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Magnite (Magnite) Operating Margin % : 18.79% (As of Dec. 2023)


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What is Magnite Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Magnite's Operating Income for the three months ended in Dec. 2023 was $35.1 Mil. Magnite's Revenue for the three months ended in Dec. 2023 was $186.9 Mil. Therefore, Magnite's Operating Margin % for the quarter that ended in Dec. 2023 was 18.79%.

Good Sign:

Magnite Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Magnite's Operating Margin % or its related term are showing as below:

MGNI' s Operating Margin % Range Over the Past 10 Years
Min: -48.26   Med: -16.44   Max: 0.68
Current: -23.81


MGNI's Operating Margin % is ranked worse than
82.45% of 1037 companies
in the Media - Diversified industry
Industry Median: 3.31 vs MGNI: -23.81

Magnite's 5-Year Average Operating Margin % Growth Rate was 10.30% per year.

Magnite's Operating Income for the three months ended in Dec. 2023 was $35.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-147.5 Mil.


Magnite Operating Margin % Historical Data

The historical data trend for Magnite's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Magnite Operating Margin % Chart

Magnite Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -16.33 -16.55 -9.16 -18.25 -23.81

Magnite Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.27 -71.48 -47.07 -11.89 18.79

Competitive Comparison of Magnite's Operating Margin %

For the Advertising Agencies subindustry, Magnite's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Magnite's Operating Margin % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Magnite's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Magnite's Operating Margin % falls into.



Magnite Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Magnite's Operating Margin % for the fiscal year that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=-147.544 / 619.71
=-23.81 %

Magnite's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=35.124 / 186.932
=18.79 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Magnite  (NAS:MGNI) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Magnite Operating Margin % Related Terms

Thank you for viewing the detailed overview of Magnite's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Magnite (Magnite) Business Description

Traded in Other Exchanges
Address
1250 Broadway, 15th Floor, New York, NY, USA, 10001
Magnite is one of the largest supply-side platform providers, or SSP, in online advertising. The firm was previously named The Rubicon Project (an online ad exchange) and became Magnite after merging with Telaria (an SSP focused mainly on streaming video providers) in 2020. The firm also purchased another of the leading SSPs within the CTV market, SpotX, in 2021 for $1.2 billion, cementing its long-term focus on grabbing market share in this area. The firm generates nearly 45% of its revenue from the programmatic sale of CTV ad inventory, 35% from mobile online sites and apps, and the remaining from websites accessed via computer.
Executives
Michael G. Barrett director, officer: CEO C/O THE RUBICON PROJECT, INC., 12181 BLUFF CREEK DRIVE, 4TH FLOOR, PLAYA VISTA CA 90094
David Buonasera officer: Chief Technology Officer C/O MAGNITE, INC., 1250 BROADWAY, 15TH FLOOR, NEW YORK NY 10001
Robert F Spillane director 12181 BLUFF CREEK DRIVE, 4TH FLOOR, LOS ANGELES CA 90094
Sean Patrick Buckley officer: Chief Revenue Officer, CTV C/O MAGNITE, INC., 6080 CENTER DRIVE, 4TH FLOOR, LOS ANGELES CA 90045
Aaron Saltz officer: General Counsel & Secy C/O TELARIA INC., 222 BROADWAY, 16TH FLOOR, NEW YORK NY 10038
Adam Lee Soroca officer: Head of Global Buyer Team C/O THE RUBICON PROJECT, INC., 12181 BLUFF CREEK DR., 4TH FLOOR, PLAYA VISTA CA 90094
Katie Seitz Evans officer: Chief Operating Officer C/O TREMOR VIDEO, INC., 1501 BROADWAY, SUITE 801, NEW YORK NY 10036
David Day officer: Chief Accounting Officer 21700 OXNARD STREET, SUITE 1600, WOODLAND HILLS CA 91367
Brian Gephart officer: Chief Accounting Officer 1655 26TH STREET, SANTA MONICA CA 90404
Lisa L Troe director 12181 BLUFF CREEK DRIVE, 4TH FLOOR, LOS ANGELES CA 90094
Rachel Lam director C/O TREMOR VIDEO, INC., 53 WEST 23RD STREET, NEW YORK NY 10010
David T. Pearson director C/O VONAGE HOLDINGS CORP, 23 MAIN STREET, HOLMDEL NJ 07733
Diane Yu director C/O MAGNITE, INC., 1250 BROADWAY, 15TH FLOOR, NEW YORK NY 10001
Joseph R Prusz officer: Global Chief Revenue Officer C/O THE RUBICON PROJECT, INC., 12181 BLUFF CREEK DRIVE, 4TH FLOOR, PLAYA VISTA CA 90094
Paul Caine director C/O TREMOR VIDEO, INC., 53 WEST 23RD STREET, NEW YORK NY 10010