TubeMogul, Inc. (TUBE)

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TubeMogul Reports Financial-Results for Fourth-Quarter and Full-Year 2014

Last update: 26/02/2015 4:15:05 pm


TubeMogul Reports Financial Results for Fourth Quarter and Full Year 2014

Total Spend, Revenue and Gross Profit Reach Record Levels in the Fourth Quarter

EMERYVILLE, Calif., Feb. 26, 2015 (GLOBE NEWSWIRE) -- TubeMogul, Inc. (Nasdaq:TUBE), a leading enterprise software company for video advertising, today reported financial results for its fourth quarter and year ended December 31, 2014.

Fourth Quarter 2014 Financial Highlights:

-- Total Spend1 was $82.6 million, an increase of 85% compared to $44.7 million in the fourth quarter of 2013.

-- Revenue was $36.1 million, an increase of 64% compared to $22.0 million in the fourth quarter of 2013.

-- Gross profit was $25.7 million, an increase of 77% compared to $14.5 million in the fourth quarter of 2013.

-- Gross margin was 71% compared to 66% in the fourth quarter of 2013.

-- Operating loss was $(2.4) million, compared to an operating income of $0.7 million in the fourth quarter of 2013.

-- Net loss was $(4.0) million, compared to a net income of $0.1 million for the fourth quarter of 2013.

-- Adjusted EBITDA2 loss was $(0.5) million, compared to Adjusted EBITDA of $1.1 million in the fourth quarter of 2013.

2014 Financial Highlights:

-- Total Spend1 was $254.3 million, an increase of 127% compared to $111.9 million in 2013.

-- Revenue was $114.2 million, an increase of 100% compared to $57.2 million in 2013.

-- Gross profit was $80.3 million, an increase of 114% compared to $37.5 million in 2013.

-- Gross margin was 70% compared to 66% in 2013.

-- Operating loss was $(1.6) million, compared to an operating loss of $(6.2) million in 2013.

-- Net loss was $(4.4) million, compared to a net loss of $(7.4) million in 2013.

-- Adjusted EBITDA2 was $2.6 million, compared to a loss of $(5.2) million in 2013.

(1) Total Spend is a non-GAAP financial measure. Please see the discussion below under the heading "Use of Non-GAAP Measures" and the reconciliation at the end of this release.

(2) Adjusted EBITDA income/(loss) is a non-GAAP financial measure. In September 2014, we revised our definition of Adjusted EBITDA to exclude foreign exchange gains and losses. Please see the discussion below under the heading "Use of Non-GAAP Measures" and the reconciliation at the end of this release.

"We continued to see strong adoption of our software in the fourth quarter by both brands and agencies," said Brett Wilson, CEO of TubeMogul. "Brands and agencies increasingly recognize the advantages of a centralized buying platform and the opportunity to gain more control over their media spend. We are well positioned to partner with them as they make this transition to a software-driven advertising platform. Our outlook for 2015 is exciting as we begin to make inroads to accessing television ad budgets and add display and social advertising formats to our software."

Fourth Quarter, Full Year, and Recent Business Highlights include:

-- Greater use of self-serve software: Increased video advertising spend on self-serve campaigns through TubeMogul's Platform Direct software by 102% year-over-year to $62.8 million, representing 76% of Total Spend in the fourth quarter of 2014, compared to 70% in the fourth quarter of 2013.

-- Significant uptick in annual cohort metrics: Generated 78% of Platform Direct Spend in 2014 from clients signed in previous years, demonstrating the predictability and leverage of our operating model.

-- Strong self-serve client growth: Increased the number of Platform Direct Clients at the end of the fourth quarter of 2014 to 333, up 125 from 208 Clients at the end of the fourth quarter of 2013.

-- Pioneered programmatic buying of linear TV: Launched TubeMogul PTV, the first completely self-serve solution to buy television advertising programmatically. Using PTV, Mondelez International bought the first programmatic TV ad during a Super Bowl broadcast.

