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.
Rising expenses
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.
Trouble ahead
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.