Problems continue to mount for troubled mobile ad network Millennial Media, which has reported a year-on-year loss of $12.9 million in Q1 2014.
The company had expected to generate a fairly modest $75.52 million in the first quarter but only managed $72.6 million.
Although this reflected a significant rise compared to the $49.4 million earned during Q1 2013, a particularly turbulent period for the firm, the figure was not enough to prevent overall losses from almost scaling the $13 million mark – up from $3.8 million in Q1 2013.
This was explained by a rise in total operating expenses, which increased by 76% to reach $42.8 million – far higher than the $24.3 million reported in Q1 2013.
To further emphasise the sea of change currently engulfing Millennial, a release for the company’s official accounts coincides with the departure of company CFO Michael Avon, who is stepping down after nearly five years in the role.
Avon is leaving behind a bleak outlook for his previous employer, which is now predicting Q2 revenue to range between $70 million and $75 million, significantly lower than the $96.4 million tipped by speculators on Wall Street.
These same individuals have also seen Millennial’s share price reduce by 45% in the hours after trading to hit just $3, down from a high of $12 witnessed at the company’s initial public offering in 2012.
Commenting on the results, Millennial CEO Michael Barrett was keen to highlight the impact that his company’s ambition to shift low-spend campaigns into automated solutions could have on future readings.
A statement from the company adds that its former CFO in Avon has left to pursue other interests and the search for his successor is now underway.