Rubicon Project Announces Record First Quarter Financial Results
LOS ANGELES – May 13, 2014 – The Rubicon Project, Inc. (NYSE: RUBI), a leader in advertising automation with one of the industry’s largest independent real-time trading platforms for the buying and selling of advertising, today reported financial results for the first quarter ended March 31, 2014.
- First quarter revenue was $23 million, up 39% year-over-year
- First quarter managed revenue1 was approximately $130 million, up 34% year-over-year
- Non-GAAP loss per share2 was $0.15
- RTB managed revenue1 grew 75% year over year
“I’m pleased to report record first quarter results,” said Frank Addante, CEO and Chief Product Architect of Rubicon Project. “RTB drove our revenue growth for the quarter, as we continue to outpace the estimated growth of the RTB market. We’re executing well across all of our growth initiatives and remain excited about our market opportunity.”
Q1 2014 Financial Results:
- Revenue was $23.0 million for the first quarter of 2014, an increase of 39% from $16.6 million for the first quarter of 2013, primarily driven by increases in our managed revenue and take rate.
- Adjusted EBITDA2 loss was $1.6 million for the first quarter of 2014 compared to income of $2.0 million in the first quarter of 2013.
- Net loss was $6.1 million for the first quarter of 2014 compared to a net loss of $2.2 million in the first quarter of 2013.
- Net loss per share attributable to common stockholders on a GAAP basis was $0.59 for the first quarter of 2014, based on 12.2 million weighted-average shares outstanding. This compares to a net loss per share of $0.28 for the first quarter of 2013, which was based on 11.3 million weighted-average shares outstanding.
- Non-GAAP loss per share2 was $0.15 for the first quarter of 2014, based on 26.9 million non-GAAP weighted-average shares outstanding. This compares to a non-GAAP income per share of $0.00 (i.e. breakeven) for the first quarter 2013, which was based on 26.0 million non-GAAP weighted-average shares outstanding. Non-GAAP weighted-average shares outstanding used to calculate non-GAAP loss per share assume the conversion of each share of convertible preferred stock and the net exercise of a preferred stock warrant to one half share of common stock in connection with the Company’s initial public offering, but exclude the 6.4 million shares issued in our initial public offering, which closed in the second quarter.
Key Operational Measures:
- Managed revenue1 was $129.6 million for the first quarter of 2014, an increase of 34% from $96.4 million for the first quarter of 2013. The increase was primarily driven by an increase in pricing due to increased bidding activity.
- Take rate1 was 17.8% for the first quarter of 2014, compared to 17.2% for the first quarter of 2013.
As of May 13, 2014, we are initiating guidance as follows:
For the second quarter of 2014, we expect:
- Revenue between $24.5 million and $25.5 million;
- Adjusted EBITDA2 loss between $5.0 million and $4.0 million; and
- Non-GAAP loss per share2 between $0.24 and $0.21 based on approximately 33.2 million non-GAAP weighted-average shares outstanding.
For the full year ending December 31, 2014, we expect:
- Revenue between $111.0 million and $114.0 million;
- Adjusted EBITDA2 loss between $7.0 million and $5.0 million; and
- Non-GAAP loss per share2 between $0.60 and $0.50 based on approximately 32.0 million non-GAAP weighted-average shares outstanding.
The non-GAAP weighted-average shares outstanding used in our guidance for second quarter and full year non-GAAP loss per share include the 6.4 million shares issued in our initial public offering from April 7, the date our IPO closed.
1 Managed revenue and take rate are operational measures. Managed revenue represents advertising spending transacted on our platform and would represent our revenue if we were to record our revenue on a gross basis instead of a net basis. Take rate represents our share of managed revenue.
2 Adjusted EBITDA and non-GAAP loss per share are non-GAAP financial measures. Please see discussion in section “Key Operational and Non-GAAP Financial Measures” and the reconciliations included at the end of this earnings release.
Conference Call Information:
The company will host a conference call on May 13, 2014 at 2:00 PM (PT) / 5:00 PM (ET) to discuss the first quarter, 2014 financial results of operations. The conference call can be accessed at (877) 201-0168 (U.S.) or (647) 788-4901 (International), conference ID# 40993210. The call will also be broadcast simultaneously at http://investor.rubiconproject.com. Following completion of the call, a recorded replay of the webcast will be available on Rubicon Project’s website. Additional investor information can be accessed at http://investor.rubiconproject.com.
For the full earnings release and consolidated balance sheets, please visit HERE.