Outbrain (OB)

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Outbrain Announces Closing of New Senior Secured Notes Due 2030
Globenewswire· 2025-02-11 21:26
Group 1 - Outbrain Inc., now operating under the Teads brand, successfully closed a private offering of $637.5 million in senior secured notes due 2030 at an issue price of 98.087% [1][2] - The size of the offering was increased from the previously announced $625.0 million [2] - The proceeds from the offering were used to repay and cancel the indebtedness incurred under the senior secured bridge facility related to the acquisition of Teads [3] Group 2 - Outbrain and Teads combined on February 3, 2025, creating a new omnichannel outcomes platform for the open internet [4] - The new Teads focuses on driving full-funnel results for marketers by leveraging predictive AI technology and connecting quality media with brand creative [4] - The company partners with over 10,000 publishers and 20,000 advertisers globally, employing nearly 1,800 people across 36 countries [4]
Outbrain to Release Fourth Quarter and Full Year 2024 Financial Results on February 27, 2025
Globenewswire· 2025-02-10 21:05
Core Viewpoint - Outbrain Inc., now operating under the Teads brand, will release its Q4 and full year 2024 results on February 27, 2025, followed by a conference call to discuss the results and business outlook [1]. Group 1: Company Announcement - The company will announce its financial results before the market opens on February 27, 2025 [1]. - A conference call is scheduled for 8:30 a.m. (Eastern Time) on the same day to discuss the results [1]. Group 2: Conference Call Details - The conference call can be accessed by dialing 1-877-497-9071 for U.S. callers and 1-201-689-8727 for international callers [2]. - A replay of the call will be available two hours after it concludes, accessible at 1-877-660-6853 for U.S. callers and 1-201-612-7415 for international callers, with a passcode of 13750872 [2]. - The replay will be available until March 13, 2025 [2]. Group 3: Company Background - Outbrain Inc. and Teads merged on February 3, 2025, and are now operating under the Teads brand [4]. - The new Teads serves as an omnichannel outcomes platform for the open internet, focusing on delivering full-funnel results for marketers [4]. - The company partners with over 10,000 publishers and 20,000 advertisers globally, employing nearly 1,800 people across 36 countries [4].
Outbrain (OB) Surges 7.5%: Is This an Indication of Further Gains?
ZACKS· 2025-02-06 17:51
Group 1: Outbrain Inc. (OB) - Outbrain Inc. shares increased by 7.5% to $7.20, with a higher-than-average trading volume, contrasting with a 0.7% loss over the past four weeks [1] - The stock's recent gains are attributed to Outbrain's acquisition of Teads, which is expected to strengthen its position in the open web advertising market [1] - The consensus EPS estimate for Outbrain is $0.12 per share, reflecting a year-over-year increase of 33.3%, with expected revenues of $70 million, up 9.7% from the previous year [2] Group 2: Earnings Estimates and Trends - The consensus EPS estimate for Outbrain has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] - Outbrain currently holds a Zacks Rank of 1 (Strong Buy), suggesting strong potential for future performance [3] Group 3: Riot Platforms, Inc. (RIOT) - Riot Platforms, Inc. has a consensus EPS estimate of -$0.27, which is a 156.3% decrease from the previous year's report, and has seen a 1.7% change in estimates over the past month [4] - Riot Platforms currently holds a Zacks Rank of 2 (Buy), indicating a positive outlook compared to Outbrain [4]
Outbrain (OB) - 2024 Q4 - Annual Results
2025-02-27 11:56
Credit Agreement and Financing - Outbrain Inc. has secured a credit agreement dated February 3, 2025, with Goldman Sachs Bank USA as the sole Administrative Agent[1]. - The agreement includes commitments for loans and borrowings, with specific sections detailing repayment procedures and interest elections[2]. - The credit facility is structured to support Outbrain's operational and strategic initiatives, including potential market expansions and product developments[3]. - The agreement outlines provisions for letters of credit and swingline loans, enhancing liquidity management capabilities[4]. - The credit agreement includes terms for increased costs and break funding payments, which may impact future financial performance[6]. - The agreement specifies conditions for additional borrowers, allowing for flexibility in capital structure[8]. - The credit facility is anticipated to support Outbrain's long-term growth strategy and operational efficiency[10]. - The credit agreement outlines specific terms for borrowing, including interest rates tied to the ABR, which reflects current market conditions[17]. - The Applicable Commitment Fee for the Revolving Facility Loans is 0.375% when the Secured Leverage Ratio is ≤ 1.70 to 1.00, and increases to 0.500% when the ratio exceeds 1.70 to 1.00[36]. - The Applicable Margin for Bridge Loans is set at 4.75% per annum for SOFR Loans and 3.75% per annum for ABR Loans, with a cumulative increase of 0.50% per annum on each three-month anniversary of the Closing Date[38]. - The Initial Borrower must pay any accrued additional interest and fees within ten Business Days if the corrected Applicable