Rubicon Project's stock rose over 20% in after hours trading following the announcement that the company posted a record quarter.
That's good news for a supply side platform that has struggled to educate Wall Street of its value. Rubicon Project hoped its IPO would give it a market cap of $671 million. The current market cap is little more than half that, $367 million.
"To say we’re doing education is a dramatic understatement for sure," CEO Frank Addante said. "This market is growing so fast, and it’s so dynamic, that the rate of growth is outpacing the rate of education."
A record quarter is still relative for Rubicon Project, which went public earlier this year. But the company showed strong growth both year-over-year and compared to Q2.
Third-quarter revenue rose 60% year-over-year to $32.2 million. That's 13% higher than last quarter, when Rubicon reported revenues of $28.3 million. That quarter also posted less growth, just 49% year over year.
The company's managed revenues, or amount of money flowing through Rubicon's platform, rose 43% year over year. Within that, RTB outpaced the growth of managed revenues as a whole, going up 75%. "Ongoing momentum in open RTB auction technologies" were among the factors contributing to a strong quarter, Addante said.
Within those managed revenues, mobile grew 300% year over year. Rubicon's product includes auctions and direct orders for mobile, both on mobile web and in-app. Through its partnership with InMobi, 60 DSPs now have access to InMobi's inventory. Rubicon said it plans to focus on native mobile in 2015.
Video is another story. After touting its beta video product last quarter, Rubicon apparently didn't like what it saw. It says it can't find enough quality video inventory to run through its platform. Addante expects slow growth for the time being.
"A large amount of today’s exchange video is substandard, and not acceptable," Addante said. "We will expect more measured growth until we see more quality video inventory." (more…)