Rubicon Project Inc. founder Frank Addante has stepped down as chief executive at the Playa Vista ad tech firm after its revenue forecast for the first quarter failed to meet analysts’ estimates.
Addante joins more than a half-dozen senior executives at Rubicon who have stepped down over the last month, including President Greg Raifman. The company’s share price fell more than 22 percent in after-hours trading on March 14 to $6.51 following the release of its fourth-quarter earnings report. Rubicon’s stock has tumbled 67 percent since hitting a high of about $20 a share in April of last year.
Michael Barrett, former chief executive of mobile advertising marketplace Millennial Media and chief revenue officer at Yahoo Inc., has been named Rubicon’s CEO.
Addante will continue to serve as the firm’s chairman. After founding the business in 2007, he said that it felt great to step away from his leadership role.
“I wouldn’t say stepping down, I would say I’m stepping across (to chairman),” Addante said. “I think it’s what’s best for the company. My No. 1 goal is the company’s success. What my title in that success is not important to me.”
According to data from Bloomberg, he holds more than 1.8 million shares in Rubicon, which operates an automated advertising marketplace.
Rubicon’s revenue for the quarter ended Dec. 31 fell to $72.7 million from $94 million for the same quarter in 2015 – a drop of 27 percent. The firm posted a net loss of $21.2 million compared with net income of $20.4 million in the same period.
The firm issued revenue guidance of $41 million to $44 million for the first quarter, which fell below consensus analyst estimates of $57.3 million.
– Garrett Reim
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