Strong Q1 Performance
Outbrain Inc. achieved its Q1 guidance for Ex-TAC gross profit and adjusted EBITDA, marking a successful integration of Teads and realizing financial benefits from the merger.
Revenue Growth
The company reported Q1 revenue of approximately $286 million, reflecting an increase of 32% year over year on an as-reported basis, driven by the acquisition of Teads.
Ex-TAC Gross Profit Increase
Ex-TAC gross profit for Q1 was $103.1 million, marking a 98% increase year over year, driven by the acquisition and favorable revenue mix changes.
CTV Revenue Growth
Connected TV (CTV) revenue grew over 50% year over year in Q1, now representing approximately 5% of total ad spend.
Cost Synergies
The company is on track to achieve $60 million in annualized cost savings by 2026, with $40 million expected in 2025. 90% of compensation-related cost synergies have already been actioned.
Positive Advertiser Feedback
Outbrain reported positive feedback from clients and closed Q1 with over 50 joint business partnerships (JBPs), including new commitments with major brands like Ferrero, Halion, and Philip Morris International.