Outbrain Full Year 2023 Earnings: EPS Misses Expectations

Outbrain (NASDAQ:OB) Full Year 2023 Results

Key Financial Results

• Revenue: US$935.8m (down 5.7% from FY 2022).
• Net income: US$10.2m (up from US$24.6m loss in FY 2022).
• Profit margin: 1.1% (up from net loss in FY 2022).
• EPS: US$0.20 (up from US$0.44 loss in FY 2022).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Outbrain EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 22%.

The primary driver behind last 12 months revenue was the Europe, The Middle East and Africa (EMEA) segment contributing a total revenue of US$552.6m (59% of total revenue). Notably, cost of sales worth US$751.0m amounted to 80% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to US$96.9m (51% of total expenses). Over the last 12 months, the company's earnings were enhanced by non-operating gains of US$16.6m. Explore how OB's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 9.8% growth forecast for the Interactive Media and Services industry in the US.

Performance of the American Interactive Media and Services industry.

The company's shares are up 9.9% from a week ago.

Risk Analysis

You still need to take note of risks, for example - Outbrain has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.