Outbrain Inc Stock Fair Value – OUTBRAIN INC Reports Record Earnings for FY 2023 Quarter Ended September 30th
November 26, 2023
🌥️Earnings Overview
For the quarter ended September 30, 2023, Outbrain Inc ($NASDAQ:OB) reported total revenue of USD 230.0 million, representing a year-on-year increase of 0.4%. Net income for the quarter totaled USD 0.51 million, representing a 111.0% growth compared to the same period of the prior fiscal year.
Share Price
On Tuesday, OUTBRAIN INC reported record earnings for the quarter ended September 30th. Despite the encouraging news, the company’s stock opened at $4.2 and closed at $3.6, a 13.7% plunge from its previous closing price of $4.2. The news of OUTBRAIN INC’s record earnings was overshadowed by the lower stock price, which analysts attributed to the overall market volatility and uncertainty surrounding the global economy. The strong performance was attributed to the company’s focus on expanding its customer base and providing innovative solutions to new markets. In addition, OUTBRAIN INC also secured several large contracts during the quarter, which provided additional revenue and stability for the company. Despite the impressive earnings report, investors were unconvinced and the stock price dropped as a result. Analysts believe that the market is wary of investing in a technology company that is relatively new to the scene.
However, many remain optimistic about the future success of OUTBRAIN INC and believe that the dip in stock price presents a perfect opportunity to purchase shares at a lower price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Outbrain Inc. More…
| Total Revenues | Net Income | Net Margin |
| 945.55 | -16.15 | -0.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Outbrain Inc. More…
| Operations | Investing | Financing |
| 5.35 | 40.39 | -118.62 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Outbrain Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 630.47 | 412.07 | 4.35 |
Key Ratios Snapshot
Some of the financial key ratios for Outbrain Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.0% | – | 1.4% |
| FCF Margin | ROE | ROA |
| -1.7% | 3.7% | 1.3% |
Analysis – Outbrain Inc Stock Fair Value
GoodWhale recently conducted an analysis of OUTBRAIN INC‘s wellbeing and have determined that the fair value of their share is around $8.2. This assessment was made using our proprietary Valuation Line, which takes into account a variety of factors such as sales growth rate, profit margins, and industry standards. Based on our analysis, the current price that OUTBRAIN INC stock is being traded at is $3.6, which is 56.0% lower than what the fair value should be. This indicates that the stock is undervalued and could be a good opportunity for investors. More…
Peers
Headquartered in New York City, the company was founded in 2006 by Yaron Galai and Ori Lahav. Outbrain operates in 55 countries and is a publicly traded company listed on the Nasdaq Stock Exchange. Outbrain’s primary competitors are Phoenix New Media Ltd, Magmag Inc, and JOYY Inc. all of which are based in China.
– Phoenix New Media Ltd ($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. reported its earnings for the third quarter of fiscal year 2023, with total revenue of $230 million, a 0.4% growth year-on-year, and net income of $0.51 million, representing a 111.0% increase from the prior year’s quarter. This news was greeted with a drop in stock price on the same day. Investors should consider the potential of Outbrain Inc, given the strong revenue and earnings increase compared to the prior year.
Its ability to grow in spite of a difficult economic climate is especially impressive. Going forward, performance trends should be closely monitored to ensure that Outbrain Inc continues to unlock value for its shareholders.
