Outbrain Inc. (Nasdaq: OB), a leading recommendation platform for
the open web, announced today financial results for the quarter
ended March 31, 2023.
“We exceeded our guidance for Ex-TAC gross
profit and Adjusted EBITDA this quarter, despite the continued
macroeconomic uncertainty,” said David Kostman, Outbrain's Co-CEO.
“We are continuing our focused investments in product development
and go-to market to drive measurable outcomes for a broader range
of advertisers and publishers. We remain disciplined around our
operating costs and on capital allocation decisions that we believe
create shareholder value, including repurchasing half of our
convertible debt at financially attractive terms,” added
Kostman.
"We believe that our continued investments in AI
technology and machine learning have positioned us well, as
advertisers and publishers continue to explore ways to achieve
greater efficiency and unlock valuable insights,” added Yaron
Galai, Outbrain’s Co-Founder and Co-CEO. “Overall, we remain
committed to product innovation designed to drive results for our
partners.”
First Quarter 2023 Key Financial
Metrics:
|
Three Months Ended March 31, |
(in millions USD) |
|
2023 |
|
|
2022 |
|
% Change |
|
Revenue |
$ |
231.8 |
|
$ |
254.2 |
|
(9 |
)% |
Gross profit |
|
41.2 |
|
|
53.9 |
|
(24 |
)% |
Net loss |
|
(5.6 |
) |
|
(1.9 |
) |
NM |
|
Net cash used in operating activities |
|
(20.5 |
) |
|
(2.6 |
) |
NM |
|
Non-GAAP Financial Data* |
|
|
|
|
Ex-TAC gross profit |
|
52.2 |
|
|
63.5 |
|
(18 |
)% |
Adjusted EBITDA |
|
0.7 |
|
|
11.6 |
|
(94 |
)% |
Adjusted net loss |
|
(4.5 |
) |
|
(0.1 |
) |
NM |
|
Free cash flow |
|
(27.1 |
) |
|
(8.9 |
) |
NM |
|
_____________________________
* |
See
non-GAAP reconciliations below |
NM |
Not meaningful |
First Quarter 2023
Highlights:
- Revenue of $231.8 million, a
decrease of $22.4 million, or 9%, compared to $254.2 million in the
prior year period. Revenue decreased 7% on a constant
currency basis, excluding net unfavorable foreign currency effects
of approximately $5.8 million. The reported decrease was driven by
lower revenue of approximately $51.6 million due to net revenue
retention of 80% on existing media partners, as we have experienced
lower yields mainly due to weaker demand on our platform, primarily
as a result of the current macroeconomic conditions and the impact
on advertising spend, as well as due to unfavorable foreign
currency effects. This decrease was partially offset by
approximately $28.5 million, or 11%, of growth from new media
partners1.
- Gross profit of $41.2 million, a
24% year-over-year decrease, compared to $53.9 million in the prior
year period. Gross profit decreased 23% on a constant currency
basis, excluding net unfavorable foreign currency effects of
approximately $0.4 million.
- Ex-TAC gross profit of $52.2
million, a 18% year-over-year decrease, compared to $63.5 million
in the prior year period. Ex-TAC gross profit decreased 17% on a
constant currency basis, excluding net unfavorable foreign currency
effects of approximately $0.4 million. The decrease in Ex-TAC gross
profit was primarily driven by lower revenue levels, an unfavorable
revenue mix and lower performance from certain deals.
- Net loss of $5.6 million, compared
to net loss of $1.9 million in the prior year period.
- Adjusted net loss of $4.5 million
compared to adjusted net loss of $0.1 million in the prior year
period.
- Adjusted EBITDA of $0.7 million
compared to $11.6 million in the prior year period, primarily
reflecting lower Ex-TAC gross profit and higher other costs of
revenue, partially offset by lower operating expenses. Adjusted
EBITDA in the current year period included net favorable foreign
currency effects of approximately $2.6 million.
- Net cash used in operating
activities of $20.5 million in the period; free cash flow was use
of cash of $27.1 million. The use of cash in the period was
primarily attributable to delays in collections of customer
payments, largely connected to the sudden closure of Silicon Valley
Bank, combined with an unfavorable impact of the timing of certain
cash receipts and disbursements. We believe the use of cash related
to these collections delays is temporary and see normalized
collections patterns in the second quarter of 2023.
