[March 14, 2017] |
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Rubicon Project Reports Fourth Quarter 2016 Results
Rubicon Project (NYSE: RUBI), which operates one of the largest
advertising marketplaces in the world, today reported its results of
operations for the fourth quarter and year ended December 31, 2016.
Fourth Quarter Financial Results
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Revenue was $72.7 million, compared to $94.0 million for the fourth
quarter of 2015; Non-GAAP net revenue(1) was $66.9 million,
compared to $83.7 million for the fourth quarter of 2015.
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Net loss(3) was $21.2 million, or diluted loss per share(3)
of $0.44, compared to net income of $20.4 million, or diluted income
per share of $0.43 for the fourth quarter of 2015. Included in the net
loss for the fourth quarter of 2016 were impairment of intangible
assets expense of $23.5 million and restructuring and other exits
costs of $3.3 million.
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Adjusted EBITDA(1) was $21.7 million, compared to Adjusted
EBITDA of $36.0 million for the fourth quarter of 2015.
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Non-GAAP earnings per share(1)(3) was $0.37 for the fourth
quarter of 2016, compared to $0.74 for the fourth quarter of 2015.
Full Year 2016 Financial Results
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Revenue was $278.2 million compared to $248.5 million for 2015;
Non-GAAP net revenue(1) was $256.1 million compared to
$227.3 million for 2015.
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Net loss(3) was $18.1 million, or diluted loss per share(3)
of $0.39, compared to net income of $0.4 million, or diluted income
per share of $0.01 for 2015. 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.
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Adjusted EBITDA(1) was $70.9 million, which compares to
$59.5 million for 2015.
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Non-GAAP earnings per share(1)(3) was $1.07 for 2016,
compared to $0.98 for 2015.
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The Company ended 2016 with $190.0 million in cash and marketable
securities.
"We executed well against our revised outlook for the fourth quarter,
posted solid 2016 financial results, and made significant progress with
products and customers during the year, despite the many challenges we
faced," said Frank Addante, Founder and Chairman of Rubicon Project. "We
made advancements in our strategic growth areas, including mobile, video
and orders, while continuing to see promising results from FastLane, our
solution for header bidding. Through restructuring and divestiture
during the year, we strengthened our business and refocused our
energies, resources and investments on what has made Rubicon Project
successful for nearly a decade: our global ad exchange business. As we
move into 2017, we remain focused on signing up more publishers,
application developers, and adding inventory to our global exchange, a
key component to drive future growth."
In a related release, the Company announced that Michael Barrett will be
joining the company 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.
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Fourth Quarter and Full Year 2016 Results Summary
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(in millions, except per share amounts and percentages)
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Three Months Ended
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Year Ended
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December
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December
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December
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December
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31, 2016
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31, 2015
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Change
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31, 2016
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31, 2015
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Change
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Revenue
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$
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72.7
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$
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94.0
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(23
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)%
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$
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278.2
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$
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248.5
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12
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%
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Advertising spend(1)
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$
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277.1
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$
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336.0
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(18
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)%
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$
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1,025.8
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$
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1,004.8
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2
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%
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Non-GAAP net revenue(1)
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$
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66.9
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$
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83.7
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(20
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)%
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$
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256.1
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$
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227.3
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13
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%
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Take rate(4)
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24
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%
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25
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%
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(1 ppt
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)
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25
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%
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23
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%
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2 ppt
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Net income (loss) (3)
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($21.2
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)
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$
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20.4
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(204
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)%
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($18.1
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)
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$
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0.4
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(4,625
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)%
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Adjusted EBITDA(1)
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$
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21.7
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$
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36.0
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(40
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)%
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$
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70.9
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$
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59.5
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19
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%
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Adjusted EBITDA margin(2)
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32
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%
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43
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%
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(11 ppt
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)
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28
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%
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26
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%
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2 ppt
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Basic net income (loss) per share
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($0.44
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)
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$
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0.48
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(192
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)%
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($0.39
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)
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$
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0.01
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(4,000
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)%
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Diluted income (loss) per share(3)
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($0.44
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)
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$
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0.43
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(202
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)%
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($0.39
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)
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$
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0.01
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(4,000
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)%
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Non-GAAP earnings per share(1)(3)
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$
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0.37
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$
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0.74
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(50
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)%
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$
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1.07
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$
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0.98
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9
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%
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Definitions:
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(1)
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Advertising spend, non-GAAP net revenue, Adjusted EBITDA and
non-GAAP earnings 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.
