent process that yields greater returns for publishers and advertisers.
We remain focused on preparing our business for potential outcomes of the remedy phase, which is set to commence on September 22nd.
In their initial filings. The doj is seeking both structural and behavioral remedies on the structural side, they are seeking a divestiture of both Google's SSP and add server.
On the behavioral side, they have proposed a series of remedies to address Google's unfair auction practices, as well as prohibitions on preferential routing of advertising demand or tying demand access to publishers' use of Google supply-side products.
Well, I was specific timing in nature of the remedies remain uncertain and Google is already indicated in intent to peel the decision. We believe any remedy that results in a More Level Playing Field will be highly beneficial for our business and significantly improve our opportunity to monetize Publishers, inventory, and correspondingly increase, our win rate
It's very possible that market share could begin to shift away from Google as soon as early 2026.
As there have been indications, that behavioral remedies will be implemented even during an appeals process.
We estimate Google's exchange. Currently controls close to 60% share in the DB Plus Market.
As the second largest player in the space with share only in the mid single digits and given our leading technology in deep publisher relationships. We believe that we are exceptionally well positioned to capture any shift in market. Share that occurs as a result of Google seizing, its illegal practices without any meaningful changes to our existing cost structure.
It could result in 50 million of additional contribution xstack on an annualized basis.
One last thing to note: while the Court's findings are focused on equitable remedies going forward, any civil damages that we could potentially realize would require us to file a separate action.
Which we believe has significant Merit.
Before turning the call over to David, I want to point out that even with some lingering tariff pressures. We are expecting to see second half 2025, growth rates accelerate, especially when looking at CTV ex-political.
We also intend to continue to invest in our live TV, clear line and curation offerings. As we believe these represent a very attractive growth area where we can increase our market share.
With that, I'll turn the call over to David for more details on the financials.
Thanks Michael.
As Michael mentioned we had strong Revenue growth in Q2 as macro downsides were not as pronounced as initially feared.
We saw a stronger than market growth in Divi plus due to several product enhancements and momentum from a number of recent deals. We signed
Adjusted. I was also significantly above guidance growing 22% over the second quarter of last year with a margin of 34% compared to 30% last year.
We're very pleased with these results and in particular the continued, strong growth in DD Plus
While some tariff related pressures persist, the overall ad spend environment, appears less volatile.
Given our current View. And assuming that this level of stability continues, we are reinstating our expectations for full year results, which I will cover in more detail later in my remarks.
All revenue for Q2 was 173 million up 6% from Q2 of 2024?
Contribution X Tac was 162 million up to 10% exceeding, the high end of our guidance range.
CTV contribution X Tac was 72 million up 14% year-over-year or 15%, excluding political, and at the top end of our guidance range,
TV plus contribution. Next Tac was 90 million and increase of 8% from the second quarter last year. And about the top end of our guidance range,
Our contribution x-tac mix for Q2 was 44%, CTV, 39% mobile and 17% desktop.
From a vertical perspective, technology, health and fitness, and financial were the strongest performing categories, while auto was the weakest.
Total operating expenses which includes cost of Revenue. We're 151 million a decrease from 153 million for the same period last year.
Adjusted. Eva operating expenses for the second quarter was 108 million better than we expected and an increase from 102 million in the same period last year.
The majority of the favorability in our guidance was driven by lower cloud computing costs and other employee-related expenses.
as we've discussed our technology, team continues to make strong progress in reducing per unit, Cloud costs,
Allowing us to manage significant increases in ad request volumes with only modest cost increases.
Improving scale and operational efficiency remains 1 of our top priorities for 2025 and I'm very pleased with the progress. Our Tech team is delivering
The majority of our 2025 Capital expenditures will be used to support our hybrid infrastructure strategy as we shift additional functions from the cloud to on premises.
We expect these initiatives to drive meaningful margin expansion in 2026 and beyond, and we're seeing some early benefits now.
Our net income was $11 million for the quarter, compared to a net loss of $1 million for the second quarter of 2024.
