Outbrain Inc (OB, Financial), a leading technology platform that drives business results by engaging people across the open Internet, announced its financial results for the quarter ended September 30, 2023, on November 7, 2023. The company reported an 8% year-over-year growth in its Ex-TAC gross profit, finishing Q3 within the range of its guidance. The company also significantly exceeded the high end of its Adjusted EBITDA guidance and generated positive free cash flow.
Financial Performance Highlights
Outbrain Inc (OB, Financial) reported a revenue of $230.0 million for Q3 2023, a slight increase from $229.0 million in the prior year period. The company's gross profit stood at $46.4 million, marking an 11% YoY increase from $41.9 million in Q3 2022. The Ex-TAC gross profit for the quarter was $56.8 million, an 8% YoY increase from $52.7 million in the prior year period.
The company's net income for Q3 2023 was $0.5 million, a significant improvement from a net loss of $4.6 million in Q3 2022. Adjusted net income stood at $0.3 million, compared to an adjusted net loss of $5.5 million in the prior year period. The Adjusted EBITDA for the quarter was $10.3 million, a significant increase from $1.7 million in Q3 2022.
Balance Sheet and Cash Flow
As of September 30, 2023, Outbrain Inc (OB, Financial) had cash, cash equivalents, and investments in marketable securities amounting to $213.9 million. This included cash and cash equivalents of $64.5 million and investments in marketable securities of $149.4 million. The company's balance sheet also included convertible notes of $118.0 million.
The company generated a net cash of $6.9 million from operating activities in Q3 2023. The free cash flow for the quarter was $1.8 million.
Looking Forward
Despite macroeconomic volatility and geopolitical challenges, Outbrain Inc (OB, Financial) remains focused on its strategic initiatives and potential growth drivers as it looks into 2024 and beyond. The company is excited about the growing number of publishers and advertisers adopting its new offerings, Keystone and Onyx, and believes that these, along with technology innovation on algorithms and generative AI, will drive significant business results.
Explore the complete 8-K earnings release (here) from Outbrain Inc for further details.
