https://www.magnite.com/blog/why-magnite-is-acquiring-ctv-le…
This further bolsters their CTV offering in my view. Like it.
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In addition, they pre-reported some numbers. Organic growth 82M revenue, up from YoY 69% accelerating from last Q’s 62%.
Now for the good part. The previous quarter was 61M. That puts the QoQ organic revenue growth at 34%. Annualized, that’s 226% organic revenue growth!!
LOVE accelerating revenue. This is why its up 25% pre-hours.
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U have to add also that in general digital and internet advertising, CTV, OTT etc plays like Google, FB, Roku, PINS etc are showing great earnings, so there is definitely a hype at the moment on the market for all the related plays - look at Magnite, PUBM, even PERI. Partially, FUBO is in the same basket. Huge hype in these names at the moment, but fundamentals looks strong as well.
Long MGNI, PERI and FUBO 
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Yeah, forgot that point. Also, ROKU is in this CTV advertising space. Bodes well for their report on Thursday after the bell. My biggest position.
Long MGNI, FUBO, ROKU
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This is crazy!
MGNI is a 10-bagger for me already (initially bought sometime last Fall) and it’s now my #2 position behind CRWD. The vast majority of it is in call options, so you can imagine how juiced any share price appreciate may be.
Now for some attempt for me to think… $62mm reported revenue… accelerating. QoQ of 34%. Using a generous helping of hopefulness and guessing, I suppose MGNI could have a $500mm run rate by the end of 2021… which would give a forward PS of around 11.
Maybe my earlier post where I said MGNI could hit $80 this year might be conservative. Assuming the market craziness continues.
My call options expire in June. When that time approaches, I’ll have to decide to buy more shares (already have some) or buy later calls.
Overall portfolio is up over 30% YTD. Crazy… but it more than pays for that Model 3 I ordered yesterday…
Rob
Rule Breaker Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.
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Maybe my earlier post where I said MGNI could hit $80 this year might be conservative. Assuming the market craziness continues
Ha, when I saw the premarket price, I was recalling that comment from your writeup this morning and the same thought occurred to me! Stephens updated their target this morning to $66/share.
It’s been a while since I’ve had a true spiffy pop. Might get one today at least on my early November MGNI regular share purchases. (and more like a triple sp on my early calls)
Overall portfolio is up over 30% YTD. Crazy…
I, too, touched just over +30% YTD this morning, although it’s pulled back a little since then.
I really like Magnite’s move to keep expanding right now with an opportunistic acquisition at what is probably a reasonable valuation, before the expected rapid growth of programatic digital really kicks in over the next couple of years.
-mekong
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mekong, I just shared a truly insane thought on the Facebook Stock Advisors group.
Assuming that $500mm revenue run rate at end of 2021 and a revenue growth rate of ~70%… yeah, perhaps generous assumptions but who knows?.. a PS of 30 or so seems “reasonable” in this crazy world.
That implies a triple from TODAY’S price of ~$50.
And no, I am not taking any recreational drugs nor have I hit my head recently. Maybe it’s a brain tumor… 
Rob
Rule Breaker Home Fool & STMP/MTH Maintenance Coverage Fool
He is no fool who gives what he cannot keep to gain what he cannot lose.
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Now for the good part. The previous quarter was 61M. That puts the QoQ organic revenue growth at 34%. Annualized, that’s 226% organic revenue growth!!
That is not correct. They are projecting 20% pro forma basis. That would be their organic growth. WHat you are talking about is all their growth with all of the companies they have bought. Very different numbers. I think you really need to understand the terms correctly.
Andy
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CEO of MGNI discuss the Acquisition
https://www.adexchanger.com/ad-exchange-news/why-spotx-magni…
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Thanks for that correction. I also should have gone to the MGNI investor relations page for the information instead of relying on a Yahoo article. I know better than that.
Updated thoughts on it:
CTV is the fast growing segment and the reason I’m invested in MGNI. That grew on a 53% pro-forma (unknown combined what the growth in this segment would be).
They stated the combined revenue for CTV was 42M and 34% of total revenue.
This puts combined company revenue at 126M. Is that right? With 34% of it growing at hypergrowth levels (and I think will continue to accelerate).
Their CTV revenue without this purchase was 15M, SpotX adds 32M to it.
Before this purchase, the biggest risk I was seeing was that Disney+ was the biggest client they had by far. Sounds like this is lowering that risk and increasing exposure the their faster growing business. I like it!! CTV revenue is now over 2/3 of what last Q’s total revenue was.
From the investor relations release:
Together, Magnite and SpotX will serve some of the world’s leading programmers, broadcasters, platforms and device manufacturers, including A+E Networks, Crackle Plus, The CW Network, Discovery, Disney/Hulu, Electronic Arts, Fox Corporation, fuboTV, Microsoft, Newsy, Philo TV, Pluto TV, Roku, Samsung, Sling TV, Tubi, ViacomCBS, Vizio, Vudu, WarnerMedia and Xumo.
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I held only MGNI and OPEN in one account as that account was not as large as the others and that account is up 100% from January 1. Open has barely moved but MGNI has just gone on this huge ride. Unluckily I sold a portion to reduce some exposure as MGNI on Wednesday as total MGNI had climbed to over 30% of portfolio and as usual had to sell so close to a huge gain, seems like that is always constant where one sells and stock runs up after in a day or two, LOL.
Like Rob I hold calls as well in addition to my shares. Bought calls on the day the Spruce capital guys launched their short attack. Best decision ever, have over 300% gain on those in less than a month. Calls expire in June so will have to decide what to do. Hope the earnings call moves it higher so I can convert calls into shares.
