OB Latest Report

Outbrain's Financial Performance

Outbrain (OB) reported a total operating revenue of RMB234,586,000 as of December 31, 2024, a 5.51% decrease from the same period in 2023. This change reflects the challenges the company faces in the competitive digital advertising market, which may affect its profitability and market competitiveness.

Key Financial Data

1. Outbrain's total operating revenue in 2024 was RMB234,586,000, a 5.51% YoY decrease.

2. The average monthly active users (MAU) in the first quarter of 2024 was 46.62 million, a 17.4% YoY increase.

3. The number of paid enterprise customers reached 5.7 million, a 42.5% YoY increase, setting a new record.

4. Outbrain added 17 million new users in the first quarter of 2024, with an expected full-year target of 40 million.

5. Outbrain completed the acquisition of Teads in 2025 for approximately US$900 million, aiming to enhance its advertising platform capabilities.

Peer Comparison

1. Industry-wide Analysis: The digital advertising industry faced a slowdown in 2024, with many companies experiencing a decline in revenue due to macroeconomic and market competition. According to industry reports, the global advertising market is expected to grow 9.5%, with digital advertising growing 12.4%.

2. Peer Evaluation Analysis: Outbrain's total operating revenue decreased more significantly compared to its competitor Taboola. Taboola's cumulative revenue in the first three quarters of 2024 was US$1.275 billion, a 25.03% YoY increase, indicating its strong performance in the market.

Summary

Outbrain's revenue decline reflects the challenges it faces in the digital advertising market. Although its user growth and paid customer count increased, the overall revenue decline and strong performance of competitors may suggest that its market positioning or product strategy needs adjustment. The company's recent acquisition may help enhance its advertising platform capabilities, but it may still face market pressure in the short term.

Opportunities

1. User Growth: The rapid user growth in the first quarter of 2024 indicates the company's enhanced ability to attract users.

2. Acquisition Integration: After acquiring Teads, Outbrain has the opportunity to enhance its market competitiveness through resource integration.

3. Digital Advertising Market Growth: The global digital advertising market is expected to continue growing, which Outbrain can leverage to expand its market share.

Risks

1. Intensified Competition: The digital advertising industry is highly competitive, which may continue to squeeze Outbrain's market share.

2. Revenue Fluctuation: The short-term revenue decline may affect the company's profitability and financial health.

3. Macroeconomic Uncertainty: Fluctuations in the economic environment may lead to reduced advertising spending by clients, affecting overall revenue levels.