Commitment Fee is higher than what was previously paid[37]. - The minimum borrowing amount for ABR Revolving Facility Loans and SOFR Loans is $1,000,000, while for Swingline Loans it is $500,000[74]. - The Borrowing Minimum for ABR Revolving Facility Loans is set at $1,000,000[74]. - The Borrowing Multiple for ABR Revolving Facility Loans is $250,000, and for SOFR and Swingline Loans, it is $100,000[76]. Strategic Acquisitions - The Initial Borrower, Outbrain Inc., is acquiring all issued and outstanding shares of the Target, TEADS, as part of a strategic acquisition agreement[15]. - The acquisition is supported by a credit extension from lenders, indicating confidence in the growth potential of the combined entities[15]. - The Initial Borrower has requested credit from lenders to facilitate the acquisition, highlighting the financial backing for this strategic move[15]. - The acquisition is expected to enhance market presence and expand product offerings, aligning with the company's growth strategy[15]. - The Initial Borrower is focused on leveraging the acquisition to drive future revenue growth and market expansion[15]. Compliance and Financial Management - Outbrain's financial statements will be subject to compliance with the terms outlined in the credit agreement, ensuring transparency and accountability[9]. - The agreement includes provisions for maintaining compliance with financial covenants, ensuring fiscal responsibility post-acquisition[14]. - The Initial Borrower is committed to adhering to affirmative covenants, including maintaining accurate financial records and compliance with laws[14]. - The agreement includes provisions for quarterly lender calls, ensuring ongoing communication and transparency with stakeholders[14]. - The company is required to deliver corrected financial statements if inaccuracies in previously delivered statements would have led to a different Applicable Commitment Fee[37]. - The company is committed to compliance with all requirements of the Security Documents, ensuring the integrity of its financial agreements[116]. Financial Performance and Reporting - The company reported a consolidated total debt amounting to a significant principal, excluding certain liabilities such as letters of credit and non-recourse indebtedness[136]. - Consolidated total assets were determined on a pro forma basis, reflecting the total assets of the company and its subsidiaries[135]. - The consolidated net senior secured leverage ratio was calculated based on total debt secured by collateral relative to EBITDA for the most recent test period[134]. - The company reported a consolidated net income for the period, contributing to the overall EBITDA calculation[162]. - Total interest expense and related costs were included in the EBITDA calculation, reflecting the company's financing activities[163]. - The company incurred depreciation and amortization expenses, impacting the overall financial performance[164]. - The company projected expected cost savings from various initiatives, which are anticipated to enhance EBITDA by up to 15%[166]. - The net income from non-wholly-owned subsidiaries was included in the financial results, indicating additional cash flow potential[166]. - The company highlighted the importance of adjustments identified in its financial model to reflect operational efficiencies[166]. - Cash payments related to non-cash accruals were deducted from the current period's income, ensuring accurate financial reporting[166]. - The company emphasized the impact of foreign exchange gains or losses on its financial position, affecting overall valuation[165]. Definitions and Terms - The term "Benchmark" initially refers to the Term SOFR Reference Rate, which may be replaced by a Benchmark Replacement in case of a Benchmark Transition Event[61]. - The definition of "Asset Sale" includes any Disposition of assets with a Fair Market Value less than $5,000,000 or 2.0% of EBITDA for the most recently ended Test Period[44]. - "Capital Markets Indebtedness" refers to debt securities issued in public offerings or private placements, excluding commercial bank facilities and similar debts[93]. - "Cash Equivalents" include various forms of liquid assets such as government-backed securities and money market funds, with specific maturity and rating requirements[98]. - The term "Change in Law" encompasses any new laws or regulations adopted after the closing date that may affect the financial obligations of the company[101]. - "Change of Control" is defined by specific conditions under which the ownership structure of the company may change significantly[104]. - The "Collateral Agent" is identified as U.S. Bank Trust Company, National Association, responsible for managing collateral for secured parties[112]. - The "Collateral and Guarantee Requirement" mandates that certain agreements must be executed by the Initial Borrower and Guarantors on the closing date[113]. - "Cash Management Agreement" refers to agreements providing cash management services, including treasury management and electronic funds transfer services[100]. - "Captive Insurance Subsidiary" is defined as any subsidiary regulated as an insurance company[95]. - "Capitalized Lease Obligation" refers to liabilities from capital leases that must be reflected on the balance sheet according to GAAP[94].
