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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 10-Q
__________________
  (Mark One)

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
 
Commission File Number: 001-36384
__________________
MAGNITE, INC.
(Exact name of registrant as specified in its charter)
 __________________
Delaware20-8881738
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1250 Broadway, 15th Floor
New York, New York 10001
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code:
(212) 243-2769
______________

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.00001 per shareMGNINasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes    No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes    No   
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes  No
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
ClassOutstanding as of October 27, 2021
Common Stock, $0.00001 par value131,812,867


Table of Contents
MAGNITE, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page No.
Part I.
Item 1.
Item 2.
Item 3.
Item 4.
Part II.
Item 1.
Item 1A.
Item 2.
Item 6.
2

Table of Contents
PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
MAGNITE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except par values)
(unaudited)
September 30, 2021December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$188,182$117,676
Accounts receivable, net
765,076471,666
Prepaid expenses and other current assets
20,99217,729
TOTAL CURRENT ASSETS
974,250607,071
Property and equipment, net
32,75923,681
Right-of-use lease asset
64,59139,599
Internal use software development costs, net
19,13016,160
Intangible assets, net
463,57189,884
Other assets, non-current
6,0624,440
Goodwill
972,747158,125
TOTAL ASSETS
$2,533,110$938,960
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses
$828,501$509,315
Lease liabilities, current
15,0339,813
Debt, current
3,600
Other current liabilities
11,7733,070
TOTAL CURRENT LIABILITIES
858,907522,198
Debt, non-current, net of debt issuance costs719,333 
Deferred tax liability, net
19,488199
Lease liabilities, non-current
55,99932,278
Other liabilities, non-current
2,6182,672
TOTAL LIABILITIES
1,656,345557,347
Commitments and contingencies (Note 12)


STOCKHOLDERS' EQUITY
Preferred stock, $0.00001 par value, 10,000 shares authorized at September 30, 2021 and December 31, 2020; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020
Common stock, $0.00001 par value; 500,000 shares authorized at September 30, 2021 and December 31, 2020; 131,789 and 114,029 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
2 2
Additional paid-in capital
1,273,093 777,084
Accumulated other comprehensive loss(1,426)(957)
Accumulated deficit
(394,904)(394,516)
TOTAL STOCKHOLDERS' EQUITY
876,765381,613
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$2,533,110$938,960

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.

3

Table of Contents
MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)
 Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Revenue$131,871 $60,982 $307,127 $139,625 
Expenses:
Cost of revenue63,541 21,031 134,823 56,579 
Sales and marketing52,260 21,761 118,122 53,059 
Technology and development21,059 13,562 53,436 37,318 
General and administrative16,535 13,314 47,673 38,221 
Merger, acquisition, and restructuring costs2,424 2,254 37,778 16,677 
Total expenses155,819 71,922 391,832 201,854 
Loss from operations(23,948)(10,940)(84,705)(62,229)
Other (income) expense:
Interest (income) expense, net7,280 30 12,595 (112)
Other income(955)(1,194)(3,317)(2,487)
Foreign exchange (gain) loss, net(1,246)293 (1,358)(845)
Total other (income) expense, net5,079 (871)7,920 (3,444)
Loss before income taxes(29,027)(10,069)(92,625)(58,785)
Provision (benefit) for income taxes(4,708)446 (92,237)533 
Net loss$(24,319)$(10,515)$(388)$(59,318)
Net loss per share:
Basic and Diluted$(0.18)$(0.10)$ $(0.65)
Weighted average shares used to compute net loss per share:
Basic and Diluted131,501 110,416 124,325 91,371 

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.


 
4

Table of Contents
MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(unaudited)
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net loss$(24,319)$(10,515)$(388)$(59,318)
Other comprehensive income (loss):
Foreign currency translation adjustments(525)18 (469)(2,540)
Other comprehensive income (loss)(525)18 (469)(2,540)
Comprehensive loss$(24,844)$(10,497)$(857)$(61,858)

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.



