Rubicon Project, the ad exchange, has posted another quarter of declines with revenue dropping 34% to $46 million in the first quarter of 2017. Ad spend decreased 23% to $191.5 million.
Overall revenue still beat expectations, but stocks predictably dropped nonetheless in after-hours trading.
Rubicon Project’s CEO Michael Barrett named three main reasons for the decline.
Firstly, take rates for publishers with their own demand through header bidding decline, whilst private marketplace rates also dropped. In addition, marketplace dynamics are to blame for a decrease in rates as fees are becoming more competitive.
“Our first quarter results were in line with our recently provided outlook, and we ended the quarter with a strong balance sheet which will provide us flexibility during this time of transition. In the coming quarters we intend to increase our focus on operating more efficiently at scale, continue to innovate for a mobile-first world and accelerate our market share capture, while also investing in important initiatives that we believe will help us return to growth. I am incredibly encouraged by the work and dedication of a terrific team of employees and am excited about our evolving plans to turn the business around.”