As highlighted my intro adjusted Eva dog re 22% year-over-year to 54 million reflecting a margin of 34% which compares to 45 million in a margin of 30% last year.
This was a result of both higher revenue and disciplined investment and cost management efforts.
As a reminder, we calculate adjusted EV down margin as a percentage of contribution x-tac.
Gap. Earnings per diluted share was 8 cents for the second quarter of 2025 compared to a loss of 1 cent for the second quarter of 2024.
Non-gaap earnings per share for the second quarter of 2025 was 20 cents compared to 14 cents last year.
YouTube results, press release.
Our cash balance at the end of Q2 was $426 million. The slight decrease from $430 million at the end of the first quarter was due primarily to small timing differences in working capital flows.
Operating cash flow, which we define as adjusted EBITDA less capex, was $34 million.
Capital expenditures, which include both purchases of property and equipment as well as capitalized internal use software development costs, were $20 million.
Added to expense for the quarter was $5 million.
Net leverage was 6X at the end of Q2. No. Change from the end of the first quarter.
as a reminder, the 205 million principal amount of our convertible notes is now classified as a current liability on the balance sheet as the notes mature in March of 2026,
We intend to pay off the converts with cash at maturity and have ample liquidity to do so.
During the quarter, we repurchased or withheld over 800,000 shares for approximately $11 million.
As of today, we have 88 million remaining in our authorized share repurchase program, which we will continue to deploy opportunistically.
I'll now share our thoughts about the third quarter and outlook for the full year.
While the macro appears to stabilize somewhat, we remain cautious with our Q3 and full year expectations.
Given the concentration of political spend in the third, and fourth quarters last year.
We will also provide our Guidance with both with and without political contribution x-tac to show underlying business performance for the third quarter. We expect contribution x-tac to be in the range of 161 to 165 million, which is 9% growth of the midpoint and 13% when excluding political contribution, x-tac attributable to CTV to be in the range of 71 to 73 million
Which is nearly 12% growth of the midpoint. But over 18% growth when excluding political contribution X, attributable to DB, plus to be in the range of $90 million to $92 million.
which is 7% growth of the midpoint and 10% when excluding political
and we anticipate adjusted Eva operating expenses to be between 109 and 111 million.
For the full year, we anticipate total contribution next tax growth above 10% or in the mid-teens, excluding political.
Adjusted Eva to grow in the mid teens.
And we're increasing our adjusted. Eva down margin expansion. Guidance to, at least 150 basis points from 100 basis points, previously,
And free cash flow to grow High, Teens to 20%.
In addition, we expect total capex to be approximately $60 million for the year. Although we continue to opportunistically evaluate an acceleration of incremental capex investment as we transition to on-prem.
We're pleased with our second quarter results with our continued execution on strategic initiatives. And we're confident in our ability to successfully navigate through the current environment.
I'm also pleased with the progress our team continues to make in our tech stack cost and efficiency efforts, which will help expand margins and support investments in growth areas.
With that, let's open the line for Q&A.
We will now begin.
Star then 1 on your touchtone phone.
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If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Sean Patel of susco, Hannah. Go ahead, please.
Hey guys, uh, congrats on the great quarter and outlook.
I I had a couple of questions. Um, first 1 uh, you guys have had a lot of exciting new Partnerships and customer wins over the past few quarters. And it really seems like your positioning in the market, um, is being validated pretty strongly if not inflecting upward. Um, maybe Michael can, can you talk about this and just the broader momentum, you're seeing and then my my second question.
Base case on what happens and the kind of benefit to Magnite, and then you talked about civil damages, and just kind of curious what that could look like as well. Thank you, guys.
Uh yeah, good question. Um, so yeah, we have posted up a number of exciting wins uh, and really, you know, thrilled with the traction in the marketplace. I, I think if you broadly look at them, particularly the ones, um, on the CTV side, but not just, uh, uh, related to CTV you're seeing a trend where, uh, folks are utilizing pieces of our, uh, product stack.