- Cash, cash equivalents and
investments in marketable securities were $317.7 million, comprised
of cash and cash equivalents of $73.2 million and investments in
marketable securities of $244.5 million as of March 31,
2023.
- Our balance sheet as of
March 31, 2023 included convertible notes of $236.0 million.
On April 14, 2023, we repurchased $118.0 million aggregate
principal amount of convertible notes for approximately
$96.2 million in cash, including accrued interest,
representing a discount of approximately 19% to the principal
amount of the repurchased notes.
- During the first quarter of 2023,
we repurchased 1,313,073 shares for a total of $6.1 million,
including commissions, under our $30 million stock repurchase
program authorized in December 2022. The remaining availability
under the repurchase program was $23.9 million as of March 31,
2023.
2023 Full Year and Second Quarter Guidance
The following forward-looking statements reflect
our expectations for 2023. For the second quarter ending June 30,
2023, we expect:
- Ex-TAC gross profit of $52 million to $55 million
- Adjusted EBITDA of $0.5 million to $1.5 million
For the full year ending December 31, 2023, we continue to
expect:
- Ex-TAC gross profit of at least $237 million
- Adjusted EBITDA of at least $28 million
The above measures are forward-looking non-GAAP
financial measures for which a reconciliation to the most directly
comparable GAAP financial measure is not available without
unreasonable efforts. See “Non-GAAP Financial Measures” below. In
addition, our guidance is subject to risks and uncertainties, as
outlined below in this
release.________________________________1 We
calculate media partner net revenue retention at the end of each
quarter by starting with revenue generated on media partners’
properties in the same period in the prior year, “Prior Period
Retention Revenue.” We then calculate the revenue generated on
these same media partners’ properties in the current period,
“Current Period Retention Revenue.” Current Period Retention
Revenue reflects any expansions within the media partner
relationships, such as any additional placements or properties on
which we extend our recommendations, as well as contraction or
attrition. Our media partner net revenue retention in a quarter
equals the Current Period Retention Revenue divided by the Prior
Period Retention Revenue. These amounts exclude certain revenue
adjustments and revenue recognized on a net basis. New media
partners are defined as those relationships in which revenue was
not generated in the prior year period, except for limited
instances where residual revenue was generated on a media partner’s
properties. In such instances, the residual revenue would be
excluded from net revenue retention above.
Conference Call and Webcast
Information
Outbrain will host an investor conference call
this morning, Tuesday, May 9 at 8:30 am ET. Interested
parties are invited to listen to the conference call which can be
accessed live by phone by dialing 1-877-869-3847 or for
international callers, 1-201-689-8261. A replay will be available
two hours after the call and can be accessed by dialing
1-877-660-6853, or for international callers, 1-201-612-7415. The
passcode for the live call and the replay is 13738100. The replay
will be available until May 23, 2023. Interested investors and
other parties may also listen to a simultaneous webcast of the
conference call by logging onto the Investors Relations section of
the Company’s website at https://investors.outbrain.com. The online
replay will be available for a limited time shortly following the
call.
Non-GAAP Financial Measures
In addition to GAAP performance measures, we use
the following supplemental non-GAAP financial measures to evaluate
our business, measure our performance, identify trends and allocate
our resources: Ex-TAC gross profit, Adjusted EBITDA, free
cash flow, adjusted net (loss) income and adjusted diluted EPS.
These non-GAAP financial measures are defined and reconciled to the
corresponding GAAP measures below. These non-GAAP financial
measures are subject to significant limitations, including those we
identify below. In addition, other companies in our industry may
define these measures differently, which may reduce their
usefulness as comparative measures. As a result, this information
should be considered as supplemental in nature and is not meant as
a substitute for revenue, gross profit, net (loss) income, diluted
EPS or cash flows from operating activities presented in accordance
with U.S. GAAP.
Because we are a global company, the
comparability of our operating results is affected by foreign
exchange fluctuations. We calculate certain constant currency
measures and foreign currency impacts by translating the current
year’s reported amounts into comparable amounts using the prior
year’s exchange rates. All constant currency financial information
being presented is non-GAAP and should be used as a supplement to
our reported operating results. We believe that this
information is helpful to our management and investors to assess
our operating performance on a comparable basis. However, these
measures are not intended to replace amounts presented in
accordance with GAAP and may be different from similar measures
calculated by other companies.
