Rubicon Project Sets $100M IPO Plan

Ad tech firm provides insight into profit potential

The Rubicon Project, a digital advertising platform for buyers and sellers, has revealed its plans to sell its shares publicly. The LA-based company follows a number of ad tech firms that have tested public markets within the past year, including Criteo, RocketFuel, Tremor Video, YuMe among others.

Rubicon revealed revenues and losses in its first public financial statement. In the first nine months of 2013, Rubicon generated $55.7 million, compared to $37.6 million during that timeframe in 2012. Losses rose from $4.4 million in the first nine months of 2012 to $9.2 million in 2013.

Rubicon said it helps deliver ads to up to 550 million Internet users while working with 500 leading Web publishers and 100,000 global brand buyers.

Total revenue spent on ads on the platform—managed revenue—rose 44 percent in the first nine months of 2013 to $326.7 million, compared to $226.8 million during the same time period in 2012.

Rubicon said it would raise $100 million, but that number could change when it eventually goes public, which could take months. Morgan Stanley and Goldman Sachs are leading the initial public offering. The company was valued at more than $300 million, based on the $5.92 fair market price of shares when stock options were granted in October.

News Corp. is a major shareholder owning more than 20 percent of the company. News Corp., founded by Rupert Murdoch, also uses Rubicon to sell ad inventory from Web properties.