First Quarter Revenue Grows 30% Year over
Year
Rubicon Project (NYSE: RUBI), the global exchange for
advertising, today reported its results of operations for the first
quarter of 2019.
Recent Highlights
- Revenue was $32.4 million for Q1 2019,
up 30% from Q1 2018
- Q2 2019 year-over-year revenue expected
to grow approximately 20-25%
- Mobile revenue grew 63% in Q1 2019 year
over year and represented 53% of total revenue
- Desktop revenue grew 6% in Q1 2019 year
over year
- Video revenue nearly doubled in Q1 2019
year over year
- Adjusted EBITDA(1) loss was $0.1
million, compared to Adjusted EBITDA loss of $14.2 million for the
first quarter of 2018.
- Net loss for Q1 2019 was $12.5 million,
or loss per share of $0.24, compared to net loss of $27.8 million,
or loss per share of $0.56 for the first quarter of 2018.
- Non-GAAP loss per share(1) was $0.14,
compared to $0.44 non-GAAP loss per share for the first quarter of
2018.
- For Q2 2019 we expect to be slightly
Adjusted EBITDA positive
“For the first quarter, we delivered strong year-over-year
revenue growth and were essentially Adjusted EBITDA break-even in
our seasonally slowest quarter,” said Michael G. Barrett, President
and CEO of Rubicon Project. “Our strong year-over-year revenue
performance was based on continued market share growth in video, as
well as our strong overall competitive position during a time when
buyers continue to reduce the number of exchanges they work with.
Our success is a direct result of the many actions taken over the
past two years, and we expect our business will further benefit
from investments on the seller side of the business in 2019.”
First Quarter 2019 Results Summary (in
millions, except per share amounts and percentages)
Three Months
Ended March 31, 2019 March 31, 2018
ChangeFavorable/ (Unfavorable) Revenue $32.4 $24.9
30% Net loss ($12.5) ($27.8) 55% Adjusted EBITDA(1) ($0.1) ($14.2)
99% Adjusted EBITDA margin(2) —% (57%) 57 ppt Basic and diluted
loss per share ($0.24) ($0.56) 57% Non-GAAP loss per share(1)
($0.14) ($0.44) 68%
Definitions:
(1) Adjusted EBITDA and non-GAAP loss per share are non-GAAP
financial measures. Please see the discussion in the section called
"Non-GAAP Financial Measures" and the reconciliations included at
the end of this press release. (2) Adjusted EBITDA margin is
calculated as Adjusted EBITDA divided by revenue. A reconciliations
for net loss to Adjusted EBITDA is included at the end of this
press release. For further discussion, please see "Non-GAAP
Financial Measures." nm not meaningful
First Quarter 2019 Results Conference Call and
Webcast:
The Company will host a conference call on May 1, 2019 at
1:30 PM (PT) / 4:30 PM (ET) to discuss the results for its first
quarter of 2019.
Live conference
call
Toll free number: (844) 875-6911 (for domestic callers)
Direct dial number: (412) 902-6511 (for international callers)
Passcode: Ask to join the Rubicon Project conference call
Simultaneous audio webcast:
http://investor.rubiconproject.com, under "Events and
Presentations"
Conference call
replay
Toll free number: (877) 344-7529 (for domestic callers) Direct dial
number: (412) 317-0088 (for international callers) Passcode:
10130205 Webcast link:
http://investor.rubiconproject.com, under "Events and
Presentations"
About Rubicon Project
Founded in 2007, Rubicon Project is one of the world’s
largest advertising exchanges. The company helps websites and apps
thrive by giving them tools and expertise to sell ads easily and
safely. In addition, the world’s leading agencies and brands rely
on Rubicon Project’s technology to execute tens of billions of
advertising transactions each month. Rubicon Project is an
independent, publicly traded company (NYSE:RUBI) headquartered
in Los Angeles, California.
Note: The Rubicon Project and the Rubicon Project logo are
registered service marks of The Rubicon Project, Inc.
