OB - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to Outbrain, Inc.'s Second Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Anthony Erasmus. you. Thank you, to sir. over And

Anthony Erasmus

morning, you today's joining on thank call Good to results. for conference XXXX discuss us quarter and Outbrain's second

and the have David on today, and Co-CEO, Co-Founder Kostman; Kiviat. me Co-CEO, Yaron Jason Joining CFO, Galai; call Outbrain's we

will for ended management filed our the as our Factors are XX-K year current results statements forward-looking XXXX, statements Form to to cause ended Form forward-looking actual risks Risk and differ call, expectations XXXX, conference our based discussed in filed Securities detail in XX, the assumptions. updated Commission. from and XX-Q December in statements. this with These and Exchange reports are make subsequent for During March our and may materially in the quarter These subject XX, on uncertainties that

only Forward-looking such to duty the to non-GAAP of undertake date financial also references call's update not do and includes as measures. statements speak we any statements. presentation Today's original

quarter the refer to to GAAP should You of financial non-GAAP measures. and the second the for measures comparable contained in definitional information reconciliations Company's earnings information release

found can investors.outbrain.com the Our let over turn under section. With on and be our that, me IR earnings call David. to the release News website, Events

David Kostman

and morning. good Hi,

$X.X report of to million. We are and profit gross delivered for headwind, macroeconomic QX Ex-TAC EBITDA the we despite pleased that guidance continuing on with provided million we of adjusted $XX.X

At a share the grew X% market a on by currency or high-level, revenues also basis. hand, on We owners. gaining we X% one media with significant are constant

deepening stronger operationally, the impacting to financial time, out the focused users, at At coming cost are are engagements us we of be to advertisers, the long-term reduction investments our the drive making downturn same and this efficiency. of our that our growing number the worsening our also so efforts will number position negatively and Therefore, declines on environment results. positive are with market growing in overall are we macroeconomic advertising metrics. active same time, We of and

our Let's move and supply to the start with business side.

to share market set new, several increase with long-term one SCIRP core publisher our company grow We footprint a device pages Fox, large we on brands our to announced expansion programmatic such our deals These We demand deals. the years have direct footprint when many as save acquisitions platform also data high and with with expanding existing placement, with up wins publishers, for monthly, we Xiaomi our which growth year launched by We're with In QX, large, of partnership of leveraging the launched recovers. publishers, in win channels, including new others. we have our continued partnership areas, side. significant our greatly much renewed on publisher faster experience Meredith, technology. many Springer, and any advertising leveraging to video Axel supply and previously quality,

the are exclusive publishers news top five exclusive the agreement publisher this the recommendation By and in content solution. publisher. launched U.S. of top editorial of we signed an a We post rating have to and global in on August, implemented several multi-year U.S. publisher quality wins we getting RPM. large of premium quarter, we momentum impact now on the adding the By is the with four to U.S. partner way, our using extended are feedback in-house Also and our the publishers And the quality positive fifth

for open in it advertisers if brand U.S., is must our a web So feed the there buy is.

partnership. totality tremendous length short-term of typically wins them additional the A the These of to in of looking about We and deals model and are words at growth. potential this expect supply impact we few announce the analyze near-term. multi-year major the the

much are We under to as market contract. long-term smart choosing gain locked share

is side our this combining full rollout take getting the However, see with guidance. in optimization can and advertiser as time you short-term impacting initial softness negatively our from results will to the on

comprising to the the technology continues performance algo and of SmartLogic believe core this and of one will over SmartLogic, our over this desktop differentiators improving and growth. support the is on publisher network adoption our front, On mobile key in XX% of integration. continuously platform of our and continue partner to that grow We're XX% win

