On February 27, 2025, Outbrain Inc. (Nasdaq: OB), now operating under the Teads brand, disclosed its financial results for the fourth quarter and full year ended December 31, 2024. The company reported a mixed performance in its financial metrics while emphasizing its commitment to growth and strategic synergies following the recent acquisition of Teads.

1. Key Financial Metrics Overview

Fourth Quarter Highlights

For the quarter ended December 31, 2024, Outbrain reported:

Revenue: $234.6 million, a decrease of 5% from $248.2 million in the same period in 2023.

Gross Profit: $56.1 million, marking a 5% increase compared to $53.2 million a year earlier.

Net Loss: $(0.2) million, a stark contrast to the net income of $4.1 million reported in Q4 2023.

Adjusted EBITDA: $17.0 million, reflecting a 21% increase from $14.0 million in the previous year.

Full Year Performance

For the twelve months ending December 31, 2024, the company recorded:

Revenue: $889.9 million, down 5% from $935.8 million in 2023.

Gross Profit: $192.1 million, up 4% year-over-year.

Net Loss: $(0.7) million, significantly down from the net income of $10.2 million in 2023.

Adjusted EBITDA: $37.3 million, a substantial 31% increase from $28.5 million in the prior year.

2. Strategic Developments

Merger with Teads

In a significant move, Outbrain completed its acquisition of Teads on February 3, 2025, valued at approximately $900 million, which included $625 million in cash and 43.75 million shares of Outbrain common stock. This merger is expected to enhance Outbrain’s position in the digital advertising landscape, merging the branding and performance capabilities of both companies into a formidable Open Internet platform.

Financial Structure Adjustments

Following the acquisition, Outbrain entered into a credit agreement with Goldman Sachs Bank and U.S. Bank Trust Company, among others, establishing a new $100 million revolving credit facility, set to mature in 2030. Additionally, the company completed a private offering of $637.5 million in senior secured notes, aiding in the repayment of a bridge credit facility used for acquisition financing.

3. Operational Highlights

Outbrain reported continued growth in its Ex-TAC gross profit, which rose by 7% year-over-year to $68.3 million, alongside improvements in gross margins.

The company achieved its fifth consecutive quarter of year-over-year revenue per thousand impressions (RPM) growth.

The introduction of the 'Moments' offering received strong initial feedback, already integrated with more than 40 publishers, including notable names like NewsCorp Australia and Rolling Stone.

4. Future Outlook

2025 Guidance

Moving forward, Outbrain provided guidance for Q1 2025, projecting Ex-TAC gross profit between $100 million and $105 million, and adjusted EBITDA between $8 million and $12 million. For the full year 2025, the company expects adjusted EBITDA of at least $180 million, reflecting the anticipated synergies from the Teads merger.

Closing Thoughts

David Kostman, CEO of Outbrain, expressed optimism about the merger's potential, noting, “The combination of Outbrain and Teads will better serve enterprise brands and agencies, delivering elevated outcomes across a variety of media environments.” As Outbrain transitions to the Teads brand, stakeholders will be closely watching how these strategic moves translate into growth and profitability in a competitive digital advertising market.

Original press release