Q3 2024 Outbrain Inc Earnings Call
They should know subsequent reports filed with the Securities and Exchange Commission forward looking statements speak only as of the original date and we do not undertake any duty to update such statements.
Today's presentation also includes references to non-GAAP financial measures you should refer to the information contained in the company's third quarter earnings release for definitional information and reconciliations of non-GAAP measures to the comparable GAAP financial measure at all.
Our earnings release can be found on our IR website investors the outbreak dot com under news and events.
David: With that let me turn the call over to David.
David: Thank you Sara.
David: Good morning, and thank you for joining us today.
David: I'd like to start with a brief update on the status of the transaction will be teeth were still on track to close in Q1 2025 at the plant.
David: We have cleared the necessary regulatory reviews in the U S and several other countries and are progressing and the remaining geography.
We have a shareholder meeting to approve the deal set for December 5th.
David: We're very pleased to report that the integration planning process is progressing smoothly contributing to our excitement about the opportunity.
David: Envision regarding the synergies.
David: Now, let me provide an update on Q3 and progress against our 2024 growth drivers.
For Q3, I'm pleased to report that <unk> delivered extra gross profit within our guidance range, we exceeded our adjusted EBITDA guidance and we generated positive free cash flow for the fifth consecutive quarter.
David: I want to highlight that we do X tens of dollars year over year before I'll take the last five quarters. The other quarter was flat.
David: And ex Tac margin has improved year over year for six consecutive quarters. Despite the headwinds of one significant talk.
David: We believe that these results are driven by positive trends in our core business and momentum across our growth pillars.
David: Our first pillar refers to expanding our share of wallet with brands and agencies as well as performance advertisers.
David: Gaining traction with our cross sell solutions from branding performance delivering on our full funnel value proposition.
David: U S advertisers, including Disney Amazon embed them in invested in both all been performance solutions and on expanding solutions showcasing the benefits of leveraging both product to drive incremental outcomes.
David: On the performance side.
David: I'll bring DSP previously known as the Manta continues to see steady adoption <unk>.
David: Advertisers are increasingly embracing our platform towards comprehensive tooling and ability to drive scale performance across the open internet.
David: This allows us to capture allowed us show.
David: With a 60% year over year increase India advertising and on this platform year to date.
David: Moving onto our second growth pillar for 'twenty 'twenty four we've continued to expand beyond our traditional feed opening new opportunities for advertisers to drive results.
David: This revenue, which is generated pump supply beyond what traditional feed.
David: <unk> represented approximately 28% of total revenue in Q3 2024 compared to 26% in Q3 of last year.
David: We have continued to grow this metric quarterly for the last six consecutive quarters, demonstrating our focus on expanding our inventory of diversity.
David: We believe this expanded supply is also a key enabler to power the type of outcome at scale across the open internet.
David: Our third pillar refers to our continued focus on deepening our premium media owner partnerships, a key strategic asset of all business.
David: These relationships ensure steady base premium exclusive inventory, while giving gold grade unique contextual and engagement insights that fuel our performance and predictive capability.
David: We successfully renewed agreement with tomo, both important publishing partners, including Huffington post and material in France.
David: We also secured new business about the shakes from competitors and launched new partners, including sports one in Germany, and where it is and use Mccain Japan.
David: This again demonstrate our superior value proposition when it comes to strategic relationships with premium publishers globally.
David: Now I'd like to give an update on some of our recent product and technology advancements.
David: In September we successfully launched moments buyout Duane in beta.
David: On a personal level I truly believe moments is one of the most exciting product excuse me in our space in the last few years.
David: Moments brings the immersive experience of social media to the open Internet transforming golf feeds on traditional publishers into vertical video environment with Swipeable navigation.
David: Data published shows like extra screen going fortune use their own professional vertical video content to create entirely new audience engagement opportunities on both sides.
Brian: Brian its benefit by extending the impact of the social creative asset.
David: That sounds like tick tock and wheel to the open internet trading at premium to screen video experience.
David: [music].