Rocket Fuel: Better To Buy Than Sell
Seeking Profits • 11 Comments
Seeking Profits • 11 Comments
Consider Buying Rocket Fuel
Seeking Profits • 15 Comments
Seeking Profits • 15 Comments
Tue, Jun. 28, 5:37 PM
Tue, Jun. 28, 12:46 PM
Tue, May 10, 5:37 PM
Wed, Feb. 24, 7:07 PM
- NBCUniversal (CMCSA +1.5%) has rolled out programmatic advertising for its "linear" broadcast and cable TV inventory, in what it's calling a first.
- Clients will use their own data and demand-side platforms of choice and compare against NBCU inventory to build their media plans, including ads on "regular" (non-digital) shows broadcasting on NBC, or USA Network or Syfy.
- It's not quite real-time bidding a la digital ads, though. It will still be sold in upfronts (as NBCUx is added to NBCU's upfront sales) or up to a week ahead of time, rather than via auctions. NBCU says this fall advertisers will be able to buy on a daily basis.
- Banner ad prices plunged when automated bidding hit the market, but NBCU's Krishan Bhatia says the lack of real-time bidding will give the company a bit more control over pricing.
- Ad-tech players soared today after some strong earnings reports: RUBI +17.8% after doubling revenue yesterday; FUEL up 4% today and up 19.8% after hours following its beat; TUBE +6.5%; CRTO +0.2%. After hours, CMCSA -0.7%.
Wed, Feb. 24, 5:21 PM
- Beaten-down Rocket Fuel (NASDAQ:FUEL) is up 23% after hours to $3.85 after soundly beating Q4 estimates (especially on EPS). The programmatic online ad platform owner is guiding for Q1 non-GAAP revenue of $53M-$56M; the GAAP revenue consensus, which doesn't back out traffic acquisition payments, is at $99M. Adjusted EBITDA guidance is at -$11M to -$14M.
- Along with the numbers, Rocket Fuel has announced the hiring of Rex Jackson, formerly the CFO of chip design hardware/software firm Synopsys and optical component vendor JDS Uniphase, as its CFO. The move comes four months after Rocket Fuel announced (along with the hiring of Randy Wootton as CEO) CFO David Sankaran is leaving; Cal Hoagland, a partner at CFO services firm FLG Partners, has been serving as interim CFO.
- Boosting Q4 EPS: Non-GAAP operating expenses fell 11% Y/Y to $65.8M. On a GAAP basis, sales/marketing spend totaled $39.8M, R&D $10.8M, and G&A $13.7M.
- Mobile, social, and video channels produced Q4 GAAP revenue of $46.9M (37% of total revenue). Rocket Fuel ended 2015 with $78.6M in cash (compares with a $166M after hours market cap).
- Rocket Fuel's Q4 results, earnings release
Fri, Feb. 19, 12:45 PM
Mon, Feb. 8, 2:37 PM
- Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
- As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
- Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
- Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
- Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
- Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
- Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
- Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
Fri, Jan. 29, 7:03 PM
- Video ad specialist Adaptive Medias (OTCQB:ADTM -8.6%) has received an acquisition bid, Barron's reports, from private AdSupply, with whom it entered a strategic partnership last week.
- AdSupply has offered $35M -- about $1.50 a share, a ten-bagger premium over the current price of $0.144 -- in a letter to Adaptive's board.
- The company will form a committee to review the deal and Adaptive CEO John Strong says they'll do their fiduciary duty to check all options.
- AdSupply chief Justin Bunnell said companies in the ad-tech space (particularly sometime candidates Rubicon Project (NYSE:RUBI), Rocket Fuel (NASDAQ:FUEL) and Criteo (NASDAQ:CRTO)) should be ready for what might be a wave of acquisitions with stock prices lower than before and "as companies prepare for the next round of competition."
- Previously: Adaptive Medias in marketplace partnership with AdSupply (Jan. 21 2016)
Fri, Jan. 15, 2:53 PM
- In Wall Street's latest bloodletting, the Nasdaq is down 3.1% and the S&P 2.4%. The decline comes amid tumbling energy prices (crude is below $30/barrel), soft macro data, and disappointing earnings reports from the likes of Intel and Citigroup.
