What the bananas is up with this company? They kill it on Revenue (up 33%, a $7M beat) and EPS (up 183%, a 7 cent beat), and the shares are down 15% in after hours trading?

Their guidance was less than expected, but it ALWAYS is. If the 15% drop carries through, this company now has a PE of about 8! What is the DEAL?

1 Like

Strange. Looks like a repeat performance of the last quarterly. Beat on all metrics and the stock gets crushed.

Without knowing anything about the company except a small amount that I have retained from what has been posted here, it sounds like an earnings release is a predictable buying opportunity here since the earnings growth is bound to be picked up by the “weighing machine” eventually.

Could it be this heading that is getting picked up and acted upon?

“The Rubicon Project reports 2Q loss”…


Yes, that was a confusing article. Not clear how $0.17 gain became a $0.06 loss. The article was created by a machine. Bring back the humans.

This story was generated by Automated Insights (

The $(0.06) loss was their GAAP earnings.

The $0.17 gain was non-GAAP.

It does look like it fell because of their guidance:

“The digital advertising market is undergoing changes that have fueled headwinds that we expect will continue through the remainder of the year,” CEO Frank Addante says, “particularly as it relates to desktop advertising in the U.S.”


No position
MasterCard (MA), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at

1 Like

down 28% pre-market. What a disaster.

down 28% pre-market. What a disaster.

What was it that the CEO said last quarter that you didn’t believe?
He cautioned that the prior several quarters were outliers.

Something like 5 downgrades today.



Yup pretty nasty. Between this and SKX my portfolio is giving back a lot of gains right now!

PE is now 6.5. Wow. This reminds me of Perion. Their PE is around 4. These might have to go in the “too hard” or more saliently the “doesn’t respond to results” category. I mean they are both growing, but the market is pricing them for oblivion. Maybe someone knows something we don’t.

I will say that even as PERI is growing sales, EPS has not been growing. They’ve expanded into less profitable businesses. That doesn’t seem to be the case with RUBI, however, it looks like they are forecasting that EPS will start to diverge from revenue. IE, for 2016:

RUBI says revenue is expected to be $260M-$275M. That’s up from 227M in 2015. That’s up close to 20%.

But RUBI says EPS will be $0.75-$0.85. That’s down from 1.08 last year (.72 in Q4 alone!!!)

Is this just their ultra conservative guidance? Or should we listen to the forecast?

I mean one parting thought: Non-GAAP EPS through June in 2015 was something like 8 cents. This year, 48 cents.

What is going on?


What was it that the CEO said last quarter that you didn’t believe?
He cautioned that the prior several quarters were outliers.

I don’t recall that. The discussion here 3 months ago indicated that RUBI fell from $20 to $14 due to their habit of giving super-low guidance.

1 Like

What is going on?


Check out the share count, 2016 vs. 2015.

Denny Schlesinger

1 Like is the best site for RUBI information.

Two reason for the plunge:

  1. Header Bidding
    When it saw unexpected declines in desktop revenue, header bidding emerged “as a clear indicator that there was some leakage in impressions,” President Greg Raifman said. The company underwent a strategic review to figure out what went wrong.

Rubicon had been focused not on header bidding and its desktop business, but on the growing areas of mobile and video. “We swung the pendulum too far in mobile and video direction,” Addante said. It had also invested resources in its orders business, an area it expects to grow over the long term.

Plus, Rubicon had reason to think header bidding wouldn’t be big. It had already tried to create a header bidding-like product back in 2012, called real-time pricing. Only a half-dozen publishers ended up adopting it. “It didn’t work out, so when we saw header bidding, we didn’t think it would accelerate as quickly as it has,” Addante said.

  1. Chango Pricing, which was somewhat known last quarter via AdExchanger.
    Its intent marketing business, which it entered via the Chango acquisition, is seeing pressure from “agency-owned tech,” Raifman said, leading to “challenges in the intent marketing business.” Chango is lowering its fees as part of its go-to-market plan, and transitioning away from the managed service model to one it’s dubbing “guaranteed audiences.”…

Also worth the read…Google’s Header Bidding…

RUBI opportunistic trading, GOOG buy and hold


I hereby declare myself the George Costanza of investing by buying RUBI yesterday. Long live George!

-Bob aka George.

1 Like