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MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In thousands)
(unaudited)
Common Stock Additional
Paid-In
Capital
Accumulated  Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
Shares
Amount
Balance at December 31, 201953,888 $1 $453,064 $(45)$(341,084)$111,936 
Exercise of common stock options27 — 23 — — 23 
Issuance of common stock related to RSU vesting1,861 — — — — — 
Shares withheld related to net share settlement(716)— (7,485)— — (7,485)
Stock-based compensation— — 4,218 — — 4,218 
Other comprehensive loss— — — (789)— (789)
Net loss— — — — (9,675)(9,675)
Balance at March 31, 202055,060

$1 

$449,820 

$(834)

$(350,759)

$98,228 
Exercise of common stock options746— 2,276— — 2,276 
Issuance of common stock related to employee stock purchase plan159 — 693 — — 693 
Issuance of common stock related to RSU vesting1,904 — — — — — 
Shares withheld related to net share settlement(107)— (349)— — (349)
Issuance of common stock associated with the Merger52,099 1 275,772 — — 275,773 
Exchange of stock options and RSU related to Merger— — 11,646 — — 11,646 
Stock-based compensation— — 10,101 — — 10,101 
Other comprehensive loss— — — (1,769)— (1,769)
Net loss— — — — (39,128)(39,128)
Balance at June 30, 2020109,861

$2 

$749,959 

$(2,603)

$(389,887)

$357,471 
Exercise of common stock options563 — 1,569 — — 1,569 
Issuance of common stock related to RSU vesting289 — — — — — 
Shares withheld related to net share settlement(1)— (7)— — (7)
Stock-based compensation— — 7,595 — — 7,595 
Other comprehensive loss— — — 18 — 18 
Net loss— — — — (10,515)(10,515)
Balance at September 30, 2020
110,712$2 $759,116 $(2,585)$(400,402)$356,131 

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Common Stock Additional
Paid-In
Capital
Accumulated  Other
Comprehensive
Income (Loss)
Accumulated
Deficit
Total
Stockholders’
Equity
SharesAmount
Balance at December 31, 2020114,029 $2 $777,084 $(957)$(394,516)$381,613 
Exercise of common stock options733 — 5,785 — — 5,785 
Issuance of common stock related to RSU vesting1,351 — — — — — 
Stock-based compensation— — 7,108 — — 7,108 
Capped call options— — (38,960)— — (38,960)
Other comprehensive loss— — — (313)— (313)
Net loss— — — — (12,877)(12,877)
Balance at March 31, 2021116,113 $2 $751,017 $(1,270)$(407,393)$342,356 
Exercise of common stock options384 — 1,480 — — 1,480 
Issuance of common stock related to employee stock purchase plan121 — 1,154 — — 1,154 
Issuance of common stock related to RSU vesting2,208 — — — — — 
Issuance of common stock associated with the SpotX Acquisition12,374 — 495,591 — — 495,591 
Stock-based compensation— — 9,928 — — 9,928 
Other comprehensive income— — — 369 — 369
Net income— — — — 36,808 36,808 
Balance at June 30, 2021131,200 $2 $1,259,170 $(901)$(370,585)$887,686 
Exercise of common stock options275 — 1,482 — — 1,482 
Issuance of common stock related to RSU vesting314 — — — — — 
Stock-based compensation— — 12,441 — — 12,441 
Other comprehensive loss— — — (525)— (525)
Net loss— — — — (24,319)(24,319)
Balance at September 30, 2021131,789 $2 $1,273,093 $(1,426)$(394,904)$876,765 


The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.
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MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Nine Months Ended
September 30, 2021September 30, 2020
OPERATING ACTIVITIES:
Net loss$(388)$(59,318)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization97,084 36,157 
Stock-based compensation28,521 21,298 
(Gain) loss on disposal of property and equipment78 (17)
Provision for doubtful accounts217 31 
Amortization of debt issuance costs3,223  
Non-cash lease expense1,825 (601)
Deferred income taxes(91,540)837 
Unrealized foreign currency gain(2,578)(2,108)
Changes in operating assets and liabilities:
Accounts receivable(92,131)(46,145)
Prepaid expenses and other assets(297)(2,896)
Accounts payable and accrued expenses113,795 23,464 
Other liabilities191 5,260 
Net cash provided by (used in) operating activities58,000 (24,038)
INVESTING ACTIVITIES:
Purchases of property and equipment(13,985)(4,211)
Capitalized internal use software development costs(8,525)(6,894)
Cash (used in), net of cash acquired, in merger and acquisition activities(653,060)54,595 
Net cash (used in) provided by investing activities(675,570)43,490 
FINANCING ACTIVITIES:
Proceeds from Convertible Senior Notes offering400,000  
Proceeds from issuance of debt, net of debt discount349,200  
Payment for capped call options(38,960) 
Payment for debt issuance costs(30,378) 
Proceeds from exercise of stock options8,747 3,868 
Proceeds from issuance of common stock under employee stock purchase plan1,154 693 
Repayment of debt(900) 
Taxes paid related to net share settlement (7,841)
Net cash provided by (used in) financing activities688,863 (3,280)
EFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH(591)41 
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH70,702 16,213 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period117,731 88,888 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period$188,433 $105,101 
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents$188,182 $103,797 
Restricted cash included in other assets, non-current, and prepaid expenses and other current assets251 1,304 
Total cash, cash equivalents and restricted cash$188,433 $105,101 
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The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.