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(2)
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Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by
non-GAAP net revenue. Reconciliations for both net income (loss) to
Adjusted EBITDA and revenue to non-GAAP net revenue are included at
the end of this press release. For further discussion, please see
"Non-GAAP Financial Measures."
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(3)
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Net loss, diluted loss per share and non-GAAP earnings per share for
the fourth quarter and full year 2016 include a tax provision and
(benefit) of $0.1 million and ($4.9 million), respectively. In
addition, non-GAAP earnings per share includes the tax effect of
non-GAAP adjustments for the fourth quarter and full year 2016 of
($3.6) million in (benefit) and $1.6 million of expense,
respectively. Our outlook does not currently reflect a tax provision
or benefit, nor the tax effect of non-GAAP adjustments in future
periods. Our actual results may materially differ from these
expectations.
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(4)
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Take rate is an operational performance measure calculated as
revenue (or for periods in which we have revenue reported on a gross
basis, as non-GAAP net revenue) divided by advertising spend.
Reconciliations for revenue to both advertising spend and non-GAAP
net revenue are included at the end of this press release. For
further discussion, please see "Non-GAAP Financial Measures." We
review take rate for internal management purposes to assess the
development of our marketplace with buyers and sellers. Our take
rate (and our fees, which drive take rate) can be affected by a
variety of factors, including the terms of our arrangements with
buyers and sellers active on our platform in a particular period,
the scale of a buyer's or seller's activity on our platform, mix of
inventory or transaction types, the implementation of new products,
platforms and solution features, auction dynamics, negotiations with
clients, header bidding, competitive factors, and the overall
development of the digital advertising ecosystem.
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Q1 2017 Outlook
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Q1 2017
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GAAP revenue
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$41 - $45 million
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Non-GAAP net revenue(5)
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$41 - $44 million
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Adjusted EBITDA(6)
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($6) - ($4) million
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Non-GAAP earnings per share(6)
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($0.26) - ($0.22)
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Additional Notes on Q1 2017 Outlook:
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(5)
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Non-GAAP net revenue is calculated as GAAP revenue less amounts we
pay sellers that are included within cost of revenue for the portion
of our revenue reported on a gross basis.
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(6)
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We do not provide a reconciliation of our non-GAAP financial
guidance for Adjusted EBITDA and non-GAAP earnings per share to the
corresponding GAAP measures because the amount and timing of many
future charges that impact these measures (such as amortization of
future acquired intangible assets, acquisition-related charges,
foreign exchange (gain) loss, net, stock-based compensation,
impairment charges, and provision or benefit for income taxes) are
variable, uncertain, or out of our control and therefore cannot be
reasonably predicted without unreasonable effort, if at all. In
addition, we believe such reconciliations could imply a degree of
precision that might be confusing or misleading to investors.
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Fourth Quarter 2016 Results Conference Call and Webcast:
The Company will host a conference call on March 14, 2017 at 1:30 PM
(PT) / 4:30 PM (ET) to discuss the results for its fourth quarter of
2016.
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Live conference call
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Toll free number:
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(844) 875-6911 (for domestic callers)
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Direct dial number:
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(412) 902-6511 (for international callers)
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Passcode:
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Ask to join the Rubicon Project conference call
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Simultaneous audio webcast:
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http://investor.rubiconproject.com,
under "Events and Presentations"
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Conference call replay
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Toll free number:
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(877) 344-7529 (for domestic callers)
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Direct dial number:
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(412) 317-0088 (for international callers)
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Passcode:
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10101067
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Webcast link:
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http://investor.rubiconproject.com,
under "Events and Presentations"
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About Rubicon Project
Founded in 2007, Rubicon Project's mission is to keep the Internet free
and open and fuel its growth by making it easy and safe to buy and sell
advertising. Rubicon Project pioneered advertising automation technology
to enable the world's leading brands, content creators and application
developers to trade and protect trillions of advertising requests each
month and to improve the advertising experiences of consumers. Rubicon
Project is a 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 net
revenue, profitability, net income (loss), Adjusted EBITDA, earnings per
share, and cash flow; strategic objectives, including focus on header
bidding, mobile, video, and Orders opportunities, and implementation of
solutions to improve the advertising experience of consumers;
investments in our business; development of our technology; introduction
of new offerings; scope and duration of client relationships; the fees
