Outbrain Inc. Stock Research

Market Summary

USD3.96-0.19

Delayed

-4.58%

OB Stock Price

OB RSI Chart

OB Valuation

Market Cap

206.8M

Price/Earnings (Trailing)

-8.41

Price/Sales (Trailing)

0.21

EV/EBITDA

1.9K

Price/Free Cashflow

-21.63

OB Price/Sales (Trailing)

OB Profitability

Operating Margin

20.71%

EBT Margin

-1.11%

Return on Equity

9.83%

Return on Assets

2.94%

Free Cashflow Yield

-4.62%

OB Fundamentals

OB Revenue

Revenue (TTM)

992.1M

Revenue Y/Y

-10.94%

Revenue Q/Q

12.64%

OB Earnings

Earnings (TTM)

-24.6M

Earnings Y/Y

-119.89%

Earnings Q/Q

-67.58%

Price Action

52 Week Range

3.3311.54

(Low)(High)

Last 7 days

-6.2%

Last 30 days

-20.2%

Last 90 days

10.9%

Trailing 12 Months

-64.1%

OB Financial Health

Current Ratio

1.81

Debt/Equity

1.05

Debt/Cashflow

-0.07

OB Investor Care

Buy Backs (1Y)

7.89%

Diluted EPS (TTM)

-0.44

Financials for Outbrain

* denotes actual numbers (not divided by Thousands)
Income Statement (Last 12 Months)					(In Thousands)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Revenue	-3.1%	992,082	1,023,785	1,045,552	1,041,822	1,015,630
Gross Profit	-9.1%	192,653	212,024	230,379	240,722	240,260
Operating Expenses	-3.1%	206,201	212,865	230,563	220,872	205,704
S&GA Expenses	-2.0%	108,816	111,054	110,249	103,313	95,786
R&D Expenses	-5.1%	40,320	42,466	43,214	41,169	39,169
EBITDA	118.2%	6,841	-37,650	-15,806	-	-
EBITDA Margin	118.6%	0.01*	-0.04*	-0.02*	-	-
Earnings Before Taxes	-63.7%	-18,573	-11,348	-54,453	-29,770	-14,535
EBT Margin	78.7%	-0.01*	-0.05*	-0.03*	-	-
Interest Expenses	-0.9%	7,625	7,697	7,429	5,665	3,964
Net Income	-211.1%	-24,581	22,122	-27,160	-1,641	10,995
Net Income Margin	183.2%	0.02*	-0.03*	0.00*	-	-
Free Cahsflow	-402.1%	-34,291	11,349	36,402	-	-

* denotes actual numbers (not divided by Millions)
Balance Sheet					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Assets	3.7%	781	753	794	804	796
Current Assets	3.8%	501	482	603	616	676
Cash Equivalents	-23.3%	106	138	391	411	455
Net PPE	5.7%	30.00	28.00	-	-	-
Goodwill	0%	63.00	63.00	63.00	63.00	33.00
Liabilities	6.7%	563	528	548	543	539
Current Liabilities	12.9%	300	266	284	277	288
Long Term Debt	0%	236	236	236	236	236
Shareholder's Equity	-3.2%	218	225	247	262	257
Retained Earnings	-2.8%	-179	-174	-169	-159	-157
Additional Paid-In Capital	0.7%	456	453	449	444	435
Accumulated Depreciation	4.0%	77.00	74.00	-	-	-
Shares Outstanding	-2.5%	52.00	54.00	57.00	58.00	57.00

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2022Q4	2022Q3	2022Q2	2022Q1	2021Q4
Cashflow From Operations	121.7%	4.00	-17.58	31.00	49.00	57.00
Share Based Compensation	-14.9%	12.00	14.00	29.00	28.00	26.00
Cashflow From Investing	-12.2%	-317	-283	-65.61	-58.08	-20.10
Cashflow From Financing	18.0%	-31.70	-38.68	319	326	326
Buy Backs	-34.9%	33.00	50.00	29.00	14.00	-

Risks for OB

What is the probability of a big loss on OB?