Outbrain Completes the Acquisition of Teads
Globenewswire· 2025-02-03 12:20
Core Insights - Outbrain Inc. has successfully completed the acquisition of Teads, creating a unified omnichannel outcomes platform for the open internet, operating under the Teads brand [2][22] - The merger aims to address significant gaps in the advertising industry by providing a scaled end-to-end platform that drives outcomes from branding to purchase across various screens [4][8] Company Overview - The new Teads will be one of the largest open internet companies, with a combined advertising spend of approximately $1.7 billion for FY24, reaching 2.2 billion consumers [8] - The company will leverage Outbrain's predictive technology and AI optimization to enhance marketing solutions, offering a single partner for marketers to achieve measurable outcomes [3][22] Financial Highlights - The combined companies are preliminarily reporting an Ex-TAC Gross Profit of approximately $623 million and Adjusted EBITDA of approximately $230 million for 2024, including estimated synergies of $65-75 million [8][16] - The transaction value is approximately $900 million, consisting of $625 million in cash and 43.75 million shares of Outbrain [10][12] Strategic Goals - The merger is expected to create a stronger ecosystem that prioritizes beautiful creative experiences, trust, and transparency in media, ultimately delivering meaningful outcomes for all stakeholders [6][22] - The company anticipates achieving $65-75 million in annual revenue and cost synergies in FY 2026, with further opportunities for expanded synergies in subsequent years [15][28] Operational Structure - Outbrain CEO David Kostman will lead the combined company, with former Teads CEOs Jeremy Arditi and Bertrand Quesada serving as Co-Presidents [8] - The new Teads will directly partner with over 10,000 publishers and 20,000 advertisers globally, enhancing its market reach and operational capabilities [22]
Outbrain Stock Skyrockets 63% in a Year: How Should Investors Play It?
ZACKS· 2025-01-08 17:22
Stock Performance - Outbrain Inc (OB) shares surged 63% in the past year, outperforming the industry's 28.5% rally but underperforming the Zacks S&P 500 Composite's 64.1% rise [1] - OB's performance significantly surpassed peers MediaAlpha Inc (MAX) and UiPath Inc (PATH), which gained 5.7% and declined 42.9% respectively over the past year [1] Strategic Partnerships - Outbrain strengthened premium media owner partnerships, securing renewed agreements with Huffington Post and Meteo in France [5] - The company secured new partnerships with Sports one Germany, Reuters, and Newsweek in Japan, demonstrating superior value proposition in global premium publisher relationships [6] AI Integration - OB is integrating AI into performance and creative offerings, enhancing efficiency and targeting sophisticated large-scale advertisers [7] - The creative automation suite uses AI to generate ad images, tailor content, and adjust headlines for better results [8] - Expanded collaboration with Microsoft Azure integrates Azure OpenAI solution into OB's services, improving ad creative solutions and ROI [9] Financial Outlook - Zacks Consensus Estimate projects 2024 revenues at $237.8 million (4.6% YoY growth) and 2025 revenues at $262.7 million (10.5% YoY growth) [10] - 2024 earnings estimated at 12 cents per share, reversing from 8 cents loss in 2023, with 2025 earnings projected at 30 cents per share (over 100% YoY increase) [11] Operational Challenges - OB reported operating profit of $5.7 million in Q4 2023 but incurred losses of $6.6 million, $5.6 million, and $3 million in Q1, Q2, and Q3 2024 respectively [12] - Q3 2024 revenues increased 5% QoQ but failed to fully recover losses, with cost control issues contributing to turbulent operating performance [13] - Traffic acquisition costs showed inconsistency, declining 11% in Q1 2024, slipping 4% in Q2, and increasing 4% in Q3 [14] Financial Metrics - OB's trailing 12-month ROE of 2.2% underperforms industry average of 3.4% [15] - Current ratio of 1.2 in Q3 2024 underperforms industry average of 2.16, declining 11.8% QoQ and 17.2% YoY [17] - Current ratio above 1 indicates ability to pay short-term debt, but declining cash and cash-equivalent balance may impact future liquidity [19] Investment Considerations - OB's AI integration focus and premium media partnerships, coupled with strong financial outlook, make it favorable for long-term investment [20] - Recent operating losses, weak capital returns, and liquidity concerns suggest monitoring execution of AI-driven strategies before further investment [21]
Outbrain Shareholders Vote to Support Teads Acquisition
GlobeNewswire News Room· 2024-12-05 21:10
Core Points - Outbrain Inc. announced the approval of the issuance of 35 million shares of common stock and 10.5 million Series A Convertible Preferred Shares for the acquisition of Teads S.A. [1][2] - The transaction is expected to close in the first quarter of 2025, pending customary closing conditions and regulatory approvals [1][3] - Over 64% of outstanding shares were present at the special meeting, with more than 99% voting in favor of the Share Issuance Proposal [3] Company Overview - Outbrain is a technology platform that engages users across the Open Internet, utilizing AI and machine learning to drive measurable outcomes for advertisers and publishers [7] - The company operates globally across more than 8,000 online properties and has been in operation since 2006, with headquarters in New York and offices in various regions [7]
Is Outbrain (OB) Outperforming Other Business Services Stocks This Year?