we may charge in the future; business mix and expansion of our mobile,
video, and Orders offerings; sales growth; client utilization of our
offerings; our competitive differentiation; our leadership position in
the industry; market conditions, trends, and opportunities; user reach;
certain statements regarding future operational performance measures
including take rate, paid impressions, and average CPM; 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 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
ability to maintain a supply of advertising inventory from sellers; the
effect on the advertising market and our business from difficult
economic conditions; 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 in response to
client demands and industry trends, including shifts in digital
advertising growth from display to mobile channels; our ability to
implement solutions to improve the advertising experience of consumers;
the increased prevalence of header bidding and its effect on our
competitive position; our header bidding solution not resulting in
revenue growth and causing infrastructure strain and added cost;
uncertainty of our estimates and expectations associated with new
offerings, including header bidding, private marketplace, mobile,
Orders, automated guaranteed, video, and guaranteed audience solutions;
uncertainty of our estimates and assumptions about the mix of gross and
net reported transactions; declining fees and take rate, including as a
result of implementation of alternative pricing models, and the need to
grow through advertising spend increases rather than fee increases; 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 to mobile and video channels; increased
prevalence of ad blocking technologies; the slowing growth rate of
online digital display advertising; the growing percentage of online and
mobile advertising spending captured by owned and operated sites (such
as Facebook and Google); the effects of increased competition in our
market and increasing concentration of advertising spending, including
mobile spending, in a small number of very large competitors; acts of
competitors and other third parties that can adversely affect our
business; our ability to differentiate our offerings, compete
effectively and to maintain our pricing and take rate in a market
trending increasingly toward commodification, transparency, and
disintermediation; requests from buyers and sellers for discounts, fee
concessions or revisions, rebates, 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; 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,"
"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. These
forward-looking statements represent our estimates and assumptions only
as of the date of this press release. 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:
This press release includes information relating to advertising spend,
non-GAAP net revenue, Adjusted EBITDA, non-GAAP net income, and non-GAAP
earnings per share, which are financial measures that have not been
prepared in accordance with GAAP. These non-GAAP financial measures are
used by our management and board of directors, in addition to our GAAP
results, to understand and evaluate our performance and trends, to
prepare and approve our annual budget, and to develop short- and
long-term plans and performance objectives. Management believes that
these non-GAAP financial measures provide useful information about our
core results and thus are appropriate to enhance the overall
understanding of our past performance and our prospects for the future.
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 revenue to advertising spend and revenue to non-GAAP
net revenue," "Reconciliation of net loss to Adjusted EBITDA,"
"Reconciliation of net loss to non-GAAP net income" and "Reconciliation
of GAAP EPS to non-GAAP EPS" included as part of this press release.
We define advertising spend as the buyer spending on advertising
transacted on our platform. Advertising spend does not represent revenue
reported on a GAAP basis. Tracking our advertising spend allows us to
compare our results to the results of companies that report all spending
transacted on their platforms as GAAP revenue on a gross basis. We also
use advertising spend for internal management purposes to assess market
share of total advertising spending. Our advertising spend may be
influenced by demand for our services, the volume and characteristics of
paid impressions, average CPM, and other factors such as changes in the
market, our execution of the business, and competition. Advertising
spend may fluctuate due to seasonality and increases or decreases in
average CPM and paid impressions. In addition, we generally experience
higher advertising spend during the fourth quarter of a given year
resulting from higher advertising budgets by advertisers and more
bidding activity on our platform, which may drive higher volumes of paid
impressions or average CPM. Growth in our advertising spend slowed
significantly in 2016 for various reasons, including shift of spending
on digital advertising from desktop, which represents the majority of
our business to mobile, our delay in embracing header bidding, and
absorption by competitors, principally Google and Facebook, of an
increasing share of growth in spending on digital advertising.
We define non-GAAP net revenue as GAAP revenue less amounts we pay
sellers that are included within cost of revenue for the portion of our
revenue reported on a gross basis. Non-GAAP net revenue would represent
our revenue if we were to record all of our revenue on a net basis.
Non-GAAP net revenue does not represent revenue reported on a GAAP
basis. Non-GAAP net revenue is one useful measure in assessing the
performance of our business in periods for which our revenue includes
revenue reported on a gross basis, because it shows the operating
results of our business on a consistent basis without the effect of
differing revenue reporting (gross vs. net) that we apply under GAAP
across different types of transactions, and facilitates comparison of
our results to the results of companies that report all of their revenue
on a net basis. A potential limitation of non-GAAP net revenue is that
other companies may define non-GAAP net revenue differently, which may
make comparisons difficult.
Non-GAAP net revenue is influenced by demand for our services, the
volume and characteristics of advertising spend, and our take rate. The
revenue we have reported on a gross basis was associated with our intent
marketing business. Because we exited that business in the first quarter
of 2017, we do not expect to report any revenue on a gross basis after
the first quarter of 2017 unless and until we change our business
practices, develop new products, or make an acquisition, in each case
with characteristics that require gross reporting.
