Outbrain Inc. Reports Q2 2024 Financial Results

Outbrain Inc., a leading recommendation platform for the open web, has released its Form 10-Q report for the second quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights for the period ending June 30, 2024.

Financial Highlights

• Revenue: $214.1 million for the three months ended June 30, 2024, compared to $225.8 million for the same period in 2023, reflecting a decrease due to net unfavorable foreign currency effects of approximately $1.5 million.
• Revenue: $431.1 million for the six months ended June 30, 2024, compared to $457.6 million for the same period in 2023, including net unfavorable foreign currency effects of $1.8 million.
• Gross Profit: $45.6 million for the three months ended June 30, 2024, with a gross margin of 21.3%, compared to $44.0 million and a gross margin of 19.5% for the same period in 2023.
• Gross Profit: $87.2 million for the six months ended June 30, 2024, with a gross margin of 20.2%, compared to $85.2 million and a gross margin of 18.6% for the same period in 2023.
• Net Income: Net loss of $2.2 million for the three months ended June 30, 2024, or (4.8)% of gross profit, compared to net income of $11.3 million, or 25.6% of gross profit, for the same period in 2023.
• Net Income: Net loss of $7.2 million for the six months ended June 30, 2024, or (8.3)% of gross profit, compared to net income of $5.7 million, or 6.7% of gross profit, for the same period in 2023.
• Net Income Per Share: Basic net loss per share of $(0.04) for the three months ended June 30, 2024, compared to basic net income per share of $0.22 for the same period in 2023.
• Net Income Per Share: Basic net loss per share of $(0.15) for the six months ended June 30, 2024, compared to basic net income per share of $0.11 for the same period in 2023.

Business Highlights

• Revenue Segments: The company's revenue is primarily generated from three geographical regions: USA, Europe, the Middle East and Africa (EMEA), and Other regions. For the three months ended June 30, 2024, revenue from the USA was $59.9 million, EMEA contributed $130.7 million, and Other regions accounted for $23.6 million.
• Geographical Performance: The company has a significant presence in EMEA, which remains a key market with stable revenue contributions. The USA market experienced a decline in revenue, reflecting broader economic challenges and competitive pressures.
• New Product Launches: The company launched 'Onyx by Outbrain™', expanding its total addressable market to include top-of-the-funnel marketing dollars and attracting more diverse, premium demand.
• Future Outlook: The company is focused on leveraging its AI prediction engine to drive user engagement and monetization for media partners while optimizing return on ad spend for advertisers. The recent acquisition agreement with Altice Teads S.A. is expected to enhance the company's market position and expand its product offerings, subject to regulatory approvals and shareholder consent.

SEC Filing: Outbrain Inc. Reports Q2 2024 Financial Results [ NASDAQ:TEAD ] - 10-Q - Aug. 08, 2024