In This Article:
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Revenue: Approximately $235 million in Q4, a decrease of 5% year over year.
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Ex-TAC Gross Profit: $68.3 million, an increase of 7% year over year.
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Adjusted EBITDA: Grew 21% year over year to $17 million.
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Free Cash Flow: Approximately $38 million in Q4 and $51 million for the year.
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Cash and Equivalents: Ended the quarter with $166 million and no debt.
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Revenue from New Media Partners: Contributed approximately $21 million of revenue growth year over year.
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Net Revenue Retention: 86% for publishers.
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Logo Retention: 98% for the full year.
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Supply Beyond Traditional Feed: Represented approximately 30% of revenue in Q4 2024, up from 26% in Q4 2023.
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Expected Synergies from Teads Acquisition: $65 million to $75 million annual impact on adjusted EBITDA, with $60 million from costs to be realized fully in 2026.
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Q1 2025 Guidance: Ex-TAC gross profit of $100 million to $105 million; adjusted EBITDA of $8 million to $12 million.
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Full Year 2025 Guidance: Adjusted EBITDA of at least $180 million.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Outbrain Inc (NASDAQ:OB) successfully closed its acquisition of Teads, creating a combined entity that enhances capabilities in branding and performance across multiple channels.
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The company reported record free cash flow for Q4 2024, demonstrating strong financial management and operational efficiency.
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Outbrain Inc (NASDAQ:OB) achieved its Q4 guidance for ex-TAC gross profit and adjusted EBITDA, indicating solid financial performance.
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The company's AI-driven prediction technology and creative automation suite are being widely adopted, with over 70% of the customer base utilizing these tools.
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Outbrain Inc (NASDAQ:OB) has expanded its revenue sources beyond traditional feeds, with 30% of Q4 2024 revenue coming from non-traditional supply channels, up from 26% in Q4 2023.
Negative Points
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Revenue in Q4 2024 decreased by 5% year over year, reflecting challenges in maintaining top-line growth.
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The company faced downward pressure on ad impressions from a key supply partner, impacting net revenue retention, which stood at 86%.
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Operating expenses increased due to one-time costs related to the Teads acquisition, affecting overall profitability.
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There is potential for short-term disruptions due to the integration of Outbrain Inc (NASDAQ:OB) and Teads, which could impact performance.
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The transition to new bidding technology by a key partner caused volatility, impacting overall growth in Q4 2024.