MAGNITE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

Nine Months Ended
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:September 30, 2021September 30, 2020
Cash paid for income taxes$1,221 $829 
Cash paid for interest$7,671 $49 
Capitalized assets financed by accounts payable and accrued expenses$1,513 $2,388 
Capitalized stock-based compensation$956 $616 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities$22,651 $2,036 
Purchase consideration - indemnification claims holdback1,409 $ 
Common stock and options issued for mergers and acquisitions495,591 $287,418 
Debt discount, non-cash$10,800 $ 

The accompanying notes to unaudited condensed consolidated financial statements are an integral part of these statements.
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MAGNITE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
Note 1—Organization and Summary of Significant Accounting Policies
Company Overview
Magnite, Inc. ("Magnite" or the "Company"), formerly known as The Rubicon Project, Inc., was formed in Delaware and began operations in April 2007. On April 1, 2020, Magnite completed a stock-for-stock merger with Telaria, Inc. ("Telaria" and such merger the "Telaria Merger"), a leading sell side advertising platform and provider of connected television ("CTV") technology. On April 30, 2021, the Company completed its acquisition of SpotX, Inc. ("SpotX" and such acquisition the "SpotX Acquisition"), a leading CTV and video advertising platform. On July 1, 2021, the Company completed its acquisition of SpringServe, LLC ("SpringServe" and such acquisition the "SpringServe Acquisition"), a leading ad serving platform for CTV. The Company operates a sell side advertising platform that offers buyers and sellers of digital advertising a single partner for transacting globally across all channels, formats, and auction types.
The Company provides a technology solution to automate the purchase and sale of digital advertising inventory. The Company’s platform features applications and services for sellers of digital advertising inventory, or publishers, that own or operate websites, applications, CTV channels, and other digital media properties, to manage and monetize their inventory; applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms, to buy digital advertising inventory; and a transparent, independent marketplace that brings buyers and sellers together and facilitates intelligent decision making and automated transaction execution at scale. The Company's clients include many of the world's leading sellers and buyers of digital advertising inventory.
Basis of Presentation and Summary of Significant Accounting Policies
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles, or GAAP, for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the results for the interim period presented have been included. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for any future interim period, the year ending December 31, 2021, or for any future year.
The condensed consolidated balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all of the disclosures required by GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in its 2020 Annual Report on Form 10-K.
Aside from the adoption of ASU 2020-06, as described below, there have been no significant changes in the Company's accounting policies from those disclosed in its audited consolidated financial statements and notes thereto for the year ended December 31, 2020 included in its Annual Report on Form 10-K.
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported and disclosed financial statements and accompanying footnotes. Due to the economic uncertainty as a result of the COVID-19 pandemic, it has become more difficult to apply certain assumptions and judgments into these estimates. The extent of the impact of COVID-19 pandemic on the Company's operational and financial performance will depend on future developments, which are highly uncertain and cannot be predicted, including but not limited to, the duration and spread of the pandemic, its severity, including any resurgence, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. During the nine months ended September 30, 2021, this uncertainty continued to result in a higher level of judgment related to its estimates and assumptions. As of the date of issuance of the condensed consolidated financial statements for the three and nine months ended September 30, 2021, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, judgments, or revise the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ materially from these estimates.
Recently Adopted Accounting Standards
On January 1, 2021, the Company adopted ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU "2020-06") on a prospective basis, which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments that require
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separating embedded conversion features from convertible instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The adoption of this standard is included in the financial statements as of September 30, 2021 and for the three and nine months ended September 30, 2021 and September 30, 2020, respectively. Refer to Note 14—"Convertible Senior Notes" for additional information related to accounting for convertible debt issued during the nine months ended September 30, 2021.
On January 1, 2021, the Company adopted ASU 2019-12—Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to general principles in Topic 740 and clarifies and amends existing guidance for clarity and consistent application. There was no material impact to the quarterly or year to date income tax provision.
Recent Accounting Pronouncements
In March 2020, the FASB issued Update No. 2020-04, Reference Rate Reform (Topic 848), which provides temporary optional guidance to companies impacted by the transition away from the LIBOR. The amendment provides certain expedients and exceptions to applying GAAP in order to lessen the potential accounting burden when contracts, hedging relationships, and other transactions that reference LIBOR as a benchmark rate are modified. Further, in January 2021, the FASB issued Update No. 2021-01, Reference Rate Reform (Topic 848), which clarifies the scope of Topic 848 so that derivatives affected by the discounting transition are explicitly eligible for certain optional expedients and exceptions in Topic 848. These amendments are effective upon issuance and expire on December 31, 2022. The Company is currently assessing the impact of the LIBOR transition on the Company's condensed consolidated financial statements.
In July 2021, the FASB issued Update No. 2021-05, Leases (Topic 842)—Lessors – Certain Leases with Variable Lease Payments ("ASU 2021-05"). ASU 2021-05 requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease if specified criteria are met. This guidance will be effective on January 1, 2022, either retrospectively to leases that commenced or were modified on or after our adoption of ASU 2016-02 on January 1, 2019, or on a prospective basis, with early adoption permitted. The Company is currently assessing the impact of the new guidance on the Company's condensed consolidated financial statements.
The Company does not believe there are any other recently issued and effective or not yet effective pronouncements that would have or are expected to have any significant effect on the Company’s financial position, cash flows or results of operations.
Note 2—Net Loss Per Share
The following table presents the basic and diluted net loss per share:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands, except per share data)
Basic and Diluted Income (Loss) Per Share:
Net loss$(24,319)$(10,515)$(388)$(59,318)
Weighted-average common shares outstanding131,501 110,416 124,325 91,371 
Weighted-average common shares outstanding used to compute net loss per share131,501 110,416 124,325 91,371 
Basic and diluted net loss per share$(0.18)$(0.10)$ $(0.65)
The following weighted-average shares have been excluded from the calculation of diluted net loss per share attributable to common stockholders for each period presented because they are anti-dilutive:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands)(in thousands)
Options to purchase common stock4,116 1,920 4,712 1,720 
Unvested restricted stock units4,253 3,768 5,876 3,851 
Unvested performance stock units195 14 196 6 
ESPP11 30 49 40 
Convertible Senior Notes6,262  4,499  
Total shares excluded from net loss per share14,837 5,732 15,332 5,617 