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.
These items may include recurring as well as non-recurring items. These
adjustments should not be construed as an inference that all of these
adjustments or costs are unusual, infrequent or non-recurring. We
believe Adjusted EBITDA is useful to investors in evaluating our
performance for the following reasons:
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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.
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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.
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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:
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Stock-based compensation is a non-cash charge and is 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.
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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.
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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.
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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.
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Adjusted EBITDA does not reflect changes in our working capital needs,
capital expenditures, or contractual commitments.
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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 fluctuation 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.
We define non-GAAP earnings per share as non-GAAP net income (loss)
divided by non-GAAP weighted-average shares outstanding. Non-GAAP net
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 non-GAAP net
income (loss) is positive, 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 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 per share is that other
companies may define non-GAAP earnings 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 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.
|
CONSOLIDATED CONDENSED BALANCE SHEETS
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
149,423
|
|
|
|
|
$
|
116,499
|
|
Marketable securities
|
|
|
|
|
40,550
|
|
|
|
|
|
23,249
|
|
Accounts receivable, net
|
|
|
|
|
192,064
|
|
|
|
|
|
218,235
|
|
Prepaid expenses and other current assets
|
|
|
|
|
9,540
|
|
|
|
|
|
7,724
|
|
TOTAL CURRENT ASSETS
|
|
|
|
|
391,577
|
|
|
|
|
|
365,707
|
|
Marketable securities, non-current
|
|
|
|
|
-
|
|
|
|
|
|
13,483
|
|
Property and equipment, net
|
|
|
|
|
36,246
|
|
|
|
|
|
25,403
|
|
Internal use software development costs, net
|
|
|
|
|
16,522
|
|
|
|
|
|
13,929
|
|
Other assets, non-current
|
|
|
|
|
2,921
|
|
|
|
|
|
1,726
|
|
Intangible assets, net
|
|
|
|
|
6,804
|
|
|
|
|
|
50,783
|
|
Goodwill
|
|
|
|
|
65,705
|
|
|
|
|
|
65,705
|
|
TOTAL ASSETS
|
|
|
|
$
|
519,775
|
|
|
|
|
$
|
536,736
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
$
|
214,903
|
|
|
|
|
$
|
247,967
|
|
Other current liabilities
|
|
|
|
|
3,534
|
|
|
|
|
|
2,196
|
|
TOTAL CURRENT LIABILITIES
|
|
|
|
|
218,437
|
|
|
|
|
|
250,163
|
|
Deferred tax liability, net
|
|
|
|
|
42
|
|
|
|
|
|
6,225
|
|
Other liabilities, non-current
|
|
|
|
|
1,783
|
|
|
|
|
|
2,247
|
|
TOTAL LIABILITIES
|
|
|
|
|
220,262
|
|
|
|
|
|
258,635
|
|
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Common stock
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
Additional paid-in capital
|
|
|
|
|
398,787
|
|
|
|
|
|
358,406
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(273
|
)
|
|
|
|
|
(15
|
)
|
Accumulated deficit
|
|
|
|
|
(99,001
|
)
|
|
|
|
|
(80,290
|
)
|
TOTAL STOCKHOLDERS' EQUITY
|
|
|
|
|
299,513
|
|
|
|
|
|
278,101
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
$
|
519,775
|
|
|
|
|
$
|
536,736
|
|
|
|
|
|
