Outbrain (OB) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Company Participants None - ExecutiveDavid Kostman - CEOJason Kiviat - CFOYgal Arounian - Director - Internet Equity ResearchAndrew Boone - Managing DirectorJames Heaney - SVP - Equity Research Conference Call Participants Laura Martin - Senior AnalystZach Cummins - Senior Research Analyst Operator Good day. Welcome to Outbrain Incorporated's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen ...

Outbrain (OB) Q1 2025 Earnings Call May 09, 2025 08:30 AM ET Speaker0 Good day. Welcome to Outbrain Incorporated's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would like to turn the call over to Outbrain's Investor Relations. Please go ahead. Speaker1 Good morning, and thank you for joining us on today's conference cal ...

Core Insights - Outbrain Inc. reported strong financial results for Q1 2025, achieving guidance on Ex-TAC gross profit and Adjusted EBITDA, with CTV revenues growing over 100% year-over-year on a pro forma basis [1][2] - The company completed the acquisition of Teads for approximately $900 million, which is expected to yield significant synergies and integration benefits [4][21] - Full-year guidance for 2025 remains positive, with expectations for continued growth and strategic partnerships [6][7] Financial Performance - Revenue for Q1 2025 was $286.4 million, a 32% increase from $217.0 million in Q1 2024 [2][5] - Gross profit reached $82.7 million, up 99% from $41.6 million in the prior year, with a gross margin increase to 28.9% [2][5] - Ex-TAC gross profit was $103.1 million, a 98% increase year-over-year, with an Ex-TAC gross margin of 36.0% [2][5] - The net loss for the quarter was $54.8 million, compared to a net loss of $5.0 million in Q1 2024, influenced by acquisition-related costs and restructuring charges [2][5] Business Highlights - The integration of Teads is on track, with expected synergies of $65 million to $75 million by 2026, including $40 million in cost synergies for 2025 [4][6] - The company has initiated cross-selling of legacy Outbrain solutions to Teads' enterprise brand customers, with several campaigns already sold [4] - New strategic partnerships have been established with major brands such as Ferrero and Philip Morris International [4] Guidance and Future Outlook - For Q2 2025, the company expects revenue of $286.4 million, with continued strong adoption of its Moments vertical video offering [6] - Full-year guidance for 2025 includes Ex-TAC gross profit expectations of $141 million to $150 million and Adjusted EBITDA of $26 million to $34 million [6][7] - The company is focused on leveraging predictive AI technology to enhance its advertising platform and drive business outcomes [21]

Bill Ready, CEO of Pinterest, rings the opening bell at the New York Stock Exchange on May 15, 2024.Pinterest shares rose 10% in extended trading Thursday after the company reported first-quarter earnings and provided better-than-expected guidance.Here's how the company did, compared to analysts' consensus estimates from LSEG:Revenue: $855 million vs. $847 million expectedEarnings per share: $0.23 cents Adj. vs. $0.26 cents expectedThe social media company said second-quarter sales should come in the range ...

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $427 million, representing a 3% year-over-year growth, with ex TAC gross profit of $152 million, which is 9% higher than last year [8][21] - Adjusted EBITDA for Q1 was $36 million, reflecting a 53% year-over-year growth, with margins expanding significantly [8][25] - Free cash flow for the quarter was $36 million, growing 35% year-over-year [8][25] Business Line Data and Key Metrics Changes - The number of scaled advertisers grew by 9% year-over-year, reaching 1,996, while the average revenue per scaled advertiser declined by 3% [12][22] - The core native business saw positive growth, and the company completed its format testing with Yahoo, which had a marginal revenue reduction impact [23][24] Market Data and Key Metrics Changes - The company noted a 1% decrease in advertising spend related to tariffs, primarily affecting its China business, which now accounts for around 5% of total Q2 revenue [9][53] - The company is seeing positive trends in Taboola News and other parts of the business, supporting its decision to maintain full-year guidance [9][10] Company Strategy and Development Direction - The company is focused on capturing a $55 billion market opportunity in performance advertising outside of search and social channels [6][10] - The launch of the Realize platform is a significant step forward, offering new ad formats and a CPC pricing model, which is expected to unlock previously inaccessible advertising budgets [13][14][15] - The company aims to drive incremental ad spend through Realize's new capabilities and is focusing on verticalizing its sales organization [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business despite macroeconomic uncertainties, emphasizing cost discipline and investment in growth initiatives [19][20] - The company reiterated its full-year guidance for 2025, expecting revenues between $1.84 billion and $1.89 billion [30][31] Other Important Information - The company has a strong balance sheet with a net cash balance of $89.7 million and cash equivalents totaling $216.2 million [28][29] - The company repurchased approximately 16.2 million shares at an average price of $3.3 during Q1, with an additional 15.1 million shares repurchased since then [30][31] Q&A Session Summary Question: Progress on verticalizing the sales force and the impact on scaled advertisers - Management indicated that the restructuring of the sales teams is complete and early returns are positive, with the number of scaled advertisers growing by 9% [34][36][38] Question: Impact of Google news on the ad tech industry - Management noted that the shift towards privacy and the potential reduction of cookies could benefit companies with first-party data, positioning them well in the market [45][46][48] Question: Performance of different business components in uncertain macro environments - Management stated that the performance advertising space is well-positioned, and they have not seen material impacts from macroeconomic changes so far [64][66][68] Question: Guidance for the second half of the year - Management explained that the expected decline in ex TAC revenue in the second half is due to conservative guidance and the impact of prior testing with Yahoo [69][72] Question: Future hiring trends and cost management - Management indicated that while there will be some ramp in R&D hiring, overall cost increases will be limited, focusing on productivity improvements through AI [88][90]