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For the three and nine months ended September 30, 2021, diluted shares used to compute diluted earnings per share included outstanding performance stock units granted during April 2020, April 2021, and August 2021 based on a current achievement level of 150%, 0%, and 0%, respectively. Refer to Note 9—"Stock-Based Compensation" for additional information related to performance stock units.
For the three and nine months ended September 30, 2021, diluted shares used to compute diluted earnings per share excluded the shares that would be issuable assuming conversion of all of the Convertible Senior Notes (as defined in Note 14) because they are anti-dilutive. Diluted earnings per share for the Convertible Senior Notes is calculated under the if-converted method in accordance with ASC 260, Earnings Per Share. The Convertible Senior Notes have an initial conversion rate of 15.6539 shares of common stock per $1,000 principal amount of the Convertible Senior Notes, which will be subject to anti-dilution adjustments in certain circumstances. As of September 30, 2021, the number of shares that would be issuable assuming conversion of all of the Convertible Senior Notes is approximately 6,261,560. Refer to Note 14—"Convertible Senior Notes" for additional information related to accounting for Convertible Senior Notes issued and associated Capped Call Transactions.
Note 3—Revenue
For the majority of transactions on the Company's platform, the Company reports revenue on a net basis as it does not act as the principal in the purchase and sale of digital advertising inventory because it does not have control of the digital advertising inventory and does not set prices agreed upon within the auction marketplace. For certain advertising campaigns that are transacted through insertion orders, the Company reports revenue on a gross basis, based primarily on its determination that the Company acts as the primary obligor in the delivery of advertising campaigns for buyers with respect to such transactions.
For periods prior to the SpotX Acquisition, revenue reported on a gross basis was generally less than 3% of the Company's total revenue. As a result of the SpotX Acquisition, an increased percentage of the Company's revenue is reported on a gross basis. The following table presents our revenue recognized on a net basis and on a gross basis for the three and nine months ended September 30, 2021 and September 30, 2020, respectively.
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands, except percentages)
Revenue:
Net basis$105,866 80 %$59,913 98 %$258,236 84 %$138,063 99 %
Gross basis26,005 20 1,069 2 48,891 16 1,562 1 
Total$131,871 100 %$60,982 100 %$307,127 100 %$139,625 100 %
The following table presents our revenue by channel for the three and nine months ended September 30, 2021 and 2020:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands, except percentages)
Channel:
CTV$57,885 44 %$11,059 18 %$115,040 38 %$18,978 14 %
Desktop30,573 23 20,901 34 80,166 26 51,468 37 
Mobile43,413 33 29,022 48 111,921 36 69,179 49 
Total$131,871 100 %$60,982 100 %$307,127 100 %$139,625 100 %
    The following table presents the Company's revenue disaggregated by geographic location, based on the location of the Company's sellers:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands)(in thousands)
United States$104,633 $45,048 $237,844 $101,168 
International27,238 15,934 69,283 38,457 
Total$131,871 $60,982 $307,127 $139,625 

