Good afternoon, everyone, and welcome to The Rubicon Project Q4 2015 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note that today's event is being recorded. At this time, I'd like to turn the conference call over to Mr. Erik Randerson, Vice President of Investor Relations. Sir, please go ahead.

Good afternoon, everyone, and welcome to Rubicon Project's 2015 fourth quarter earnings conference call. As a reminder, this conference call is being recorded. Joining me today are Frank Addante, CEO and Founder; Greg Raifman, President; and Todd Tappin, Chief Operating Officer and Chief Financial Officer. Before we get started, I'd like to remind our listeners that our prepared remarks and answers to questions will include expectations, predictions, estimates and other information that might be considered to be forward-looking statements, including but not limited to, guidance we are providing and other non-historical statements related to our anticipated financial performance, operating and strategic plans, expectations regarding new initiatives, our relationships and business with buyers and sellers using our platform, competitive differentiation, fees and take rate, capital investment and organizational development, our competitive position and market conditions and trends and growth expectations, including growth in orders, mobile and video and in our buyer cloud operations. Forward-looking statements involve risks, uncertainties and assumptions and actual results may differ significantly from the results suggested by forward-looking statements for various reasons, including without limitation, if such risks or uncertainties materialize or assumptions prove to be inaccurate. Further, we may adjust our plans and expectations in response to market conditions or other factors. Reported results should not be considered as an indication of future performance. A discussion of these and other risks, uncertainties and assumptions is set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2014, and our 2015 10-K to be filed shortly as well as our Quarterly Reports on 10-Q, including under the headings Risk Factors and Management Discussion and Analysis of Financial Condition and Results of Operations. We undertake no obligation to update forward-looking statements or relevant risks. Our commentary will include non-GAAP financial measures. Reconciliation between GAAP and non-GAAP metrics for our reported results can be found in our earnings press release which we have posted to the investor relations website at investor.rubiconproject.com. At times, in response to your questions, we may offer incremental metrics to provide greater insights into the dynamics of our business. Please be advised that this additional detail may be one-time in nature and we may or may not provide an update in the future on these metrics. I encourage you to visit our investor relations website to access our press release, periodic SEC reports, a webcast replay of today's call, or to learn more about Rubicon Project. As a final note, I would like to mention that in the Events & Presentations section of our investor relations website, we have included a Q4 financial highlights presentation that summarizes our financial and operating results. I would like to suggest that you access this presentation as Greg will speak to one of the slides included in the presentation during his prepared remarks in a few minutes. With that, let me turn the call over to Frank.

Thank you, Erik. And good afternoon, everyone. Q4 was an outstanding quarter for Rubicon Project, highlighted by non-GAAP net revenue doubling year-over-year and adjusted EBITDA nearly tripling year-over-year. And for the full year, we more than tripled our adjusted EBITDA and we achieved GAAP net income profitability, our first year of profitability as a public company. Even more exciting, we surpassed $1 billion in managed revenue in 2015, achieving an ambitious goal that I set for the team two years ago at a time when we were generating less than $0.5 billion dollars in managed revenue annually. We also significantly expanded the consumer reach of our platform in 2015 to approximately 1 billion people worldwide, including our fast growing base of mobile users. We achieved these important milestones, thanks to the efforts of our exceptionally talented team, who continue to enhance our business and position us as the industry's leading independent and complete solution that enables buyers and sellers to automate advertising. And we're just getting started. There remains an opportunity to bring consumers and brands together in a more meaningful, productive and transparent way. And we are uniquely positioned to continue to drive strong growth for years to come, through our product innovations and competitive differentiation. Our standout success in a competitive and dynamically evolving market truly demonstrates the strength of our culture. With that, I will let Greg and Todd walk you through a more detailed analysis of our results. Gregory R. Raifman - President & Director: Thank you, Frank. To begin with I'd like to extend my congratulations to our team for delivering another quarter of outstanding results. We doubled our non-GAAP net revenue and achieved $20 million in GAAP net income in Q4, leading to our first full year of positive GAAP net income. We also…

