Post Earnings Coverage as Rubicon Exceeded Quarterly Sales and Earnings Expectations

Upcoming AWS Coverage on Workday Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 27, 2017 / Active Wall St. announces its post-earnings coverage on the Rubicon Project, Inc. (NYSE: RUBI). The Company posted its financial results for its fourth quarter and fiscal year 2016 on March 14, 2017. The digital ad exchange operator announced a change of CEO. Register with us now for your free membership at:

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One of the Rubicon Project’s competitors within the Application Software space, Workday, Inc. (NYSE: WDAY), reported on February 27, 2017, its results for the fourth quarter and fiscal year ended January 31, 2017. AWS will be initiating a research report on Workday in the coming days.

Today, AWS is promoting its earnings coverage on RUBI; touching on WDAY. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended December 31, 2016, Rubicon reported revenue of $72.7 million compared to $94.0 million for Q4 2015. The Company’s non-GAAP net revenue was $66.9 million for the reported quarter compared to $83.7 million for the year ago same period. The Company’s revenue numbers exceeded analysts’ consensus of $63.6 million. For FY16, Rubicon’s revenue was $278.2 million compared to $248.5 million for FY15. The Company’s non-GAAP net revenue totaled $256.1 million compared to $227.3 million for 2015.

For Q4 2016, Rubicon’s advertising spending was $277.1 million, down 18% on a y-o-y basis. The decline in advertising spending was driven primarily by a continued decrease in desktop, which fell 23% year-over-year to $178.2 million. For the full year 2016, the Company generated over $1 billion in advertising spending.

For Q4 2016, Rubicon’s adjusted EBITDA was $21.7 million compared to adjusted EBITDA of $36.0 million for Q4 2015. The Company’s adjusted EBITDA totaled $70.9 million for FY16 which compared to $59.5 million for FY15.

For Q4 2016, Rubicon’s net loss was $21.2 million, or $0.44 diluted loss per share, compared to net income of $20.4 million, or diluted income per share of $0.43, for Q4 2015. The reported quarter net loss included charges impairment of intangible assets expense of $23.5 million and restructuring and other exits costs of $3.3 million. The Company’s non-GAAP earnings per share were $0.37 for the reported quarter compared to $0.74 for the prior year’s same quarter. The Company’s earnings numbers comfortably surpassed Wall Street’s estimates of $0.15 per share.

For FY16, Rubicon’s net loss totaled $18.1 million, or $0.39 diluted loss per share, compared to net income of $0.4 million, or diluted income per share of $0.01, for FY15. Included in GAAP net income for 2016 were impairment of intangible assets expense of $23.5 million and restructuring and other exits costs of $3.3 million. The Company’s non-GAAP earnings per share were $1.07 for 2016 compared to $0.98 for 2015.

Balance Sheet

Rubicon ended 2016 with $190.0 million in cash and marketable securities, down $3.2 million from September 30, 2016. Capital expenditures, including purchases of property and equipment, as well as capitalized internal use software development costs, were $14.5 million for Q4 2016 and $33.4 million for the full year 2016. The Company’s free cash flow was a negative $3.2 million during the reported quarter and a positive $26.7 million during the full-year 2016.

Change at its Helm

On March 14, 2017, in a separate press release Rubicon announced that Michael Barrett will be joining the Company this week as Chief Executive Officer. Frank Addante will continue with the Company as Founder and Chairman focused on Rubicon Project’s vision, strategy, and thought leadership for the future.

Michael Barrett was previously the CEO of Millennial Media, the leading independent mobile marketplace, which was acquired by AOL/Verizon, and is a seasoned media executive who brings both a proven leadership and a deep knowledge of the advertising and digital media space to Rubicon Project. Michael has had a long career in advertising and media, having served as Chief Revenue Officer at AOL and Fox among other executive leadership roles.

Outlook

For Q1 2017, Rubicon is forecasting GAAP revenue in the range of $41 million and $45 million, non-GAAP net revenue to be between $41 million and $44 million, adjusted EBITDA to be between negative $6 million and negative $4 million. The Company expects non-GAAP EPS to be between negative $0.26 and negative $0.22 per share, based on approximately $48 million forecasted weighted average shares and roughly $6 million in CapEx spend.

Stock Performance

At the close of trading session on Friday, March 24, 2017, the Rubicon Project’s stock price rose 1.09% to end the day at $5.58. A total volume of 1.64 million shares were exchanged during the session, which was above the 3-month average volume of 906.76 thousand shares. Additionally, the stock currently has a market cap of $272.92 million.

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