Now, turn to let me the side. demand

brands, significantly But base declines to Compared double-digits double-digit our continue our We last enterprise in softness to by drive performance expanded grown have we metrics we've great CPCs, grew business year, industry engagement exchange. marketers the core demand our seen direct also in hit QX. year-over-year, year-over-year our see by to advertiser pricing. high in and growth has delivering seeing progress which with and impacted down foreign are

are calls, we As brand previous in we on business. focused expanding our mentioned

the and enable brands Currently, a publisher interaction. hub with higher these team data, demand than in the are with brand this food this quickly for focus comparable we are the by softness initial with To of performance believe advertisers. major XX% for premium a page agency gross direction helping and time more budgets us win maximum our further for running launched quarter we along premium quality show and effort, land as Our to the an and for across and account brand brand this benchmark to where the on engagement auto for XX% auto premium certain experience type long-term resource platform market. brand than get of up more we publishers than memorable globally recognized performance designed This Brand and campaigns our the category But quality a more are looking in in user and categories Europe, for improve the working in budget particularly who is more brands premium the industry in brand brand budget brand player to support times to impacted auto successful three new benchmark. Studio, initiative limit beverage their engagement right market. of dedicated our to offering. According short-term internal this compared our results called is and the

to me said presence cautious another we over accurately That to macro at times are in responsible and control. our terms a negatively the of have perspective, a coming we Let of that we investments the disappointed organization. cost of Conditions will of come And real but monetization on. very be the these a position in Europe and things I'm business. about opportunity where are to the I we we on which impacted out quarter ended environment Jason, act and to deteriorated we a impacted future. markets we particularly elaborate exchange cycles, you to and time. to the is outlook as strategic up, our by through trend. HX, to personally difficult these our the will fiscally manner. as will revenues on provide the this as we which continue stronger trusted predict long-term to our And outlook. large our be ability technology, Having gone recalibrate will for of remain on controlling capabilities From supply future and believe high-level are this globally, adjustments the our a impact disciplined building position from position, sum and great We're quality times in make challenges that focused investing the on target in testament in XX% of strength further are wins in base, engagement and and the and account stronger to in Japan, revising results rates. Therefore, and by competitive are our focused download are our more a this such partnerships. responding can Jason dispute sure hear to the uncertainty downturn. monitor but made We've making uncertainty of major us our we

as situation gains we shift lock While measurable also stronger pay on challenging, the of and in core we deprecation the our agency and for off right third-party advertising believe and brand commitment advertisers, We the when supply importance of macroeconomic is stabilize shareholders it secular We current expansion our digital, driver such economic publishers of opportunity and demand. premium for a believe to to driving we industry conditions to will the see budgets as is that provide up cookies expect of trends results one our that tremendous marketing opportunities. quality our business, that focus more to Outbrain with our of the continuing shareholders. see

despite So investing top headwind, focused in on growth the we our area. will remain

our million that, net and it of sheet We support long-term to strategy. our I great Yaron. strong cash opportunity is us. over compelling in turn have investment front over to We the thesis in of conviction we believe growth a have with With will $XXX balance

Yaron Galai

David. Thanks,

our our the offense now blanket, and at our to understand times" core bring our advertiser and demand of for This this We was we're by growth. our those and at with view yields some partners. budgets. we typical metaphor. case. more that explain grow operates by right our I albeit the mentioned, are two-sided We Before The the blanket expanding imbalance. enlarge intentionally typically signing now We XXX%. period bed in bed advertisers in budgets making supply strong indicator pricing our indicator look supply is bed. advertising a blanket harder The we bed entire building side see. blanket internally accelerated bullish a how great for resulting how usual we're and changes coverage, David adding I is into well is for important locking play two-sided bed the blanket currently especially bed demand over bed headwinds partnerships. while of partnerships then historically blanket to We the cover and with are that's about an their uncertainties. That still We symbolizes time the predict, to about which our update at The ad to the long-term managing as our opportunity us Keystone, frameworks to than macro future a times time bigger at but when our bed symbolizes on to also grow at step ability side cover building blanket the of softer more headwinds to for the right blanket partnerships by right the of longer-term pace. marketplace macro in "normal In using the marketplace matched new in over think want our marketplace like our the

