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Outbrain Inc. (OB+2.45%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Outbrain's financial performance, including a revenue decrease to $889.9 million from $935.8 million in the previous year, attributed to lower ad impressions from certain supply partners.
Traffic acquisition costs decreased to $653.7 million, representing 73.5% of revenue, compared to 75.7% in the previous year. This decrease was due to a net favorable change in revenue mix and improved performance from certain deals.
The company reported a gross profit of $192.1 million, an increase from $184.8 million in 2023. Ex-TAC Gross Profit was $236.1 million, up from $227.4 million the previous year.
Operating expenses increased to $204.7 million, primarily due to higher professional fees, including $14.3 million in acquisition-related costs.
Outbrain recorded a net loss of $0.7 million, compared to a net income of $10.2 million in 2023. The loss included a pre-tax gain of $8.8 million from the repurchase of convertible notes.
Adjusted EBITDA rose to $37.3 million from $28.5 million in 2023, reflecting higher Ex-TAC Gross Profit.
The filing also discusses the acquisition of TEADS, completed on February 3, 2025, for approximately $900 million, including $625 million in cash and 43.75 million shares of common stock.
Outbrain's liquidity sources include cash, cash equivalents, and investments, totaling $224.3 million as of December 31, 2024.
The company announced a restructuring plan in February 2025, involving workforce reductions to streamline operations and reduce role duplication, with estimated charges of $20 to $25 million.
Outbrain's credit agreement, entered in February 2025, includes a $100 million revolving facility and a $625 million bridge facility to finance the TEADS acquisition.
The filing outlines various risks, including economic conditions, competition, and regulatory changes, that could impact Outbrain's business and financial results.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Outbrain Inc. annual 10-K report dated March 7, 2025. To report an error, please email earnings@qz.com.