The Company is also providing second quarter and
full year 2023 guidance on a non-GAAP basis. These
forward-looking non-GAAP financial measures are calculated based on
internal forecasts that omit certain amounts that would be included
in GAAP financial measures. The Company has not provided
quantitative reconciliations of these forward-looking non-GAAP
financial measures to the most directly comparable GAAP financial
measures because it is unable, without unreasonable effort, to
predict with reasonable certainty the occurrence or amount of all
excluded items that may arise during the forward-looking period,
which can be dependent on future events that may not be reliably
predicted. Such excluded items could be material to the reported
results individually or in the aggregate.
Ex-TAC Gross Profit
Ex-TAC gross profit is a non-GAAP financial
measure. Gross profit is the most comparable GAAP measure. In
calculating Ex-TAC gross profit, we add back other cost of revenue
to gross profit. Ex-TAC gross profit may fluctuate in the future
due to various factors, including, but not limited to, seasonality
and changes in the number of media partners and advertisers,
advertiser demand or user engagements.
We present Ex-TAC gross profit, as well as
Adjusted EBITDA as a percentage of Ex-TAC gross profit, because
they are key profitability measures used by our management and
board of directors to understand and evaluate our operating
performance and trends, develop short-term and long-term
operational plans and make strategic decisions regarding the
allocation of capital. Accordingly, we believe that these measures
provide information to investors and the market in understanding
and evaluating our operating results in the same manner as our
management and board of directors. There are limitations on the use
of Ex-TAC gross profit in that traffic acquisition cost is a
significant component of our total cost of revenue but not the only
component and, by definition, Ex-TAC gross profit presented for any
period will be higher than gross profit for that period. A
potential limitation of this non-GAAP financial measure is that
other companies, including companies in our industry, which have a
similar business, may define Ex-TAC gross profit differently, which
may make comparisons difficult. As a result, this information
should be considered as supplemental in nature and is not meant as
a substitute for revenue or gross profit presented in accordance
with U.S. GAAP.
Adjusted EBITDA
We define Adjusted EBITDA as net (loss) income
before interest expense; interest income and other (expense)
income, net; provision (benefit) for income taxes; depreciation and
amortization; stock-based compensation; and other income or
expenses that we do not consider indicative of our core operating
performance, including but not limited to, merger and acquisition
costs, certain public company implementation related costs,
regulatory matter costs, and severance costs related to our cost
saving initiatives. We present Adjusted EBITDA as a supplemental
performance measure because it is a key profitability measure used
by our management and board of directors to understand and evaluate
our operating performance and trends, develop short-term and
long-term operational plans and make strategic decisions regarding
the allocation of capital, and we believe it facilitates operating
performance comparisons from period to period.
We believe that Adjusted EBITDA provides useful
information to investors and others in understanding and evaluating
our operating results in the same manner as our management and
board of directors. However, our calculation of Adjusted EBITDA is
not necessarily comparable to non-GAAP information of other
companies. Adjusted EBITDA should be considered as a supplemental
measure and should not be considered in isolation or as a
substitute for any measures of our financial performance that are
calculated and reported in accordance with GAAP.
Adjusted Net (Loss) Income and Adjusted
Diluted EPS
Adjusted net (loss) income is a non-GAAP
financial measure, which is defined as net (loss) income excluding
items that we do not consider indicative of our core operating
performance, including but not limited to, merger and acquisition
costs, public company implementation related costs, deferred tax
asset valuation allowance release, regulatory matter costs, and
severance costs related to our cost saving initiatives. Adjusted
net (loss) income, as defined above, is also presented on a per
diluted share basis. We present adjusted net (loss) income and
adjusted diluted EPS as supplemental performance measures because
we believe they facilitate performance comparisons from period to
period. However, adjusted net (loss) income or adjusted
diluted EPS should not be considered in isolation or as a
substitute for net (loss) income or diluted earnings per share
reported in accordance with GAAP.
Free Cash Flow
Free cash flow is defined as cash flow provided
by (used in) operating activities less capital expenditures and
capitalized software development costs. Free cash flow is a
supplementary measure used by our management and board of directors
to evaluate our ability to generate cash and we believe it allows
for a more complete analysis of our available cash flows. Free cash
flow should be considered as a supplemental measure and should not
be considered in isolation or as a substitute for any measures of
our financial performance that are calculated and reported in
accordance with GAAP.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the federal securities laws, which
statements involve substantial risks and uncertainties.
