The following is a summary of the Outbrain Inc. (OB) Q1 2024 Earnings Call Transcript:
Financial Performance:
Outbrain reported a Q1 2024 gross profit of $52.2 million and an adjusted EBITDA of $1.4 million.
They also generated a positive free cash flow of $4.6 million.
Revenue for this quarter was approximately $217 million, a decrease of 6% year-over-year.
Operating expenses decreased by approximately 5% year-over-year to $48.2 million.
A new product launched in the second half of the previous year generated about $15 million in revenue, with continued growth observed in subsequent quarters.
Business Progress:
Outbrain is strategically aiming to become one of the largest gateways to the open internet for advertisers, hence, focusing on three key pillars: expanding share of wallet with advertisers, growing share from performance advertisers, and expanding their supply footprint.
The brand-building offering, Onyx, saw revenues in Q1 exceeding $7 million.
They saw an increased total spend through Zemanta by approximately 40% in Q1 2024 compared to Q1 of last year.
The company is extending efforts in taking advantage of AI to boost operational effectiveness and business efficiency.
The usage of predictive capabilities for brand building campaigns is recording positive trends and Outbrain is strategically moving some performance advertisers with large elastic budgets to its Zemanta DSP platform for better Return on Ad Spend (ROAS).
New tools have been introduced that improve ROAS for advertisers by enabling them to test different types of images and texts, thereby optimizing their campaigns.
More details: Outbrain IR
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