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Revenue
|
|
|
|
$
|
72,667
|
|
|
|
|
$
|
94,007
|
|
|
|
|
$
|
278,221
|
|
|
|
|
$
|
248,484
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue(1)(2)
|
|
|
|
|
21,126
|
|
|
|
|
|
21,369
|
|
|
|
|
|
73,247
|
|
|
|
|
|
58,495
|
|
Sales and marketing(1)(2)
|
|
|
|
|
18,449
|
|
|
|
|
|
23,306
|
|
|
|
|
|
83,328
|
|
|
|
|
|
83,333
|
|
Technology and development(1)(2)
|
|
|
|
|
12,934
|
|
|
|
|
|
11,429
|
|
|
|
|
|
51,184
|
|
|
|
|
|
42,055
|
|
General and administrative(1)(2)
|
|
|
|
|
15,337
|
|
|
|
|
|
19,711
|
|
|
|
|
|
68,570
|
|
|
|
|
|
70,199
|
|
Restructuring and other exit costs
|
|
|
|
|
3,316
|
|
|
|
|
|
-
|
|
|
|
|
|
3,316
|
|
|
|
|
|
-
|
|
Impairment of intangible assets
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
Total expenses
|
|
|
|
|
94,635
|
|
|
|
|
|
75,815
|
|
|
|
|
|
303,118
|
|
|
|
|
|
254,082
|
|
Income (Loss) from operations
|
|
|
|
|
(21,968
|
)
|
|
|
|
|
18,192
|
|
|
|
|
|
(24,897
|
)
|
|
|
|
|
(5,598
|
)
|
Other income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
|
|
(132
|
)
|
|
|
|
|
(45
|
)
|
|
|
|
|
(491
|
)
|
|
|
|
|
(59
|
)
|
Other income
|
|
|
|
|
(166
|
)
|
|
|
|
|
-
|
|
|
|
|
|
(554
|
)
|
|
|
|
|
-
|
|
Foreign exchange gain, net
|
|
|
|
|
(601
|
)
|
|
|
|
|
(19
|
)
|
|
|
|
|
(939
|
)
|
|
|
|
|
(1,400
|
)
|
Total other income, net
|
|
|
|
|
(899
|
)
|
|
|
|
|
(64
|
)
|
|
|
|
|
(1,984
|
)
|
|
|
|
|
(1,459
|
)
|
Income (Loss) before income taxes
|
|
|
|
|
(21,069
|
)
|
|
|
|
|
18,256
|
|
|
|
|
|
(22,913
|
)
|
|
|
|
|
(4,139
|
)
|
Provision (benefit) for income taxes
|
|
|
|
|
121
|
|
|
|
|
|
(2,149
|
)
|
|
|
|
|
(4,860
|
)
|
|
|
|
|
(4,561
|
)
|
Net income (loss)
|
|
|
|
$
|
(21,190
|
)
|
|
|
|
$
|
20,405
|
|
|
|
|
$
|
(18,053
|
)
|
|
|
|
$
|
422
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(0.44
|
)
|
|
|
|
$
|
0.48
|
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
$
|
0.01
|
|
Diluted
|
|
|
|
$
|
(0.44
|
)
|
|
|
|
$
|
0.43
|
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
$
|
0.01
|
|
Weighted-average shares used to compute net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
48,051
|
|
|
|
|
|
42,083
|
|
|
|
|
|
46,655
|
|
|
|
|
|
39,663
|
|
Diluted
|
|
|
|
|
48,051
|
|
|
|
|
|
47,396
|
|
|
|
|
|
46,655
|
|
|
|
|
|
44,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Stock-based compensation expense included in our expenses was as
follows:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
Cost of revenue
|
|
|
|
$
|
83
|
|
|
|
$
|
63
|
|
|
|
$
|
344
|
|
|
|
|
$
|
240
|
Sales and marketing
|
|
|
|
|
1,809
|
|
|
|
|
2,235
|
|
|
|
|
8,520
|
|
|
|
|
|
7,415
|
Technology and development
|
|
|
|
|
1,327
|
|
|
|
|
1,532
|
|
|
|
|
5,788
|
|
|
|
|
|
4,963
|
General and administrative
|
|
|
|
|
3,427
|
|
|
|
|
4,717
|
|
|
|
|
14,042
|
|
|
|
|
|
17,966
|
Total stock-based compensation expense
|
|
|
|
$
|
6,646
|
|
|
|
$
|
8,547
|
|
|
|
$
|
28,694
|
|
|
|
|
$
|
30,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
|
|
Depreciation and amortization expense included in our expenses was
as follows:
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Cost of revenue
|
|
|
|
$
|
9,175
|
|
|
|
$
|
5,291
|
|
|
|
$
|
28,853
|
|
|
|
$
|
19,290
|
Sales and marketing
|
|
|
|
|
2,722
|
|
|
|
|
2,137
|
|
|
|
|
9,020
|
|
|
|
|
8,168
|
Technology and development
|
|
|
|
|
863
|
|
|
|
|
556
|
|
|
|
|
2,759
|
|
|
|
|
1,815
|
General and administrative
|
|
|
|
|
641
|
|
|
|
|
556
|
|
|
|
|
2,131
|
|
|
|
|
1,737
|
Total depreciation and amortization expense
|
|
|
|
$
|
13,401
|
|
|
|
$
|
8,540
|
|
|
|
$
|
42,763
|
|
|
|
$
|
31,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
(18,053
|
)
|
|
|
|
$
|
422
|
|
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
42,763
|
|
|
|
|
|
31,010
|
|
Stock-based compensation
|
|
|
|
|
28,694
|
|
|