is growth roughly our conditions we're we a stabilize To approach will of land we environment be few We summarize well would accelerating of can call. ability for You the may our focus the serve advertising using to this now. at long-term. macro the you somewhat on of business XXX% and feel supply segway this, our therefore, to that our you to first is on or periods update these than in This to recall higher the make contrarian. fact our seen and publisher quite our we've But new roughly leveraging This topic. quarters, we're which land the enhanced demand are that softer I'll of which overtime was Outbrain slowdown blanket quarters. growth earnings It our at this to pricing I'm introduced confident X% macro the new rebound. next and preceding by in last growth new see progress We're business, in Keystone, the higher. of and our second confidence opportunities believe rates that on excited in on albeit expand as part. that that focus like right easier thicker a to yield expand probably coverage, partnerships adds gain roughly investment And XX% the in ad approach. shareholders good side

business the reminder, a introduces business and optimizing be platform maximizing journey Keystone experience. user model diverse delivered for owners a and As overall will Outbrain for is their as media software-as-a-service new Keystone while outcomes, solution.

we technology puts formally way quarter. two on partners large excited initially early U.S. in work the it a it to it publisher. out We We will beyond with bring I'm Outbrain one rolled expanding now the for user financial design owners. first media chain higher launching including our continuing an We're the including value into up layer. this investment Keystone platform partners we've that work partners, design is later extending publisher's update we with the these design to in media value to The a premium publisher. to of news product best the journey develop advertising doubled early with. Europe be optimization four to very strategic owners

new perform with ads as of Keystone for editorial same many technology best-in-class to seek doing to it for has and content e-commerce revenue sources as the of such them diversify years. Now, been optimization be subscriptions our will as many well-positioned and

that, I'll discuss quarter. the our to it over with Kiviat, Now CFO to this Jason hand financial

Jason Kiviat

Thanks, Yaron.

May. by QX As XX% platform. EBITDA XX%, David technology across mentioned, last beyond a both points the levels the for for despite this revenue demand call of This Ex-TAC gross improvements deterioration was our new shared further impact environment, our material our X% $XXX the reflecting quarter growth X% of profit that opposing rate seeing to few and year-over-year, achieved seen contributed and supply basis. revenue drives we retention factors. on as our The industry. to XX revenue increased in media currency guidance year-over-year we well result our monetization QX million our demand a growing percentage offset on constant the demand Revenue reflected approximately as was partners of retention the adjusted net reducing headwind on levels engagement, net being largely our growth and of Adding increased in

with Yields overall on David lower more was that than reflects healthy demand. offset platform on on were by and ad platform. our supply what in for the reduction the First growth yields driven impressions our advertising shared of by down pricing pressure consistent

$XX driven Ex-TAC of on increased by to currency million mix was decreased year-over-year approximately One unfavorable few basis gross factors. decreased year-over-year revenue. revenue X% Our a a XX% profit and constant

or X to our we Two, part mix. media down by points certain by and lower margin we yields lower in As past, year-over-year due yield. said partners see to up percentage on performance lower the driven X typically in fluctuate the

but Europe, both put existing added on it in has and have supply deals relationships past, In period. certain the period, addition, pressure supply the we we the new in onboarding where typically particularly investment of the seen soft demand is the an during more meaningful new environment,

expect coming quarters. the grow We headwind to in out of this

algorithmic increased revenue expenses. increased year-over-year, vi year-over-year costs, $XX million Other by yield to our driven in to costs personnel-related capacity optimization efforts. Moving improvement and headcount our facilitate increase was expenses year-over-year, reflecting approximately our million $X investment to acquisition from of higher approximately January. approximately including Operating increased through $X million serving growth from

higher As back to operations. prior as marketing quarter, costs COVID noted associated and being have facility expenses in are we T&E impacted with higher activity also normal the and by comes public seeing more

constant As of original reduction by since months on a we and efforts as EBITDA savings in annual were our the $X.X issued in on our these with million. of second than $X.X in QX, currency implementing our $XX versus total, an an Adjusted cost XXXX cost plan. the and guidance are to management estimated personnel-related prior May. current million quarter, improvement million process More with actions was headwinds. by adjust of basis, mentioned a emphasis efficiencies. In we was took of last half business compared to our EBITDA series than found half benefit to XX% adjusted reduce increased cash We these XXXX, costs recent more efforts in additional expects