Ladies and gentlemen, at this time we'll begin the question-and-answer session. Our first question today comes from Kerry Rice from Needham. Please go ahead with your question. Kerry Rice - Needham & Co. LLC: Thanks a lot. Nice quarter guys. The two questions I really have, one is on take rate, expecting that to come down actually, it went up in Q4. And you discussed maybe driving volume by reducing the price on the buyers cloud. Can you talk at all about maybe that what you think is a reasonable trajectory for take rates as we think about 2016? And then the follow-up is around the acceleration in RTB. Orders is growing nicely and we expected that and obviously Q4 seasonally strong. Is there anything else that you would call out driving that acceleration in RTB revenue? Todd L. Tappin - Chief Operating Officer / Chief Financial Officer: Hi, Kerry. First on the take rate, the increase in take rate was once again year-on-year primarily due to mix, as RTB was accelerating and primarily mobile is a key driver of that, just some extraordinary growth we've seen. And the RTB associated with mobile driving the take rate up. Naturally, as we continue to move forward, we've talked about Orders and having the lower take rate, but the higher CPMs and therefore absolute revenue on a transaction basis going higher and hopefully driving higher overall absolute dollar net revenue. And so as that continues to increase, that would be what we would expect from that dynamic. The other one is the buyer cloud initiatives, which we've also discussed which, as we try to move toward a more transparent marketplace and pricing structure, we would expect those take rates to also come down. The combination of which over time we think take rates will come down but driving higher volume and higher revenue per transaction on all cases and therefore driving some of the projections you've seen in terms of increasing year-over-year revenue growth.

Hey Kerry, I'd add to that, this is Frank here. I think what we're seeing in mobile is the effects of our network effects. For a number of quarters now we have said that, we invest for the long haul. We are a marketplace business and given that we are a marketplace business, we do benefit from those network effects. And once you get to that critical mass, on these sales – supply side or the demand side, that's when those network effects really catch fire. And I think that's, that's what's been happening in our mobile business. And as Todd said, that's a key contributor to that growth. Kerry Rice - Needham & Co. LLC: Great. And then on the, I guess, just the RTB anything else you'd call out? It sounds like it was – is mobile is really what you're signaling here as the key driver? Gregory R. Raifman - President & Director: Kerry, this is Greg. I think our message to the industry is resonating. We are, as Frank said, we are building a very high quality premium marketplace in a great market, and a fast and growing market, and RTB is one of the various products that we offer in our marketplace. And we are continuing to see little-by-little separation between us and some of the other folks in the industry. And as a consequence, the network effects that Frank talked about apply not only in mobile, but apply in all the various products and in all the various channels that we sell. So you ask specifically, excuse me, about our buyer cloud offerings, I think the same thing applies there as well with respect to our RTB offerings.

Yeah Kerry, one other thing to add to this. In 2015, early 2015, we spoke about how we took our technology platform from just operating our own marketplace to providing a more open environment for others to build exchanges in marketplace as using our technology. So you may have heard us – heard about us talk about things like Exchange API, as an example. So in 2015, we have seen that also be a strategy that other companies employ. So we're not just powering our own marketplace now, we're powering other people's marketplaces, I think highlighting our strength as a technology company. And from that it's not just our own self development efforts that are contributing to our growth, it's others who are building products and services on top of our platform. Kerry Rice - Needham & Co. LLC: Great. Can you elaborate on any partners there? Todd L. Tappin - Chief Operating Officer / Chief Financial Officer: Sure. We've – excuse me. My voice is a little hoarse. We've talked about partners in the past, in the mobile industry in particular. We've launched, several years back, our Exchange API with InMobi, which has gone very well over the course of the last several years. We've expanded to exchange a – to xAd, another partner there. We have other partnerships that we will naturally announce as we continue to work with them. We are very pleased about the additional growth we've seen from helping other marketplaces grow and be part of our larger marketplace. So those are the key ones that we've talked about in the past. And as we continue to announce more, we'll be sure to let you in but this is a key strategy for our growth. Instead of continuing to hire a bigger and bigger sales team, we've been very careful and measured about how we grow our overall team and I think that contributed to the extremely profitable fourth quarter and profitability for the whole year. Kerry Rice - Needham & Co. LLC: Okay. Thank you very much.