Um, to help build their programmatic businesses on and just kind of modular approach that we can approach the marketplace is quite unique and it's not just a 1 size, fits all, uh, approach. And so, I think what we're finding is, uh, success in that approach success in the Investments that we made in our product, the Acquisitions that we've made, and we find ourselves in, you know, relatively rarefied air where, um, the competitive set is, is, is quite lean at that point. And, um, I would expect to see more continued success in that area, um, you know, as it relates to Google it, it's it's kind of difficult to Crystal Ball. It just given the fact that, um, the remedies um, are out there but haven't been ruled by the judge. Um, and so I would imagine that, that junk
sure, uh, when the remedies are put forth, uh, we'll probably have a
Stronger opinion as to what it might look like, and as it relates to any possible litigation in the civil action. I just...
We'll stick with the, uh, verbiage that we used in the script, and that is, we're looking at it and we think there's a lot of merit there.
Great. Thank you guys.
The next question comes from.
Could you help of wolf research? Go ahead please.
This is Ken offi, thank you for taking my question.
Just 1 from me. What is driving? The reiteration of the prior god-given the race in Q3 thank you.
Yeah, I'll take that. Um,
Yeah, I think, you know, it's interesting, uh, you know, after our last earnings call, um, as we went through May and June. I think the overall ad spend market, you know, was sort of moderate soft to moderate, but it was much more, at least, stable than what we had feared. So, I think, you know, we kind of had bigger fears, um, throughout that quarter. And there's a, even though the ad spend market isn't.
Um, robust at this point of time, it's become become much more stable. And so that's given us, uh, Comfort to re reiterate or to put back into place our perspective for the, for the full year. Uh, we're also super excited about, um, you know, of course, the, the growth, uh, in CTV, you can see some of the acceleration and we, you know, we gave some numbers to to back out, uh, you know, political so you can see the, the kind of organic growth, uh, and and, and acceleration in that business. But we're particularly happy with with the Divi plus business. We were initially more, you know, concerned that that, that business could be more volatile, um, and with potentially more downside, uh, but the team, you know, has really done a, a fantastic job. We've got some new product releases. We're getting some some more momentum on some of our recent deals. And so there's, there's actually more strength. Uh, I think in that DV plus then we even anticipated
It, and so, um, a combination of all those factors, uh, helped us to feel comfortable that we could, uh, kind of get something out there, uh, for the full year again, assuming that this current environment, you know, kind of continues the way that it's going right now.
Thank you very much. That's my only question.
Thanks. Thanks.
Our next question comes from.
carros of
please.
Or not, they should be allowed to put their crawler and their AI on one, uh, consolidated platform. But how do you guys think about the development of injecting in the marketplace and your ability to continue to monetize and DB? Plus, if that becomes an increasing source of traffic and usage from consumers? Uh, and then, um, you spent a good amount of time talking about live sports, uh, Michael, and I appreciate that. I guess we've got ESPN, DC, we got Fox Dynasty, and Peacock just had an absolute killer upfront. And so, how should we think about the contribution this year from live sports? Because it's almost all being done programmatically now, like the, or at least the newer offerings. Um, so just to help us think through, uh, potential, you know, even as early as this year from that, uh, from that platform. Thank you.
Yeah thanks for the question is Dan. Um yeah so AI is definitely, you know, the uh agentic chat uh um tools that the consumers are using business are using. There's no question that uh search referral traffic has gone down uh for our clients that uh you know, primarily browse your based websites. Um, it's important to note in in David gave the mix before and his part of the script. Um, our business is pretty well Diversified. Um, we have a lot of mobile app Business. Um obviously CTV is an impacted uh by this um Direct
Uh, protection there for them in terms of their future prospects for the business. And lastly, um, you know, we do work with a broad swath of top publishers, um, produce an awful lot of ad inventory. You know, we'll process plus a trillion and a half ad requests today. I'd love to say we'd fill every one of those requests, but obviously, we don't. Um, and therefore, even if there was some deterioration in terms of traffic, which led to less ads going to auction, um, it probably just kind of increases our win rate as a percentage of the traffic that we bring.