Forward-Looking Statements:
This press release and management's prepared remarks during the
conference call referred to above include, and management's answers
to questions during the conference call may include,
forward-looking statements, including statements based upon or
relating to our expectations, assumptions, estimates, and
projections. In some cases, you can identify forward-looking
statements by terms such as "may," "might," "will," "objective,"
"intend," "should," "could," "can," "would," "expect," "believe,"
"design," "anticipate," "estimate," "predict," "potential," "plan"
or the negative of these terms, and similar expressions.
Forward-looking statements may include, but are not limited to,
statements concerning our anticipated financial performance,
including, without limitation, revenue, advertising spend, non-GAAP
loss per share, profitability, net income (loss), Adjusted EBITDA,
earnings per share, and cash flow; strategic objectives, including
focus on header bidding, mobile, video, seller tools, and private
marketplace opportunities; investments in our business; development
of our technology; introduction of new offerings; the impact of our
traffic shaping technology on our business; the effects of our cost
reduction initiatives; scope and duration of client relationships;
the fees we may charge in the future; business mix and expansion of
our mobile, video and private marketplace offerings; sales growth;
client utilization of our offerings; our competitive
differentiation; our market share and leadership position in the
industry; market conditions, trends, and opportunities; user reach;
certain statements regarding future operational performance
measures including ad requests, fill rate, paid impressions,
average CPM, take rate, and advertising spend; benefiting from
supply path optimization; and factors that could affect these and
other aspects of our business. These statements are not guarantees
of future performance; they reflect our current views with respect
to future events and are based on assumptions and estimates and
subject to known and unknown risks, uncertainties and other factors
that may cause our actual results, performance or achievements to
be materially different from expectations or results projected or
implied by forward-looking statements. These risks include, but are
not limited to: our ability to continue to grow and to manage our
growth effectively; our ability to develop innovative new
technologies and remain a market leader; our ability to attract and
retain buyers and sellers and increase our business with them; our
vulnerability to loss of, or reduction in spending by, buyers; our
reliance on large sources of advertising demand and aggregators of
advertising inventory; our ability to maintain and grow a supply of
advertising inventory from sellers and to fill the increased
inventory; the effect on the advertising market and our business
from difficult economic conditions or uncertainty; the freedom of
buyers and sellers to direct their spending and inventory to
competing sources of inventory and demand; our ability to use our
solution to purchase and sell higher value advertising and to
expand the use of our solution by buyers and sellers utilizing
evolving digital media platforms; our ability to introduce new
offerings and bring them to market in a timely manner, and
otherwise adapt in response to client demands and industry trends,
including shifts in digital advertising growth from desktop to
mobile channels and from display to video formats and the
introduction and market acceptance of new seller tools; the
increased prevalence of header bidding and its effect on our
competitive position; uncertainty of our estimates and expectations
associated with new offerings, including header bidding, private
marketplace, mobile, video, seller tools, and traffic shaping;
lower fees and take rate and the need to grow through advertising
spend increases rather than fee increases; our ability to
compensate for a reduced take rate by increasing the volume and/or
value of transactions on our platform and increasing our fill rate;
our vulnerability to the depletion of our cash resources as we
incur additional investments in technology required to support the
increased volume of transactions on our exchange and development of
new offerings; our ability to support our growth objectives with
reduced resources from our cost reduction initiatives; our ability
to raise additional capital if needed and/or renew our working
capital line of credit; our limited operating history and history
of losses; our ability to continue to expand into new geographic
markets; our ability to adapt effectively to shifts in digital
advertising; increased prevalence of ad-blocking or cookie-blocking
technologies; the slowing growth rate of desktop display
advertising; the growing percentage of online and mobile
advertising spending captured by owned and operated sites (such as
Facebook, Google and Amazon); the effects, including loss of market
share, of increased competition in our market and increasing
concentration of advertising spending, including mobile spending,
in a small number of very large competitors; the effects of
consolidation in the ad tech industry; acts of competitors and
other third parties that can adversely affect our business; our
ability to differentiate our offerings and compete effectively in a
market trending increasingly toward commodification, transparency,
and disintermediation; requests for discounts, fee concessions or
revisions, rebates, refunds, favorable payment terms and greater
levels of pricing transparency and specificity; potential adverse
effects of malicious activity such as fraudulent inventory and
malware; the effects of seasonal trends on our results of
operations; costs associated with defending intellectual property
infringement and other claims; our ability to attract and retain
qualified employees and key personnel; our ability to identify
future acquisitions of or investments in complementary companies or
technologies and our ability to consummate the acquisitions and
integrate such companies or technologies; and our ability to comply
with, and the effect on our business of, evolving legal standards
and regulations, particularly concerning data protection and
consumer privacy and evolving labor standards.