-- More brands using software directly: Increased Brand Direct spend to 15% of global Platform Direct spend in 2014, compared to 7% in 2013, which equated to a 500% increase in spend.

-- Driving mobile spend: Increased contribution of mobile spend to 7% of total spend globally representing an increase in mobile spend of 900% over 2013.

-- Signed a wide breadth of new clients including:

-- Heineken USA -- the nation's leading upscale beer importer, chose TubeMogul as their exclusive video advertising partner.

-- One Advertising -- a leading Canadian full-service agency,
representing brands such as Nikon and H&R Block, chose TubeMogul
exclusively to unify cross-screen TV and video buys.

-- REA Group -- a global online real estate advertising company based in Australia, selected TubeMogul to power their own advertising campaigns and monetize their audience data.


-- Named 5th Best Place to Work: by Glassdoor for Small and Medium
Businesses in the United States.

Forward Outlook:

The Company is issuing 2015 guidance as follows:

First Quarter 2015
-- Total Spend in the range of $68 million to $70 million

-- Revenue in the range of $28 million to $30 million

-- Gross profit in the range of $20 million to $22 million

-- Adjusted EBITDA loss in the range of $(5) million to $(3) million

Full Year 2015
-- Total Spend in the range of $360 million to $370 million

-- Revenue in the range of $142 million to $152 million

-- Gross profit in the range of $101 million to $111 million

-- Adjusted EBITDA loss in the range of $(19) million to $(9) million

Conference Call and Webcast Information

TubeMogul management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results. To listen to the live conference call, please dial [phone] or toll free [phone], access code 7711133, approximately 15 minutes prior to the start of the call. A live and archived webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at investor.tubemogul.com. A telephonic replay of the conference call will be available two hours after the call, will run until March 8, 2015, and may be accessed by dialing [phone] or [phone] and entering the passcode 7711133.

TubeMogul has used, and intends to continue to use, its Investor Relations website (http://investor.tubemogul.com), as well as certain blogs http://www.tubemogul.com/company/media-center/blog/ and Twitter accounts @tubemogul and @bjwilson34, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

About TubeMogul

TubeMogul (Nasdaq:TUBE) is an enterprise software company for digital branding. By reducing complexity, improving transparency and leveraging real-time data, our platform enables advertisers to gain greater control of their video advertising spend and achieve their brand advertising objectives. TubeMogul was incorporated in 2007 and is based in Emeryville, California with operations in New York, London, Singapore, Tokyo, Sydney, Toronto and offices across the United States.

TubeMogul and the TubeMogul logo are trademarks or registered trademarks of TubeMogul, Inc. in the United States and other countries.

Forward-Looking Statements

This press release includes "forward-looking statements" regarding future events and our future financial performance, including, without limitation, statements regarding our business strategy, growth and market opportunity, and forecasted financial results and operating metrics including total spend, revenue, gross profit and Adjusted EBITDA.

These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements, including, but not limited to our limited operating history, particularly as a new public company; risks associated with our growth; risks related to our future financial performance; our ability to maintain our rate of revenue growth; our ability to convince our clients to maintain or increase their advertising spend through our platform; the expansion of the digital video and video advertising markets, our ability to adapt to changing market conditions; the effects of increased competition in our markets and our ability to compete effectively; our ability to develop and introduce enhancements and new features and functionality of our platform that achieve market acceptance; fluctuations in our operating results; and general market, political, economic and business conditions. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are described under "Risk Factors" in our prospectus filed with the Securities and Exchange Commission on July 18, 2014 and in subsequent Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this press release, and we expressly disclaim any obligation or undertaking to update the forward-looking statements contained herein to reflect events that occur or circumstances that exist after the date on which the statements were made.

TUBEMOGUL, INC.
Consolidated Statements of Operations
(In thousands, except share and per share data)
(Unaudited)

Three Months Ended Years Ended
December 31, December 31,
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February 26, 2015 16:15 ET (21:15 GMT)