Outbrain Reports Second Quarter 2021 Results
Leading Open Web Referral Platform Outbrain Announced Financial Results for the Second Quarter Ended June 30, 2021.
Co-Founder and Co-CEO, Yaron Galai said: “The IPO is an exciting step and the start of our journey as a public company. I look forward to this next chapter and the opportunity to continue to lead 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 owners. and our advertising partners.
Highlights of the second quarter of 2021:
- Revenue increased 57% year-on-year to $ 247.2 million. Revenue increased by approximately 50%, or $ 79 million, thanks to the retention of net revenues from existing media partners and approximately 7%, or $ 12 million, from new media partners.
- Gross profit increased 84% year-over-year to $ 59.1 million.
- Non-TAC gross margin increased 68% year-on-year to $ 66.8 million from $ 39.7 million mainly driven by revenue growth and favorable revenue mix from margin plus media partners performance and improved performance of media owners with warranty agreements.
- Net income increased to $ 15.2 million, compared to a net loss of $ 2.6 million year over year.
- Adjusted EBITDA quadrupled to $ 24.6 million from $ 5.2 million year-on-year mainly due to higher gross margin excluding APR partially offset by growth in expenses operating as the company continued to invest in growth.
- Generated $ 16.5 million in free cash flow; cash and cash equivalents amounted to $ 111.3 million as at June 30, 2021.
In July 2021, Outbrain completed its IPO raising gross proceeds of $ 160 million and completed the sale of a total principal amount of $ 200 million of senior subordinated secured notes due July 1, 2026. as part of a private placement, which were then traded, following the IPO. , for the company’s 2.95% convertible senior bonds maturing in 2026.
As a result of these transactions, net of estimated expenses, the Company’s pro forma cash and cash equivalents balance as at June 30, 2021 was approximately $ 450 million.
Co-CEO David Kostman said, “This quarter has been another clear demonstration of our leadership in technology and products that continue to drive value for our media partners and advertisers, resulting in a high retention rate of 150% net income. “
To learn more about the second trimester, click here.