and to we use liquidity. Next, was timing period define cash to as CapEx provided with software The due purchases. flow, a activities cash million. cash lower server net profitability capitalized $X Free from which the of less operating use costs approximately of and in cash of moving of

and of of balance For capital We the $XX million the and full-year long-term the a quarter with equivalents million on of million we convertible ended expenditures. cash cash expect of total $XXX XXXX, to million debt. $XXX sheet $XX

authorized approximately program. million million. million X.X on we remaining the with including purchase share total that shares availability commissions, a Through million, XX, previously $XX.X of our $XX.X repurchased XX, announced $XX we have for a July under program Board February Lastly, of

our Now, turning outlook. to

patterns of As year year. continued QX of see generally XXXX produce David continue this we've increasing The to before have for on growth started the we discussed, for the seen uncertainty headwinds HX plans into our seen course volatile a off seeing demand HX. that target and over

our the growth forward, with ramp-up the our view seasonality, softness. In publisher low As guidance, Europe advertising expect be particularly in provided in deals the moderate point we have context, in With QX. of a we we of guidance. assume overall sequential new that look following combined to QX we and

$XX For QX, we million. $XX Ex-TAC to and adjusted breakeven we of expect million of EBITDA $X negative million, gross profit expect to

further $XX For full-year changes gross million $XXX This EBITDA XXXX, no and of guidance we million profit macro assumes expect Ex-TAC conditions. least and at in adjusted material respectively.

Now, I'll for it turn the operator back Q&A. to

Operator

we Ladies Instructions]. stage, and this [Operator Thank a at session. you, sir. question-and-answer will conducting be gentlemen,

Ross from first we is have The -- question

Ross Sandler

Hey guys --

Operator

The Ross Barclays. first question from is from we have Sandler

Ross Sandler

you guys, me? Hey hear can

Yaron Galai

Yes.

David Kostman

Ross. Hey,

Ross Sandler

okay. guys, Hey

Just David, so sure. on your is I service up making noticed Fox's website.

large about not kind we've but a agreement? digital one which seen wins right the this lot. one a of and categories color XX% do so, broadly landscape, a in David about? now the kind guys additional did you're the second that or for you ad then share is So what assumes or are decline a any given the off And on that Jason, that Thanks linearity, XQ If minimum one, most guarantee what talking the is of on guess publisher I ex-FX, you're rev standard the new U.S. on dropping guide FX basis. constant what surprising geographies in of seeing or

David Kostman

first the take I'll Ross, one. Hey

a need Vox. call big Fox yes, mentioned I F-O-X, to want big mentioned new So on with actually on on We us the see we one. we Fox.

Fox. deal So that's my accent. It's V-O-X, big but new is

partner us four being the five. mentioned the I So as of that top puts for

we no Washington affiliation. York Post, Fox, CNN, New have so political So Post

portfolio. specifics part a long-term It's with deal Fox I publisher, guarantee very competitors. go where about worked happy with is would Jason. different but say They've And position. question that aligned of We're of the happy. into We one. So we second the deal, interest with not we excited so that very that our to are don't

Jason Kiviat

hear Can Sure. me? you

Ross Sandler

Yes.

Jason Kiviat

Yes. great. Okay,

we've over on year. demand deteriorate of seen QX, this So the course

uplift a spend optimistic agencies new than taken as particularly and We the last well ramp cost do up on Cup down World cautiously to further year. because patterns, And when in Europe. of gave ago. we Springer of this from pulling see as Europe, which is we be point holiday faster that saving elections there other low point and from even quarter onto there. we're XX% is as months is QX business and of between spend to low we seen. anyway, see brand pretty our we part supply you know, It's generally as the expected the that out May, our expect some bit, about in early actions just few Now, we And of we've business and some well point tend of the on the a more a QX or as guidance that a announced our call. the is on but seasonal you we have seasonal we're to back Axel XX% especially advertisers there businesses have platforms. season, and QX our integrating been in as optimization on recover as with and do a brand us, and benefit the agency expect Europe segments That's and of includes we is more pointed That Fox for mentioned the seasonality those higher been heavy agency

Operator

we question from Andrew next is The you. from JMP Boone have Thank Securities.

