Leading recommendation platform for the open web, Outbrain, has announced its financial earning results for the second quarter that ended June 30, 2021.
Co-founder and Co-CEO, Yaron Galai says: “The IPO is an exciting milestone and the start of our journey as a public company. I am excited for this next chapter and the opportunity to continue leading the growth of the open web as we remain focused on our mission of delivering products that delight users and generate long term value for our media owner and advertiser partners.”
Second Quarter 2021 highlights:
- Revenues increased 57 percent year over year to $247.2 million. Revenue grew approximately 50 percent, or $79 million, from net revenue retention on existing media partners and approximately 7 percent, or $12 million, from new media partners.
- Gross profit increased 84 percent year over year to $59.1 million.
- Ex-TAC Gross profit increased 68 percent year over year to $66.8 million, compared to $39.7 million, primarily driven by revenue growth and favourable revenue mix from higher margin media partners and improved performance on media owners with guarantee arrangements.
- Net income increased to $15.2 million, compared to a net loss of $2.6 million year over year.
- Adjusted EBITDA increased over 4x to $24.6 million compared to $5.2 million year over year primarily driven by the increase in Ex-TAC Gross profit, partially offset by operating expense growth as the company continued to invest in growth.
- Generated $16.5 million of free cash flow; cash and cash equivalents were $111.3 million as of June 30, 2021.
In July 2021, Outbrain completed its IPO raising $160 million in gross proceeds, and completed the sale of $200 million aggregate principal amount of senior subordinated secured notes due July 1, 2026 in a private placement, which were subsequently exchanged, upon completion of the IPO, for the company’s 2.95 percent Convertible Senior Notes due 2026.
Following these transactions, net of estimated expenses, the company’s pro forma balance of cash and cash equivalents as of June 30, 2021 was approximately $450 million.
Co-CEO David Kostman says: “This quarter was another clear demonstration of our leadership in technology and product which continue to drive value for our media partners and advertisers, resulting in a net revenue retention rate of 150 percent.”
For more on the Second Quarter, click here.