Outbrain

Outbrain is an algorithm-based content recommendation and discovery platform that curates native advertising content from the open web, providing personalized content for brands to increase customer engagement. Outbrain’s customers include leading news media outlets such as CNN, MSN, and Sky News, serving more than a billion monthly users (by September 2021). Outbrain also allows content publishers to amplify its reach by supplying content to the platform. As of September 2021, customers could access 7,000+ online content sources including content by the Washington Post, Guardian, and BBC. 

Outbrain has been a pioneer in the content recommendation space and was the first to introduce an algorithm-based content recommendation in 2008. It was also the first to introduce a self-service platform for content recommendation in 2012. Outbrain has made a series of acquisitions over the years while making enhancements to its product offerings. In May 2021, it tested “QualityRatings,” a tool that implements quality guidelines for the content featured on its platform while using machine learning and AI to create a more personalized user experience. In April 2022, Outbrain’s platform was integrated with ID5 to provide a privacy-first customer identification solution. In September 2022, the firm launched Keystone , a business optimization solution for publishers. In November 2021, Outbrain acquired vi , a contextual video intelligence platform for USD 55 million to grow it's CTV and other display ads offerings.

Funding and financials

Outbrain’s revenue model is structured as a “pay per click” model with the revenue being shared with publishers of the content. In FY 2022, the firm reported a revenue of USD 992.1 million (a 2% YoY dip). For the full year of 2023E, the firm expected to achieve a minimum Ex-TAC gross profit of USD 237 million and generate an adjusted EBITDA of at least USD 28 million.

Outbrain was listed on the NASDAQ in July 2021, where it raised USD 160 million at a valuation of USD 1.25 billion. Ahead of its listing, Outbrain also raised USD 200 million in the form of senior subordinated secured notes from Baupost Group. Since then the firms share price has fallen steeply, and as of July 2022 the firm was  worth USD 300 million, equivalent to a ~75% drop in its value. In response, Outbrain is reported to have shed ~3% of its total workforce .