Magnite has all the time been an SSP. However currently, it’s solely had CTV on its thoughts.

Its whole This fall income for 2021 was up 97% year-over-year, CEO Michael Barrett advised traders on Magnite’s This fall earnings name Wednesday night time.

CTV makes up 38% of Magnite’s income, up from 19% in 2020. Cell advertisements make up 36% and desktop 26%. These classes totaled 81% of Magnite’s income in 2020, earlier than the SpotX acquisition, however solely 62% in 2021.

Moreover SpotX, Magnite acquired SpringServe in 2021. Collectively, these acquisitions accounted for 20% of Magnite’s progress in CTV in 2021.

“We attain 80 million households a month, and we [hold about] 20% of the market share measured by advert spend,” Barrett stated.

Placing all its eggs within the CTV basket appears to be paying off. In response to Barrett, Magnite’s whole income from serving advertisements on CTV in 2021 hit $143 million in comparison with round $34 million simply the yr earlier than.

Progress has stalled for Magnite’s cell and desktop enterprise (principally comprised of the corporate previously referred to as Rubicon Venture).

Magnite reported 6% YOY progress for cell and only one% for desktop, in line with CRO David Day. What stays uncared for grows stale.

Magnite’s enterprise now features a seize bag of various take charges, which fluctuate based mostly on the medium (CTV vs. desktop) and acquisition (amongst them: Telaria, SpotX and SpringServe).

Magnite categorizes its CTV {dollars} by three completely different metrics: advert spend, proprietary alternate and managed providers. An analyst on the decision estimated the take charges at 4%, 8% and 12%, respectively, and the investor requested Day how near the mark she was.

“For aggressive causes, we don’t share our take charges publicly,” Day stated. “However the ranges you talked about … as a mean, that’s not too far off.”

(For reference, The Commerce Desk reported a take charge round 20% when it reported its earnings final week.)

Talking of The Commerce Desk, Magnite thinks one other window of alternative opened up for it final week: OpenPath.

OpenPath

When The Commerce Desk rolled out OpenPath final week to extra intently bridge advertisers and publishers, it may very well be learn as an influence transfer towards Google (essentially the most used advert alternate by far) or an effort to ship SSPs into obsolescence. In spite of everything, Magnite participates in Google Open Bidding (which Commerce Desk turned off), and it doesn’t need advertisers to skip over the SSP hop.

And Magnite is optimistic it gained’t be disintermediated.

The Commerce Desk doesn’t spend a lot on open bidding by means of Magnite at the moment, however Barrett thinks that’ll change. “The Commerce Desk’s shift away from Google Open Bidding is sweet for the ecosystem – and extra demand within the header is sweet for us,” he stated.

Whereas it’s not clear the place – or with whom – The Commerce Desk will reallocate its spending, Barrett thinks The Commerce Desk ought to shift its focus to Magnite.

“Many SSPs are overly reliant on open bidding and don’t add a lot worth,” Barrett stated. “It’ll lead Commerce Desk to readjust their advert spend on platforms like Magnite.”

Time to play the wait-and-see sport.

Share value or it didn’t occur

Wall Road doesn’t appear to be too positive what to make of this. Magnite’s inventory rose about 4% from Wednesday’s shut in the course of the begin of after-hours buying and selling. After which it dropped by twice as a lot.

Virtually instantly (throughout the hour), share costs bounced again and leveled themselves out. The inventory remained the identical as its shut all through after-hours buying and selling, give or take half a %.

Buyers appear happy sufficient … or confused. Time will inform.