Also, it probably lowers our processing costs. Um, we haven't seen budget shifts. We haven't seen buyers, uh, shy away from the open web. And so, I think, uh, we feel pretty good about where we stand today. Lastly, it's pure conjecture, but, you know, I don't think every one of these popular, uh, chat agents is going to be able to stand.
Up and down business. The size of Google's, you know, every one of them hiring 5,000 to 7,000 salespeople. The technology involved in it, they'll obviously have to have an ad play, and I fully anticipate that we'll be able to play in that game as them as publishers and us as sources of demand. So it could be newfound publishers for us.
And as for last Sports, yeah, it it is early in in look at its super encouraging that, um, the sports rights are being won by streamers, uh, consumers have cut cord and they voted. That streaming is the way to go. Um, the FanDuel is an insignificant. As, you know, they have a huge Regional Sports Network, um, in baseball and, uh, we are participating in that as we speak. And so, I think that
Um, you know we'll be able to dimensionalize the numbers in the not too distant future, but it's still pretty early days in terms of contribution.
Thank you, Michael.
Thanks man.
The next question comes from Jason Cryer of Craig Callum. Go ahead, please.
Great. Thank you, guys. Uh, so I have a question on the DV+ side. You've seen some really interesting engagements with platform companies, um, X earlier this year, Pinterest last quarter—companies that have historically filled ad slots internally. So, just curious, you know, what is happening on that front and why is Magnite finally getting a seat at the table where you haven't before? And do you think this trend will continue to other platforms?
Yeah, great question, Jason. I mean, from our observation, I think one of the things that, uh...
That own platforms like that, that maybe we're trying to run a kind of a walled garden approach and that only demand sourced by their direct teams or any self-served tools that they would have, which is the only demand that could come. And I think there's just a, to kind of revelations. Number 1, you're severely under-monetizing your inventory if you're not plugging in third-party demand. And I think folks, uh, some folks have learned it the hard way. And the second is, there's less and less of, uh, a desire among the advertising community to kind of do these direct kind of, uh,
Historically, uh, high cogs way of interacting with, um, sales folks. And so I think programmatic is definitely, um, desired by, uh, agencies and desired by marketers. Uh, and, you know, they have gotten very comfortable working with a handful of partners. Thankfully, Magnite's one of them. So when folks do go to open up and they talk to their agency partners and their marketers, they tell them, well, most of our business runs on Magnite, and so it kind of puts us in a position, a pole position to be their inaugural partner as they open up. Uh, and, uh, yeah, we're thrilled with the, uh, announcements we made in. Uh, it would, uh, completely expect more announcements to come.
And then just a quick follow-up. So, Netflix has fully rolled out the Netflix ad suite. Just curious, you know, as you're integrated in that, how that process has gone for Magnite, and if there's been any incremental visibility into what your role looks like.
Uh, yeah. You know, it continues to be an incredible partnership. Uh, we're thrilled to be, uh, a part of their story, um, as besides in the fact that it is their story. So we, um, just reiterate the things that they've talked about, and you're right about the rollout and our participation in that rollout. You know, we maintain what we said all along: that they're a very important revenue client for us. As we exit the year, we, uh, feel comfortable in saying that they could be one of our biggest clients on a run-rate basis.
I appreciate that. Thanks Michael.
Thanks s.
The next question.
Crockett of Rosa. Go ahead, please.
Okay, great. Thanks for taking the question. I wanted to probe a little bit more into some of the antitrust commentary.
Um, you know, which obviously holds out, um,
Transformational kind of opportunity for you guys.
Um, which makes the commentary about 2026 kind of interesting?
Um, the idea that behavioral remedies could be implemented while an appeal is outstanding, um, what is your basis for suggesting that? Is that some commentary from the judge or some interpretation of legal precedent? You know, what is your basis for thinking that that could, in fact, happen and we could, in fact, begin to see this next year?
