RSS FeedArchive for the ‘Investment’ Category

Rubicon Project Posts Strong Quarter, Sets Sights On Video And Data Value

rubicon quarterlyRubicon Project posted a Q2 revenue YoY increase of 49%, for a total of $28.3 million.

Managed revenue was $153.5 million, an increase of 36% from the same period last year. RTB managed revenue grew 75% YoY. Rubicon lost more money than last year, however, with a net loss of $9.4 million, compared to $2.1 million in Q2 of 2013.

During the call, company CEO, founder and Chief Product Architect Frank Addante highlighted the company’s recent moves, particularly in the ultra-hot areas of video and mobile.

“We released video into private beta and took a huge leap in mobile,” he said. “With the addition of InMobi, we now power the world’s largest mobile native advertising exchange.”

The latter is a collaboration to create a mobile exchange to compete with both Google’s and Twitter’s, one that is said to field 750 million mobile users across more than 30,000 mobile apps.

Twitter Posts Strong Revenue Growth, Plans To Court Logged-Out Audiences

twitter earnings

Despite the troubles Twitter has had maintaining its audience growth rates, particularly in the US, it has consistently reported revenue increases. Its Q2 2014 revenue was no exception: The company hauled in $312 million – a 124% YoY increase.

Twitter again beat analyst predictions that the social media company would see revenues of about $282 million. Advertising accounted for $277 million in Q2, a 129% YoY increase, driven by higher engagement, according to CEO Dick Costolo. “This translates to higher ROI,” he added. Mobile advertising was 81% of total advertising revenue.


Nielsen Posts Strong Q2 2014 Revenue, Plans To Focus On Mobile

Nielsen’s revenue soared in the second quarter.

The company on Tuesday reported a nearly 16% revenue growth spurt in the second quarter of 2014 to $1.6 billion, up from $1.4 billion at this time last year, minus the recent acquisitions of Arbitron and Harris Interactive.

Although revenue was up, net profits were nothing to write home about. Nielsen experienced a precipitous decline in income from $426 million in Q2 2013 to $74 million this quarter, which CEO Mitch Barnes blamed on recent refinancing of the company’s long-term debt.

In terms of new products and revenue streams, Nielsen is diving into mobile measurement. While this may still be new for Nielsen, Barnes predicted significant growth later this year with the planned upcoming inclusion of mobile measurement in TV ratings.

For the moment, it’s a bit early to talk about specific revenue from the mobile arm of Nielsen’s Online Campaign Ratings (OCR), which launched July 1, but Nielsen’s CFO Jamere Jackson did note during the company’s Q2 2014 earnings call that revenue for mobile OCR stands “in the tens of millions.” He said Nielsen will share more concrete numbers down the line.

As of now, more than 100 companies have signed up for mobile OCR, including key video platforms, BrightRoll, Drawbridge, LiveRail, Tremor Video and TubeMogul.


Pandora’s Mobile Revenue Hits All-Time High, Listener Growth Not So Much

PandoraQ22014Mobile ad revenue was up significantly for Pandora during Q2 2014, jumping 59% from last quarter to $167.5 million, a 51% year-over-year increase.

Total revenue for the Internet radio streaming company came in at $218.9 million, 76% of which was made up by mobile ad revenue. While it represented a 38% year-over-year growth for the company, the total came in just shy of estimates. Local ad revenue was $35.3 million, up 144% since last year.

On the revenue per mille front, ad revenue per thousand ad-supported listener hours was on the rise, reaching $34.15 million this year, up 7% from last year.

A big issue for Pandora last quarter was its less-than-robust growth of active listener hours. Investors on the Q2 2014 earnings call pounded Pandora President and CEO Brian McAndrews on the point.

Between Q4 2013 and Q1 2014, the 12% increase in listener hours wasn’t all that much considering the Q1 increase was only 16%. It’s not a static number, but it’s also not impressive, considering the 250 million radio listeners currently in the US. In Q2 2014, radio listening among Pandora users went up just 7.04%.


TripAdvisor Misses Q2 2014 Estimates — But At Least Ad Revenue’s Up

TripAdvisorearningsTripAdvisor painted a muddled picture during its Q2 2014 earnings call.

The travel booking site’s overall profits came in far below estimates. But ad revenue was a bright spot for TripAdvisor, which saw an increase in both click-based and display ad revenue this quarter.

Click-based ad revenue increased year over year to $235 million, up 28%, while display revenue grew 19% to $37 million.