90.9%

Probability that Outbrain stock will be more than 20% underwater in next one year

76.1%

Probability that Outbrain stock will be more than 30% underwater in next one year.

69.3%

Probability that Outbrain stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does OB drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Outbrain was unfortunately bought at previous high price.

Drawdowns

Returns for OB

Cumulative Returns on OB

Which funds bought or sold OB recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-02-28	Voya Investment Management LLC	reduced	-2.67	-2,573	54,427	-%
2023-02-15	Jasper Ridge Partners, L.P.	unchanged	-	-318	64,682	-%
2023-02-15	MetLife Investment Management, LLC	new	-	80,610	80,610	-%
2023-02-15	Metropolitan Life Insurance Co/NY	new	-	9,506	9,506	-%
2023-02-15	JANE STREET GROUP, LLC	new	-	132,155	132,155	-%
2023-02-15	Virtu Financial LLC	new	-	92,000	92,000	0.01%
2023-02-15	ALLIANCEBERNSTEIN L.P.	new	-	41,992	41,992	-%
2023-02-15	CI Private Wealth, LLC	new	-	50,329	50,329	-%
2023-02-15	Altshuler Shaham Ltd	sold off	-100	-596,000	-	-%
2023-02-14	Graham Capital Management, L.P.	sold off	-100	-170,000	-	-%

Latest Funds Activity

Are funds buying OB calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own OB

No. of Funds

Outbrain News

Schedule 13G FIlings of Outbrain

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 14, 2023	eggers barry	0%	0	SC 13G/A
Feb 13, 2023	baupost group llc/ma	15.47%	9,593,231	SC 13G/A
May 31, 2022	bertelsmann se & co. kgaa	6.30%	3,603,179	SC 13G
Feb 14, 2022	viola ventures iii, l.p.	11.4%	6,345,789	SC 13G
Feb 14, 2022	eggers barry	11.4%	6,306,314	SC 13G
Feb 07, 2022	gemini israel iv limited partnership	7.0%	3,897,152	SC 13G

OB Fair Value

Recent SEC filings of Outbrain

View All Filings

Date Filed	Form Type	Document
Mar 15, 2023	10-K	Annual Report
Mar 15, 2023	S-8	Employee Benefits Plan
Mar 09, 2023	4	Insider Trading
Mar 09, 2023	4	Insider Trading
Mar 09, 2023	4	Insider Trading
Mar 09, 2023	4	Insider Trading
Mar 08, 2023	3	Insider Trading
Mar 03, 2023	3/A	Insider Trading
Mar 03, 2023	3/A	Insider Trading
Mar 02, 2023	8-K	Current Report

Latest Insider Trading transactions for OB

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-03-07	Galai Yaron	sold (taxes)	-6,802	4.77	-1,426	co-founder and co-ceo
2023-03-07	Kostman David	sold (taxes)	-10,193	4.77	-2,137	co-chief executive officer
2023-03-07	Bradshaw Wenkai	sold (taxes)	-2,654	4.77414	-556	cao & vp corporate controller
2023-03-07	Kiviat Jason	sold (taxes)	-13,561	4.77	-2,843	chief financial officer
2023-01-06	Galai Yaron	sold (taxes)	-6,822	4.03	-1,693	co-founder and co-ceo
2023-01-06	Kostman David	sold (taxes)	-10,232	4.03	-2,539	co-chief executive officer
2023-01-06	Kiviat Jason	sold (taxes)	-1,857	4.03	-461	chief financial officer
2023-01-06	Bradshaw Wenkai	sold (taxes)	-1,857	4.03	-461	cao & vp corporate controller
2022-12-07	Bradshaw Wenkai	sold (taxes)	-1,993	3.58518	-556	cao & vp corporate controller
2022-12-07	Kiviat Jason	sold (taxes)	-10,292	3.61	-2,851	chief financial officer

About Outbrain

Yaron M. Galai

www.outbrain.com

1020

Outbrain Inc., together with its subsidiaries, operates an online content recommendation platform worldwide. It offers Outbrain Engage, a product suite for media partners that provides personalized feeds and data-driven recommendations, as well as a solution to maximize user engagement. The company's Outbrain Engage solution also includes a web-based dashboard to manage and control various aspects of the platform, including content, formats, sources, frequency, and categories of ads delivered on their properties, as well as monetizes the content through customized data-driven advertising. It also provides Outbrain Amplify, a product suite for advertisers that provides an open web platform that helps users to connect with audiences on premium digital properties. The company's Outbrain Amplify solution also provides advertisers with access to ad inventory that support various formats, including text and image, video, interactive carousel, app install, and other forms of direct response; and ads optimized for engagement. Outbrain Inc. was incorporated in 2006 and is headquartered in New York, New York.

