Q2 2024 Outbrain Inc Earnings Call Transcript
Key Points
- Outbrain Inc (OB) announced a transformative merger with Teads, positioning it as one of the largest Open Internet advertising platforms.
- The company reported a strong financial performance in Q2 2024, with ex-TAC gross profit of $56 million and adjusted EBITDA of $7.4 million, exceeding guidance.
- Outbrain Inc (OB) achieved positive free cash flow for the fourth consecutive quarter, indicating strong financial health.
- The company's DSP, Zemanta, saw a 50% growth in advertiser spend in the first half of 2024 compared to the same period in 2023.
- Outbrain Inc (OB) launched a new AI-driven targeting solution, predictive demographics, which showed promising results with a 2.7 times higher click-through rate for a recent campaign.
- Revenue in Q2 2024 was approximately $214 million, reflecting a decrease of 5% year over year.
- Net revenue retention of publishers was 89%, indicating challenges in maintaining existing partnerships.
- Pricing remains low relative to historical levels, impacting advertising demand and revenue.
- The company experienced volatility from a key partner transitioning to a new bidding technology, affecting ex-TAC gross profit.
- Operating expenses decreased by only 1% year over year, suggesting limited cost-saving measures.
Good day, and welcome to Outbrain, Inc. second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I'd like to turn the call over to Outbrain's Investor Relations. Please go ahead.
Good morning, and thank you for joining us on today's conference call to discuss Outbrain's Second Quarter 2024 results. Joining me on the call today, we have Outbrain's CEO, David Kostman, and CFO, Jason Kiviat.
During this conference call, management will make forward-looking statements based on current expectations and assumptions. These statements are subject to risks and uncertainties that may cause actual results to differ materially from our forward-looking statements.
These risk factors are discussed in detail in our Form 10-K filed for the year ended December 31, 2023, as updated in a subsequent reports filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the call's original date, but we do not undertake any duty to
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