Andrew Boone

guys about have then past, timing context normalized Were the industries any today. questions, recover broadly? it do back you more you And that my does pull have pulled and start want guys of and morning. a good back when people back any there any there guys gambling To to talk understood, a think to going how guys, Thanks the Hi are about been pull it some blanket secondly, more -- have publisher, take in going the major of can one demand to that of for analogy? can in wider seen kind kind little back? that exposure or kind some advertisers we an the what you guys think long much. blanket there As may is How weaker? macro of it talk add so that back, bed the may is been anything bit you we environment, when of to can issue questions. for you you do off, Ross' taking start and to guys you crypto For have highlight? worried of I Thanks here, about pulled

David Kostman

want take you first? Yaron second. to Maybe the take I'll the

Yaron Galai

Thanks, Andrew. Sure. Sure.

business, change step and of in I said, of blanket terms as bed kind So bed thing. the visit

are a set discussed, So advertiser, decisions that takes just of either big expand we digital partners they add new normal and their over there's as non-incident see more that that bed. change budgets by the in Comforting said there step to size times, campaign, their ones time. we is again up the in for the I that blanket an There's These and time. step length as to make up changes happening. or a we it's size; bed how know how of we're quick. It's that's the going I Again better. ad macro to this the still seeing coverage time we long than environment, budgets, said, we the when usual. take. taking know as ramp is In know pretty XXX% to longer in ramp how We up

comfort that seeing keep what's they return marker positive the that's -- in more performance us We're to adding in So seeing spend advertisers demand. spending. are ad giving keep

coverage. inner entire to but So blanket of It's it's it's again, environment, long hard that's to that in with we it's that exactly the things happening the covered hard how both longer. a really macro going kind we're happen. still seeing -- take predict given But to XXX% event, going

and by -- we're adding in partnerships. supply or playing that's more comfort have adding offense, distribution that We why

bed. imagine So building we once like playing on offense

David Kostman

six-year take answer a that, multi-year time confident mean, These bit they the some deals to some take time. very deals; I They may them. we I deals. it's mean, more Andrew, hi, little are three in of are I'll because weakness. of David. the

overall them. I of know the in So it parts to of that exclusive access And done presence feed terms. strategy. of trying are into then much at We've to other it past. our strategy the plus on page sort have we data sort that in articles. there we partner of expand, top to bigger data And other presence full be mid-article of for of sort part a inventory attractive our placements, we to leverage the the our how leverage technology as publishers feed, is order We feed get to monetization. the on mean, of and we feed of model sort

feed bidding and is premium. and the critical that. the are we And on So also focused side, the demand technology on for very higher brands

vi So of we -- acquisition that. is part

So we that the growth second. on a in way. monetize agencies, and much touch which on mid-article on a helps us I better brands The them upon those to see placements in

in Studio, being and in weakness article, the the able of to video, too, but in full feed, I terms terms sort the is strategy, both brands page, really invested the In and Brand offer the which of to the strategy agencies, mentioned. of

confident these getting and inventory and So securing exclusive And are of the is it. that's strategy model. just very the overall we that into to part in deals access

demand It's negative In company. in of Europe, on terms large. think Japan half I of the is almost of very mentioned It's impact, in our brands. generally more presence impact we mid-XX%s. sort the

clearly see we weakness So there.

particular quiet. see and to still We than any brands weakness diversified in -- more rate, which Europe, we have one performance. declines have crypto we exposure specific don't pretty relatively at mean, I all. some in in on is fill generally But And verticals, tech. weakness more by significant we We So We saw declines -- automotive. right. at gambling in to XXX% all, automotive,

So there's no there. exposure

Operator

Instructions]. next is [Operator you. we have Evercore. from Khajuria Shweta question The from Thank

Shweta Khajuria

we from And try coming for that product should from meaningful, scale a has but with now an changed you be partners. year, get Keystone, as revenue your to to know Possible sense have or that? you. being in and four you of aggressive opportunity this that Thank Okay. I anything expectation Thank may be so go-to-market strategy may incremental too you. that? have think about product how

David Kostman

Thanks, Shweta. Yaron?

