OB Earnings Prediction
The chart below shows how OB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OB sees a +10.70% change in stock price 10 days leading up to the earnings, and a -1.54% change 10 days following the report. On the earnings day itself, the stock moves by -1.98%. This data can give you a slight idea of what to expect for the next quarter's release.
OB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
234.59M
-5.50%
4.64%
Gross Margin
23.90%
11.47%
9.63%
Operating Margin
3.41%
39.18%
188.98%
Net Margin
-0.07%
-104.29%
-102.34%
EPS
-0.00
-100.00%
-100.00%
No Data Available
OB Earnings Analysis
Outbrain Inc Corporation (OB.O) Earnings Conference Call
Positive
Teads Acquisition Completion: Acquisition of Teads closed, combining expertise in branding and performance with video and branding solutions.
Free Cash Flow Growth: Record free cash flow generated in Q4, continuing a positive trajectory.
Advertiser Spend Growth: Direct response advertisers embraced Outbrain DSP, leading to a 45% growth in advertiser spend in 2024.
Supply Revenue Increase: Revenue from supply beyond traditional feed increased to 30% in Q4 2024, up from 26% in Q4 2023.
Moments Vertical Video Launch: Launch of Moments vertical video experience with over 40 media owners, showing strong initial user engagement.
Strategic Partnership Expansion: Renewed agreements with key publishing partners and secured new business partnerships, demonstrating strong value proposition.
AI Adoption in Creative Automation: Over 70% of customer base utilized AI-based Creative Automation suite, enhancing targeted creatives.
Global User Base Expansion: Exceptional global reach with over 2 billion unique users and strong partnerships with premium brands.
Strong Profit and Cash Flow: Achieved Q4 guidance for gross profit and adjusted EBITDA, with significant free cash flow generation.
EBITDA Growth and Margin Improvement: Adjusted EBITDA grew 21% year-over-year to $17 million, reflecting margin improvement.
Strong Free Cash Flow: Free cash flow of approximately $38 million in Q4 and $51 million for the year, ending with $166 million in cash and no debt.
Post-Merger Synergy Impact: Estimated annual impact of $65 million to $75 million from synergies post-merger, with half already secured.
Q1 Financial Guidance: Guidance for Q1 Ex TAC gross profit of $100 million to $105 million and adjusted EBITDA of $8 million to $12 million.
Negative
Q4 Revenue Decline: Revenue in Q4 was approximately $235 million, reflecting a decrease of 5% year-over-year.
Net Revenue Retention Decline: Net revenue retention of our publishers was 86%, which reflects downward pressure of ad impressions, particularly from one key supply partner.
Operating Expenses Increase: Operating expenses increased year-over-year, predominantly driven by one-time costs of $5.5 million related to our transaction with Teads.
Impact of Partner Transition: While Ex TAC gross profit continued year-over-year growth in Q4, one of our key partners transitioned to new bidding technology, impacting overall growth in Q4 by a high single-digit percentage.
Gross Profit Decline Outlook: We expect Ex TAC gross profit to decline year-over-year in Q1, indicating ongoing challenges in revenue generation post-merger.
OB FAQs
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OB Earning Call Sentiment
Outbrain Inc. (NASDAQ:OB) Q4 2024 Earnings Call Transcript
OB.O
1.99%Positive
The earnings call presents mixed signals: a decrease in revenue and regulatory concerns are offset by positive adjusted EBITDA growth and synergies from the Teads acquisition. The lack of share repurchase and unclear guidance responses add uncertainty. Given the stable CPCs, improved RPMs, and strong cash position, the market reaction is likely to be neutral over the next two weeks.
