Outbrain Inc. reported a revenue of $889.9 million for the fiscal year ending December 31, 2024, a decrease of 4.9% from $935.8 million in 2023. The decline was attributed to a net revenue retention rate of 88% from existing media partners, which resulted in lower ad impressions. However, the company saw a 6% increase in revenue from new media partners, contributing approximately $60 million to the total. The gross profit for 2024 was $192.1 million, reflecting a gross margin of 21.6%, up from 19.7% in the previous year, primarily due to reduced traffic acquisition costs.
In terms of operational changes, Outbrain completed the acquisition of Teads on February 3, 2025, for approximately $900 million, consisting of $625 million in cash and 43.75 million shares of common stock. This acquisition is expected to create one of the largest omnichannel advertising platforms, enhancing Outbrain's capabilities in driving outcomes across various digital environments. The company anticipates that the integration of Teads will provide significant synergies and operational efficiencies, although the financial results of Teads will not be included in Outbrain's financial statements until the next reporting period.
The company also announced a restructuring plan in connection with the acquisition, which involves a workforce reduction of approximately 15%. This plan is expected to incur charges between $20 million and $25 million, primarily for severance and related costs. As of December 31, 2024, Outbrain had approximately 1,800 employees, with a significant portion located in Israel, where ongoing geopolitical tensions may impact operations.
Outbrain's financial outlook remains cautious due to macroeconomic uncertainties, including inflation, geopolitical tensions, and fluctuating advertising demand. The company reported a net loss of $0.7 million for 2024, compared to a net income of $10.2 million in 2023, influenced by acquisition-related costs and a pre-tax gain from the repurchase of convertible debt. The company expects to continue focusing on innovation and expanding its product offerings to drive future growth, particularly in the rapidly evolving digital advertising landscape.
About Outbrain Inc.
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