Arthur (for Omar Dessouky)'s questions to Magnite Inc (MGNI) leadership • Q4 2024
Question
Arthur, on behalf of Omar Dessouky, asked about the efficiency gains from lowering cost-per-ad-request, inquiring about the potential ceiling for this improvement and where Magnite currently stands on that optimization curve.
Answer
CFO David Day detailed two sources of efficiency: ongoing improvements in ad request filtering and significant step-function gains from optimizing cloud usage and moving select functions to on-premise infrastructure. CEO Michael Barrett added that while unit costs will continue to improve, total costs will still rise as they are processing ever-increasing ad volume, which is fundamental to the business model.