- Tech companies seeing outsized losses amid the carnage include chipmakers NXP (NXPI -8.1%), Qorvo (QRVO -8.9%), InvenSense (INVN -3.7%), IDT (IDTI -6.4%), Sigma Designs (SIGM -6.5%), and Knowles (KN -6.6%), as well as solar plays Trina (TSL -9.3%), ReneSola (SOL -11.5%), JinkoSolar (JKS -10.7%), Enphase (ENPH -8.5%), and Canadian Solar (CSIQ -8.4%).
- Also off sharply: Action camera leader GoPro (GPRO -8.7%), 3D printer maker 3D Systems (DDD -7.5%), daily deals leader Groupon (GRPN -6.4%), server interconnect provider Mellanox (MLNX -8.5%), OLED materials/IP provider Universal Display (OLED -10.3%), Latin American online marketplace MercadoLibre (MELI -7.2%), data management software firm Varonis (VRNS -8.3%), ad tech firm Rocket Fuel (FUEL -7.1%), Chinese online retailers Vipshop (VIPS -6.9%) and Jumei (JMEI -12.7%), and home automation system provider Control4 (CTRL -7.8%).
- GoPro is down 22% since issuing a Q4 warning on Wednesday afternoon. Trina has been downgraded to Neutral by Goldman. IDT and Mellanox could be affected by the weaker-than-expected Q4 sales reported for Intel's server CPU division (DCG).
- Previously covered: Chip equipment makers, Yandex/Qiwi, Intel, Textura, PC industry firms, Rackspace, CommVault, Ericsson
- Wednesday's notable decliners
Mon, Jan. 11, 12:43 PM
Thu, Jan. 7, 2:56 PM
- The Nasdaq is down 2.4%, and the S&P down 2%, as investors continue fleeing to safety amid ongoing Chinese worries. Not surprisingly, many high-beta tech names are seeing much steeper losses.
- 5%+ decliners include action camera leader GoPro (GPRO -7.9%), fitness band leader Fitbit (FIT -7.6%), threat-protection hardware/software provider FireEye (FEYE -7.2%), video processor developer/GoPro supplier Ambarella (AMBA -8.6%), flash storage array vendor Violin Memory (VMEM -12.7%), capacitor maker Kemet (KEM -14.6%), and cloud healthcare software firms Castlight (CSLT -8.3%) and Veeva (VEEV -6.4%).
- Others include Russian search leader Yandex (YNDX -5.9%), 3D measurement/scanning hardware firm FARO Technologies (FARO -7.5%), ultracapacitor maker Maxwell (MXWL -9.1%), car-buying site TrueCar (TRUE -8.8%), analog/mixed-signal chipmaker ON Semi (ON -5.4%), online ad platform Rocket Fuel (FUEL -6.3%), and LED/chip equipment maker Aixtron (AIXG -6.8%).
- Previously covered: Chinese tech stocks, solar stocks, Everyday Health, SunEdison, Atmel
Nov. 4, 2015, 4:53 PM
- Along with its Q3 results, Rocket Fuel (NASDAQ:FUEL) has announced Randy Wootton, the company's sales chief since March and before that a Salesforce and Microsoft exec, is its new CEO. Wootton, who is also joining the board, replaces Monte Zweben, who has been interim CEO since March.
- Zweben will become executive chairman, replacing co-founder/ex-CEO George John. John is leaving the company to join a VC firm.
- CFO David Sankaran is also resigning, effective Nov. 30. Cal Hoagland, a partner at a CFO services and board advisory firm, has been named interim CFO while a search is carried out for Sankaran's replacement.
- Rocket Fuel is guiding for Q4 non-GAAP revenue (backs out partner payments) of $68M-$72M vs. Q3's reported $68.2M. Consensus is for GAAP revenue (doesn't back out partner payments) of $154M, well above Q3's reported $111.8M. Q4 is the seasonally strongest quarter for ad tech firms.