Barton is lucky. Would have it, I have our general counsel in the room, and Aaron is going to answer that for you.
Great.
Everyone, yeah, I would say that in a case like this, where the court has found that there are legal practices that need to be rectified, if there were remedies put in place now, pending an appeal, there's no reason why a court wouldn't want those remedies to take place as soon as possible to remedy the illegal conduct, notwithstanding the appeal. But that being said, there's obviously a lot of unknowns here as well. So we're, like everyone else, anxiously awaiting the decision. But I think that based on the guidance we've received, there's a very realistic possibility that the behavioral remedies would be in place during the stay of an appeal.
Okay. So, you've received some guidance that supports this.
Uh, okay. And then in terms of, uh, just on the legal front since we have the attorney here, you know, the idea of looking at the merit of civil litigation for the damages that you guys have suffered.
Um, what would be kind of the ideal timing to think about that, knowing that Guinness already filed and knowing that there could be a statute of limitations?
Um, and you know, and yet there's some benefit to having, uh, violations found by the DOJ. So
What would be your sense of what would be kind of the sweet spot in terms of timing? If one were to pursue something like this.
You know, we're obviously considering all our options, and we do think there's a lot of merit. As you've mentioned, there have been other participants that have already filed suits, and we're clearly aware of that in honoring it.
Okay, all right. And then, you know, if I could switch a little bit to kind of related issues, so...
DV Plus has been trending positively, while the network business, as reported by Google, has been negative.
Do you think those two things are related, and are we already beginning to see some of the benefits of DV+?
The market is digesting, um, the issues that Google.
Yeah.
I I I I think there uh not correlated I uh this has come from a lot of as as you know, or relatively new to the story but uh, DV plus has been uh, a a journey for us and, um, I just couldn't be more proud of the team behind it, and, you know, it it is a whack-a-mole business. It is, uh, a thousand things that your checklist and then you go to the next checklist and it's a thousand, and it's the little things that matter. And I think our teams just operating at such a high level and the magnet story resonates in the marketplace. So I, I really do think that if there's share shift, it is in
Coming from Google, it's coming from our direct competitors.
Okay. All right, that's great. That's good for me. Thank you very much.
Thank you.
Go ahead, please.
Good morning. Um, congratulations on your numbers. I'd like to start with the Amazon comments. I was really intrigued by their Amazon comments because, like, your point, you both can sell their inventory and you can use their DSC to interact with you. Do you think over time, Amazon could be a bigger client than Netflix for you from a revenue point of view?
Oh hey Laura, it's Michael. Um, you know, great observation. Um, hard to hard to speculate. I, I would think that, um, that would be pretty far-fetched to think that anytime soon that it they would open up their owned and operated. Uh, so that it would equal, um, the Netflix opportunity. Um, but we are, you know, elated to be a partner, there's on both sides of the marketplace and um, it it's certainly a meaningful relationship.
Okay, um, that's helpful. And then on Mountain, I I I agree with you. I'm very excited about the opportunity for small and medium businesses coming to connect to television. I was, I thought it was interesting that you brought it up because I thought that mountain went direct and got direct ad units from Paramount and peacock and, and it sounds like from your comments that they
Um, they're a DSP that they're actually buying inventory from you. So can you just confirm that?
Yeah, and I can't speak for the entirety of their business. But for years now, they've been a classic DSP, running through Magnite to get access to CTV supply.
And you have to keep in mind, Laura, that you still owe me $5 on that bet. When I bet that small to medium-sized businesses would make up a big part of CTV, you said they wouldn't.
I was wrong.
I'm happy that you're
thank you.
Go ahead.
Great. Thank you. Um, David, maybe we could start on the outperformance that we've seen in the margins, especially on the sides. You're talking about kind of getting your public cloud and your on-prem data structure in order.
What about the margin Improvement? Do you think it's sustainable in terms of maybe like, studying kind of like a new, a new base rate? And is there anything about the outperformance this quarter year to date? That is more 1 time in nature. Thank you.