Forward-looking statements may include, without limitation,
statements generally relating to possible or assumed future results
of our business, financial condition, results of operations,
liquidity, plans and objectives. You can generally identify
forward-looking statements because they contain words such as
“may,” “will,” “should,” “expects,” “plans,” “anticipates,”
“could,” “intends,” “guidance,” “outlook,” “target,” “projects,”
“contemplates,” “believes,” “estimates,” “predicts,” "foresee,”
“potential” or “continue” or the negative of these terms or other
similar expressions that concern our expectations, strategy, plans
or intentions or are not statements of historical fact. We have
based these forward-looking statements largely on our expectations
and projections regarding future events and trends that we believe
may affect our business, financial condition and results of
operations. The outcome of the events described in these
forward-looking statements is subject to risks, uncertainties and
other factors, including but not limited to: overall advertising
demand and traffic generated by our media partners; factors that
affect advertising demand and spending, such as the continuation or
worsening of unfavorable economic or business conditions or
downturns, instability or volatility in financial markets, and
other events or factors outside of our control, such as U.S. and
global recession concerns, geopolitical concerns, including the
ongoing conflict between Russia and Ukraine, supply chain issues,
inflationary pressures, labor market volatility, and the pace of
recovery or any resurgences of the COVID-19 pandemic; risks and
uncertainties related to the recent closure of Silicon Valley Bank
and other bank disruptions; our ability to continue to innovate,
and adoption by our advertisers and media partners of our expanding
solutions; the success of our sales and marketing investments,
which may require significant investments and may involve long
sales cycles; our ability to grow our business and manage growth
effectively; our ability to compete effectively against current and
future competitors; the loss of one or more of our large media
partners, and our ability to expand our advertiser and media
partner relationships; our ability to maintain our revenues or
profitability despite quarterly fluctuations in our results,
whether due to seasonality, large cyclical events, or other causes;
the risk that our research and development efforts may not meet the
demands of a rapidly evolving technology market; any failure of our
recommendation engine to accurately predict user engagement, any
deterioration in the quality of our recommendations or failure to
present interesting content to users or other factors which may
cause us to experience a decline in user engagement or loss of
media partners; limits on our ability to collect, use and disclose
data to deliver advertisements; our ability to extend our reach
into evolving digital media platforms; our ability to maintain and
scale our technology platform; our ability to meet demands on our
infrastructure and resources due to future growth or otherwise;
outages or disruptions that impact us or our service providers,
resulting from cyber incidents, or failures or loss of our
infrastructure, which could adversely affect our business;
significant fluctuations in currency exchange rates; political and
regulatory risks in the various markets in which we operate; the
challenges of compliance with differing and changing regulatory
requirements; and the risks described in the section entitled “Risk
Factors” in the Annual Report on Form 10-K filed for the year ended
December 31, 2022 and in subsequent reports filed with the SEC.
Accordingly, you should not rely upon forward-looking statements as
an indication of future performance. We cannot assure you that the
results, events and circumstances reflected in the forward-looking
statements will be achieved or will occur, and actual results,
events or circumstances could differ materially from those
projected in the forward-looking statements. The forward-looking
statements made in this press release relate only to events as of
the date on which the statements are made. We may not actually
achieve the plans, intentions or expectations disclosed in our
forward-looking statements and you should not place undue reliance
on our forward-looking statements. We undertake no obligation and
do not assume any obligation to update any forward-looking
statements, whether as a result of new information, future events
or circumstances after the date on which the statements are made or
to reflect the occurrence of unanticipated events or
otherwise, except as required by law.
About Outbrain
Outbrain (Nasdaq: OB) is a leading
recommendation platform for the open web. Our technology enables 10
billion daily recommendations to consumers across more than 7,000
online properties and connects advertisers to these audiences to
grow their business. Founded in 2006, Outbrain is headquartered in
New York with a global network that spans across more than a dozen
locations worldwide.