- Shares have fallen to $4.56 after hours.
- Q3 results, PR
Aug. 20, 2015, 12:09 PM
- With investors fleeing to safety and asking questions later - Chinese macro concerns have been playing a role - tech stocks with high betas (and sometimes also high multiples and big 2014/2015 gains) are among the biggest losers as the S&P drops 1.1%, and the Nasdaq 1.7%.
- Noteworthy decliners include action camera leader GoPro (GPRO -6%), security tech plays Palo Alto Networks (PANW -4.9%), FireEye (FEYE -4.5%), CyberArk (CYBR -5.7%), Qualys (QLYS -5.1%), Imperva (IMPV -6%), and Vasco (VDSI -4.2%), and driver-assistance tech leader Mobileye (MBLY -6%).
- Others include optical networking hardware vendors Ciena (CIEN -5%) and Infinera (INFN -7.3%), optical component vendors NeoPhotnics (NPTN -5.9%) and Oclaro (OCLR -6.7%), data management software firm Varonis (VRNS -5.5%), programmatic ad-buying platform Rocket Fuel (FUEL -7.4%), DNS/IP address hardware vendor Infoblox (BLOX -5.1%), haptic tech developer Immersion (IMMR -6.2%), and solar microinverter maker Enphase (ENPH -7.2%).
- Many Chinese tech stocks are also seeing heavy losses.
Aug. 5, 2015, 4:41 PM
- Job cuts helped Rocket Fuel (NASDAQ:FUEL) post a much smaller-than-expected Q2 loss: Not counting restructuring charges, GAAP costs/expenses totaled $137.2M, up 35% Y/Y but down slightly Q/Q. Moreover, Y/Y spending growth fell sharply from Q1's 62% clip.
- The demand-side online ad platform owner expects Q3 non-GAAP revenue to be in a range of $68M-$73M vs. a reported Q2 level of $70.9M. Consensus is for GAAP revenue (doesn't back out ad partner payments) to rise to $124.1M from Q2's $120.1M. Q3 adjusted EBITDA is expected to be in a $0-$4M range, after totaling $1.4M in Q2.
- Active customer count rose by 105 Q/Q and 148 Y/Y to 1,592. Headcount fell by 175 Q/Q to 1,008.
- Shares have jumped to $7.75 AH. They're still down 52% YTD.
- Q2 results, PR
Aug. 5, 2015, 4:31 PM
- Rocket Fuel (NASDAQ:FUEL): Q2 EPS of -$0.17 beats by $0.25.
- Revenue of $120.06M (+29.6% Y/Y) beats by $0.8M.
- Share +5.10% AH.
Jun. 12, 2015, 2:47 PM
- Advertising technology companies have stabilized a bit today after slipping on yesterday's news that Apple's new operating system would support blocking of cookies and other content.
- Criteo (NASDAQ:CRTO) is up 0.2% after yesterday's 7.3% drop, and Rubicon Project (NYSE:RUBI) is down just 1.3% today, compared to yesterday's 4.7% decline. Rocket Fuel (NASDAQ:FUEL) is up 0.2%; TubeMogul (NASDAQ:TUBE) is off 1.3% after slipping into the close to finish -7.9% yesterday.
- B. Riley's Sameet Sinha thinks Rubicon Project might actually benefit from the change (the impact of which Sinha figures is at least nine months out): It might actually drive more ad dollars toward key Rubicon inventory areas.
- "One, it will drive ad dollars to App-based environments, such as AAPL’s iAds, where RUBI is the SSP," Sinha writes. "Two, it could drive ad dollars towards less blockable inventory, such as Native and Video, which are a growing segment of RUBI’s inventory
- Sinha has a Buy on Rubicon Project with a $26 target; shares are trading today at $16.98.
Rocket Fuel, Inc. operates as a digital advertising company that provides solutions for the management and evaluation of advertising campaigns. The company develops an artificial intelligence and big data-driven predictive modeling and automated decision-making platform. It is designed to... More
Industry: Application Software
Country: United States
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