We discuss many of these risks and additional factors that could
cause actual results to differ materially from those anticipated by
our forward-looking statements under the headings "Risk Factors,"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations," and elsewhere in filings we have made
and will make from time to time with the Securities and Exchange
Commission, or SEC, including our Annual Report on Form 10-K for
the year ended December 31, 2018 and subsequent Quarterly Reports
on Form 10-Q. These forward-looking statements represent our
estimates and assumptions only as of the date made. Unless required
by federal securities laws, we assume no obligation to update any
of these forward-looking statements, or to update the reasons
actual results could differ materially from those anticipated, to
reflect circumstances or events that occur after the statements are
made. Without limiting the foregoing, any guidance we may provide
will generally be given only in connection with quarterly and
annual earnings announcements, without interim updates, and we may
appear at industry conferences or make other public statements
without disclosing material nonpublic information in our
possession. Given these uncertainties, investors should not place
undue reliance on these forward-looking statements. Investors
should read this press release and the documents that we reference
in this press release and have filed or will file with the SEC
completely and with the understanding that our actual future
results may be materially different from what we expect. We qualify
all of our forward-looking statements by these cautionary
statements.
Non-GAAP Financial Measures:
In addition to our GAAP results, we review certain non-GAAP
financial measures to help us evaluate our business, measure our
performance, identify trends affecting our business, establish
budgets, measure the effectiveness of investments in our technology
and development and sales and marketing, and assess our operational
efficiencies. These non-GAAP measures include Adjusted EBITDA and
Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per share which
are discussed below.
These non-GAAP financial measures are not intended to be
considered in isolation from, as substitutes for, or as superior
to, the corresponding financial measures prepared in accordance
with GAAP. You are encouraged to evaluate these adjustments, and
review the reconciliation of these non-GAAP financial measures to
their most comparable GAAP measures, and the reasons we consider
them appropriate. It is important to note that the particular items
we exclude from, or include in, our non-GAAP financial measures may
differ from the items excluded from, or included in, similar
non-GAAP financial measures used by other companies. See
"Reconciliation of net loss to Adjusted EBITDA," "Reconciliation of
net loss to non-GAAP loss" and "Reconciliation of GAAP loss per
share to non-GAAP loss per share" included as part of this press
release.
Adjusted EBITDA:
We define Adjusted EBITDA as net income (loss) adjusted to
exclude stock-based compensation expense, depreciation and
amortization, amortization of acquired intangible assets,
impairment charges, interest income or expense, and other cash and
non-cash based income or expenses that we do not consider
indicative of our core operating performance, including, but not
limited to foreign exchange gains and losses, acquisition and
related items, and provision (benefit) for income taxes. We believe
Adjusted EBITDA is useful to investors in evaluating our
performance for the following reasons:
- Adjusted EBITDA is widely used by
investors and securities analysts to measure a company’s
performance without regard to items such as those we exclude in
calculating this measure, which can vary substantially from company
to company depending upon their financing, capital structures, and
the method by which assets were acquired.
