Supply-chain issues have hit Magnite, the supply-side digital advertising platform, with some third- and fourth-quarter cancellations.
“Our results are strong but were tempered with some late third-quarter supply chain-related ad cancellations, which we have also experienced early in the fourth quarter,” says Michael Barrett, president-CEO of Magnite, during a late Wednesday earnings phone call with analysts.
Executives went on to say that two advertising categories in particular -- automotive and travel -- have been affected by supply chain and COVID-19 issues. David Day, the company’s CFO, said: “We believe that's impacting us to perhaps $3 million to $4 million in CTV in the fourth quarter.”
The company’s stock price was down almost 20% in mid-Thursday trading to $22.49. Magnite clients include publisher groups, content producers, pay TV companies and other related companies.
Overall, for the third quarter, Magnite revenue was up 116% to $131.9 million. In April and July, Magnite acquired SpotX and SpringServe. Excluding traffic acquisition costs, revenues grew 26%. Net loss widened to $24.3 million from $10.5 million.
Connected TV revenues grew 51% to $43.1 million, with its DV+ unit (mobile and desktop display and video) rising by mid-teen percentages.
Magnite now says 38% of its revenue comes from connected TV; 36% mobile, and 26%, desktop.
Magnite’s Day said overall CPMs have been “consistently strong through the year ... typically in the $20-plus range in CTV.”
Top ad categories for the company include technology, health and fitness, home and garden, with retail and financial verticals the strongest performers year-over-year, says Barrett.