Just two weeks after it announced its purchase of nToggle, Rubicon Project reported $42.9 million in revenue in Q2, down 39% from $70.5 million the year before.
CEO Michael Barrett told financial analysts during an earnings call on Tuesday that while revenues declined and losses will continue to mount, the company will cut its take rates to transition into a lower-margin, high-volume business model. In addition, a turnaround plan will include the launch of a server-to-server side header-bidding solution, and an intensified focus on mobile app inventory.
Amid a furiously consolidating ad-tech sector, Rubicon also pointed out bright spots in Q2 including a sequential 7% increase in total ad spend during the period and total mobile ad spend up 21% versus the first quarter of the year.
In addition, the company said customers’ ad spend in Q2 broke down to 42% mobile and 58% on desktop, compared to Q1 when mobile represented just 35% of ad spend.
Barrett told analysts that he projects the nToggle acquisition to pay off in three years and that it will help Rubicon improve its win rate. The company’s integration with Rubicon will take about six months.
Rubicon officials told investors that the company’s average “take” rate for Q2, the fee it collects on all transactions, was about 21% for the period, an improvement over first quarter when take rates averaged 23.7%. Reducing costs per transaction is a key focus for the company.
Barrett also touted the firm’s integration with Amazon’s Transparent Ad Marketplace, which it said will help speed integrations with mobile apps.