- Our management uses Adjusted EBITDA in
conjunction with GAAP financial measures for planning purposes,
including the preparation of our annual operating budget, as a
measure of performance and the effectiveness of our business
strategies, and in communications with our board of directors
concerning our performance. Adjusted EBITDA may also be used as a
metric for determining payment of cash incentive compensation.
- Adjusted EBITDA provides a measure of
consistency and comparability with our past performance that many
investors find useful, facilitates period-to-period comparisons of
operations, and also facilitates comparisons with other peer
companies, many of which use similar non-GAAP financial measures to
supplement their GAAP results.
Although Adjusted EBITDA is frequently used by investors and
securities analysts in their evaluations of companies, Adjusted
EBITDA has limitations as an analytical tool, and should not be
considered in isolation or as a substitute for analysis of our
results of operations as reported under GAAP. These limitations
include:
- Stock-based compensation is a non-cash
charge and will remain an element of our long-term incentive
compensation package, although we exclude it as an expense when
evaluating our ongoing operating performance for a particular
period.
- Depreciation and amortization are
non-cash charges, and the assets being depreciated or amortized
will often have to be replaced in the future, but Adjusted EBITDA
does not reflect any cash requirements for these replacements.
- Impairment charges are non-cash charges
related to goodwill, intangible assets and/or long-lived
assets.
- Adjusted EBITDA does not reflect
non-cash charges related to acquisition and related items, such as
amortization of acquired intangible assets and changes in the fair
value of contingent consideration.
- Adjusted EBITDA does not reflect cash
and non-cash charges and changes in, or cash requirements for,
acquisition and related items, such as certain transaction expenses
and expenses associated with earn-out amounts.
- Adjusted EBITDA does not reflect
changes in our working capital needs, capital expenditures, or
contractual commitments.
- Adjusted EBITDA does not reflect cash
requirements for income taxes and the cash impact of other income
or expense.
- Other companies may calculate Adjusted
EBITDA differently than we do, limiting its usefulness as a
comparative measure.
Our Adjusted EBITDA is influenced by fluctuations in our revenue
and the timing and amounts of our investments in our operations.
Adjusted EBITDA should not be considered as an alternative to net
income (loss), operating loss, or any other measure of financial
performance calculated and presented in accordance with GAAP.
Non-GAAP Income (Loss) and Non-GAAP Earnings (Loss) per
Share:
We define non-GAAP earnings (loss) per share as non-GAAP income
(loss) divided by non-GAAP weighted-average shares outstanding.
Non-GAAP income (loss) is equal to net income (loss) excluding
stock-based compensation, impairment charges, cash and non-cash
based acquisition and related expenses, including amortization of
acquired intangible assets, transaction expenses, expenses
associated with earn-out amounts, and foreign currency gains and
losses. In periods in which we have non-GAAP income, non-GAAP
weighted-average shares outstanding used to calculate non-GAAP
earnings per share includes the impact of potentially dilutive
shares. Potentially dilutive shares consist of stock options,
restricted stock awards, restricted stock units, potential shares
issued under the Employee Stock Purchase Plan, each computed using
the treasury stock method, shares held in escrow, and potential
shares issued as part of contingent consideration as a result of
business combinations. We believe non-GAAP earnings (loss) per
share is useful to investors in evaluating our ongoing operational
performance and our trends on a per share basis, and also
facilitates comparison of our financial results on a per share
basis with other companies, many of which present a similar
non-GAAP measure. However, a potential limitation of our use of
non-GAAP earnings (loss) per share is that other companies may
define non-GAAP earnings (loss) per share differently, which may
make comparison difficult. This measure may also exclude expenses
that may have a material impact on our reported financial results.
Non-GAAP earnings (loss) per share is a performance measure and
should not be used as a measure of liquidity. Because of these
limitations, we also consider the comparable GAAP measure of net
income (loss).
