Outbrain, Inc. (NASDAQ:OB ) Q1 2025 Earnings Conference Call May 9, 2025 8:30 AM ET Company Participants David Kostman - CEO Jason Kiviat - CFO Conference Call Participants Ygal Arounian - Citi Andrew Boone - Citizens Laura Martin - Needham and Company James Haynie - Jefferies Zach Cummins - B. Riley Securities Operator Good day.
I initiated coverage on Outbrain with a buy rating, projecting a 1-year price target of $4.5 per share, suggesting it is undervalued today. OB's acquisition of Teads is expected to drive strong growth and bottom-line catalysts, with $65-$75 million in annual synergies by FY 2026. Despite mixed fundamentals and revenue decline, OB's operating cash flow rebounded to a record $68.6 million in FY 2024, boosting liquidity.
Given the decrease in OB's share price, we evaluate its current position to find out whether investors should buy the stock or stay away from it.
| IT Services Industry | Information Technology Sector | David Kostman CEO | NASDAQ (NGS) Exchange | 69002R103 CUSIP |
| US Country | 1,800 Employees | - Last Dividend | - Last Split | 23 Jul 2021 IPO Date |
Outbrain Inc. is a premier technology platform that serves as a bridge connecting advertisers and media owners with their target audiences, thereby driving significant business outcomes across the globe. The company has crafted a niche for itself by offering a comprehensive range of solutions designed for media owners to enhance content discovery on their sites and maximize monetization. Headquartered in New York, New York, and established in 2006, Outbrain stands out for its innovative contribution to the digital advertising sphere, leveraging an array of technological solutions and AI-driven platforms to foster engagement, content recirculation, and improved revenue streams for its partners worldwide.
Outbrain offers a wide array of solutions tailored for media owners, including tools to aid in content discovery, engagement, and monetization on their platforms. This suite enhances audience recirculation and offers various monetization opportunities, leveraging proprietary technology like Keystone by Outbrain for ad server optimization.
A branding platform that offers publishers and advertisers a unique technology to foster brand awareness and engagement through customized content experiences.
Outbrain's artificial intelligence platform provides customized experiences to users, powered by predictive engines that tailor content and advertisements to individual preferences, ensuring higher engagement rates.
The company delivers compelling video experiences aimed at both publisher audience development and advertiser objectives, incorporating formats like outstream video and contextual pre-roll video for an engaging viewer experience.
Outbrain provides tools and services for media partners to promote organic editorial content, thereby enhancing audience engagement, content recirculation, and unlocking new monetization avenues.
Outbrain's advertising solutions bridge the gap between advertisers and their desired audience segments. The offerings include a variety of ad experiences such as standard native ads, carousel, app install ads, high-impact display, and more. Coupled with AI-powered prediction engines, these solutions help advertisers optimize their campaigns to achieve specific business outcomes.
This tool leverages engagement data and machine learning to tailor bid strategies, optimizing each campaign to meet the advertiser's goals efficiently.
Outbrain offers comprehensive targeting solutions based on consumer interest segments, employing complex algorithms that predict audience characteristics based on contextual and interest data to deliver tailored ad experiences.
A cornerstone of Outbrain's service offering, this platform enables advertisers to fine-tune their campaign strategies focusing on engagement, goal optimization, and measurement of business outcomes, supported by a full-stack buying solution.