Magnite, Inc. (NASDAQ: MGNI) shares soared 16.81% in pre-market trading on Thursday, building on the momentum from its impressive first-quarter 2025 financial results released after the market close on Wednesday. The advertising technology company's performance significantly surpassed analyst expectations, driving strong investor enthusiasm despite a cautious outlook.

Magnite reported adjusted earnings per share of $0.12 for Q1, handily beating the analyst consensus estimate of $0.07 by 71.43%. This represents a substantial 140% increase from the $0.05 per share reported in the same period last year. The company's quarterly revenue also exceeded expectations, coming in at $155.77 million, surpassing the analyst estimate of $144.20 million by 8.02%. This marks a 4.32% year-over-year increase from $149.32 million.

Other notable financial highlights include a gross profit of $93 million and adjusted EBITDA of $36.8 million, with the latter outperforming the estimate of $30 million. The adjusted EBITDA margin stood at an impressive 25%. However, investors should note that Magnite reported a net loss of $9.6 million for the quarter. Despite the strong results, the company has adopted a more cautious approach to its outlook and guidance, citing tariff-driven economic uncertainty. As a result, Magnite is not reaffirming its full-year 2025 expectations at this time, which may temper some of the market's enthusiasm going forward.