NEW YORK - Outbrain Inc. (NASDAQ:OB) reported mixed first quarter results on Friday, with revenue falling short of expectations but adjusted earnings beating estimates.
The company, which recently acquired Teads to form a combined entity operating under the Teads brand, saw its shares rise 0.57% in pre-market trading following the release.
The digital advertising company posted adjusted earnings per share of ($0.20) for Q1, surpassing analyst estimates of ($0.14). However, revenue came in at $286.4 million, missing the consensus forecast of $298.95 million.
Outbrain’s revenue increased 32% year-over-year, primarily due to the Teads acquisition. Ex-TAC gross profit, a key metric for the company, nearly doubled to $103.1 million compared to $52.2 million in the prior year period.
"We are off to a strong start following the completion of the combination with Teads," said David Kostman, CEO of Teads. "In the first quarter, we delivered financial results above the mid-range of our guidance, while closing the acquisition, issuing five-year senior secured notes, and reaching many major milestones of integration and synergy realization."
For the second quarter, Outbrain expects adjusted EBITDA between $26 million and $34 million. The company maintained its full-year 2025 outlook for adjusted EBITDA of at least $180 million.
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