Magnite, Inc. Common Stock Bank of America SMID Cap Virtual Conference

Hi, everyone. Good to see everyone. If everyone could mute themselves if they are on the Zoom. Thanks for joining. Just wanted to welcome everyone. I am Jill Hall, Head of US Small and Mid-Cap Strategy with BofA Global Research. We are very fortunate to have a great two days of executive insights, fireside chats with almost 20 small and mid-cap corporates. It is a great annual event we have every year, and our analysts have a really great breadth of coverage in the small and mid-cap space. They cover about 1,000 small and mid-cap U.S. companies. Excited to continue to hear from them. Feel free to reach out to me or to corporate access if you need the schedule, if you still want to join any of the sessions that you are not already signed up for. I have had some people reach out to me today, so not too late.

Or if we can help you getting in touch with any of the analysts for any follow-up, or if you would like to sign up for any of the research on the companies today, as well as our small and mid-cap research, or we also put out a daily compilation on some of the small and mid-cap research from our analysts. With that, thank you for joining. Hope you are able to join some other sessions as well, and I will pass it over to Arthur to do some introductions.

Welcome, Nick. Thank you, Arthur, and thank you, Jill Hall, for having me today.

Sure. Magnite is what's traditionally labeled as a supply platform, right? Effectively, where we initially kind of enter into the industry is really working for publishers and working for publishers that have inventory across the open internet, connected TV. Think of any digital ads that are serviced. Those are ads that we are in market trying to bring demand to, right? We operate a marketplace. Yeah.

We bring in demand to match up to be able to get inventory sold for publishers. But our strategic value is really making sure that we can bring it to as many buyers as possible, make a very active bidding on that inventory. A lot of that's tied to bringing in and importing data in to allow data to find users that buyers and brands are specifically looking for. In doing so, that's the value that we inject into the market, and the value that we drive for publishers. Whether it's in connected TV, streaming, broadcast TV OEMs, or whether it's mobile app or mobile web, or even web browser or digital out of home, we service all markets as an omni-channel player.

I think the area that is most exciting that has a much different market setup than historically the web has is connected TV, where the amount of inventory is really concentrated in the hands of 30 large global partners that represent about 80% of the world's inventory. It seems like every week that goes by, there is less of those people because they are consolidating, like Roku, Fox, for example. But we have relationships with all of them, with the exception of YouTube. So we have become the de facto place that anybody that wants to buy connected TV comes to to access the CTV market, which is a far cry of where we were a couple of years ago.

Yeah, I think the beginnings of CTV, and we made a few acquisitions to get into CTV, but I think it is the nature of relationship of many partners that view themselves as walled gardens have brought us in as a trusted technology partner, right? So I think that is much different than simply looking at a supply-side platform and saying, "Hey, we will invite you guys in. Throw a bid in. If you guys win, you will get paid for it. If you guys don't win, then go away and try again next time," right? So I think the strategic nature of the relationship that has evolved comes from initially working with a Disney or a Roku or others in our early days, call it 3-5 years ago, and showing that we have been brought inside.

They want to operate and sell their inventory, but they don't want to simply allow everybody to bid on their inventory. They want their data protected. They don't want anybody to see their user IDs leak out to buyers, but they want to monetize better than they can on their own, either through a direct sales force and insertion orders, or doing something self-service on their website. They want to capture programmatic demand from all sources, and their aspirations to grow revenue more has had them lean on us to be the one party that is invited in to be their tech partner, which is why we define the market as almost a winner-take-most.

You may have a couple of partners that you use, but for the vast majority, whether it is ad serving, whether it is mediation, whether it is demand generation, whether it is yield management, whether it is identity strategies or audience creation, you do not choose two partners for that. That is where we have won, and I think what is happening is our evolution over time that people believed or investors may have believed that there was risk to when this industry grew up, right? Connected TV grew up. There was always the risk or the fear that people would either, A, do this themselves, or B, go to a much, much larger player. Now, there is not a larger player in the space. Our market share has expanded dramatically. Our position in programmatic is large, and we have expanded our Disney relationship. We have expanded a Fox relationship. We have dramatically expanded Roku.

We have won Netflix during that particular time. So we have shown that we are that partner that can execute and bring people to the programmatic market. The very interesting component to that kind of rewinding to the past was it has also had a halo effect on the DV+ market. The reason that I say that is you now have people on the DV+ market that looked at how we have partnered on the connected TV side, that look at DV+ and have never relied on programmatic demand. They have said, "Hey, can we have that type of relationship with you?" In the past, in open web and in what we call DV+, which is everything excluding CTV, we would be one of a bidder, and then it would not be exclusive, and you would have five or six other guys also trying to sell and rep that inventory.