Our next question comes from Rohit Kulkarni from RBC. Please go ahead with your question.

Great. Very nice quarter, guys. As in, just trying to slice through the acceleration in managed revenue. As in, would it be fair to assume that the core Rubicon excluding the buyer cloud also accelerated? If so, what are the drivers behind that acceleration on a sequential basis? And secondly, on kind of as you look ahead over the next 12 months to 24 months and the questions we get from investors, as you look ahead to build out your complete ad tech stack, Chango acquisition was clearly a nice add-on to help build out the buyer side of things. Are there other pieces that you think, as you scale, as you grow, as you want to build a bigger mode, that are missing pieces in the – in this grand scheme of things. I'll throw out options and you can, feel free to add more, be it an ad server, be it a DMP, be it underlying DSP building more comprehensive technologies in there. So it's just a big picture question. And the first was mostly for Todd. Todd L. Tappin - Chief Operating Officer / Chief Financial Officer: Hi, Rohit. Yes, so, with regard to – on the growth on RTB, I mean, obviously you can see that the acceleration was naturally still RTB. We added Orders to the composition and we don't break out the difference on revenue between buyer and seller clouds. But even if you were to look on a pro forma basis, you would see net revenue growth from Q4 to Q4 of about 67%, roughly in the neighborhood of approximately 65% year-on-year. So that kind of gives you some sense that really the acceleration has primarily been ongoing operations, although, I guess, we don't break it out and nor do we have specific results for Chango since everything's been consolidated. But buyer cloud continues to be a contributor. So overall, we're actually pleased to see really all facets of the business growing.

And I, Rohit, I'll take your second question. So, look, we set out to build the full advertising technology stack from the very beginning. We feel like we have a fairly complete platform today, and we've got offerings in desktop, mobile, video. We've got auctions, Orders, we've got the seller side, the buyer side of the equation. We've done seven acquisitions in the history of the company, three as a public company, four as a private company. So we are – we've built a people platform and a technology platform that enables us to scale both organically as well as inorganically. So when appropriate, we will use the inorganic strategy, but the bar for us to do so is a very high bar. We've got an excellent engineering team, we've got a team that is really focused on innovation; we typically lead in the market when we introduce new products and services into the market. So sometimes for us to go find something to acquire to accelerate that becomes a challenge, but from time-to-time, we do. So some of the specific pieces that you threw out there, DMP I mean the core our platform is a data management platform. I mean we process trillions of pieces of data; we connect buyer and seller data. We're very good at that. The DSP portion of it, our buyer cloud has a number of bidders included in it, a number of different ways for buyers to buy, whether that be through RTB, whether that be through static bidding or through Guaranteed Orders or Non-Guaranteed Orders, so we've got a lot of those components into our platform. The ad server is an interesting one. A lot of people may not recognize this, but we actually incorporated the company as adMonitor Inc. That was one…

Okay, great. Thank you very much.

Our next question comes from Jason Helfstein from Oppenheimer. Please go ahead with your question. Jason Helfstein - Oppenheimer & Co., Inc. (Broker): Thanks. Fundamental and kind of financial question. So it's clear you guys are taking market share. Do you think you're taking market share from – is it more from like a Google or is it from smaller players in the market? I know it's hard to figure that out because Google doesn't disclose directly, but if you can opine on that. And secondly, clearly – again, you guys are doing the right thing from a financial perspective, I mean, the free cash flow was so much better I think that we're all looking for. At this point, you have 23% of the market cap even using the after-hours prices in cash right now. Do you consider reinvesting your free cash flow to the buyback stocks, since you guys have a healthy cash position and the market seems to have a little interest in buying your stock, so why not buy your own stock given the type of trends you're seeing in the free cash flow dynamics of the business right now? Thanks.