2021 York Mountain Syrah - $78 Investor Deck May 2025 Disclaimer Safe Harbor Disclaimer for Forward-Looking Statements This presentation has been prepared by management of System1, Inc. (together with its subsidiaries, collectively "System1") and does not constitute a prospectus, and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale ...

Core Viewpoint - Amazon's first-quarter cloud revenue growth disappointed investors, with shares falling as much as 5% in after-hours trading due to lower-than-expected operating income forecasts and slower growth in Amazon Web Services (AWS) [1][2][4]. Group 1: Financial Performance - Amazon Web Services recorded a 16.9% increase in quarterly revenue, amounting to $29.27 billion, which fell short of expectations for 17.4% growth and $30.9 billion in sales [1][4]. - Total revenue for Amazon in the first quarter was $155.7 billion, exceeding analysts' estimates of $155.04 billion [10]. - The company expects net sales for the second quarter to be between $159 billion and $164 billion, compared to analysts' average estimate of $160.91 billion [10]. Group 2: Market Comparison - Microsoft reported better-than-expected results for its Azure cloud unit, highlighting a competitive challenge for AWS, which experienced its slowest revenue growth in five quarters [2][4]. - Analysts noted that expectations for Amazon were elevated following Microsoft's strong performance [4]. Group 3: Operational Insights - CEO Andy Jassy addressed concerns regarding high tariffs on imports from China, which could impact retail prices, stating that there has not yet been a noticeable decrease in demand [5][7]. - Jassy mentioned that there has been some increased buying in certain categories, possibly in anticipation of tariff impacts, but the average selling price of retail items has not significantly increased [7]. - Revenue growth from third-party seller services more than halved to 7% in the first quarter, excluding foreign exchange impacts [7]. Group 4: Advertising Revenue - Amazon reported a 19% increase in online ad sales, reaching $13.92 billion, surpassing analyst estimates and establishing itself as a major player in the advertising market, trailing only Meta and Alphabet [11].

A woman cleans the store window of the Amazon house after activists sprayed paint its facade during a protest on the opening day of the 55th annual meeting of the World Economic Forum in Davos, Switzerland, on Jan. 20, 2025.Amazon reported a 19% increase in online ad revenue in the first quarter, beating analyst estimates.Ad sales climbed to $13.92 billion, while analysts on average were expecting $13.74 billion, according to StreetAccount.The numbers were contained in Amazon's first-quarter earnings report ...

Mark Zuckerberg, CEO of Meta Platforms, during the Meta Connect event in Menlo Park, California, on Sept. 25, 2024.Meta is set to report its first-quarter earnings on Wednesday, and investors will be looking for any signs that President Donald Trump's tough China tariffs are affecting the company's online ads business.Here is what analysts polled by LSEG are expecting:Earnings per share: $5.28 expectedRevenue: $41.39 billion expectedAnalysts expect Meta's China-derived advertising business to feel the most ...

Media Contact press@outbrain.com Investor Relations Contact NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) -- Outbrain Inc. (NASDAQ: OB), which is operating under the new Teads brand, announced today that the company will release its first quarter 2025 results before the market opens on Friday, May 9, 2025, 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 1-877-497-9071 ...