THE RUBICON PROJECT, INC. CONDENSED CONSOLIDATED
BALANCE SHEETS (In thousands) (unaudited)
March 31, 2019 December 31, 2018 ASSETS
Current assets: Cash and cash equivalents $ 80,714 $ 80,452
Marketable securities — 7,524 Accounts receivable, net 155,888
205,683 Prepaid expenses and other current assets 7,448
6,882 TOTAL CURRENT ASSETS 244,050 300,541 Property and
equipment, net 28,307 33,487 Right-of-use lease asset 12,801 —
Internal use software development costs, net 14,790 14,570
Intangible assets, net 9,382 10,174 Other assets, non-current 2,067
1,240 TOTAL ASSETS $ 311,397 $ 360,012
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable and accrued expenses $ 187,891 $ 239,678 Lease
liabilities, current 6,928 — Other current liabilities 673
1,304
TOTAL CURRENT LIABILITIES
195,492 240,982 Lease liabilities, non-current 7,235 — Other
liabilities, non-current 179 1,017 TOTAL LIABILITIES
202,906 241,999 STOCKHOLDERS' EQUITY Common stock 1 1
Additional paid-in capital 436,807 433,877 Accumulated other
comprehensive loss (165 ) (259 ) Accumulated deficit (328,152 )
(315,606 ) TOTAL STOCKHOLDER'S EQUITY 108,491 118,013
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY
$ 311,397 $ 360,012
THE RUBICON
PROJECT, INC. CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In thousands, except per share amounts)
(unaudited) Three Months Ended March 31,
2019 March 31, 2018 Revenue $ 32,416 $ 24,876
Expenses (1)(2): Cost of revenue 15,116 14,783 Sales and marketing
10,592 12,257 Technology and development 9,716 10,494 General and
administrative 10,280 12,544 Restructuring and other exit costs —
2,466 Total expenses 45,704 52,544 Loss
from operations (13,288 ) (27,668 ) Other (income) expense:
Interest income, net (193 ) (271 ) Other income (142 ) (210 )
Foreign exchange loss, net 301 554 Total other
(income) expense, net (34 ) 73 Loss before income taxes
(13,254 ) (27,741 ) Provision (benefit) for income taxes (708 ) 75
Net loss $ (12,546 ) $ (27,816 ) Net loss per share: Basic
and Diluted $ (0.24 ) $ (0.56 ) Weighted average shares used to
compute net loss per share: Basic and Diluted 51,577 49,692
(1) Stock-based compensation expense
included in our expenses was as follows:
Three Months Ended March 31, 2019
March 31, 2018 Cost of revenue $ 92 $ 107 Sales and
marketing 1,345 1,185 Technology and development 1,059 849 General
and administrative 1,873 2,357 Restructuring and other exit costs —
46 Total stock-based compensation expense $ 4,369 $
4,544
(2) Depreciation and amortization expense
included in our expenses was as follows:
Three Months Ended March 31, 2019
March 31, 2018 Cost of revenue $ 8,045 $ 8,161 Sales and
marketing 125 163 Technology and development 196 241 General and
administrative 274 145 Total depreciation and amortization
expense $ 8,640 $ 8,710
THE RUBICON
PROJECT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (In thousands) (unaudited) Three
Months Ended March 31, 2019 March 31, 2018
OPERATING ACTIVITIES: Net loss $ (12,546 ) $ (27,816 ) Adjustments
to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 8,640 8,710 Stock-based compensation
4,369 4,544 Loss on disposal of property and equipment 4 120
Provision for doubtful accounts 775 96 Accretion of available for
sale securities 24 (154 ) Unrealized foreign currency (gains)
losses, net (183 ) 227 Deferred income taxes (753 ) — Changes in
operating assets and liabilities: Accounts receivable 46,446 28,259
Prepaid expenses and other assets 640 (170 ) Accounts payable and
accrued expenses (49,482 ) (23,158 ) Other liabilities (1,386 )
(422 ) Net cash used in operating activities (3,452 ) (9,764 )
INVESTING ACTIVITIES: Purchases of property and equipment (142 )