Okay. I'll take the first question regarding market share. So your first – this is as you know a very large and fast growing market, so there's still a lot of greenfield out there. So mobile, mobile is still a developing market, very early stages in mobile. Video same thing, especially when it get to the quality part of the market. So these are very nascent early stage markets. So there is a lot of greenfield out there, so I think it's less about taking market share from others, and I think the market share is really been taken from the manual processes, not necessarily other companies in the space. And then extend that further on an international basis, we are a global company, so there's a lot of developing markets. Our automation is either early stage or growing. And then the last piece there is the Orders business. Today 30% of the market is projected to be in the short-term automated, that means there's 70% of the total advertising spend is yet to be automated. Our Orders product addresses that, so we're trying to convert as much of the manual process orders into an automated environment. So that's primarily our focus. So when we're talking about capital market share, largely it's coming from greenfield. Gregory R. Raifman - President & Director: So, let me add to that Jason, one or two points, this is Greg. And we'll turn over to Todd for the second part of your question. And that is that there is a couple other things to keep in mind is, we're continuing to drive partnerships on both the – both sides of our, excuse me, our marketplace. And we're looking for additional opportunities to drive revenue that are sourced from digital budgets that haven't been automated…

Yeah, Jason, hey, it's Frank here. As I mentioned before, this is a large and fast-growing market. And I think you've seen us be pretty methodical about our approach. So when we're in growth mode, we've really hit growth mode; when we're trying to optimize the business for profitability, I think we've shown that we can do that fairly well as well. So we've got a lot of leverage in the business. One thing that we are is, Greg likes to say is, measured about the approach, one of our culture values here is go fast, but don't hurry. So we're not going to necessarily go rush into the market, I think you're seeing that with mobile. We've communicated some things here with video. When we enter our market, we're going to do it right and we're not going to go rush into it. So sometimes things get better than we expect, I think we're seeing that now with the mobile business. And when that's the case, we want to make sure that we've got the cash to be able to invest. That's the whole reason that we went public in the first place, to go raise the capital and the currency for us to accelerate our growth and continue to grow in this market, because it is such a large market and such a fast growing market. And we just want to make sure we've got the capital and the currency to not only compete, but to continue to grow and post the kind of performance that we have in the past.

Our next question comes from Debra Schwartz from Goldman Sachs. Please go ahead with your question. Debra Robin Schwartz - Goldman Sachs & Co.: Great, thanks and congrats on the quarter. I think you mentioned in the prepared remarks header bidding and we're hearing more and more about that in the industry. Can you frame this development and what type of impact do you expect header bidding to have for Rubicon, as well as the industry more broadly? Gregory R. Raifman - President & Director: Debra, this is Greg. Yes, we are very enthusiastic about our position in the market for our header bidding. We feel like we've got a fantastic solution there. It's not our first generation, actually it's been a product that we've been working on for several years. And we're beginning to see great results, I talked about some of them in my script that some publishers are seeing a 200% increase in CPMs, we've got a 100 more publishers lined up on the ready to go forward. We are actually seeing more and more impressions this way, or using it also to see more users as a consequence. If publishers want us to provide this capability, we're going to do it and we're going to do it the best that can be done in the industry, and I think this has also helped us – seeing us win. If publishers are happy with the unified auction, that's fine, we'll create the unified auction form as we have. So we're basically creating those products and capabilities for our publishers, in this case header bidding or buyers that make it easy as possible for them to transact in our marketplace because that is the end game. So just to be clear, the header bidding solution that you talked about is called FastLane and we've got it in the marketplace. What's also interesting to note is we announced that we're going to be delivering the first ever FastLane for mobile apps, nobody else has that in the marketplace, that's going live, it's in beta now. And we expect to see our publishers or, excuse me, our app developers roll that out as well in first half of this year. So I think we're well positioned with respect to header bidding. Debra Robin Schwartz - Goldman Sachs & Co.: Great. Thank you.

