Why Magnite Stock Jumped 14% Last Month
Shares of advertising-technology company Magnite (NASDAQ: MGNI) jumped 13.9% in May, according to data provided by S&P Global Market Intelligence. The stock moved little following the release of financial results for the first quarter of 2022 early in the month. The results are difficult to wade through. Therefore, Magnite stock rose and fell as its peers in the space gave conflicting thoughts on the state of the industry.
Between traffic acquisition costs and pro forma operating results, Magnite's quarterly reports are among the most difficult to decipher. It's the largest, independent supply-side ad-tech company, meaning it helps publishers sell their ad space. It's not uncommon for companies like this to make adjustments to revenue because some of it basically just passes through. This adjustment excludes traffic-acquisition costs and is referred to as "revenue ex-TAC."
Magnite management issued guidance for revenue ex-TAC of $105 million to $109 million. And it met this guidance by delivering Q1 revenue ex-TAC of $107.1 million, up 79% year over year.
Source Fool.com
