Magnite, Inc.

Good day and welcome to the Magnite Q3 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. To ask a question, you may press star, then one, on a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Nick in Investor Relations. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to Magnite's Third Quarter 25 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 will remind you that our prepared remarks and answers to questions will include information that may be considered to be forward-looking statements, including but not limited to statements concerning our anticipated financial performance and strategic objectives, including the potential impact of macroeconomic factors on our business. These statements are not guaranteed for 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. 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 quarterly reports of 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 extract or less traffic acquisition costs, adjusted EBITDA, 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 our 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 deck, 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. Michael, please go ahead.

Thank you, Nick. Q3 came in strong, and we once again exceeded total top-line expectations, with CTV contribution ex-tac growing 18% and 25% excluding political. TV Plus continued to perform well, growing in line with expectations. Adjusted EBITDA was also strong at $57 million, beating expectations, resulting in a margin of 34%. Our performance in CTV was driven by growth with our largest publisher partners, significant traction with agency marketplaces, clear line adoption, positive SMB trends, and programmatic expansion in live sports. Our most significant growth came from the industry's largest players, including LG, NBCU, Netflix, Roku, Vizio, Walmart, and Warner Brothers Discovery. Regarding Netflix, we've supported the expansion of their ads business to all ad-supported markets. The pacing of the Netflix ramp has gone very well, and remain excited about our continued growth opportunity with them in 2026. Roku also continues to be a very fast-growing publisher with their Roku Exchange, where Magnite is the preferred programmatic partner. This quarter, in particular, demonstrated especially great momentum, where our partnership saw meaningful traction in sports and in attracting SMBs to their platform. We continue to explore areas for further expansion of our relationship to drive more revenue for them. Warner Brothers Discovery has also made great progress with its Neo platform launching in September. Neo, a new ad platform, will provide buyers direct access to Warner Brothers' entire premium video inventory through one simplified and intuitive user interface where Magnite is helping to power transactions. Clearline continues to gain momentum with over 30 clients, and we recently rolled out a number of key enhancements to the product. Earlier this year, we announced that native home screen units are available through Clearline. This update will enable buyers and curators to discover, package, and activate inventory in one platform with the most comprehensive access to differentiated supply, unique first-party data, and content signals. Finally, We also announced plans to integrate AI assistance and agentic workflows into Clearline, which will be powered in part by technology from our acquisition of streamer.ai, which we announced in September. As I've mentioned before, the CTV advertising opportunity for small and medium-sized businesses is enormous, but it's historically been bottlenecked by complexity and high costs. To address this, Streamr.ai gives small businesses the tools to create production-quality CTV commercials in minutes and in an extremely cost-efficient manner. We're licensing Streamr to large media owners, commerce players, agencies, DSPs, and other media buyers so they can help their S&B clients easily break into CTV advertising, and the response has been very positive. We've announced two client wins since the acquisition, ITV, which is the UK's largest commercial broadcaster, and Vault, which is part of DoorDash, with many more to come. We are seeing agencies becoming more active in their programmatic SPO efforts, and it's driving spend now. We have long supported agencies and have dedicated teams in place to support their growth in efforts in this area. As evidence of this acceleration, ad spend from top hold shows grew nearly 20% in Q3 year-over-year. A significant driver of our growth with agencies is from Magnite's powered buyer marketplaces. These private label marketplaces allow agencies to connect directly with publishers to develop curated pools of inventory that are enriched by proprietary data, are DSP agnostic, and maximize working media spend. Our combined CTV ad serving and SSP platform, SpringServe, continues to be a significant differentiator for us with publishers. As well as offering a leading ad server in CTV, SpringServe plays a crucial role as the mediation layer for publishers. In addition to supporting traditional DSP to SSP connections, our unique position enables us to provide a direct connection for buyers directly into the ad server. We just added Viant's direct access product to our list of direct integrations that include Amazon APS, Yahoo's Backstage, and Trade Desk's Open Path. Spring Serve also allows publishers to maximize their yield by unifying demand from these direct ad server integrations directly amongst buyers that connect through our SS page. Live sports continues to drive growth in our business, and we see tremendous potential in the future as programmatic adoption continues to escalate. We have seen new contributions, notably from Disney, of NFL and college football, as well as Major League Baseball and the WNBA. Our live stream accelerator product, which was specifically developed for live sports, is currently utilized by numerous partners globally. Leaders in this area are choosing Magnite because of our unique tech and continued commitment