Independent mobile marketplace Millennial Media reported falling revenues this quarter from $72.6m to $63.2m from the previous year. However, profits exceeded analyst predictions and consequently its stock price rose 6% in after-hours trading on Tuesday. The overall revenue decline can be attributed to expected seasonality, according to CFO Andrew Jeanneret.
The company recently took over Nexage for $107.5m, confirming its serious intention to become a leading player in programmatic, citing that Nexage would complete the company’s vision. Commenting on the acquisition, Marc Theermann, EVP of business strategy, Millennial Media, told AdExchanger:
“While there are, of course, many other platforms out there where advertisers can spend at scale, we want to be a platform that gives them data back so they can take those learnings and become smarter for their next campaign.”
Having now completed integration of Nexage with Millennial’s inventory, the company seems well-aligned to offer its clients a solid product. The Millennial new software development kit (SDK) combines the company’s exchange features with Nexage’s to offer a single package. It has already been installed in 65,000 apps worldwide.
Michael Barrett, CEO, Millennial Media says:
“(The kit will) enable new creative capabilities for our managed business and unlock most of them to the exchange. (It also offers) new mediation capabilities to help maximize yield. (This SDK) provides the direct handshake that gives us information about the device and, by extension, the user.”
In addition, the company hinted at a “pretty breakthrough ad product in the not too distant future that we think is going to have a very positive impact on the second half of the year,” according to Barrett. Commenting on the company’s transparency, Millennial does not fear competing from Facebook or Google. Barrett adds:
“(They) have been formidable competitors and continue to be formidable, (but…) we’re competing with them based upon some of our unique selling propositions, chiefly our ability to be mobile specialists and our in-app expertise coupled with our independence and our full-stack capabilities.”
According to him, clients want more solutions within a single package delivered by one company.