|
|
|
30,584
|
|
Loss on disposal of property and equipment
|
|
|
|
|
214
|
|
|
|
|
|
58
|
|
Change in fair value of contingent consideration
|
|
|
|
|
-
|
|
|
|
|
|
306
|
|
Unrealized foreign currency gains, net
|
|
|
|
|
(1,122
|
)
|
|
|
|
|
(72
|
)
|
Impairment of intangible assets
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
Deferred income taxes
|
|
|
|
|
(6,635
|
)
|
|
|
|
|
(5,286
|
)
|
Changes in operating assets and liabilities, net of effect of
business acquisitions:
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
25,842
|
|
|
|
|
|
(71,796
|
)
|
Prepaid expenses and other assets
|
|
|
|
|
(3,038
|
)
|
|
|
|
|
(1,073
|
)
|
Accounts payable and accrued expenses
|
|
|
|
|
(32,965
|
)
|
|
|
|
|
93,135
|
|
Other liabilities
|
|
|
|
|
947
|
|
|
|
|
|
(432
|
)
|
Net cash provided by operating activities
|
|
|
|
|
60,120
|
|
|
|
|
|
76,856
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(23,479
|
)
|
|
|
|
|
(20,104
|
)
|
Capitalized internal use software development costs
|
|
|
|
|
(9,922
|
)
|
|
|
|
|
(8,333
|
)
|
Acquisitions, net of cash acquired
|
|
|
|
|
(238
|
)
|
|
|
|
|
(8,647
|
)
|
Investments in available-for-sale securities
|
|
|
|
|
(41,096
|
)
|
|
|
|
|
(48,801
|
)
|
Maturities of available-for-sale securities
|
|
|
|
|
37,360
|
|
|
|
|
|
12,001
|
|
Change in restricted cash
|
|
|
|
|
259
|
|
|
|
|
|
1,023
|
|
Net cash used by investing activities
|
|
|
|
|
(37,116
|
)
|
|
|
|
|
(72,861
|
)
|
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
|
|
14,249
|
|
|
|
|
|
13,533
|
|
Proceeds from issuance of common stock under employee stock purchase
plan
|
|
|
|
|
1,886
|
|
|
|
|
|
2,040
|
|
Taxes paid related to net share settlement
|
|
|
|
|
(6,058
|
)
|
|
|
|
|
-
|
|
Repayment of debt and capital lease obligations
|
|
|
|
|
-
|
|
|
|
|
|
(105
|
)
|
Net cash provided by financing activities
|
|
|
|
|
10,077
|
|
|
|
|
|
15,468
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
|
|
|
(157
|
)
|
|
|
|
|
(160
|
)
|
CHANGE IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
32,924
|
|
|
|
|
|
19,303
|
|
CASH AND CASH EQUIVALENTS - Beginning of period
|
|
|
|
|
116,499
|
|
|
|
|
|
97,196
|
|
CASH AND CASH EQUIVALENTS - End of period
|
|
|
|
$
|
149,423
|
|
|
|
|
$
|
116,499
|
|
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
|
|
|
|
|
|
|
|
|
Cash paid for income taxes
|
|
|
|
|
1,285
|
|
|
|
|
|
1,069
|
|
Cash paid for interest
|
|
|
|
|
61
|
|
|
|
|
|
62
|
|
Capitalized assets financed by accounts payable and accrued expenses
|
|
|
|
|
1,627
|
|
|
|
|
|
342
|
|
Capitalized stock-based compensation
|
|
|
|
|
952
|
|
|
|
|
|
819
|
|
Common stock and options issued for business acquisitions
|
|
|
|
|
-
|
|
|
|
|
|
76,534
|
|
Conversion of contingent consideration to common stock
|
|
|
|
|
-
|
|
|
|
|
|
25,608
|
|
|
|
|
|
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
RECONCILIATION OF REVENUE TO ADVERTISING SPEND AND REVENUE TO
NON-GAAP NET REVENUE
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Revenue
|
|
|
|
$
|
72,667
|
|
|
|
$
|
94,007
|
|
|
|
$
|
278,221
|
|
|
|
$
|
248,484
|
Plus amounts paid to sellers(1)
|
|
|
|
|
204,403
|
|
|
|
|
242,014
|
|
|
|
|
747,561
|
|
|
|
|
756,267
|
Advertising spend
|
|
|
|
$
|
277,070
|
|
|
|
$
|
336,021
|
|
|
|
$
|
1,025,782
|
|
|
|
$
|
1,004,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Revenue
|
|
|
|
$
|
72,667
|
|
|
|
$
|
94,007
|
|
|
|
$
|
278,221
|
|
|
|
$
|
248,484
|
Less amounts paid to sellers reflected in cost of revenue(2)
|
|
|
|
|
5,800
|
|
|
|
|
10,275
|
|
|
|
|
22,123
|
|
|
|
|
21,163
|
Non-GAAP net revenue
|
|
|
|
$
|
66,867
|
|
|
|
$
|
83,732
|
|
|
|
$
|
256,098
|
|
|
|
$
|
227,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Amounts paid to sellers for the portion of our revenue reported on a
net basis for GAAP purposes.