to invest in this area. On the DV Plus side of the business, Q3 contribution XTAC was up 7% or 10% excluding the impact of political last year. Our DV Plus business continues to benefit from ramping partners as well as new client wins. A notable update is that our partnership with Pinterest began to ramp in Q3. In particular, we've been really pleased with the progress of our commerce media offering as our roster of partners continues to grow. We've announced partnerships with Best Buy, REMAX, Western Union, PayPal, and Connective Media by United Airlines. Commerce entities are attracted to the unique technology Magnite provides. They each have some form of O&O inventory and leverage Magnite, DV+, or SpringServe tools for monetizing or ad serving. In addition, these entities possess valuable first-party data and are utilizing ClearLine to layer their first-party data on top of third-party supply for curation. The first-party data enriches the supply and allows commerce entities to package their media with data to extend their overall footprint. Our fastest growing format in TV Plus in the third quarter was audio. We are gaining traction in this area and see it as a significant opportunity in the future. Earlier this year, Spotify announced its new Spotify Ad Exchange, or SACS, and selected Magnite as its global programmatic partner. SACS has integrated SpringServe to power its omni-channel advertising across audio, video, and native display. ACAST, a leading podcast monetization platform, announced a partnership with Magnite during the third quarter as well. This strategic collaboration will make ACAST podcast inventory, which includes more than 140,000 podcasts and more than 1 billion listens quarterly, available to advertisers through Magnite's infrastructure. Turning to AI. We've delivered another quarter of progress and have an increasingly clear view of how agentic technologies will show up across the industry and in our products. In October, an industry association comprised of some of the industry's best regarded executives introduced the Ad Context Protocol, or ADCP, a proposed standard for how buy and sell side agents will transact. When you look into the structure, you see that the agents are designed to operate on top of the transactional infrastructure that exists today, much of which we built. As always, these transactions must be vetted, negotiated, processed, and cleared in a privacy-compliant manner, jobs we excel at. We envision the new world as one where sell-side assets in particular are going to be even more valuable. and especially magnets, with our strong publisher relationships, SPO partnerships, and leading technology. A key focus of our AI efforts involves the integration of the Model Context Protocol, or MCP, a generalized open standard that lets agents and LLMs connect to external systems and data. The AI business we recently acquired, Streamr, is built on MCP. and we've wired its foundation into Clearline, enabling partners like the aforementioned ITV and WOLT to generate CTV creative, receive campaign recommendations, and place buys. Clearline is the first of several Magnet products to integrate MCP. This work will enable agents that automate tedious tasks, such as setup and adjustment, to surface valuable insights and drive increased monetization while freeing partners valuable time. Beyond agents, we continue to strengthen the machine learning that powers many of our products and operations, improving optimization, raising win rates, and lowering unit costs. We're also applying AI across our internal operations, combining process redesigns with efficiency gains, and investing in the platform services and training our teams need to serve our growing partner list without meaningfully increasing headcount. Next, I want to provide an update on the Google Ad Tech trial. As you likely know, Judge Brinkema concluded a two-week trial on the remedies phase of the DOJ's case in early October. The post-trial briefing has recently been filed, and closing arguments are scheduled for November 17th. After that, it will likely take some time for Judge Brinkema to issue a final order outlining the remedies she'll put in place. At this stage, having found that Google had illegally engaged in a series of anti-competitive acts to establish monopolies in the ad exchange and ad server market. Both structural and behavioral remedies remain on the table. Structural referring to the forced divestiture of parts of their ad tech business, and behavioral being a set of rules and practices designed to rectify and prohibit Google's illegal anti-competitive conduct. We think there are merits to both types of remedies and have confidence that the court will reach the right outcome. The remedy hearings in September did not change our positive outlook about remedies. Ultimately, our point of view is that any decision that helps restore competition and eliminates Google's self-preferencing behavior will be a big win for the open internet as well as Magnite specifically. To that point, As we've said previously, every 1% of market share that shifts to Magnite as a result of these remedies could mean 50 million of additional contribution X-TAC on an annualized basis and at a very high 90% plus flow through margins. Needless to say, we're watching developments in this case very closely. On a related note, we recently announced that we had filed our own lawsuit against Google relating to its anti-competitive conduct. The suit, which seeks financial damages as well as other remedies, is a follow-on action to the DOJ litigation and builds on the allegations proved in that case. The complaint further details how Google's illegal conduct served to bribe Magnite and other independent players to the opportunity to compete fairly and grow their businesses while harming advertisers and publishers alike. We're at the early stages of the process, and we'll provide further updates on the litigation as it progresses. With that, I'll turn the call over to David for more detail on financials. David?