Yeah. Um,
Is um we are adding some modest investment on our engineering and sales teams and the latter half of the year to really focus on some of our High, um, opportunity areas, uh in you know, clear line, uh, curator live sports and so forth. And so, we'll still have some, you know, margin some of the of the gross, you know, margin benefits, um, will be offset by some of those other, uh, Investments and changes. But overall, uh, we're still early in this process. It's, you know, first or second inning, I think, um, in our opportunity on the tech stack costs and so there's a lot of work and Analysis going on right now. Um, you know, looking at potentially accelerating some, you know, some, some capex investment and other things. Uh, and we'll, you know, we're working through that and and, you know, we'll have a much better. Visibility is uh, we get further, uh, towards the end of this year.
Uh, that's really helpful. Um, and then Michael, maybe a high-level CTV question. I kind of think that, you know, 2021 is the timeline when SpotX came in, and it feels like so much of the way the markets developed is kind of the way that you or we all had hoped for, with everyone being that supported now. You guys are now partnered with, I think, 29 of the top 30 publishers using SMB. Spend coming in live sports switching over. Like, what do you think are the major?
um,
Limiting factors, or I guess choke points, in demand coming faster to CTV at this point.
Uh, yeah, great. Uh, question Matt, I think, uh, the one I put my finger on is um...
There's still.
Linear, uh, around. I mean, Corey, cutting continuously accelerate, but so the largest players in the streaming market are also the largest broadcasters, and therefore there's this balancing act of trying to feed, um, to males. Uh, and so it just isn't as pure swoosh coming over. Um, you know, go-to-market practices, uh, re, uh, kind of prohibit sometimes just buying streaming. Uh, you have to buy, uh, the programming across both platforms. Um, and I also think, you know, some of it's the industry's own fault in streaming, you know, measurements. Um, it remains to be a big challenge, right? Um, you're going through a upheaval right now with Nielsen's panel and the being able to tie the traditional measurement from linear to streaming is a challenge. Attribution is something that everyone's working on, but there has to be common standards. So,
You know, some of it is, you know, the poor brand manager. That's for years has spent money on uh, broadcast. Now, spending it on linear and asking the right questions like, well how impactful is it? Is it better? Is it worse? Is it the same? And um as an industry we've got to uh work we got to work harder at making that uh answer easy for uh folks to spend
thank you.
All right. Uh, thanks for taking our questions. Uh, 2. Please, uh, want to go back to Shams, uh, question on the partner roster and the strength there, maybe adjacent to that if you had to take a weighted average right now across the partner side in terms of where they are on programmatic, penetration for the percentage ending, however, you want to put it. Maybe if you could, you know, talk a little bit more about that. And um, what you think uh can unlock or accelerate more engagement from those partners with programmatic,
And then a second one, uh, in relation to the Google ad tech outcomes. Assuming we do get some, uh, meaningful remedies, equitable remedies that you put in, are there any other, uh, product opportunities, market segments, or regional opportunities that you might, uh, choose to lean into in a scenario like that? Thank you.
Yeah, and thanks Robert. Um,
Yeah, uh, on the first one, you know, uh, if you go back two years ago, um.
Definitely getting their buyers, want it? Uh, sellers, uh, uh, 1 as well. Um, it's just that there's, you know, uh, broadcast TV has been sold for, you know, well over 70 years and um, it's uh, there's a, a way of doing it at the industry set up to do that. And um, you know, there's obviously some hesitancy, uh, to lean 100% in hesitancy to play with biddable because hey, you know, upfront upfront. Um, biddable might be better, it might not be better, but little by little, the guys are doing it. And you see guys like Hulu that have been added for longer than anyone and how advanced that they become. And, you know, new entrance that come into the, uh, uh, industry, whether it's Amazon or Netflix that are just, you know, more technology focused and, and, and programmatic first Focus. So, I think that, uh, you know, you're seeing an acceleration in, um, you know, we really do believe in the future where if it can be bought and sold,
Programmatically, uh, in a streamed environment. Um, it will be and it will be biddable and, um, it'll be performant for the advertiser and it'll be the best Roi for uh, the publisher. Um, and I think we're every quarter marching uh, closer to that World. Um,
You know, as it relates to Google, the question was, are there other opportunities that would be opened up? And, you know, I think that...