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Payment terms are specified in agreements between the Company and the buyers and sellers on its platform. The Company generally bills buyers at the end of each month for the full purchase price of impressions filled in that month. The Company recognizes volume discounts as a reduction of revenue as they are incurred. Specific payment terms may vary by agreement, but are generally seventy-five days or less. The Company's accounts receivable are recorded at the amount of gross billings to buyers, net of allowances for the amounts the Company is responsible to collect. The Company's accounts payable related to amounts due to sellers are recorded at the net amount payable to sellers (see Note 5). Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis.
Accounts receivable are recorded at the invoiced amount, are unsecured, and do not bear interest. The allowance for doubtful accounts is reviewed quarterly, requires judgment, and is based on the best estimate of the amount of probable credit losses in existing accounts receivable. The Company reviews the status of the then-outstanding accounts receivable on a customer-by-customer basis, taking into consideration the aging schedule of receivables, its historical collection experience, current information regarding the client, subsequent collection history, and other relevant data, in establishing the allowance for doubtful accounts. Accounts receivable is presented net of an allowance for doubtful accounts of $4.0 million at September 30, 2021, and $2.4 million at December 31, 2020. Accounts receivable are written off against the allowance for doubtful accounts when the Company determines amounts are no longer collectible.
The Company reviews the associated payable to sellers for recovery of buyer receivable allowance and write-offs; in some cases, the Company can reduce the payable to sellers. The reduction of seller payables related to recovery of uncollected buyer receivables is netted against allowance expense. The contra seller payables related to recoveries were $2.2 million and $1.5 million as of September 30, 2021 and December 31, 2020, respectively.
The following is a summary of activity in the allowance for doubtful accounts for the three and nine months ended September 30, 2021 and 2020:
Three Months EndedNine Months Ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
(in thousands)(in thousands)
Allowance for doubtful accounts, Beginning Balance$3,279 $4,672 $2,360 $3,400 
Allowance for doubtful accounts, merger and acquisition-assumed425  835 1,033 
Write-offs(14)(1)(35)(1,897)
Increase (decrease) in provision for expected credit losses342 (274)852 1,854 
Recoveries of previous write-offs 83 20 90 
Allowance for doubtful accounts, September 30$4,032 $4,480 $4,032 $4,480 
During the three and nine months ended September 30, 2021, the provision for expected credit losses associated with accounts receivable increased by $0.3 million and $0.9 million was offset by decreases of contra seller payables related to recoveries of uncollected buyer receivables of an immaterial amount and $0.6 million, which resulted in $0.4 million and $0.2 million, respectively, of bad debt recoveries. During the three and nine months ended September 30, 2020, the provision for expected credit losses associated with accounts receivable of $(0.3) million and $1.9 million was offset by increases of contra seller payables related to recoveries of uncollected buyer receivables of $(0.3) million and $1.8 million, respectively, which resulted in an immaterial amount of bad debt expense during the period.
Note 4—Fair Value Measurements
Recurring Fair Value Measurements    
Fair value represents the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are based on market data obtained from independent sources. The fair value hierarchy is based on the following three levels of inputs, of which the first two are considered observable and the last one is considered unobservable:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3 – Unobservable inputs.
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The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at September 30, 2021:
TotalQuoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs 
(Level 3)
(in thousands)
Cash equivalents
$7,869 $7,869 $ $ 
The table below sets forth a summary of financial instruments that are measured at fair value on a recurring basis at December 31, 2020:
TotalQuoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable Inputs 
(Level 3)
(in thousands)
Cash equivalents
$7,868 $7,868 $ $ 
At September 30, 2021 and December 31, 2020, cash equivalents of $7.9 million and $