Magnite’s second quarter results were met with a negative market reaction, as revenue fell short of Wall Street expectations despite year-on-year growth. Management attributed the performance to continued strength in connected TV (CTV), where new partnerships and expanded programmatic adoption drove results. CEO Michael Barrett highlighted the company’s “unique combination of ad server and streaming platform” and noted robust growth from key clients like Roku, Netflix, and Warner Bros. Discovery. The team also pointed to progress in margin improvement, citing disciplined investment and technology-driven cost reductions.

Is now the time to buy MGNI? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Magnite’s Q2 Earnings Call

• Shyam Vasant Patil (Susquehanna): Asked about recent partnership momentum and the outlook for benefits from Google’s antitrust case; CEO Michael Barrett pointed to strength in CTV partnerships and noted the potential but uncertainty around Google-related outcomes.

• Daniel Louis Kurnos (The Benchmark Company): Questioned the impact of AI-powered agentic platforms and programmatic live sports; Barrett explained that CTV and mobile are less exposed to declining browser traffic, and that live sports is still in early stages of programmatic contribution.

• Jason Michael Kreyer (Craig-Hallum): Inquired about DV+ engagements with platforms like X and Pinterest; Barrett said platforms are opening to third-party demand for better monetization, with Magnite increasingly chosen as a partner.

• Barton Evans Crockett (Rosenblatt): Probed potential timing and impact of behavioral remedies in the Google case; General Counsel Aaron Saltz said remedies could be implemented during any appeal, but timing remains uncertain.

• Matthew John Swanson (RBC Capital Markets): Asked about the sustainability of margin improvements; CFO David Day said some margin gains are ongoing due to tech stack optimization, though some were tied to temporary personnel costs.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) the pace of CTV and live sports programmatic adoption, (2) any shifts in DV+ market share as the Google antitrust case progresses, and (3) the company’s ability to maintain margin improvements as it invests in engineering and sales. Progress in expanding small business access to CTV and commercialization of new AI-powered tools will also be critical markers of execution.

Magnite currently trades at $22.25, in line with $22.45 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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