NASDAQ$TEAD

TEAD Holdings Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced financial results exceeding Adjusted EBITDA guidance and ending the quarter at the high end of Ex-TAC gross profit guidance.

Outbrain's Q2 2023 results showed a revenue of $225.8 million, a net income of $11.3 million, and an Adjusted EBITDA of $3.5 million. The company exceeded its Adjusted EBITDA guidance and ended the quarter at the high end of its Ex-TAC gross profit guidance. The launch of Onyx by OutbrainTM, a new branding platform, is expected to significantly increase the company's total addressable market.

  • Revenue was $225.8 million, a 10% decrease year-over-year.
  • Net income was $11.3 million, compared to a net loss of $10.3 million in the prior year period.
  • Ex-TAC gross profit was $54.6 million, an 8% year-over-year decrease.
  • Adjusted EBITDA was $3.5 million, compared to $5.9 million in the prior year period.

Headline financials

Total Revenue

$226M

Previous: $251M-10.0%
EPS (adj)

-$0.08

Previous: -$0.19+57.9%
Ex-TAC Gross Profit

$54.6M

Previous: $59.3M-7.9%
Adjusted EBITDA

$3.5M

Previous: $5.9M-40.7%
Capital Expenditures

-$5.09M

Previous: -$10.4M+50.8%
Free Cash Flow

$6.19M

Previous: -$20.7M+129.9%
Net Income

$11.3M

Previous: -$10.3M+209.3%
Operating Income

-$7.66M

Previous: -$2.88M-166.0%
Gross Profit

$44M

Previous: $48.7M-9.6%
Cash & Equivalents

$59.8M

Previous: $391M-84.7%
Total Assets

$634M

Previous: $794M-20.2%
Stock-Based Comp

$3.5M

Previous: $3.36M+4.1%

Revenue & EPS history

Outbrain · Revenue · Quarterly

$226M

Q2 2023-10%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

Outbrain provided guidance for the third quarter and full year 2023.

Tailwinds

  • Ex-TAC gross profit of $56.5 million to $59.5 million for Q3 2023.
  • Adjusted EBITDA of $7.5 million to $9.5 million for Q3 2023.
  • Ex TAC Gross Profit of at least $237 million for full year 2023, consistent with previous guidance
  • Adjusted EBITDA of at least $30 million for full year 2023, increasing previous guidance

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-3.1%

Avg return

Earnings day

-5.3%

Avg return

5 days after

-8.2%

Avg return

30 days after

35%

8 / 23 earnings

Positive

+20.4%

Q1 2026

Best reaction

-45.9%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+20.4%+9.4%+38.5%
Q3 2025-45.9%-38.8%-58.5%
Q1 2025-2.0%-14.7%-20.4%
Q4 2024-3.3%-13.1%-30.1%
Q3 2024+5.0%+7.6%+30.0%
Q2 2024-3.7%-2.1%-0.8%
Q1 2024+1.6%+1.6%+2.9%
Q4 2023-11.3%-7.4%+1.0%
Q3 2023-13.2%-12.9%-7.4%
Q2 2023+10.7%+12.2%+2.5%
Q1 2023+2.2%+2.4%+29.7%
Q4 2022+13.3%+11.2%-4.0%
Q3 2022+18.9%+10.1%-9.3%
Q2 2022-13.7%-20.8%-36.6%
Q1 2021-0.5%-2.1%-8.1%
Q1 2022-23.3%-23.7%-31.7%
Q4 2019-1.1%-3.7%-10.7%
Q4 2021-9.6%-18.5%-17.7%
Q3 2020+4.7%+3.6%-11.6%
Q3 2021-2.7%-1.1%-15.4%
Q4 2020-2.5%-4.0%-8.8%
Q2 2020-2.5%-4.0%-8.8%
Q2 2021-13.1%-13.1%-12.6%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q4 2011
Q3 2011
Q2 2011

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