OB Income Statement

2022-12-31

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Revenue	$ 992,082	$ 1,015,630	$ 767,142
Cost of revenue:
Traffic acquisition costs	757,321	743,579	572,802
Other cost of revenue	42,108	31,791	29,278
Total cost of revenue	799,429	775,370	602,080
Gross profit	192,653	240,260	165,062
Operating expenses:
Research and development	40,320	39,169	28,961
Sales and marketing	108,816	95,786	77,570
General and administrative	57,065	70,749	48,354
Total operating expenses	206,201	205,704	154,885
(Loss) income from operations	(13,548)	34,556	10,177
Other expense, net:
Charges related to exchange of senior notes upon IPO	0	(42,049)	0
Interest expense	(7,625)	(3,964)	(832)
Interest income and other (expense) income, net	2,600	(3,078)	(1,695)
Total other expense, net	(5,025)	(49,091)	(2,527)
(Loss) income before provision (benefit) for income taxes	(18,573)	(14,535)	7,650
Provision (benefit) for income taxes	6,008	(25,530)	3,293
Net (loss) income	$ (24,581)	$ 10,995	$ 4,357
Weighted average shares outstanding:
Basic (in shares)	55,615,385	35,159,757	16,816,178
Diluted (in shares)	55,615,385	53,894,347	20,186,802
Net (loss) income per common share:
Basic (in usd per share)	$ (0.44)	$ 0.31	$ 0.10
Diluted (in usd per share)	$ (0.44)	$ 0.20	$ 0.08

OB Balance Sheet

2022-12-31

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 105,580	$ 455,397
Short-term investments in marketable securities	166,905	0
Accounts receivable, net of allowances	181,258	192,814
Prepaid expenses and other current assets	46,761	27,873
Total current assets	500,504	676,084
Non-current assets:
Long-term investments in marketable securities	78,761	0
Total property, equipment and capitalized software, net	39,890	28,008
Operating lease right-of-use assets, net	11,065	0
Intangible assets, net	24,574	5,719
Goodwill	63,063	32,881
Deferred tax assets	35,735	32,867
Other assets	27,556	20,331
TOTAL ASSETS	781,148	795,890
Current Liabilities:
Accounts payable	147,653	160,790
Accrued compensation and benefits	19,662	23,331
Accrued and other current liabilities	126,092	99,590
Deferred revenue	6,698	4,784
Total current liabilities	300,105	288,495
Non-current liabilities:
Long-term debt	236,000	236,000
Operating lease liabilities, non-current	8,445	0
Other liabilities	18,812	14,620
TOTAL LIABILITIES	563,362	539,115
Commitments and Contingencies (Note 9)
STOCKHOLDERS’ EQUITY:
Common stock, par value of $0.001 per share − 1,000,000,000 shares authorized, 60,175,020 shares issued and 52,226,745 shares outstanding as of December 31, 2022; 1,000,000,000 shares authorized, 58,015,075 share issued and 56,701,394 shares outstanding as of December 31, 2021.	60	58
Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of December 31, 2022 and December 31, 2021	0	0
Additional paid-in capital	455,831	434,945
Treasury stock, at cost − 7,948,275 shares as of December 31, 2022 and 1,313,681 shares as of December 31, 2021	(49,168)	(16,504)
Accumulated other comprehensive loss	(9,913)	(4,474)
Accumulated deficit	(179,024)	(157,250)
TOTAL STOCKHOLDERS’ EQUITY	217,786	256,775
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 781,148	$ 795,890