Rubicon Project reported Q1 EPS of ($0.06), in-line with the analyst estimate of ($0.06). Revenue for the quarter came in at $36.3 million versus the consensus estimate of $35.79 million.
- Rubicon Project revenue was $36.3 million for Q1 2020, up 12% from Q1 2019
- Telaria revenue was $15.1 million for Q1 2020, up 11% year over year, with CTV revenue of $9.1 million up 74% year over year
- We expect revenue for Q2 2020 to be between $36 to $39 million (for the combined company)
- Net loss for Q1 2020 was $9.7 million, or loss per share of $0.18, compared to net loss of $12.5 million, or loss per share of $0.24 for the first quarter of 2019
- Adjusted EBITDA(1) was $2.8 million representing an 8% Adjusted EBITDA margin(3), compared to Adjusted EBITDA of $(0.1) million for the first quarter of 2019
- Non-GAAP loss per share(1) was $0.06, compared to $0.14 non-GAAP loss per share for the first quarter of 2019
- Cost synergies and reductions expanded to exceed $20 million on a run-rate basis, from a prior range of $15-$20 million.
“This is an unprecedented time, driven by the impact of COVID-19 and the corresponding effect on the global economy,” said Michael G. Barrett, CEO of Rubicon Project. “Despite the global tragedy all of us are living through, we are focused on advancing our newly combined and better positioned omnichannel company. We are also very adept at navigating challenging times like these, as evidenced in our journey over the last three years. We have a great team, the company is very strong from a financial standpoint, and I feel confident that we will emerge a much stronger company once the economy begins to recover and revenue growth returns. I’m especially encouraged to see our revenue levels stabilize in the last several weeks, and excited to go after key market opportunities arising from the acceleration of cord-cutting, increased viewing in CTV, ability to take share, and improved growth prospects for our new Demand Manager product.”
AdExchanger – Post-Merger, Rubicon Project Cuts 8% Of Staff | AdExchanger
The bulk of that cost savings comes from the employee cuts. Rubicon Project employed 444 people at the end of 2019, with Telaria employing 179, meaning roughly 50 people will be laid off. The merger closed on April 1.
Cost-savings measures after the deal have accelerated due to the pandemic
Guidance called for a steep quarter-over-quarter drop in revenue, but there is some good news for investors. The Rubicon Project’s Q1 reflected a challenging business environment due to the COVID-19 pandemic. But Wall Street may be overlooking some long-term tailwinds for the online advertising technology company.