|
(2)
|
|
|
Amounts paid to sellers for the portion of our revenue reported on a
gross basis for GAAP purposes. Before our acquisition of Chango in
April 2015, we recorded all revenue on a net basis and therefore
payments to sellers were not included in cost of revenue prior to
April 2015.
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Net income (loss)
|
|
|
|
$
|
(21,190
|
)
|
|
|
|
$
|
20,405
|
|
|
|
|
$
|
(18,053
|
)
|
|
|
|
$
|
422
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expense, excluding amortization of
acquired intangible assets
|
|
|
|
|
7,206
|
|
|
|
|
|
3,900
|
|
|
|
|
|
22,224
|
|
|
|
|
|
15,297
|
|
Amortization of acquired intangibles
|
|
|
|
|
6,195
|
|
|
|
|
|
4,640
|
|
|
|
|
|
20,539
|
|
|
|
|
|
15,713
|
|
Stock-based compensation expense
|
|
|
|
|
6,646
|
|
|
|
|
|
8,547
|
|
|
|
|
|
28,694
|
|
|
|
|
|
30,584
|
|
Impairment of intangible assets
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
Acquisition and related items
|
|
|
|
|
(1
|
)
|
|
|
|
|
753
|
|
|
|
|
|
333
|
|
|
|
|
|
3,470
|
|
Interest income, net
|
|
|
|
|
(132
|
)
|
|
|
|
|
(45
|
)
|
|
|
|
|
(491
|
)
|
|
|
|
|
(59
|
)
|
Foreign currency gain, net
|
|
|
|
|
(601
|
)
|
|
|
|
|
(19
|
)
|
|
|
|
|
(939
|
)
|
|
|
|
|
(1,400
|
)
|
Provision (Benefit) for income taxes
|
|
|
|
|
121
|
|
|
|
|
|
(2,149
|
)
|
|
|
|
|
(4,860
|
)
|
|
|
|
|
(4,561
|
)
|
Adjusted EBITDA
|
|
|
|
$
|
21,717
|
|
|
|
|
$
|
36,032
|
|
|
|
|
$
|
70,920
|
|
|
|
|
$
|
59,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
RECONCILIATION OF NET INCOME (LOSS) TO NON-GAAP NET INCOME
|
(In thousands)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
Net income (loss)
|
|
|
|
$
|
(21,190
|
)
|
|
|
|
$
|
20,405
|
|
|
|
|
$
|
(18,053
|
)
|
|
|
|
$
|
422
|
|
Add back (deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
|
|
|
6,646
|
|
|
|
|
|
8,547
|
|
|
|
|
|
28,694
|
|
|
|
|
|
30,584
|
|
Impairment of intangible assets
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
|
|
|
|
23,473
|
|
|
|
|
|
-
|
|
Acquisition and related items, including amortization of acquired
intangibles
|
|
|
|
|
6,194
|
|
|
|
|
|
5,393
|
|
|
|
|
|
20,872
|
|
|
|
|
|
19,183
|
|
Foreign currency gain, net
|
|
|
|
|
(601
|
)
|
|
|
|
|
(19
|
)
|
|
|
|
|
(939
|
)
|
|
|
|
|
(1,400
|
)
|
Tax effect of Non-GAAP adjustments (1)
|
|
|
|
|
3,620
|
|
|
|
|
|
636
|
|
|
|
|
|
(1,608
|
)
|
|
|
|
|
(4,449
|
)
|
Non-GAAP net income
|
|
|
|
$
|
18,142
|
|
|
|
|
$
|
34,962
|
|
|
|
|
$
|
52,439
|
|
|
|
|
$
|
44,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Non-GAAP net income for 2016 includes the estimated tax impact from
the expense items reconciling between net income and non-GAAP net
income. For consistency, 2015 historical non-GAAP income has been
adjusted to reflect the estimated tax impact of those items.
