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Magnite (MGNI) Witnesses Significant Improvement Across Asia
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Magnite (MGNI - Free Report) recently reported 23% growth across Asia on a year-over-year basis against the APAC digital advertising market’s expected 12% growth in 2022.
The positive results have been attributed to the company’s technical capabilities and integrations with premium publishers, which met the strong omnichannel demand, coupled with increasing OTT viewership across all screens, including mobile and CTV, throughout the region.
Magnite’s ability to provide scaled inventory from the most premium publishers has resulted in increased advertiser spending, thus adding to its growth again. Advertisers in the F&B, technology and business verticals running OTT campaigns with Magnite increased their spending by 173%, 128% and 149%, respectively, year over year.
Magnite to Scale its Reach With Several Tie-Ups.
The company’s growth can also be justified by the traction it is gaining from multiple companies as they enter into collaborations with it.
Recently Vizio leveraged SpringServe, the leading independent TV ad-serving platform of Magnite, to enhance the content discovery experience across VIZIO SmartCast for millions of users in the United States.
SpringServe’s advanced ad-serving functionality, including targeting and reporting, gives publishers workflow efficiency and flexibility to showcase custom creatives within the streaming interface in various sizes and a wide variety of formats.
Recently, Fox Corporation also announced a partnership with Magnite to serve as a sell-side advertising platform connected to the OneFOX inventory.
Together, they will build custom technology solutions that further streamline the buying process and enable advertisers to create one simple and unified plan to deliver their private marketplace and programmatic guaranteed campaigns across the FOX portfolio.
LG ads solution also signed a multi-year deal with Magnite. Through the deal, ACR data from opted-in LG smart TVs in the United States will be made available across Magnite’s U.S. inventory footprint and will expand to other countries starting in 2023.
This technology built into connected TVs that captures everything that is viewed — both content and ads — is extremely valuable and unlocks unique capabilities such as targeting around content viewership, incremental reach and frequency management across both linear and streaming environments within the household.
With these partnerships expecting to boost the company’s top line, Magnite has projected third-quarter fiscal 2022 revenues ex-TAC to be in the range of $122-$126 million and the full-year anticipation to be above $500 million.
However, the company does face headwinds that can hit these projections. Magnite’s business depends on the overall demand for advertising and the economic health of the current and prospective sellers and buyers. This has been and might even continue to be affected by events such as health epidemics, including the COVID-19 pandemic and geopolitical events, including the conflict in Ukraine.
The company has recently experienced some downward pressure due to global supply chain disruptions, inflationary concerns, global hostilities, recessionary concerns and other macroeconomic factors, which have generally negatively impacted ad budgets.
Shares of Magnite have underperformed by 57.7% year-to-date against the Zacks Computer and Technology Sector, which declined 34%
Some better-ranked stocks in the same industry are Airbnb (ABNB - Free Report) , A10 Networks (ATEN - Free Report) and Agilysys (AGYS - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Shares of Airbnb have declined 28.8% year to date. The Zacks Consensus Estimate for fiscal 2022 earnings has gone up by 4% over the past 30 days to $2.34 per share.
Shares of A10 Networks have declined 0.7% in the same time frame. The estimate for fiscal 2022 earnings has been constant at 70 cents over the last month.
Shares of Agilysys have improved 23.4% in the same time frame. The estimate for fiscal 2023 earnings has been constant at 90 cents over the last month.
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Magnite (MGNI) Witnesses Significant Improvement Across Asia
Magnite (MGNI - Free Report) recently reported 23% growth across Asia on a year-over-year basis against the APAC digital advertising market’s expected 12% growth in 2022.
The positive results have been attributed to the company’s technical capabilities and integrations with premium publishers, which met the strong omnichannel demand, coupled with increasing OTT viewership across all screens, including mobile and CTV, throughout the region.
Magnite’s ability to provide scaled inventory from the most premium publishers has resulted in increased advertiser spending, thus adding to its growth again. Advertisers in the F&B, technology and business verticals running OTT campaigns with Magnite increased their spending by 173%, 128% and 149%, respectively, year over year.
Magnite to Scale its Reach With Several Tie-Ups.
The company’s growth can also be justified by the traction it is gaining from multiple companies as they enter into collaborations with it.
Recently Vizio leveraged SpringServe, the leading independent TV ad-serving platform of Magnite, to enhance the content discovery experience across VIZIO SmartCast for millions of users in the United States.
SpringServe’s advanced ad-serving functionality, including targeting and reporting, gives publishers workflow efficiency and flexibility to showcase custom creatives within the streaming interface in various sizes and a wide variety of formats.
Recently, Fox Corporation also announced a partnership with Magnite to serve as a sell-side advertising platform connected to the OneFOX inventory.
Together, they will build custom technology solutions that further streamline the buying process and enable advertisers to create one simple and unified plan to deliver their private marketplace and programmatic guaranteed campaigns across the FOX portfolio.
LG ads solution also signed a multi-year deal with Magnite. Through the deal, ACR data from opted-in LG smart TVs in the United States will be made available across Magnite’s U.S. inventory footprint and will expand to other countries starting in 2023.
This technology built into connected TVs that captures everything that is viewed — both content and ads — is extremely valuable and unlocks unique capabilities such as targeting around content viewership, incremental reach and frequency management across both linear and streaming environments within the household.
Magnite, Inc. Price and Consensus
Magnite, Inc. price-consensus-chart | Magnite, Inc. Quote
With these partnerships expecting to boost the company’s top line, Magnite has projected third-quarter fiscal 2022 revenues ex-TAC to be in the range of $122-$126 million and the full-year anticipation to be above $500 million.
However, the company does face headwinds that can hit these projections. Magnite’s business depends on the overall demand for advertising and the economic health of the current and prospective sellers and buyers. This has been and might even continue to be affected by events such as health epidemics, including the COVID-19 pandemic and geopolitical events, including the conflict in Ukraine.
The company has recently experienced some downward pressure due to global supply chain disruptions, inflationary concerns, global hostilities, recessionary concerns and other macroeconomic factors, which have generally negatively impacted ad budgets.
Shares of Magnite have underperformed by 57.7% year-to-date against the Zacks Computer and Technology Sector, which declined 34%
Zacks Rank and Stocks to Consider
Magnite currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Some better-ranked stocks in the same industry are Airbnb (ABNB - Free Report) , A10 Networks (ATEN - Free Report) and Agilysys (AGYS - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Shares of Airbnb have declined 28.8% year to date. The Zacks Consensus Estimate for fiscal 2022 earnings has gone up by 4% over the past 30 days to $2.34 per share.
Shares of A10 Networks have declined 0.7% in the same time frame. The estimate for fiscal 2022 earnings has been constant at 70 cents over the last month.
Shares of Agilysys have improved 23.4% in the same time frame. The estimate for fiscal 2023 earnings has been constant at 90 cents over the last month.