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Intellectia.AI Updated: 1970-01-01
Outbrain Inc. Reports Second Quarter 2024 Financial Results
Overview Outbrain Inc. (NASDAQ: OB), a leading technology platform, announced its financial results for the quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates (Q2 2024) |
|---|---|---|---|---|
| Revenue | $214.1M | $225.8M | -5% | $228.7M |
| Earnings Per Share (EPS) | -$0.06 | Not provided | Not provided | -$0.06 |
Financial Performance Interpretation The company's revenue for Q2 2024 was $214.1 million, representing a 5% year-over-year decrease from $225.8 million in Q2 2023, falling short of the consensus estimate of $228.7 million. Additionally, the company reported an earnings per share (EPS) of -$0.06, in line with the Wall Street consensus estimate. Despite lower revenue, improvements in gross profit margins and adjusted EBITDA suggest the company has made progress in operational efficiency.
Revenue Performance by Segments
| Segment | Q2 2024 Revenue | Previous Guidance | QoQ Change | YoY Change |
|---|---|---|---|---|
| Not Provided | Not Provided | Not Provided | Not provided | Not Provided |
Segment Performance Interpretation A detailed segment revenue breakdown was not provided in the earnings report. However, the strong re-booking rate and growth in specific advertising segments such as Zemanta DSP indicate robust performance in certain business areas.
Key Operational Data
| Operational Data | Metric | Comparison |
|---|---|---|
| Onyx re-booking rate | 40% | Not applicable |
| Growth in Zemanta DSP spend | 50% (H1 2024 vs. H1 2023) | Not applicable |
| Supply expansion contribution | 27% (Q2 2024) | vs. 24% (Q2 2023) |
Operational Data Interpretation Outbrain demonstrated significant operational growth with a notable re-booking rate of 40% for Onyx campaigns and a 50% increase in Zemanta DSP advertiser spend in the first half of 2024 compared to the same period in 2023. This reflects strong client retention and expansion in new advertising products.
Management Comments David Kostman, CEO of Outbrain, conveyed satisfaction with the company's Q2 results, attributing the positive outcomes to improvements in the business model and growth areas. Kostman also announced a transformative merger with Teads, anticipated to create a leading end-to-end full-funnel platform for the Open Internet.
Dividend and Share Repurchase Program Outbrain repurchased 464,054 shares for $2.0 million, under its $30 million stock repurchase program. $6.6 million of repurchase capacity remained as of June 30, 2024.
Forward Guidance For Q3 2024, Outbrain expects: - Ex-TAC gross profit: $58 million to $62 million. - Adjusted EBITDA: $8 million to $10.5 million.
For FY 2024, the company reaffirmed its Ex-TAC gross profit expectation of $238 million to $248 million and increased its Adjusted EBITDA expectation to $31.5 million to $36 million.
Stock Price Movement Post-earnings release, Outbrain’s stock observed a slight increase of approximately 0.21%.
This earnings report indicates that Outbrain is navigating through financial challenges while strategically positioning itself for future growth through mergers and new product initiatives.
