The Rubicon Project: A Gem Mispriced In The Ad-Tech Space
Alpha Gen Capital
Alpha Gen Capital
Wed, Aug. 3, 3:00 PM
Wed, Aug. 3, 12:48 PM
Wed, Aug. 3, 12:33 PM
- Rubicon Project (NYSE:RUBI) has nose-dived today, down 32.9% on very heavy volume and touching a new low of $9, as analysts come in with ratings downgrades across the board after the company's downbeat warnings for upcoming quarters.
- The company's on pace for its biggest one-day drop since going public.
- "We were on the wrong side of this one," says RBC Capital's Andrew Bruckner, who cut his rating on RUBI to Sector Perform. The company's beginning a "meaningful business transition since it has encountered the 'perfect storm' of a quicker-than-expected slowdown in desktop display advertising coupled with a faster-than-expected pick up in header bidding." He slashed his price target to $14, from $22.
- Needham pointed to header bidding as well in downgrading shares to Hold: "Despite the reduced revenue guidance, Rubicon is slightly raising its FY16 EBITDA guidance, which at the mid-point is in-line with consensus. However, we are taking a more cautious approach to Rubicon's revenue re-acceleration as a further misstep could weigh on EBITDA margins."
- Citigroup downgraded shares to Neutral and reduced its target to $17, from $26.
- Also dropping ratings to Neutral today: SunTrust Banks, Cantor Fitzgerald, Raymond James, Oppenheimer, and Boenning Scattergood.
Wed, Aug. 3, 9:15 AM
- Gainers: SZMK +45%. KOOL +43%. INVT +26%. GNW +23%. ZAGG +14%. OCLR +12%. FIT +9%. BOFI +8%. ING +8%. TRXC +8%. ETP +7%. FCAU +6%. ETSY +6%. ZTS +6%.
- Losers: RUBI -29%. DRWI -20%. CRAY -20%. VGZ -19%. KATE -18%. CYH -17%. CROX -17%. ELGX -11%. FTAI -9%. QRVO -8%. SHIP -6%. COH -6%. RGC -6%. HBI -6%. KORS -6%. INO -5%.
Tue, Aug. 2, 6:53 PM
- Rubicon Project (RUBI -3.7%) plummeted 19.5% after hours as its Q2 earnings beat was accompanied by a sharp cut to full-year guidance.
- "The digital advertising market is undergoing changes that have fueled headwinds that we expect will continue through the remainder of the year," CEO Frank Addante says, "particularly as it relates to desktop advertising in the U.S."
- That accompanied an outlook for Q3 non-GAAP net revenue of $60M-$64M (below consensus for $70.2M), EBITDA of $9M-$11M (vs. $12M expected) and EPS of $0.07-$0.09, light of consensus for $0.12.
- For the full year, it's forecasting revenues of $260M-$275M (below consensus for $295M); EBITDA of $60M-$68M (vs. $64.5M expected) and EPS of $0.75-$0.85 (below consensus for $0.90).
- In Q2, revenue grew 34% and non-GAAP EPS rose 183% amid strong growth in the company's strategic business drivers: mobile, video and orders.
- Managed revenue (ad spending) rose 13% to $257.4M.
- Press Release
Tue, Aug. 2, 5:41 PM
Tue, Aug. 2, 4:28 PM
Mon, Aug. 1, 5:35 PM
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Thu, May 26, 3:00 PM
Thu, May 26, 11:07 AM
- Rubicon Project (NYSE:RUBI) is continuing a slide from last night's postmarket, now down 10.6% after news that the company's CFO was departing for another job.
- The company also reiterated is guidance for Q2 and the full year, after it spoke yesterday at the B. Riley investor conference.
- Earlier this month, the company forecast Q2 EPS of $0.08-$0.10 (vs. consensus for $0.10) and revenues of $61M-$64M (vs. $63.6M consensus). For the full year, it sees EPS of $0.75-$0.85, light of consensus for $0.90, and revenues of $275M-$295M vs. consensus for $295.3M.
- Audio of Rubicon Project fireside chat
Wed, May 25, 5:45 PM
- Rubicon Project (RUBI +1.6%) says Chief Financial Officer Todd Tappin has resigned, in order to become president of another company.
- Shares have fallen 4% after hours.
- Rubicon Project's chief accounting officer, David Day, is taking over on an interim basis while the company looks for a permanent CFO.
- Tappin will remain a strategic adviser to Rubicon Project. Day, who joined the company in 2013, was previously chief accounting officer at ReachLocal as well as serving as senior VP of Finance at Overture.
Wed, May 25, 5:39 PM
Wed, May 4, 12:50 PM
Wed, May 4, 9:10 AM
Tue, May 3, 4:10 PM
Mon, May 2, 5:35 PM
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The Rubicon Project, Inc. is a technology company, which is on a mission to automate the buying and selling of advertising. Its advertising automation cloud is a highly scalable software platform that powers and optimizes a marketplace for the real time trading of digital advertising between... More
Industry: Application Software
Country: United States