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]

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]

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]

Core Insights - Outbrain Inc. reported strong financial results for Q3 2024, achieving guidance on Ex TAC gross profit and exceeding Adjusted EBITDA expectations, with improved margins and profitability, generating positive cash flow for the fifth consecutive quarter [1][4]. Financial Performance - Revenue for Q3 2024 was $224.2 million, a decrease of 3% from $230.0 million in Q3 2023 [2][4]. - Gross profit increased by 5% to $48.9 million compared to $46.4 million in the prior year, with gross margin rising to 21.8% from 20.2% [2][4]. - Ex-TAC gross profit was $59.7 million, up 5% from $56.8 million year-over-year, with Ex-TAC gross margin improving to 26.6% from 24.7% [2][4]. - Net income for the quarter was $6.7 million, compared to $0.5 million in the same period last year, reflecting a significant improvement [2][4]. - Adjusted EBITDA reached $11.5 million, a 12% increase from $10.3 million in Q3 2023 [2][4]. Cash Flow and Investments - The company generated net cash from operating activities of $13.7 million, a 97% increase from $6.9 million in the prior year [2][4]. - Free cash flow was reported at $8.7 million, compared to $1.8 million in Q3 2023, marking a 387% increase [2][4]. - As of September 30, 2024, cash, cash equivalents, and investments in marketable securities totaled $130.5 million [4]. Business Highlights - The total advertiser spend on Outbrain's platform increased by 6% year-over-year in Q3 2024 [3]. - The Outbrain DSP (previously known as Zemanta) saw a growth of approximately 60% year-to-date through September 30, 2024, compared to the prior year [3]. - The beta launch of "Moments" by Outbrain was announced, aimed at enhancing user interaction with traditional media content [3]. - Supply expansion outside of traditional feed products represented approximately 28% of revenue in Q3 2024, up from 26% in Q3 2023 [3]. Future Outlook - The company has increased its outlook for Adjusted EBITDA for FY 2024, expecting Ex-TAC gross profit for Q4 2024 to be between $67.5 million and $72.5 million [1][6]. - Adjusted EBITDA for Q4 2024 is projected to be between $15.0 million and $18.5 million [6].

NEW YORK, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered money for shareholders and is recognized as a Top 50 Firm in the 2018-2022 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating Outbrain Inc. (NASDAQ: OB), relating to its proposed merger with Teads S.A. Under the terms of the agreement, Outbrain will acquire Teads in exchange for a cash payment of $725 million, s ...

NEW YORK, Oct. 24, 2024 (GLOBE NEWSWIRE) -- Outbrain Inc. (NASDAQ: OB) announced today that the company will release its third quarter 2024 results before the market opens on Thursday, November 7, 2024, followed by a conference call at 8:30 a.m. (Eastern Time) that same day to discuss the company’s results and business outlook. The conference call can be accessed live over the phone by dialing 1-866-682-6100 or for international callers, 1-862-298-0702. A replay will be available two hours after the call an ...

NEW YORK, Sept. 23, 2024 (GLOBE NEWSWIRE) -- Outbrain Inc. (NASDAQ: OB), a leading technology platform that drives business results by engaging people across the Open Internet, announced today that it has repurchased all of the remaining $118 million in aggregate principal amount of the 2.95% Convertible Senior Notes due 2026 (the "Convertible Notes") via a privately negotiated repurchase agreement with Baupost Group Securities, L.L.C., the sole holder of the Convertible Notes. The Company paid, including a ...

Outbrain Inc. (NASDAQ:OB) Q2 2024 Earnings Call August 8, 2024 8:30 AM ET Company Participants David Kostman - Chief Executive Officer Jason Kiviat - Chief Financial Officer Conference Call Participants Andrew Boone - JMP Securities Laura Martin - Needham James Heaney - Jefferies Zach Cummins - B. Riley Operator 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 Outb ...

Outbrain Inc. (OB) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to loss of $0.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post a loss of $0.14 per share when it actually produced a loss of $0.10, delivering a surprise of 28.57%. Over the last four quarters, the company has surpassed con ...

Highlights: Outbrain will acquire Teads in an approximately $1 billion transaction, consisting of $725 million upfront cash and $25 million deferred cash, 35 million shares of common stock of Outbrain, and $105 million of convertible preferred equity. The combination will create one of the largest open internet advertising platforms, differentiated by its ability to drive outcomes for awareness, consideration, and performance objectives — across CTV, web and mobile apps. The two companies will bring togethe ...