A Once-Hot Mobile Ad Network Is Crashing After Horrible Earnings

AdMeld CEO Michael BarrettAdMeldMichael Barrett

This is an eye popper: Millennial Media is down 45% in after hour trading following an earnings report that was worse than expected.

Millennial is a mobile ad network that did $72.6 million in revenue during Q1 versus expectations of $US75.52 million. It had EPS of -$0.12, versus expectations of -$0.10.

The guidance is really bad. Analysts were looking for $US96.4 million next quarter, but Millennial is forecasting $US70 million to $US75 million.

Millennial went public at the end of March, 2012. After its first day of trading, the stock was at $US23.50. After-hours, the stock is down to $US2.90.

It just hired Michael Barrett as CEO. Barrett formerly led AdMeld, and ad tech company that sold to Google for $US400 million. After that he was hired at Yahoo by Ross Levinsohn. He left Yahoo when Marissa Mayer took over.

In the earnings release, Barrett said, “Now into my first full quarter, I am pleased with my decision to join Millennial Media and drive this Company to the next level … While I would have liked to have seen stronger performance in the quarter, we have developed an aggressive strategy and I have high confidence that we can execute and capitalise on the growth and promise of mobile.”

Millennial also announced that the CFO, Michael Avon, will be leaving the company to “pursue other interests”.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.