There's it's it's quite possible but I I really do believe that. Um, if all we do is stick to our knitting and there's a share shift of what we do today from their 60% in our, you know, high high single digits um that that will keep us fine for for a number of quarters. Uh before we have to look at um edge cases where we could pick up additional Revenue,
Got it. Thank you very much.
Hi, good afternoon. Thanks for taking my questions. Um, I I was just curious about some of these AI capabilities here developing on your own platform. Can you just speak to a specifically, the llm? You were, you were talking about and kind of use cases, you could drive on, on that product, whether it be efficiency or, or incremental Revenue,
Uh, yeah. So, in that particular instance, what we cited was the ability, um, to crawl through, uh, content, uh, video content, uh, uh, primarily on the CTV platform and it's it really is amazing. And it really does, uh, hold back, spend how difficult it is, um, to, uh, find
Um, consistent labeling of video, especially in libraries. And so part of the challenge has been if I want to be in a certain environment in a video show, hobbling that together.
Through, uh, you know, uh, uh, mechanical ways of like, looking at taxonomies, the taxonomies are different between, uh, uh, uh, different media companies. Uh, so if you can build this, uh, uh, agent that can uh, spider all the content, um, and uh, pick up the signals that you're looking for and you can craft and create your own segments on the fly in real time, it saves a ton of uh, time uh, for discovery. And obviously, uh, you're now getting a bigger targetable audience, which will lead to more revenue spent on the platform. So, super excited about that particular use of the LLM, but there'll be many, many more that will be able to uh, tack on to that.
Great. Thanks for taking my questions, and best of luck with the rest of the quarter.
Thanks so much.
Hey, guys. Thanks for taking my question, and congrats! In regards to M&A, are there any areas of the technology platform that are of particular interest?
What we can actually execute on at any given quarter. So if we were able to come across an opportunity where we could advance that road map, uh, through acquisition, it's something we would definitely entertain but to to size that think Aqua higher not swing for the fence huge. Um uh purchase again we went through that phase. Very happy, we went through that phase but very happy, we're not in that phase any longer. So I I think that's what you should expect from us from an m&a standpoint.
Awesome. Thank you.
Thanks much. Thank you.
This concludes our question. I would now like
Thank you, operator. Uh, and thank you all for joining us and for your support. We feel very good about accelerating growth trends in the back half of the year, 2025, and next year due to the numerous new and expanding partnerships. We're also excited about our DV+ opportunity as we look forward to the judge's ruling on remedies in the Google trial.
I'll turn it back over to Nick to cover our upcoming marketing events. Nick, thanks, Michael. We look forward to seeing many of you at our upcoming events coming up, uh, ever core virtual ndr tomorrow, Ebanks conference in Park, Cities on August 11th, and 12th cannonballs virtual TMT conference on the 13th, Frozen blasts Virtual Technology Summit on the 18th B, Riley.
Meetings in LA and San Diego on the 19th and 20th. Well Fargo meetings in Baltimore and Philadelphia on the 26th and 27th. VA in New York on September 3rd, benchmarking City on September 4th, be Riley's conference in New York on September 10th, and Wolf Conference in San Francisco on September 10th. Yes, we will be in both cities at both times with different teams. Lake Street conference in New York on September 11th. Craig Hall meetings in Milwaukee and Chicago on September 17th and 18th. Stevens meetings in Houston on September 22nd.
Frozen bought meetings in Dallas and Atlanta on September 23rd and 24th, and in Redbourn meetings in Denver on the 30th. Thank you, and have a great evening.
The conference has now concluded.
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