ZACKS· 2024-12-04 15:40
Company Performance - Outbrain Inc. has returned 36.1% year-to-date, outperforming the average return of 25.6% for the Business Services sector [4] - The Zacks Consensus Estimate for Outbrain's full-year earnings has increased by 220% in the past quarter, indicating improved analyst sentiment [4] - Outbrain Inc. currently holds a Zacks Rank of 1 (Strong Buy), suggesting a positive outlook for the stock [3] Industry Comparison - Outbrain Inc. is part of the Technology Services industry, which has an average year-to-date return of 59.3%, indicating that Outbrain is slightly underperforming its industry [6] - In contrast, Genpact, another stock in the Business Services sector, has a year-to-date return of 31.5% and a Zacks Rank of 2 (Buy) [5] - The Outsourcing industry, to which Genpact belongs, has seen a year-to-date increase of 27.2% [6] Sector Ranking - The Business Services sector, which includes 305 companies, is currently ranked 6 in the Zacks Sector Rank [2] - The Zacks Rank system evaluates the strength of sector groups based on the average Zacks Rank of individual stocks [2]
Why Fast-paced Mover Outbrain (OB) Is a Great Choice for Value Investors
ZACKS· 2024-11-22 14:50
Group 1: Momentum Investing Overview - Momentum investing deviates from the traditional strategy of "buying low and selling high," focusing instead on "buying high and selling higher" to achieve quicker profits [1] - Fast-moving trending stocks can be challenging to enter at the right time, as they may lose momentum if future growth does not justify their inflated valuations [2] Group 2: Investment Strategy - A safer investment approach involves targeting bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify promising candidates [3] - Outbrain Inc. (OB) is highlighted as a strong candidate, showing a four-week price change of 17.5%, indicating growing investor interest [4] Group 3: Performance Metrics - OB has demonstrated a 1% gain over the past 12 weeks, with a beta of 1.46, suggesting it moves 46% more than the market in either direction [5] - OB's Momentum Score of A indicates a favorable entry point for investors looking to capitalize on its momentum [6] Group 4: Earnings and Valuation - An upward trend in earnings estimate revisions has contributed to OB earning a Zacks Rank 1 (Strong Buy), which is associated with strong momentum effects [7] - OB is trading at a Price-to-Sales ratio of 0.28, indicating it is relatively undervalued, as investors pay only 28 cents for each dollar of sales [7] Group 5: Additional Opportunities - Besides OB, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [9]
Outbrain Inc. (OB) Beats Q3 Earnings Estimates
ZACKS· 2024-11-07 13:56
Group 1: Earnings Performance - Outbrain Inc. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, representing an earnings surprise of 450% [1] - The company posted revenues of $59.69 million for the quarter ended September 2024, which was 1.45% below the Zacks Consensus Estimate, compared to $56.79 million in the same quarter last year [2] - Over the last four quarters, Outbrain has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Outbrain shares have increased by approximately 8.7% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The future performance of Outbrain's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $71.59 million, and for the current fiscal year, it is $0.01 on revenues of $240.27 million [7] Group 3: Industry Context - The Technology Services industry, to which Outbrain belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Outbrain's stock performance [5][6]