Media Contactpress@outbrain.com
Investor Relations ContactIR@outbrain.com(332)
205-8999
OUTBRAIN INC.Condensed
Consolidated Statements of Operations(In
thousands, except for share and per share data)
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
Revenue |
$ |
231,774 |
|
|
$ |
254,216 |
|
Cost of revenue: |
|
|
|
Traffic acquisition costs |
|
179,576 |
|
|
|
190,696 |
|
Other cost of revenue |
|
11,043 |
|
|
|
9,589 |
|
Total cost of revenue |
|
190,619 |
|
|
|
200,285 |
|
Gross
profit |
|
41,155 |
|
|
|
53,931 |
|
Operating expenses: |
|
|
|
Research and development |
|
9,311 |
|
|
|
10,428 |
|
Sales and marketing |
|
25,748 |
|
|
|
27,395 |
|
General and administrative |
|
15,406 |
|
|
|
16,034 |
|
Total operating expenses |
|
50,465 |
|
|
|
53,857 |
|
(Loss)
income from operations |
|
(9,310 |
) |
|
|
74 |
|
Other
income (expense), net: |
|
|
|
Interest expense |
|
(1,867 |
) |
|
|
(1,871 |
) |
Interest income and other (expense) income, net |
|
3,860 |
|
|
|
(1,081 |
) |
Total other income (expense), net |
|
1,993 |
|
|
|
(2,952 |
) |
Loss
before benefit from income taxes |
|
(7,317 |
) |
|
|
(2,878 |
) |
Benefit
from income taxes |
|
(1,712 |
) |
|
|
(988 |
) |
Net
loss |
$ |
(5,605 |
) |
|
$ |
(1,890 |
) |
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
Basic |
|
51,435,289 |
|
|
|
57,237,012 |
|
Diluted |
|
51,435,289 |
|
|
|
57,237,012 |
|
|
|
|
|
Net loss
per common share: |
|
|
|
Basic |
$ |
(0.11 |
) |
|
$ |
(0.03 |
) |
Diluted |
$ |
(0.11 |
) |
|
$ |
(0.03 |
) |
|
|
|
|
|
|
|
|
OUTBRAIN INC.Condensed
Consolidated Balance Sheets(In thousands, except
for number of shares and par value)
|
March 31, 2023 |
|
December 31, 2022 |
|
(Unaudited) |
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
73,214 |
|
|
$ |
105,580 |
|
Short-term investment in marketable securities |
|
178,529 |
|
|
|
166,905 |
|
Accounts receivable, net of allowances |
|
181,482 |
|
|
|
181,258 |
|
Prepaid expenses and other current assets |
|
47,562 |
|
|
|
46,761 |
|
Total current assets |
|
480,787 |
|
|
|
500,504 |
|
Non-current assets: |
|
|
|
Long-term investments in marketable securities |
|
65,951 |
|
|
|
78,761 |
|
Property, equipment and capitalized software, net |
|
40,366 |
|
|
|
39,890 |
|
Operating lease right-of-use assets, net |
|
11,381 |
|
|
|
11,065 |
|
Intangible assets, net |
|
22,983 |
|
|
|
24,574 |
|
Goodwill |
|
63,063 |
|
|
|
63,063 |
|
Deferred tax assets |
|
35,637 |
|
|
|
35,735 |
|
Other assets |
|
25,598 |
|
|
|
27,556 |
|
TOTAL
ASSETS |
$ |
745,766 |
|
|
$ |
781,148 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
137,759 |
|
|
$ |
147,653 |
|
Accrued compensation and benefits |
|
16,185 |
|
|
|
19,662 |
|
Accrued and other current liabilities |
|
114,813 |
|
|
|
126,092 |
|
Deferred revenue |
|
6,456 |
|
|
|
6,698 |
|
Total current liabilities |
|
275,213 |
|
|
|
300,105 |
|
Non-current liabilities: |
|
|
|
Long-term debt |
|
236,000 |
|
|
|
236,000 |
|
Operating lease liabilities, non-current |
|
8,890 |
|
|
|
8,445 |
|
Other liabilities |
|
17,742 |
|
|
|
18,812 |
|
TOTAL
LIABILITIES |
$ |
537,845 |
|
|
$ |
563,362 |
|
|
|
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
Common stock, par value of $0.001 per share − one billion shares
authorized, 60,456,489 shares issued and 51,146,939 shares
outstanding as of March 31, 2023; one billion shares
authorized, 60,175,020 share issued and 52,226,745 shares
outstanding as of December 31, 2022. |
|
60 |
|
|
|
60 |
|
