Rocket Fuel Continues Shift to Platform Business with Restructuring Initiative
January 09 2017 - 5:18PM
Rocket Fuel (NASDAQ:FUEL), a leading predictive marketing platform
provider, today announces organizational changes that are expected
to accelerate its ongoing transformation into a leading SaaS-based
platform solutions company.
“In the third quarter of 2016, we experienced growth of 141% in
our platform business, and signed our first platform agreement with
a major US agency holding company. We are continuing our
transformation into a leading predictive marketing platform
provider, and announcing changes today designed to further our
growth at scale. We are excited about the company’s platform
business growth and our guidance for the fourth quarter remains
unchanged,” said CEO Randy Wootton.
As part of these changes, Rocket Fuel is further organizing its
operations around two core offerings – predictive marketing
platform solutions and media services – with David Gosen, currently
SVP and Managing Director of International, expanding his role to
become GM, Platform Solutions & International, and Simon
Hayhurst, currently SVP of Product, becoming GM of Media Services.
This reorganization will also result in the elimination of 93
services and administrative positions, representing 11 percent of
the employee base. Along with real estate consolidation projects,
including the relocation of the company’s corporate headquarters
and other streamlining of facilities, the company anticipates that
these changes will reduce operating expenses by approximately $20
million annually.
"Our top goal in 2017 is returning to growth,” said Wootton. “We
will do this by working side by side with the world’s largest
agencies and brands to leverage the value of our predictive
marketing platform. We believe we can accelerate the traction in
our platform solution business, which – at scale – should have
lower costs of sales and service. We will continue plans to
integrate our Moment Scoring technology into the top marketing
platform OEMs to improve their predictive capabilities. Finally, we
will continue partnering with some of the most influential system
integrators to create robust solutions for their customers that
integrate the very best offerings in the adtech/martech
ecosystem.”
Wootton continued: ”We are inspired by the evolution of digital
marketing from programmatic media buying to truly predictive
marketing, particularly the application of AI and big data to
predict the potential of every moment and make marketing more
meaningful and accountable. The business models and cost structures
for our media services and platform businesses are different, so
the changes we are making today will better align our company to
these goals. They reflect our commitment to building the definitive
full funnel platform for predictive marketing, and we look forward
to leading the way in 2017 and beyond.”
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements relate to future events, expected business
growth, and our expected fourth quarter 2016 and future financial
performance. Such statements include, but are not limited to:
the anticipated cost reductions and other beneficial expected
impacts from the company’s restructuring initiatives, and the
company’s strategies to achieve growth in its business. Words such
as “expect,” “goal,” “forward,” “plan,” “believe” and other
similar words in various tenses are also intended to identify
forward-looking statements. These forward-looking statements are
subject to a number of risks and uncertainties that may cause
actual results to differ materially from the results anticipated by
such statements, including, without limitation, the company’s
ability to implement the restructuring initiatives described above;
and potential negative impacts of the restructuring initiatives.
Additional factors that could cause actual results to differ
materially from those anticipated by our forward-looking statements
are under the caption “Risk Factors” in our Annual Report on Form
10-K filed with the Securities and Exchange Commission (“SEC”) on
March 14, 2016 and in subsequent SEC filings. These forward-looking
statements are made as of the date of this press release and Rocket
Fuel expressly disclaims any obligation or undertaking to update
the forward-looking statements contained herein to reflect events
that occur or circumstances that exist after the date on which the
statements were made.
About Rocket Fuel
Rocket Fuel applies artificial intelligence and big data to
predict the potential of every moment and make marketing more
meaningful and accountable. Headquartered in Redwood City,
California, the company has more than 20 offices worldwide and
trades on the NASDAQ Global Select Market under the ticker symbol
"FUEL." Rocket Fuel, the Rocket Fuel logo, Moment Scoring,
Advertising That Learns and Marketing That Learns are trademarks or
registered trademarks of Rocket Fuel Inc. in the United States and
other countries.
Media Contact:
Bite Communications for Rocket Fuel
Bethany Mullinix, 415-817-9990
Rocket_fuel@biteglobal.com
or
Investor Relations:
Rocket Fuel
650-517-2045
ir@rocketfuel.com
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