OUTBRAIN INC Reports First Quarter Earnings Results for FY2023

Earnings Overview

On May 9 2023, Outbrain Inc ($NASDAQ:OB) reported the financial results for the first quarter of the fiscal year ending March 31 2023. Total revenue for the period was USD 231.8 million, an 8.8% decrease from the same quarter in the prior year. Net income for the quarter was a loss of USD 5.6 million, which was more than double the net loss of USD 1.9 million recorded in the corresponding period of the previous year.

Stock Price

In particular, the company’s stock opened at $3.8, and closed at $3.6, representing a decrease of 1.9% from the prior closing price of $3.7. OUTBRAIN INC‘s earnings report revealed a mixed performance for the quarter. This decrease in profit was largely attributed to increased expenses related to marketing and research & development. Despite the lower than expected performance, OUTBRAIN INC’s outlook for the coming year remains optimistic.

The company expects to continue to capitalize on its strong presence in the digital media advertising market with its innovative technology platform and data-driven algorithms. Furthermore, OUTBRAIN INC plans to continue to invest heavily in research and development with a focus on further optimizing its platform in order to create deeper engagement with users and drive a better customer experience. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Outbrain Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Outbrain Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Outbrain Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Outbrain Inc are shown below. More…

Analysis

At GoodWhale, we conducted an analysis of OUTBRAIN INC‘s fundamentals and arrived at a medium risk rating for the company. This means that there is an element of risk associated with investing in OUTBRAIN INC, both in terms of financial and business aspects. To help our users understand these risks, we have identified two risk warnings in the company’s cash flow statement and financial journal. To get a detailed report on these risks, we encourage our users to become registered with GoodWhale. More…

Peers

Headquartered in New York City, the company was founded in 2006 by Yaron Galai and Ori Lahav. Outbrain operates in 55 countries and is a publicly traded company listed on the Nasdaq Stock Exchange. Outbrain’s primary competitors are Phoenix New Media Ltd, Magmag Inc, and JOYY Inc. all of which are based in China.

– Phoenix New Media Ltd ($NYSE:FENG)

Phoenix New Media Ltd is a leading new media company in China. The Company provides content on an integrated platform across Internet, mobile and TV devices. It offers a selection of professional media and user-generated content, including news, sports, entertainment, lifestyle and other content, to consumers in China. The Company also operates an online advertising network.

– Magmag Inc ($TSE:4059)

Magmag Inc. is a publicly traded company with a market capitalization of 1.72 billion as of 2022. The company has a return on equity of 1.64%. Magmag is a leading provider of magnesium products and services. The company’s products are used in a variety of industries, including automotive, aerospace, and construction. Magmag’s products are sold to customers in more than 50 countries around the world.

– JOYY Inc ($NASDAQ:YY)

JOYY Inc. is a leading live streaming and social media platform in China. The company has a market cap of 1.99B as of 2022 and a Return on Equity of 1.9%. JOYY Inc. operates two popular live streaming platforms in China, YY Live and Bigo Live. YY Live is one of the largest live streaming platforms in China with over 100 million monthly active users. Bigo Live is a leading live streaming platform for gamers and young people with over 50 million monthly active users.

Summary

Outbrain Inc. recently reported their first quarter financial results for the year ending March 31 2023, showing a decrease in total revenue of 8.8% from the year prior and a decline in net income to -5.6 million. For investors, this is an indication of potential difficulties in the current market and it may be wise to closely monitor the company’s performance over the next few quarters. It is important to consider the company’s past performance as well as their competitive landscape before investing. Furthermore, investing in more established and profitable companies may be the more prudent option at this time.