In my other account I also have UPST and FUBO and between MGNI/UPST/FUBO has been an unbelievable ride . This account is up almost up 45% since Jan 1 and has been unbelievable to watch. I did not have ZM/PTON or the other superstars of last year so did not have the returns that the rest of the group had last year though I did end up with around 100%. Reading this board has spoilt us so much to think that earning 100% in one year is not a good return when in most cases it would be unheard of. Looking at Bear/GauchoRico/Saul et al from last year that felt like we left so much potential on the table. Hope the run continues for a bit longer. Till then stay safe all and looking forward to more and more folks getting the vaccine and life coming back to normal
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Your welcome FinallyFoolin,
I look at MGNI as a hoping stock. They grew Revenue around 12% last quarter, they are growing Revenue at around 20% this quarter (Organic) They are trying to roll more companies up so they can get larger. They started out by combining Telaria and Rubicon, two companies that were just so so companies. Their is so much competition in this sector and Magnite isn’t a leader but is tied with all the other competition. Until I see them growing Revenue at over 50% (Organic not by bolting on a company to get there) I can’t see this being a great investment. If they bolt on a company of course it’s going to look great because their company a year ago was much smaller.
I hope this investment turns out great for everyone invested in it but I want a company that isn’t based on hope. There are to many companies growing their companies organically that have growth rates a lot higher.
Andy
Just the way I see this
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I do understand what you’re saying and on the cover, I’d agree with you. I’m not interested in less than 50% growth.
My MGNI thesis is hypergrowth, not on hope. I’m invested in MGNI for the CTV that is in hypergrowth mode. I believe they will accelerate because the ad dollars follow the eyeballs and the eyeballs have moved to CTV. The TAM is growing. The opportunity they have is huge and this purchase shows they are focusing on this CTV side of their business.
From their pre-report (from their investor relations page),
“CTV revenue of $15.3 million, up 53% on a pro forma basis”
This is the same strategy I used with Roku from the beginning. I was never invested in it for the hardware although when I first invested in them, that was by far the largest part of their business. Once the advertising/software side eclipsed the hardware sales, the acceleration multiplied.
Same for my owning of TDOC, although the TDOC core business is growing at hyper growth levels, I’m invested in it for LVGO.
SE same thing. I’m invested in that for the E-Commerce even though gaming is a larger chunk of their overall current revenue.
Same with FUBO although this one is more speculative since the gambling part is due to be out sometime in the Spring. It helps that FUBO is in hypergrowth mode without that but I wouldn’t be invested in it if it weren’t for the gambling angle.
MGNI was the largest sell-side before this purchase and this purchase triples their CTV.
Consider this for the advantage Sell Side has over Buy Side… TARGETED ADVERTISING. (caps meant for emphasis, as this adds to my excitement MGNI)
Sell side has company data and can create profile groups of people for advertisers to choose (sports fans in their 30s, HGTV fanatic…). Buy side relies on cookies for targeted advertising. Cookies very likely might be going away due to security concerns. I’m not sure what TTD will do if that happens since that’s their biggest advantage.
I started MGNI as my smallest full position and they’ve grown in a month to be my 3rd largest!
Long MGNI, ROKU, SE, TDOC, FUBO
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Finallyfoolin,
MGNI was the largest sell-side before this purchase and this purchase triples their CTV.
I really like that you have investigated your investment. I can tell you have put a lot of time into looking at it. But everything I have seen is that mgni is not the largest sell-side. Now maybe you are saying they are the largest sell side in only CTV?
This is just my thought. Alot of people look for other companies that are in the same space and invest in them because they are cheaper. The problem is that they are cheaper because they just are not as good. That is why I am invested in TTD. They are inventing ways to keep them a leader in the sector. That is why I am invested in Roku, they are inventing ways to keep them a leader in the sector. What has MGNI done to keep them a leader? They haven’t produced any new technology, they are only trying to roll up other sell side providers.
Andy
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I suspect you’re not understanding my posts very well. There are a decent number of likes on it so I think I’m being clear. I’ll try again.
Yes, I’m saying they are the largest sell-side CTV. If you re-read my thesis, I very clearly state that my investment is in their hypergrowth CTV. I don’t care about the rest of their business.
I have seen MGNI discussed as the largest sell side for a few months. A quick google search pulls up one from 3 days ago published by this site. Here it is. There are more if you want to look more around.
https://www.fool.com/investing/2021/02/05/better-investing-o…
Again, please go back and re-read my previous post on this thread. I include my thesis on MGNI. It is not based on price or which one is cheaper. I am invested for their CTV. My thesis is based on hypergrowth, leadership, in a massively expanding industry with potential extra tailwinds due to the exact thing that could threaten TTD.
No, I don’t claim to know the ins and outs of their software. Luckily, that’s not required. Saul himself has pointed this out many times, most recently in his January EOM where he was talking about NET. I do know that they have an impressive client list as posted in my previous post. This client list includes an exclusive deal with Disney (Hulu, Disney+). Maybe Disney knows something we don’t on this topic… Definitely something to keep an eye on.
I also know, again, as stated in my previous email, MGNI has the ability to do better targeted advertising because they have the data that buy side like TTD does not have. They can do this targeted advertising without any privacy issues that could go away, like TTD does. If cookies go away, MGNI likely will get an extra tailwind from dollars that were flowing to TTD and others.
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I have been in and out this stock twice now, I just can’t grow my conviction to it, I feel it lacks of organic growth, it intends to grow via M$A, I just don’t know how sustainable this approach would be, that’s why I got all out when the short report came out.
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