Rubicon Project reported Q3 earnings on Wednesday, and announced a 19% reduction in its workforce, in a bid to lower overall costs by up to $30 million per year.
Q3 earnings highlights:
-- Revenue of $65.8 million, an increase of 2% year-over-year
-- Non-GAAP net revenue of $60.6 million, an increase of 5% year-over-year
-- Net income of $3.5 million, an improvement of 217% year-over-year
-- Adjusted EBITDA of $15.3 million, an increase of 22% year-over-year
-- Diluted income per share of $0.07, an improvement of 200% year-over-year
-- Non-GAAP earnings per share of $0.32, an increase of 39% year-over-year
By laying off 19% of the company's workforce, Rubicon strategists aimed to lower employee-related costs by up to $18 million per year. Other cost-control initiatives not related to the layoffs hope to save another $12 million on an annual basis.
The reductions in personnel have resulted in a consolidation of Rubicon Project’s global revenue teams, combining the buyer and seller sales organizations. The product and engineering teams have also been integrated into one organization.
“As expected, Q3 was a challenging quarter for both our industry and our business in particular,” stated Frank Addante, CEO and founder of Rubicon Project.“We remain confident that the strength of our premium technology platform, our global presence, 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."