Yaron Galai

that. take I'll Yes.

probably So financial projections the we not this, only not any even haven't product we on launched shared yet.

in later So this we're launching quarter.

New exciting products our time And to ways. few TAM what's within investment me this that take Keystone a long-term this build our that The to on out. expands like a is -- is side.

eCommerce feed one that including us resource beyond of the and subscriptions. way are above looking to play diversify it these with lets So so the or outside the helping is cultures revenue ads,

within So potential to not key Keystone. use that necessarily and other this on is any operating publisher [ph] the but play the to going owns chooses

So revenue that's where additional TAM. and advertising in in increase obviously those are playing those are to newsletters, significant all embedded eCommerce And to subscription in publishers that one looking spaces the diversify. areas that is

The other way, that publishers itself. this the are play from and with media using us brand owners expands our think TAM is, necessarily let not our

partners, else design the and of using past Keystone. for example one in which So someone for feed the brand using our

is cookies. general is looking media especially how is with for importance publishing important, happening directions not and advertising better future everything of registration eCommerce the most TAM with compared different that's subscriptions, source hearing the revenue really this Keystone in a with obviously look they're really [indiscernible] of many looking retail for in, but to good of I of or the cultures, that those expansion all with They're all most going where footstep us at aligning the us. for so important in from at we're this additional an that's And So one think to

Shweta Khajuria

Okay. Thanks, Yaron.

David Kostman

looking core business. in I helpful level on up point of we best on mean relationship, our long-term schedule, create their stronger would case part discussion partners. so it have choose It's best just and more important and on at being publishers people sort I it's would is more very page roadmap, on being comes data. with sort sort us and the those add is this when feed part this top with of companies -- of vision. that. In technology, entrenched I mean, on Shweta, every of one And super whole the publishers, I of technology and

to really but TAM, core there's the a position. increases strengthen the it and sort So also of lot

Operator

Laura from Martin Instructions]. [Operator you. have Needham. The from Thank last we this question

Laura Martin

Hi there.

maybe is So first on couple, the guarantees. one a

remind us the is seems it yield can Because your So lowering me guarantees bad. work? you to how

XXX Your rate basis by up take went points.

So yield you're paying doing to understand I why everyone demand when just taking softer and fall basically out that. allowing don't exactly by higher we're rev your share to a

your explain the So can quarter? Please. percent what of with and in tax guarantees you

David Kostman

for David. question. thanks your Laura, Hey It's

And account complicated. portfolio about and so of of are the XX% some guarantees overall these for

So you measures exceed step-ups, levels. when play have different you come have different certain into steps, you

of and because pinpoint coming down demand So they specific but it's those it primarily it's deals. of is XX% mentioned to is of thinking rev to last when natural a negatively a that come course mean, difficult enter number, them. different really year, I to one of soft I which are CPC, arrangements. of But a some potentially sort of type RPMs very so business does share, XX%, sort and impact actually

Laura Martin

Okay.

then because then strategy hurts which which low XXX supply, the on stay So yield, point points, you demand, have add would actually. which steps why average your rate, just soft by payout you your which you lowers ever basis up

David Kostman

Okay.

a we -- report we yes, on quarterly have strategy. long-term basis, but we and So vision

and mean optimization weeks deals to takes time I stronger, ramp they take even I and always create to to when months optimize mean was the side potentially. up the deploy there these So demand environment those

very much just part of we And the believe the long-term. it's So model. in

So these once mean go don't I feed, we into have deals to -- we are lose that money. deals

four, on six-year five, sort and money at basis. the the models make of deals do we three, look and we So