The company’s CFO Julie Bradley attributed the uptick in click-based revenue to “strong CPC pricing for meta search leads.” (In February of last year, TripAdvisor had rolled out what it refers to as “meta-search,” a Google-inspired feature that eschews the “pop-under” ad format in favor of serving search and display results with the hope of raising both the quality and prices of its display ad offerings.)

Total revenue for Q2 2014 was $323 million, a year-over-year increase of 31%, meaning click-based revenue accounted for 73% of its total second-quarter revenue. Interestingly, that percentage was down just a smidgen from Q2 last year, when click-based revenue represented 74% of total revenue.

The same was true on the display side. Display-based ad revenue comprised 11% of total revenue this year versus 19% last year.

Marketing Services A Bright Star For Neustar Q2 Amid Contract Black Hole

neustar q2Communications infrastructure provider Neustar is in the midst of a change, one reflected in the growing importance of its marketing and security services.

“We’ve succeeded in pivoting in becoming an information services and analytics company,” said Neustar CEO Lisa Hook during the company’s Q2 2014 earnings call.

Neustar reported Q2 2014 results at $237.5 million, a year-over-year increase of 8%. Its marketing services division saw a YoY increase of 19% to $35 million. Combined with its security services ($34 million at a 28% YoY increase), the two divisions constitute a little less than a third of Neustar’s total revenue.

Neustar’s pivot comes at an opportune time. As a whole, the company is in a bit of a bind, facing concerns that it will lose a huge contract as the provider of technology enabling cell phone users to keep their numbers when they switch carriers.

Services related to number portability constituted the bulk of Neustar’s Q2 revenues ($118.7 million, a 6% YoY increase). This impact contract made up 49% of Neustar’s 2013 revenue, and while analysts hammered Hook for a resolution timeline, she couldn’t commit to one.

TubeMogul Updates S-1, Valued At $372 Million

tubemogul cashVideo demand-side platform (DSP) TubeMogul has updated the S-1 it filed in March, saying it will sell 7,187,500 shares at a suggested offering price of $13 per share. Read the S-1. TubeMogul hopes to raise $93 million and will now take this offer to potential IPO investors - "the roadshow" - prior to the company going public.

Given the $13 per share offering price and the 28,685,816 shares of common stock outstanding once the company goes public, its valuation is expected to be $372 million.  Though not a perfect apples-to-apples comparison, this is a slightly lower valuation to the rumored $500 million acquisition price of LiveRail by Facebook.


More Money For MediaMath: Ad Tech Firm Nets $73.5M After Three-Year Funding Hiatus

mediamath joeMediaMath received $73.5 million in Series C funding, led by Spring Lake Equity Partners, bringing its total to $175 million.

The ad tech company will devote the funds to honing its flagship TerminalOne Marketing Operating System product and for global expansion into EMEA, APAC and LATAM markets.

This infusion is MediaMath’s first round of funding since 2011, when it netted $14 million. Company CEO Joe Zawadzki said the company didn’t need any funding for the immediate years following its Series B. Things have changed.

“It got to the point where the opportunities were in front of us from a global growth perspective in terms of investing in overseas markets, in terms of putting folks on site and even engineering resources in international markets to help clients build on top of the platform and help suppliers build into it,” Zawadzki said. These factors, he added, led MediaMath to seek greater investment.


Another Boost For Offline-Online Linking As Datalogix Scores $45M

EricRozaDatalogix nabbed $45 million in Series C funding, led by Wellington Management Company. This latest round brings its total to $111.5 million, according to CrunchBase. The company intends to use the funds to build out its product and attract more clients.

The company’s main business is linking online consumer activity with offline shopping behavior. It is one of Facebook’s major partners, connecting ads on the social network to buying activity.

It also struck a deal with in April to enable lookalike modeling; the deal lets’s CRM clients find within Datalogix’s database consumers whose buying habits mirror the brand’s best customers.


Sizmek’s Q1: Sights Set On Mobile And Video Growth

sizmek 02Ad tech company Sizmek reported Q1 2014 revenues of $38.4 million on Tuesday, a 13% year-over-year increase.

Neil Nguyen, president and CEO, emphasized that the company is expanding and strengthening key areas with an emphasis on mobile and video offerings.

Mobile revenue increased 90% year over year. Sizmek continues to invest heavily in the channel. At the end of Q1, it launched a solution, called Device Intelligence, designed to enable more accurate identification and targeting across handsets, tablets and desktops, Nguyen said. These enhancements are necessary as audiences increasingly engage in mobile devices where third-party cookies are less available.

“We view this as a key component of our platform and mobile strategy,” Nguyen said. (more…)