[March 13, 2018] |
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OpenX Announces 10th Straight Year of Growth, 4th Straight Year of Profitability; Business Surges to $172 Million in Net Revenue in 2017
OpenX, the world's leading independent advertising technology provider,
today announced financial results from 2017, highlighted by the
company's tenth straight year of growth and fourth straight year of
profitability. Significant investments in mobile, video and quality
initiatives helped to further accelerate year-over-year revenue growth
for the company to 20 percent in the fourth quarter. The company also
reported that the Q4 revenue growth has continued into the first 60 days
of 2018.
Since its founding ten years ago, OpenX has successfully navigated the
evolution of the programmatic ecosystem, growing successively each year
into now the world's largest independent advertising exchange. Several
key factors have contributed to this rare industry success story and
underpin the company's optimistic outlook for 2018:
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Investment in being mobile first: OpenX invested heavily in
growing its mobile web and mobile app business in the past 24 months.
In 2017 mobile inventory surpassed desktop in the OpenX Exchange for
the first time. The mobile business at OpenX grew 39 percent
year-over-year in 2017, with in-app revenue surging 89 percent,
outpacing overall market growth by more than 2X (News - Alert).
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Massive video growth: Video revenue for the company grew 5,000
percent in 2017, as OpenX's largest partners turned to the company's
high quality exchange to help navigate the ongoing shift to video in
digital media. In 2017, a majority of OpenX's top publisher clients
utilized the OpenX Exchange to monetize their video inventory and this
number has continued to accelerate in the first 60 days of 2018.
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Commitment to quality: OpenX has built a leadership position in
programmatic advertising by making a consistent and unrivaled
commitment to quality. In 2017, OpenX invested more than $16 million
in quality efforts. These efforts include employing the largest
dedicated quality team of any independent exchange to develop and
implement proprietary anti-fraud efforts; supporting thirdparty
verification of the company's quality initiatives such as independent
auditing of OpenX's TAG approved status, and refusing to monetize
questionable inventory to protect brand investment at massive scale.
The company announced plans to increase its investment in quality
initiatives in 2018 by more than 60 percent, surpassing $25 million
for the year. OpenX entered 2018 as the most trusted independent
advertising exchange by comScore (News - Alert) 1000 publishers based on their
ads.txt files and was also the first global exchange to fulfill its
publisher obligations under the General Data Protection Regulation,
further highlighting the commitment to quality and partner services.
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Investments in technology fuel strong tailwinds: OpenX has a
long history of bringing innovative products to market that have
fueled consistent growth and profitability for the business over the
past decade. To continue its growth trajectory in 2018 and beyond,
OpenX invested over $50 million in 2017 R&D efforts towards technology
and product which significantly accelerated the company's growth in
the second half of 2017 and into the first 60 days of 2018.
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International growth: OpenX experienced strong international
growth in 2017, including 33 percent growth in Q4 in the EU, and
strengthening market positioning in APAC that led the company to
becoming the top independent advertising exchange (second overall to
Google (News - Alert)) in Japan, the world's second largest advertising market. The
company also made several key senior hires in the EU and APAC to drive
future growth.
"I could not be more proud of this team's work delivering our tenth
straight year of growth and our fourth straight year of profitability,"
said Tim Cadogan, CEO of OpenX. "Throughout the last several years we've
seen an overarching trend where brands, publishers and consumers are
increasingly prioritizing quality over everything else. When we look
back at our success as a company, our longstanding commitment to quality
clearly stands as a differentiating factor."
Cadogan continued, "In 2017, we fully transitioned to being a mobile
first company and we are quickly capturing a leadership position in
video as well. We also invested more than $50 million in product and
engineering innovations and have big plans for 2018. In the coming year
we will continue to invest in the future to accelerate both our existing
business growth and our new market growth in areas such as OTT and
Connected TV. In addition, we anticipate continued growth
internationally as we expand our already strong market position in the
EU and grow further into Southeast Asia. As we enter our second decade,
our business has never been stronger and the opportunity before us has
never been greater."
About OpenX
OpenX powers highly relevant advertising at global scale, delivering
quality and value to brands, publishers and consumers across every type
of connected screen and ad format. The company's leading technology
aggregates, curates and values consumer interest in real time on one of
the world's largest and highest quality ad exchanges to ensure marketers
reach exactly the audience they want. OpenX serves more than 30,000 of
the world's most recognized brands, more than 1,200 websites and more
than 2,000 premium mobile applications.
http://www.openx.com @openx
View source version on businesswire.com: http://www.businesswire.com/news/home/20180313005788/en/
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