Rubicon +20.8% on results/guidance; FUEL, MM also gain


In addition to soundly beating Q2 estimates, Rubicon Project (NYSE:RUBI) has guided for Q3 revenue of $28.5M-$29.5M and EPS of -$0.20 to -$0.17, mostly above a consensus of $26.5M and -$0.17. Full-year guidance is for revenue of $117M-$119M and EPS of -$0.34 to -$0.41, above a consensus of $112.7M and -$0.53.

The online ad network benefited from a 150 bps Y/Y increase in its take rate on gross ad sales to 18.4%. It also got a lift from a 75% increase in gross sales stemming from real-time bidding (RTB - automated ad purchases tied to online activity). Sales/marketing and G&A spending growth led GAAP opex to rise 72% to $35.4M.

Rubicon mentioned on its CC (transcript) it has landed a deal with Comcast to power a private ad-buying exchange for the cable giant's Xfinity sites. Ziff-Davis, PBS, and Move were also added as clients.

RTB platform owner/Rubicon client Rocket Fuel (FUEL +4.7%) is also rallying, as is mobile ad network owner Millennial Media (MM +2.9%). Millennial might also be getting a boost from Twitter's strong Q2 report; the microblogging platform gets 81% of its ad revenue from mobile, and continues to see rapid growth for its MoPub mobile ad exchange (integrates with Millennial's network).

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