Rubicon Project (RUBI) Tops Q3 EPS by 23c; Issues Mixed Outlook
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Rubicon Project (NYSE: RUBI) reported Q3 EPS of $0.32, $0.23 better than the analyst estimate of $0.09. Revenue for the quarter came in at $65.8 million versus the consensus estimate of $62.94 million.
Rubicon Project sees Q4 2016 EPS of $0.08-$0.16, versus the consensus of $0.30. Rubicon Project sees Q4 2016 revenue of $65-75 million, versus the consensus of $80.23 million.
Rubicon Project sees FY2016 EPS of $0.86-$0.94, versus the consensus of $0.88. Rubicon Project sees FY2016 revenue of $271-281 million, versus the consensus of $267.98 million.
“We executed well against our key strategic drivers of mobile, video, orders and header bidding in the third quarter, delivering both top line and bottom line results that were within range of our guidance,” said Frank Addante, CEO and Founder of Rubicon Project.
“As expected, Q3 was a challenging quarter for both our industry and our business in particular and we still have work to do to deliver the revenue growth that we know our business is capable of generating. We remain confident that the strength of our premium technology platform, our global marketplace and strong balance sheet uniquely position us to win in the market and we expect these strengths to propel our business to stronger long term growth in 2017."
Today, the Company also announced a workforce reduction of 125 employees, or approximately 19%, of its workforce. The Company expects to complete this action and incur pre-tax charges of approximately $4.0 million in cash expenditures for one-time employee-termination benefits during the fourth quarter of 2016. The reduction in force is expected to reduce future employee-related costs on an annual basis by approximately $18.0 million. In addition, the Company implemented non-headcount related operating expense cost control initiatives that it anticipates will provide additional savings of approximately $12.0 million annually, for a total of $30 million in annualized cost reductions.
This workforce reduction continues a comprehensive realignment of the business which the Company began in the second quarter of 2016 to focus on key growth areas, better match the Company’s cost structure with its growth rate, and instill greater discipline around cost efficiency. These efforts have also resulted in the integration of the Company’s global revenue teams through the combination of the buyer and seller sales organizations, as well as the integration of the product and engineering teams into one organization led by the recently named Chief Product and Engineering Officer.
For earnings history and earnings-related data on Rubicon Project (RUBI) click here.
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