Six years ago Rob and Ryan Weber, twin brothers and very successful entrepreneurs, asked me to join their rapidly growing startup as CEO. The brothers started building digital marketing technology when they were in college to pay for school. Online marketing was evolving quickly. The Weber brothers anticipated trends and responded rapidly with new products to serve the digital economy. They never guessed how quickly they would grow just by helping app developers succeed. In 2010 we saw the enormous opportunity in mobile and quickly began helping mobile game developers monetize their freemium apps. We saw that banner ads were falling short; for app developers, for advertisers and for consumers. Since then we have become one of the leading companies in building innovative mobile advertising technology for app developers. We are on a journey to innovate with native advertising, an elegant mix of art and science so that ads are integrated into the app experience. Native ad performance is blowing banner ads out of the water and we have taken that a step further with the development of Predictive Analytics for improved targeting. We are more convinced than ever that our native mobile ad technology has the potential to completely change the landscape of mobile advertising.
While our mobile advertising technology business is taking off, our web advertising business that has funded the entry and growth of our mobile business is no longer in a position to do that. As we continue to transform our company and expand from our web advertising roots into mobile advertising technology, we are restructuring and refocusing our team. We operate in a dynamic, rapidly changing market and we are making the difficult decisions that face a company going through a major pivot. Today we announced a restructuring that involves the elimination of a number of positions and 45 people will lose their jobs. We are reducing our operating expenses in order to continue investing in strategic growth. We did not take this decision lightly. This news is sad for everyone at NativeX, especially those most directly affected. Our employees are our friends and family and it is heartbreaking to say goodbye to these amazing people. There is no plan for future reductions in our workforce or consolidation of our facilities. While the decision to restructure was the most difficult one I have made at NativeX, I am excited by the amazing progress we have made in our mobile business. We compete in a market that is growing and changing at an incredible velocity. Great companies don’t resist change; they adapt and innovate to grow. I am humbled by the NativeX team’s willingness, foresight and courage to change.