Our next question comes from Brian Nowak from Morgan Stanley. Please go ahead with your question. Brian Nowak - Morgan Stanley & Co. LLC: Thanks for taking my questions, there are two. The first thing, can you go back to the buyer cloud take rate comment? Can you just talk about why cut the rates? Are you seeing increased competition? Do you need to cut the rates to get access to more inventory or add dollar demand? What drives the decision to start cutting the rates already? And then the second one on the guidance. I think you lowered the top end of the net – the non-GAAP net revenue guidance for the year. What are you assuming for the Zynga and Gameloft in there? So I think those were announced post the original guidance or am I – am I mistaken? Todd L. Tappin - Chief Operating Officer / Chief Financial Officer: Okay. On the first question, Brian, we're not consciously saying that buyer cloud needs to come down for any external pressure. In fact, it's a very offensive move. It's a move because the industry has time and time again asked for transparency, and we think that we can provide it. Not only that, but buyer cloud is another piece that differentiates us and puts us in a position of having both buyers and sellers always interacting on our platform, and able to do that across any type of inventory, across any type of ad unit, and doing that across any type of channel. And now those differentiating factors are very important. And so what we're doing is, trying to take control, and we're trying to make sure that we are in a leadership position throughout, but make no mistake they are absolutely offensive moves, not defensive ones.…

I just want to underscore one thing that Todd said, the lowering take rates on the buyer cloud was not due to external pressures. It's been a strategy. I think we've stated that strategy from the very beginning. Before we entered this market with our solution, there were companies that were taking 60%, 70%, we heard about 80% take rates and part of the reason that Rubicon Project needs to exist is to create this fair and open market. So this is in our DNA to do and this has been our strategy from day one of the company and we took and employ that same strategy on the buyer cloud part of our business.

Our next question comes from Brian Pitz from Jefferies. Please go ahead with your question.

Thanks for the questions. First, just a little more on FastLane. How has the update to that header business been received? Has it demonstrated any latency or load time issues with publishers that have adopted it and maybe any comments on adoption? And then just separately, how do you think about opportunities outside of digital inventory? I know you have TV out-of-home billboard partnerships, how big do you think about in terms of the TAM for these non-online inventory sources? Thanks. Gregory R. Raifman - President & Director: Yeah. Hi. Excuse me. Okay, let me go over the FastLane information again. We've seen it – very enthusiastic response to it. We haven't seen any latency issues whatsoever. We've seen – we have a long list of more than 100 publishers waiting to go live on it. So that tells you that the adoption has been fantastic, in fact faster than we would have expected. And I would also answer to your second question is, our intent is to make it easy for buyers and sellers to transact all kinds of advertising in our marketplace. And as you know we've started with digital advertising. We recently announced a deal in the United Kingdom with out-of-home advertising. We continue to look at that marketplace. We will continue to look at all types of ad formats as they grow and where the consumer moves to. We've seen – we followed the consumer to the mobile environment. The consumer is consuming a lot more video in the mobile environment, and that's been really a growth driver for our mobile business. So as the trends continue and the consumers continue to move into different directions, we're going to provide the capabilities for advertisers and sellers to make it easy to reach those consumers, now over a billion consumers transact in the marketplace at this point.

Look, latency is really what our whole core platform is designed around. We've had to engineer our own proprietary real-time cloud. And we've got tens of thousands of CPUs we've built into our data centers. As we've mentioned in the past, we engineer our own hardware. We're programming silicone. We have to be faster than websites where our applications load and we also have to be faster than all the bidders combined, because the faster we could process these transactions, it equates to higher revenue for both the seller and the buyer at the end of the day. So latency is something that we tackle every single day, so latency is usually a non-issue for us. To answer your second question about the total addressable market, yeah, I mentioned before that there's a lot of greenfields here. I was just talking before just about digital: desktop, mobile, video. TV, digital billboards, I've seen advertisements on water faucets; we're approaching the Internet of Things where we're going to see refrigerators and televisions and coffee machines all connected to the Internet. So I think the addressable market continues to grow, and grow, and grow for us. If you look at our customer base, the buyers and sellers that exist in our marketplace, some of the most premium sellers of advertising in the world, we've got pretty much every major buyer around the world in any major market that's already connected into our platform. So whether that's mobile, or video, or in the future digital billboards, or television, or water faucets, or what have you, a lot of those participants already exist in our marketplace. We're seeing that growth from mobile, we're seeing our network effects and our existing install base provide benefits for us with our Orders business. We have no reason…