great we I So think opportunity. see now

we're have that, to attractive where great brand That mean, access mid-article, anchor that up I a leadership a think most today if very very position, so look into that to agency interest great a at I of mean, the inventory. four We France, video and creates markets most we're in -- in I Japan, who we for whole in move big the I strong for mentioned have advertisers and Germany, Spain, growing us chain package our markets video, more placement in-stream the are makes the I strong to advertisers. open know, in position, in five; other major very I really U.S. to of and committed the out-stream web helps exclusive much

the it's see as in mix. and by And great believe mix. plus is So in business again FX and is low. -- in strategy primarily percent our is way, it's and Japan about the Europe softness that's XX% in you by XX overall not correct. The brand primarily days driven we has It a about company, of a it's also these agency Europe, XX%. impact but our terms short-term, the

on monetization more for shareholder page relationship Keystone, quality the demand, sort think approach. focused of stronger mold long-term. on right strategy very to are not of that publishers, mean that's pivoting is impacted still this budgets I with on build are very focused the all and way in value and other the our these areas. I We're currently. sort premium we're focusing We're core believe to on And So

Laura Martin

your of mix talk in about Could with about Wall great. here Can as I'm your part channel sort you you happening on as Okay, interested is the shifts? what's Street. revenue rates video, which talk of total we video think all mix? about

David Kostman

pretty stay of video around low-double-digits, XX% around minus. stable high-single-digits, the like plus generally sort So anywhere

currently strong a are presence I on real we we don't CTV. -- We mean, have --

on We publishers that. good strategically, the working into see going play traction I to core. we future the are looking vi and into mean the with there. well. want integration We is We the acquisition, integrated

take when are are that are CTV. part better the at I and the shifts view, you the enjoying universe now companies to of think the budgets you look enjoying right rates macro TV from of growth still ones again, that linear whole

enjoying advertising sort the we hoping shift of I'm will market it's are years So that today. is to coming stronger but have a not the budgets not strategy the there. we of that CTV, slower,

Laura Martin

for Yaron, the can four last think plan when evil on start And from do on Keystone? your congratulations when -- revenue feels like it is see Keystone, point my you one is material about of partners you view we What to then working. your

Yaron Galai

Thanks, Laura.

mentioned we So design start We're closely with. are at the first, as launched partners. the formally this of not question, I Yes, working have these product.

goes. really but kind meaningful launch of but questions. of how I'll in them, revenue, customers of from terms answer your both and revenue generating Also front it see in first it maybe are We

impact we've biggest Shweta's a to these and of I publishers. geographically And we've customers I we taken with partners. the that size where four the -- think of missed going is seen Is mix larger that -- question. is both think the seen we've in probably with be

a significant diverse forward. are and the [indiscernible] going to again think have of optimize those We definitely that's audiences of so sources opportunity And lot -- revenue for.

So that's where future, it's the you we're the then going to future We’ll keep updating. but in talk to for small update quarters. product

Laura Martin

it that XXXX, So off the answer like you're future. to like pushing is the it -- my question sounds to is

is to when material going have question. to the That's XXXX answer So revenue. we're my

Yaron Galai

customer's again that giving to do. there at there, in obviously [indiscernible] goes launch be this and from get long-term are looking of will this terms we're how And first real in in guidance being it investments. as embedded hands there and see quarter Again, on we we need

Laura Martin

very Thanks much. Okay.

David Kostman

Wanted previous Laura question your your question previous answer to to the -- margin. on

position expect Obviously go see are we impacted focused and now them rebound, future. we Ex-TAC those we right and of very believe in what and the with demand sort for now, we we'll and them I hopefully. want that's accelerated and are that So the us we confident now to yield growth very are making dollars. also but right mean to are will on investments we you back doing extremely well

Operator

Ladies you. our reached we and Thank of gentlemen, session. end question-and-answer have the

the Now, I for would back call remarks. closing like to David turn Kostman to

David Kostman

next Thank you. seeing call. look Thank you Thank on forward for We you. you to all our joining.

Operator

conference. concludes that and Thank Ladies joining you. us today's here. gentlemen, for you Thank

disconnect You may your now lines.

Outbrain (OB) 11 Aug 222022 Q2 Earnings call transcript