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Rubicon Project's Q1 Earnings Offer A Peek Into Ad Tech Tax

Rubicon Project had a strong Q1, growing overall advertising revenue by 26% year over year while non-GAAP net revenue reached $63.6 million, a 71% year-over-year increase, according to a report in AdExchanger. The increase can be attributed to Rubicon's acquisition of demand-side platform Chango a year ago. This caused take rates to spike in year-over-year comparisons. Prior to the acquisition, its 2015 Q1 take rate was 18.6%, compared to 25.6% this Q1. Chango helped deliver high margins to Rubicon. The report points out that the high margins "aren’t sustainable, as awareness of the 'ad tech tax' and a push for transparency from buyers and sellers pressures these companies to compress their margins." Rubicon expects its take rates to decline over the long-term.

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