Preferred stock, par value of $0.001 per share − 100,000,000 shares
authorized, none issued and outstanding as of March 31, 2023
and December 31, 2022 |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
458,726 |
|
|
|
455,831 |
|
Treasury stock, at cost − 9,309,550 shares as of March 31,
2023 and 7,948,275 shares as of December 31, 2022 |
|
(55,523 |
) |
|
|
(49,168 |
) |
Accumulated other comprehensive loss |
|
(10,713 |
) |
|
|
(9,913 |
) |
Accumulated deficit |
|
(184,629 |
) |
|
|
(179,024 |
) |
TOTAL
STOCKHOLDERS’ EQUITY |
|
207,921 |
|
|
|
217,786 |
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
745,766 |
|
|
$ |
781,148 |
|
|
|
|
|
|
|
|
|
OUTBRAIN INC.Condensed
Consolidated Statements of Cash Flows(In
thousands)
|
Three Months EndedMarch 31, |
|
|
2023 |
|
|
|
2022 |
|
|
(Unaudited) |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
Net loss |
$ |
(5,605 |
) |
|
$ |
(1,890 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
Depreciation and amortization of property and equipment |
|
1,704 |
|
|
|
2,404 |
|
Amortization of capitalized software development costs |
|
2,641 |
|
|
|
2,295 |
|
Amortization of intangible assets |
|
1,596 |
|
|
|
1,569 |
|
Amortization of discount on marketable securities |
|
(1,241 |
) |
|
|
— |
|
Stock-based compensation |
|
2,611 |
|
|
|
2,733 |
|
Non-cash operating lease expense |
|
1,146 |
|
|
|
1,168 |
|
Provision for credit losses |
|
2,639 |
|
|
|
(249 |
) |
Deferred income taxes |
|
(437 |
) |
|
|
(340 |
) |
Other |
|
(1,054 |
) |
|
|
1,054 |
|
Changes in operating assets
and liabilities: |
|
|
|
Accounts receivable |
|
(1,478 |
) |
|
|
15,885 |
|
Prepaid expenses and other current assets |
|
4,598 |
|
|
|
1,418 |
|
Accounts payable and other current liabilities |
|
(28,017 |
) |
|
|
(31,121 |
) |
Operating lease liabilities |
|
(1,138 |
) |
|
|
(1,097 |
) |
Deferred revenue |
|
(317 |
) |
|
|
1,659 |
|
Other non-current assets and liabilities |
|
1,874 |
|
|
|
1,871 |
|
Net cash used in operating activities |
|
(20,478 |
) |
|
|
(2,641 |
) |
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
Acquisition of business, net of cash acquired |
|
(285 |
) |
|
|
(34,524 |
) |
Purchases of property and equipment |
|
(3,749 |
) |
|
|
(2,809 |
) |
Capitalized software development costs |
|
(2,853 |
) |
|
|
(3,445 |
) |
Purchases of marketable securities |
|
(32,762 |
) |
|
|
— |
|
Proceeds from maturities of marketable securities |
|
35,615 |
|
|
|
— |
|
Other |
|
(5 |
) |
|
|
14 |
|
Net cash used in investing activities |
|
(4,039 |
) |
|
|
(40,764 |
) |
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
Proceeds from exercise of common stock options and warrants |
|
— |
|
|
|
2,274 |
|
Treasury stock repurchases and share withholdings on vested
awards |
|
(6,355 |
) |
|
|
(1,718 |
) |
Principal payments on capital lease obligations |
|
(509 |
) |
|
|
(1,014 |
) |
Payment of contingent consideration liability up to
acquisition-date fair value |
|
(547 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(7,411 |
) |
|
|
(458 |
) |
|
|
|
|
Effect of exchange rate changes |
|
(436 |
) |
|
|
(663 |
) |
|
|
|
|
Net decrease in cash, cash
equivalents and restricted cash |
$ |
(32,364 |
) |
|
$ |
(44,526 |
) |
Cash, cash equivalents and
restricted cash — Beginning |
|
105,765 |
|
|
|
455,592 |
|
Cash, cash equivalents and
restricted cash — Ending |
$ |
73,401 |
|
|
$ |
411,066 |
|
|
|
|
|
|
|
|
|
OUTBRAIN INC.Non-GAAP
Reconciliations(In
thousands)(Unaudited)
