Home Investment Sizmek Emphasizes Growth In Core Ad Platform, Downplays Rich Media Decline

Sizmek Emphasizes Growth In Core Ad Platform, Downplays Rich Media Decline

SHARE:

sizmek 02Sizmek’s earnings story quarter by quarter seems to be on perpetual repeat, but the company exceeded the pessimistic predictions of Wall Street analysts, posting Q4 2014 revenue of $48.9 million, a 3% YoY increase, and FY 2014 revenue of $170.8 million, a 6% YoY increase.

The company suffered more expected declines in Flash-based rich media, which spiraled 34%, though its “core products” revenue – including mobile, video and data products – did well. Read the release.

Seventy-seven percent of that Q4 revenue came from those core products, which increased 30% YoY. Within that category, mobile revenue grew 62%, in-stream video revenue grew 51% and data-driven products (programmatic, viewability and ad verification) grew 73%.

CEO Neil Nguyen mentioned client wins like Unilever and Sears using Sizmek for video, and Bank of America and IBM using creative workflow products.

While this brings hope, it still must be disappointing for a company that had desired to return in its entirety to double-digit revenue growth. Naturally, CFO Ken Saunders hoped investors would think of the rich media unit separately from its core products division – which he said is much more indicative of Sizmek’s direction.


Over the past year, Sizmek worked to consolidate its various ad tech assets into a single platform, called MDX – which according to Nguyen has 4,000 active clients.

Its also revamping its sales structure under the leadership of global CRO Liz Ritzcovan, who is “doing a lot of work to realign around our growth products and our go-to-market strategy,” according to Saunders.

However, both the realignment and the process of onboarding clients onto the MDX platform will result in some additional costs edging into 2015.

“In 2015, we’ll transition partners onto the new platform,” Nguyen said. “We’ll run some duplicative costs having our older platform and our newer platform in parallel.”

He also updated investors on Sizmek’s Q2 acquisition of Aerify Media, which was purchased for its in-app tracking capabilities and which Nguyen claimed is “in large part integrated” into the greater Sizmek ad stack.

Finally, Nguyen gave his thoughts on Facebook’s ad server, Atlas, which is now a greater market presence than it had been a few months ago. Nevertheless, Nguyen claimed that hasn’t really been competitive with Sizmek, which fields the MediaMind ad server.

“We know our clients view the most valuable capabilities within the Atlas offering [as] the Facebook Audience Network,” he said, adding that those clients would prefer to use an independent ad platform instead of one owned by a publisher.

“The Atlas suite isn’t as competitive as Sizmek’s,” Nguyen said. “We see additional competitiveness, but no competitive losses in the past four to six months.”

Must Read

Comic: TFW Disney+ Goes AVOD

Disney Expands Its Audience Graph And Clean Room Tech Beyond The US

Disney expands its audience graph and clean room tech to Latin America, marking the first time it will be available outside the US. The announcement precedes this week’s launch of Disney+ with ads in Latin America.

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.