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
RECONCILIATION OF GAAP EPS TO NON-GAAP EPS
|
(In thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
GAAP net income (loss) per share (1):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
$
|
(0.44
|
)
|
|
|
|
$
|
0.48
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
$
|
0.01
|
Diluted
|
|
|
|
$
|
(0.44
|
)
|
|
|
|
$
|
0.43
|
|
|
|
$
|
(0.39
|
)
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income(2)
|
|
|
|
$
|
18,142
|
|
|
|
|
$
|
34,962
|
|
|
|
$
|
52,439
|
|
|
|
|
$
|
44,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of weighted-average shares used to compute net income
per share to non-GAAP weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used to compute net income per share:
|
|
|
|
|
48,051
|
|
|
|
|
|
47,396
|
|
|
|
|
46,655
|
|
|
|
|
|
45,199
|
Dilutive effect of weighted-average common stock options, RSAs, and
RSUs(3)
|
|
|
|
|
749
|
|
|
|
|
|
-
|
|
|
|
|
1,976
|
|
|
|
|
|
-
|
Dilutive effect of weighted-average acquisition-related contingent
shares(3)
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
-
|
Dilutive effect of weighted-average acquisition related escrow shares(3)
|
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
|
392
|
|
|
|
|
|
-
|
Dilutive effect of weighted-average ESPP(3)
|
|
|
|
|
23
|
|
|
|
|
|
-
|
|
|
|
|
30
|
|
|
|
|
|
-
|
Non-GAAP weighted-average shares outstanding
|
|
|
|
|
48,823
|
|
|
|
|
|
47,396
|
|
|
|
|
49,053
|
|
|
|
|
|
45,199
|
Non-GAAP earnings per share
|
|
|
|
$
|
0.37
|
|
|
|
|
$
|
0.74
|
|
|
|
$
|
1.07
|
|
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
|
Calculated as net income (loss) divided by basic and diluted
weighted-average shares used to compute net income (loss) per share
as included in the consolidated statement of operations.
|
(2)
|
|
|
Refer to reconciliation of net income (loss) to non-GAAP net income.
|
(3)
|
|
|
In most periods in which net income is positive, the
weighted-average shares used to compute diluted earnings per share
are equal to the weighted-average shares used to compute basic loss
per share and already include the dilutive effect of common stock
options, RSAs, RSUs, acquisition related contingent and escrow
shares, and ESPP using the treasury stock method.
|
|
|
|
|
|
THE RUBICON PROJECT, INC.
|
REVENUE AND ADVERTISING SPEND BY CHANNEL
|
(In thousands, except percentages)
|
(unaudited)
|
|
|
|
|
|
Revenue
|
|
|
|
Advertising Spend
|
|
|
|
|
Three Months Ended
|
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
|
(in thousands, except percentages)
|
Channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Desktop
|
|
|
|
$
|
45,786
|
|
|
|
63
|
%
|
|
|
|
$
|
61,993
|
|
|
|
66
|
%
|
|
|
|
$
|
178,203
|
|
64
|
%
|
|
|
|
$
|
232,070
|
|
|
|
69
|
%
|
Mobile
|
|
|
|
|
26,881
|
|
|
|
37
|
|
|
|
|
|
32,014
|
|
|
|
34
|
|
|
|
|
|
98,867
|
|
36
|
|
|
|
|
|
103,951
|
|
|
|
31
|
|
Total
|
|
|
|
$
|
72,667
|
|
|
|
100
|
%
|
|
|
|
$
|
94,007
|
|
|
|
100
|
%
|
|
|
|
$
|
277,070
|
|
100
|
%
|
|
|
|
$
|
336,021
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
Advertising Spend
|
|
|
|
|
Year Ended
|
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
December 31, 2016
|
|
|
|
December 31, 2015
|
|
|
|
|
(in thousands, except percentages)
|
Channel:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Desktop
|
|
|
|
$
|
181,407
|
|
|
|
65
|
%
|
|
|
|
$
|
177,197
|
|
|
|
71
|
%
|
|
|
|
$
|
684,782
|
|
|
|
67
|
%
|
|
|
|
$
|
747,543
|
|
|
|
74
|
%
|
Mobile
|
|
|
|
|
96,814
|
|
|
|
35
|
|
|
|
|
|
71,287
|
|
|
|
29
|
|
|
|
|
|
341,000
|
|
|
|
33
|
|
|
|
|
|
257,208
|
|
|
|
26
|
|
Total
|
|
|
|
$
|
278,221
|
|
|
|
100
|
%
|
|
|
|
$
|
248,484
|
|
|
|
100
|
%
|
|
|
|
$
|
1,025,782
|
|
|
|
100
|
%
|
|
|
|
$
|
1,004,751
|
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170314006394/en/
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