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Rocket Fuel Announces Efficiency Program and Preliminary First Quarter Results
Source: GlobeNewswire Inc.
Efficiency Program Projected to Reduce Costs by $30 Million Annually
Company Reports Preliminary First Quarter 2015 Results Above Guidance Ranges
Rocket Fuel (Nasdaq:FUEL), a leading programmatic media-buying platform provider that uses artificial intelligence (AI) at Big Data scale to improve marketing ROI for global agencies and enterprise marketers, today announced a series of operational efficiency initiatives that are expected to result in significant reductions in its cost structure. The initiatives span the company's operations and are part of the company's previously announced goal of achieving positive non-GAAP adjusted EBITDA for the full 2015 fiscal year.
"We are taking proactive steps to improve Rocket Fuel's financial model, and our team is focused and committed as we quickly implement these needed efficiency actions," said Monte Zweben, interim CEO of Rocket Fuel. "The company expects the operational efficiency program to reduce costs by approximately $30 million annually and position us to achieve our goal of positive non-GAAP adjusted EBITDA for 2015."
Zweben added, "We continue to help marketers and their agencies optimize their campaigns by delivering Marketing that Learns™ -- our AI technology and Big Data architecture that continuously updates its understanding of which advertising and other marketing strategies have the most impact. Whether customers buy media from Rocket Fuel or use our technology platform, they view us as a trusted marketing partner because of how our AI continuously improves the effectiveness of their campaigns to deliver optimal business outcomes."
As part of its efficiency measures, Rocket Fuel is reducing operating expenses in most categories, including facilities leasing costs, outside services costs, and a reduction in workforce as a result of streamlining operating groups across the business. The company's engineering and R&D departments were unaffected, ensuring that the company can continue to develop and deliver its market-leading technologies.
Preliminary First Quarter 2015 Financial Results
The Company also announced preliminary results for the first quarter of 2015 as follows:
Revenue is estimated to be approximately $104.3 million, an increase of approximately 40% from the first quarter of last year.
Non-GAAP net revenue is estimated to be approximately $58.8 million, an increase of 32% from the first quarter of last year and above the Company's prior guidance range of $57 to $58 million.
Net loss is estimated to be approximately $(36.9) million.
Non-GAAP adjusted EBITDA is estimated to be a loss of approximately $(13.6) million, significantly better than the Company's prior guidance range of a loss of $(18) to $(19) million.
"Our preliminary first quarter non-GAAP adjusted EBITDA results came in significantly ahead of our prior guidance range, reflecting the initial impact of our focus on controlling costs and optimizing our financial model," said Dave Sankaran, CFO. "With strategic efficiency programs in place, we expect to see continued improvement in our operating results in the coming quarters."
This preliminary, unaudited information is based on the Company's current estimate of results from operations for the first quarter of 2015, and remains subject to change based on the Company's and its independent auditor's customary and ongoing review of results, the subsequent occurrence or identification of events prior to closing of the review, and any further adjustments made in connection with closing and review procedures. As previously announced, the Company intends to report its final results and host a conference call to discuss its results on May 7, 2015.
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