(239 ) Capitalized internal use software development costs (2,098 )
(2,573 ) Investments in available-for-sale securities — (19,238 )
Maturities of available-for-sale securities 7,500 22,600
Net cash provided by investing activities 5,260 550
FINANCING ACTIVITIES: Proceeds from exercise of stock
options 251 6 Taxes paid related to net share settlement (1,835 )
(40 ) Net cash used in financing activities (1,584 ) (34 ) EFFECT
OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED
CASH 38 122 CHANGE IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH 262 (9,126 ) CASH, CASH EQUIVALENTS AND
RESTRICTED CASH — Beginning of period 80,452 76,642
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period $ 80,714
$ 67,516 SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW
INFORMATION: Cash paid for income taxes $ 92 $ 137 Cash paid for
interest $ 10 $ 15 Capitalized assets financed by accounts payable
and accrued expenses $ 509 $ 237 Capitalized stock-based
compensation $ 145 $ 145
THE RUBICON PROJECT,
INC. RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA
(In thousands) (unaudited) Three Months
Ended March 31, 2019 March 31, 2018 Net
loss $ (12,546 ) $ (27,816 ) Add back (deduct): Depreciation and
amortization expense, excluding amortization of acquired intangible
assets 7,847 7,914 Amortization of acquired intangibles 793 796
Stock-based compensation expense 4,369 4,544 Interest income, net
(193 ) (271 ) Foreign exchange loss, net 301 554 Provision
(benefit) for income taxes (708 ) 75 Adjusted EBITDA $ (137
) $ (14,204 )
THE RUBICON PROJECT, INC.
RECONCILIATION OF NET LOSS TO NON-GAAP LOSS (In
thousands) (unaudited) Three Months Ended
March 31, 2019 March 31, 2018 Net loss $
(12,546 ) $ (27,816 ) Add back (deduct): Acquisition and related
items, including amortization of acquired intangibles 793 796
Stock-based compensation expense 4,369 4,544 Foreign exchange loss,
net 301 554 Tax effect of Non-GAAP adjustments (1) (103 ) (43 )
Non-GAAP loss $ (7,186 ) $ (21,965 )
(1) Non-GAAP loss includes the estimated
tax impact from the expense items reconciling between net loss and
non-GAAP loss.
THE RUBICON PROJECT, INC.
RECONCILIATION OF GAAP LOSS PER SHARE
TO NON-GAAP LOSS PER SHARE
(In thousands, except per share
amounts)
(unaudited)
Three Months Ended March 31, 2019
March 31, 2018 GAAP net loss per share (1): Basic and
Diluted $ (0.24 ) $ (0.56 ) Non-GAAP loss (2) $ (7,186 ) $
(21,965 ) Weighted-average shares used to compute net loss
per share (3) 51,577 49,692 Non-GAAP loss per share $ (0.14 ) $
(0.44 ) (1) Calculated as net loss divided by basic
weighted-average shares used to compute net loss per share as
included in the consolidated statement of operations. (2) Refer to
reconciliation of net loss to non-GAAP loss. (3) Non-GAAP loss per
share is computed using the same weighted-average number of shares
that are used to compute GAAP net loss per share in periods where
there is both a non-GAAP loss and a GAAP net loss.
THE RUBICON PROJECT, INC. REVENUE BY CHANNEL (In
thousands, except percentages) (unaudited)
Revenue Three Months Ended March 31, 2019
March 31, 2018 (in thousands, except
percentages) Channel: Desktop $
15,221 47 % $ 14,309 58 % Mobile 17,195 53 10,567
42 Total $ 32,416 100 % $ 24,876 100 %
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190501005973/en/
Investor Relations ContactNick Kormeluk(949)
500-0003nkormeluk@rubiconproject.com
Media ContactCharlstie Veith(516)
300-3569press@rubiconproject.com
The Rubicon Project (NYSE:RUBI)
Gráfico Histórico do Ativo
De Mar 2024 até Abr 2024
The Rubicon Project (NYSE:RUBI)
Gráfico Histórico do Ativo
De Abr 2023 até Abr 2024