The following table presents the reconciliation
of Gross profit to Ex-TAC gross profit, for the periods
presented:
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Revenue |
$ |
231,774 |
|
|
$ |
254,216 |
|
Traffic acquisition costs |
|
(179,576 |
) |
|
|
(190,696 |
) |
Other cost of revenue |
|
(11,043 |
) |
|
|
(9,589 |
) |
Gross profit |
|
41,155 |
|
|
|
53,931 |
|
Other cost of revenue |
|
11,043 |
|
|
|
9,589 |
|
Ex-TAC gross profit |
$ |
52,198 |
|
|
$ |
63,520 |
|
|
|
|
|
|
|
|
|
The following table presents the reconciliation of net loss to
Adjusted EBITDA, for the periods presented:
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(5,605 |
) |
|
$ |
(1,890 |
) |
Interest expense |
|
1,867 |
|
|
|
1,871 |
|
Interest income and other income (expense), net |
|
(3,860 |
) |
|
|
1,081 |
|
Benefit from income taxes |
|
(1,712 |
) |
|
|
(988 |
) |
Depreciation and amortization |
|
5,941 |
|
|
|
6,268 |
|
Stock-based compensation |
|
2,611 |
|
|
|
2,733 |
|
Regulatory matter costs |
|
610 |
|
|
|
1,719 |
|
Merger and acquisition, public company implementation costs(1) |
|
— |
|
|
|
814 |
|
Severance costs |
|
843 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
695 |
|
|
$ |
11,608 |
|
|
|
|
|
Net loss as % of gross
profit |
|
(13.6 |
)% |
|
|
(3.5 |
)% |
Adjusted EBITDA as % of Ex-TAC
gross profit |
|
1.3 |
% |
|
|
18.3 |
% |
_______________________________________________(1) Includes
our public company implementation costs and costs related to our
acquisition of video intelligence AG (“vi”) in January 2022.
OUTBRAIN INC.Non-GAAP
Reconciliations - Continued(In thousands, except
for share and per share
data)(Unaudited)
The following table presents the reconciliation of net loss
and diluted EPS to adjusted net loss and adjusted diluted EPS,
respectively, for the periods presented:
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net loss |
$ |
(5,605 |
) |
|
$ |
(1,890 |
) |
Adjustments: |
|
|
|
Regulatory matter costs |
|
610 |
|
|
|
1,719 |
|
Merger and acquisition, public company implementation costs(1) |
|
— |
|
|
|
814 |
|
Severance costs |
|
843 |
|
|
|
— |
|
Total adjustments, before
tax |
|
1,453 |
|
|
|
2,533 |
|
Income tax effect |
|
(338 |
) |
|
|
(729 |
) |
Total adjustments, after
tax |
|
1,115 |
|
|
|
1,804 |
|
Adjusted net loss |
$ |
(4,490 |
) |
|
$ |
(86 |
) |
|
|
|
|
Weighted average shares used
to compute diluted net loss per common share -reported and
adjusted |
|
51,435,289 |
|
|
|
57,237,012 |
|
|
|
|
|
Diluted net loss per common
share - reported |
$ |
(0.11 |
) |
|
$ |
(0.03 |
) |
Adjustments, after tax |
|
0.02 |
|
|
|
0.03 |
|
Diluted net loss per common
share - adjusted |
$ |
(0.09 |
) |
|
$ |
— |
|
_______________________________________________(1) Includes our
public company implementation costs and costs related to our
acquisition of vi in January 2022.
The following table presents the reconciliation
of net cash used in operating activities to free cash flow, for the
periods presented:
|
Three Months Ended March 31, |
|
|
2023 |
|
|
|
2022 |
|
Net cash used in operating
activities |
$ |
(20,478 |
) |
|
$ |
(2,641 |
) |
Purchases of property and
equipment |
|
(3,749 |
) |
|
|
(2,809 |
) |
Capitalized software
development costs |
|
(2,853 |
) |
|
|
(3,445 |
) |
Free cash flow |
$ |
(27,080 |
) |
|
$ |
(8,895 |
) |
|
|
|
|
|
|
|
|
Outbrain (NASDAQ:OB)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
Outbrain (NASDAQ:OB)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024