Rubicon Project explores options for possible sale
Advertising technology specialists Rubicon Project are lining up a potential sale in the wake of a restructuring exercise designed to trim outgoings by $18m via the lay-off of 125 employees, equivalent to 19% of its workforce.
Rubicon Project has had a rollercoaster ride over the second quarter with the company’s stock declining by 39% after chief executive Frank Addante admitted to investors that the firm had been slow to embrace header bidding, a profitable technology which allows all of a publisher’s partners to bid on ad inventory simultaneously.
At the time Addante said: “We established a dominant position in desktop display that was unthreatened. And we created a premium solution that was largely unthreatened. And like most companies that create a premium solution, that allows you the opportunity to raise prices over time. We did that.”
When news of a possible sale broke however the stock price rebounded by 12%.
Rubicon Project posted GAAP revenue of $65.8m in the third quarter of 2016, a 2% uptick on the figure attained a year earlier with net income rising an impressive 217% to reach $3.5m. These figures were achieved despite a 1% decline in the overall ad spend to $242.8m.
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Ad tech stock prices have taken a hammering in recent months as the sector struggles to tackle issues surrounding viewability and header bidding.