The earnings call highlighted several positive developments, including exceeding financial guidance, strong growth in new product offerings, and continued expansion efforts. However, these were tempered by a decrease in overall revenue and impacts from key supply partners. The sentiment is cautiously optimistic, with an eye on future growth opportunities.

Company Guidance

In the Q3 2024 earnings call, Outbrain Inc. provided comprehensive guidance and updates on its financial performance and strategic initiatives. The company reported Ex-TAC gross profit of $59.7 million, marking a 5% year-over-year increase, and exceeded its adjusted EBITDA guidance, achieving $11.5 million, a 12% year-over-year growth. Outbrain maintained positive free cash flow for the fifth consecutive quarter and highlighted a 6% year-over-year increase in total ad spend on its platform. For Q4, the company expects Ex-TAC gross profit to range between $67.5 million and $72.5 million, with adjusted EBITDA forecasted between $15 million and $18.5 million. The ongoing integration planning with Teads is on track, with anticipated synergies of approximately $60 million. Additionally, Outbrain launched its innovative Moments product in beta, showing promising early engagement metrics, and emphasized continued AI integration to enhance advertiser outcomes.

Exceeded Adjusted EBITDA Guidance

Outbrain exceeded its adjusted EBITDA guidance and generated positive free cash flow for the fifth consecutive quarter.

Increased Ex-TAC Gross Profit and Margin

Ex-TAC gross profit increased by 5% year-over-year, outpacing revenue for the sixth consecutive quarter, with improved Ex-TAC margin for six consecutive quarters.

60% Growth in Advertising Spend on Outbrain DSP

The Outbrain DSP saw a 60% year-over-year increase in advertising spend, indicating strong adoption.

Successful Launch of Moments

Moments, a new product bringing social media-like experiences to the open Internet, showed high user engagement with 40% of users watching 3 or more videos.

AI Integration Enhancements

Outbrain accelerated AI integration into performance and creative offerings, improving campaign click-through rates and operational efficiencies by 40%.

Continued Expansion Beyond Traditional Feed

Revenue from supply beyond traditional feeds represented 28% of total revenue in Q3 2024, up from 26% in Q3 2023.

Strong Financial Position

Outbrain ended the quarter with $131 million of cash and no remaining debt, having repurchased $118 million of convertible notes at a 7.5% discount.

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Outbrain, Inc. (DE:852) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:852 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 17, 2021	2021 (Q2)	0.28 / 0.27	-0.047	683.33% (+0.32)	―	―
Nov 11, 2021	2021 (Q3)	0.09 / -1.10	0.017	-6747.06% (-1.12)	―	―
Mar 01, 2022	2021 (Q4)	0.20 / 0.20	―	―	―	―
May 12, 2022	2022 (Q1)	<0.01 / >-0.01	0.498	-100.39% (-0.50)	―	―
Aug 11, 2022	2022 (Q2)	-0.04 / -0.19	0.273	-167.86% (-0.46)	―	―
Nov 10, 2022	2022 (Q3)	-0.14 / -0.10	-1.103	91.15% (+1.00)	―
Mar 02, 2023	2022 (Q4)	-0.04 / -0.14	0.195	-170.00% (-0.33)	―
May 09, 2023	2023 (Q1)	-0.13 / -0.09	-0.002	-4400.00% (-0.09)	―
Aug 08, 2023	2023 (Q2)	-0.12 / -0.08	-0.185	57.89% (+0.11)	―
Nov 07, 2023	2023 (Q3)	-0.01 / <0.01	-0.098	110.00% (+0.11)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:852 Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	€4.32	€4.38	+1.39%
Aug 08, 2024	€4.40	€4.46	+1.36%
May 09, 2024	€4.02	€4.06	+1.00%
Feb 29, 2024	€3.68	€3.44	-6.52%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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