Rocket Fuel Announces Profitability, 10x Revenue Growth for 2010
Redwood Shores, CA (November 23, 2010) – Rocket Fuel Inc., the company bringing rocket science to digital advertising, today announced that the company is profitable and has reached a $30 million run rate. Recently closing a $10 million venture funding round led by Nokia Growth Partners, Rocket Fuel is fueling its growth with intelligent solutions built to deliver better results against marketers’ brand goals in real-time. Currently, Rocket Fuel is a digital marketing partner of 8 of the top-10 global brands, as identified in the Interbrand Best Global Brands 2010 rankings.
The Interactive Advertising Bureau (IAB) recently announced their numbers that touted display’s recovery as boosting online ad spend in first half of 2010. According to the IAB, the return of display was a big factor in the first half’s robust growth numbers. Part of it has to do with the fact that spending on brand campaigns has become a focus for marketers this year. Display spending totaled more than $4.4 billion in the first six months of 2010, rising nearly 16 percent over the same period in 2009.
“We weren’t actually aiming for profitability this early,” says George John, CEO of Rocket Fuel. “We’re growing fast, and that usually puts you in the red. But sales have been way ahead of our expectations due to strong renewals and increased budgets from existing customers, and we’re seeing higher initial order sizes from new customers as we’ve become more of a known and trusted player in online advertising.”
Rocket Fuel has seen amazing results with real-time bidding and its ad operations autopilot system, both of which help the company buy only the best-performing impressions for their customers’ campaigns. Its systems optimize and tune every campaign every 15 minutes – a level of attention that is hard to replicate with manual “trading desk” approaches. Around this core technology engine, Rocket Fuel has created a set of industry- and goal-specific solutions that have helped the company acquire eight of the top ten global brands as customers, with fairly even penetration across consumer packaged goods, automotive, travel, education, technology, retail and financial services. The company also recently released new offerings in video, mobile and social to further broaden and integrate the company’s reach across every major digital channel.
Strong renewals from delighted customers and increasingly large initial orders from new customers have combined to generate exceptional growth. The company grew revenues 10x from the third quarter of 2009 to the third quarter in 2010, and grew its employee base 3x over the same period.
“Rocket Fuel is a crew of rocket scientists out of NASA, academics out of Stanford, Princeton and IIT, and internet advertising veterans from NetGravity, DoubleClick, and Yahoo!,” says John, who notes he is still waiting for his BusinessWeek cover. “We’ve banded together to make online ads more effective, Internet publishers better supported, and consumers’ Web experiences richer and more relevant. It’s incredibly gratifying to deliver on our vision and see our business succeed at the same time.”
In addition to its headquarters in Redwood Shores, Rocket Fuel now employs more than 65 people in six cities including New York, Chicago, Dallas, Los Angeles and San Francisco. In 2011, the company plans to open additional offices in the US, and expand into international markets.
About Rocket Fuel Inc.
Rocket Fuel Inc. is the company bringing rocket science to digital advertising. With its advanced technology, the company is helping marketers reach their brand goals quickly and easily, anywhere in the purchase funnel. Over 150-million people a month see ads from its Rocket Fuel Network, which combines behavioral, contextual, geographic, demographic, and many other techniques to yield results far more powerful than any method could on its own. Rocket Fuel automatically adapts advertisers’ campaigns in real-time to optimize towards their goals – whether brand-oriented or performance driven. If you can measure it, Rocket Fuel can optimize it. The Silicon Valley-based company was founded by veterans from NASA, Yahoo! and DoubleClick. Rocket Fuel was named Best Startup of 2010 by the San Francisco Business Times. For more information visit www.rocketfuel.com.