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Rocket Fuel Reports Financial Results For The Fourth Quarter And Full Year 2015 Full Year Reven

The following excerpt is from the company's SEC filing.

ue Grew

and Non-GAAP Net Revenue Grew 16%

Year over Year

Positive Adjusted EBITDA for the Fourth Quarter and Full Year

Rex Jackson to Join the Company as Chief Financial Officer

REDWOOD CITY, California

- February 24, 2016 - Rocket Fuel Inc. (NASDAQ: FUEL), a leading Programmatic Marketing Platform provider, today announced financial results for the fourth quarter and fiscal year ended

. Rocket Fuel posted 13% growth in annual revenue and 16% growth in annual non-GAAP net revenue over 2014, plus positive non-GAAP adjusted EBITDA of $8.9 million in the fourth quarter, and $0.1 million for the full year 2015.

“Rocket Fuel’s fourth quarter results are evidence of our commitment to a new operating philosophy shaped by executional rigor. We exceeded guidance on both the top and bottom-line, and achieved Adjusted EBITDA profitability for the year, an important goal that we laid out in early 2015. We are attracting world class talent who recognize the potential of Rocket Fuel, and the strength of our Moment Scoring

technology across devices and channels is a strategic advantage that presents many opportunities for profitable growth,” said Randy Wootton, Chief Executive Officer.

In a separate press release today, Rocket Fuel announced that Rex Jackson will join the Company as its Chief Financial Officer, effective March 16, 2016. Mr. Jackson brings significant public company experience, most recently as Chief Financial Officer of JDSU.

Financial Highlights for the Fourth Quarter of 2015

$125.4 million

increased 12% over the third quarter of 2015 and declined 10% compared to

$139.5 million

for the fourth quarter of 2014. Revenue derived from the delivery of digital advertising to mobile, social, and video channels collectively was

$46.9 million

in the fourth quarter of 2015.

Non-GAAP net revenue

$74.7 million

exceeded prior guidance of $68 million to $72 million. Non-GAAP net revenue increased 10% over the third quarter of 2015 and declined 3% compared to

$76.7 million

Net loss

decreased to

$(12.7) million

$(0.29)

per diluted share, compared to a net loss of

$(20.5) million

$(0.49)

per diluted share for the fourth quarter of 2014.

Non-GAAP adjusted net income (loss)

for the quarter decreased to

$(1.8) million

$(0.04)

$(7.4) million

$(0.18)

per diluted share, for the fourth quarter of 2014.

Non-GAAP adjusted EBITDA

exceeded prior guidance of $3 million to $7 million, and compares to

$2.8 million

in the fourth quarter of 2014.

Cash and cash equivalents

were

$78.6 million

as of

Active customer

count was

, up from

Employee headcount

Financial Highlights for the Fiscal Year ended December 31, 2015

$461.6 million

$408.6 million

year ended December 31, 2014

$168.3 million

for the year.

$272.5 million

$235.2 million

$(210.5) million

$(4.95)

per diluted share, inclusive of an aggregate $124.9 million in restructuring and impairment charges, compared to a net loss of

$(64.3) million

$(1.74)

for the year was

$(41.1) million

$(0.97)

$(24.1) million

$(0.65)

$(1.0) million

Financial Outlook for the First Quarter of 2016

For the first quarter of 2016, the Company expects a typical seasonal decline in activity, and thus anticipates:

- Non-GAAP net revenue in the range of

$53 million

$56 million

- Non-GAAP adjusted EBITDA of a loss of

$(11) million

$(14) million

In addition to continuing to increase quarterly net revenue and Adjusted EBITDA, consistent with our typical quarterly seasonal patterns, Rocket Fuel's financial goals for 2016 include driving toward free cash flow positive for the full year.

Conference Call and Webcast Information

The Rocket Fuel fourth quarter and fiscal year 2015 teleconference and webcast is scheduled to begin at 2:00 PM Pacific Time on Wednesday, February 24, 2016. To participate on the live call, analysts and investors should dial 1-888-378-0320, or outside the U.S. 719-325-2281, at least ten minutes prior to the call. Rocket Fuel will also offer a live and archived webcast of the conference call, accessible from the “Investors” section of its website at www.rocketfuel.com

Use of Non-GAAP Measures

This press release includes information relating to non-GAAP net revenue, non-GAAP adjusted EBITDA, non-GAAP adjusted net income (loss) and non-GAAP adjusted operating expenses (which we refer to as “cash costs”), which are financial measures that have not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures have been included in this press release, or discussed on our teleconference and webcast, because they are measures used by our management and board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short- and long-term operational plans.

We define non-GAAP net revenue as GAAP revenue less media costs. Media costs consist of costs for advertising impressions we purchase from real-time advertising exchanges or other third parties. A limitation of non-GAAP net revenue is that it is a measure designed for internal purposes that may be unique to Rocket Fuel and may not enhance the comparability of Rocket Fuel’s results to other companies in the same industry that have similar business arrangements but present the impact of media costs differently. Our management compensates for this limitation by also considering the comparable GAAP financial measures of revenue, media costs and other cost of revenue.

We define non-GAAP adjusted EBITDA as GAAP net income (loss) before interest expense, other income (expense), net, income tax provision (benefit), depreciation and amortization expense, stock-based compensation expense and related payroll taxes, acquisition and restructuring related expenses, and impairment charges. Non-GAAP adjusted EBITDA has a number of limitations, including the following: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and non-GAAP adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; non-GAAP adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; non-GAAP adjusted EBITDA does not consider the potentially dilutive...


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