"An SEC filing dated today (January 18) from Rubicon Project, confirmed the closure, claimed the intent marketing solution generated approximately $41m in GAAP revenue and $19m in non-GAAP net revenue throughout 2016. It continued: "[It] was not contributing significantly to revenue and did not justify the associated costs. These actions will enable the Company to increase focus on growth areas, such as mobile, video, orders, header bidding, and the recently announced consumer initiative.""
"Speaking at the time of Rubicon's purchase of Chango, company CEO Frank Andante said: "Our combined capabilities will help to grow and innovate the $35 Billion intent marketing category while also fueling a rapid acceleration of Rubicon Project's overall Buyer Cloud business, advancing our technology roadmap and team build out by more than one year.""
Rubicon Project will cease intent marketing services, close its Toronto office, and transfer certain employees and client referrals to IgnitionOne. Rubicon acquired Chango for $122m in 2015; the intent marketing solution produced about $41m GAAP and $19m non-GAAP revenue in 2016 and failed to justify its costs. Rubicon and IgnitionOne agreed a two-year revenue-share on referred services. The company expects $8m–$11m impairment charges related to customer relationships and about $0.5m in one-time termination benefits while refocusing on mobile, video, orders, header bidding and a consumer initiative.
Read at The Drum
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