And our – we have time for one final question today, and it comes from Sameet Sinha from B. Riley. Please go ahead with your question. Sameet Sinha - Analyst, B. Riley & Co. LLC: Yes, thank you very much. Can you talk about international? Europe was a big, big market a couple of quarters back. You have a new data center in Japan and you obviously opened an office for Latin America, also a couple of quarters back. Can you talk about the trends there and how far behind are they from the trends that you saw domestically? And secondly, I thought you mentioned paid impressions were actually up in the fourth quarter year-over-year. Is that a sustainable trend and is that a signal that your work against ad fraud is, not that it's ever complete, but that you've been able to clean out your network to a significant extent? Gregory R. Raifman - President & Director: So let me start with the international trends. I'll turn it over to Todd for the paid impressions. That's one of his favorite questions. International continues to be a steady growth driver for us. I think it has – we've expanded dramatically from the United States to cover the Rest of the World. We're in JPAC, we're in LATAM, we're in EMEA. We tend to be very strong in the areas, in the markets that we're in. We've – last quarter I think I announced that we had signed up our ninth cooperative around the world, so that continues to be steady growth. Notwithstanding the additions to the buyer cloud that we incorporated last year including Chango, the international team as a percentage of overall continues to reach steady growth of about 35%. So when you think about it, that's really almost closer to 40% give or take in terms of growth on the overall. And so from our standpoint, we're very pleased about where things are going with our international team and it's continued to be a very important asset for us. As for paid impressions, I'll turn it over to Todd.

This is Frank. I'm going to say one quick thing before Todd answers the rest of the question here. Sameet, you used the phrase, cleaned up your network, and I just want to make something very clear about that is that, our network was never dirty to use that phrase. We've always gone after premium customers, some of the most prominent brands in the world. And we've never gone after the low end of the market, we've never gone after companies that are not name brands. What we recognized before we went public was that a lot of those customers were buying media from places where the ad impressions are not being seen by humans, right. So they were victims of this issue, not contributors to the issue. So it was almost like, imagine, if you had a computer and somebody gave you antivirus software for the very first time you installed it, you may have had the virus but you didn't know about it, right? So a lot of our customers had no idea of the issue that they were facing. We've talked about this in the past that those impressions that existed on our platform, number one, we're providing a service to our customers, to provide them the security technology to protect their brands and their sites. But two is, it virtually had no impact on revenue and that's because those impressions were not valued or being bought by the advertisers on the other end. So I just wanted to make that point clear. Todd L. Tappin - Chief Operating Officer / Chief Financial Officer: Hi Sameet. Before I answer the specifics of that, just the numbers, I do want to tack on something that Frank said on the quality. Remember that, we are the only company to which Pixalate ranks in the top five for both mobile and desktop. And I think that, that's a testament to the fact that we've really taken a very strong view on inventory quality. And so that is absolutely not a driver with respect to our paid impression count really, it's about mix which is that static is now down to about 5%. And as you probably know, static is high volume, very low CPM. And as you continue to climb up the ladder, you end up with Orders at a lower volume, but very high CPM and in the center there is RTB. And so as RTB garners a higher mix as does Orders, then you just see impression counts come down, but you've also seen the results of a 100% year-on-year net revenue growth as a result of the CPM is increasing. So it's really just a factor of that mix.

Ladies and gentlemen, with that we've reached the end of today's question-and-answer session. I'd like to turn the conference call back over to management for any closing remarks.

Thank you, all for joining us today. We look forward to seeing many of you at the investor conferences in the coming weeks.

Ladies and gentlemen, that does conclude today's conference call. We do thank you for attending. You may now disconnect your telephone lines.