NEW YORK - Outbrain Inc. (NASDAQ:OB), a prominent technology platform specializing in driving engagement across the internet, has announced a shift in its leadership structure. Effective April 1, 2024, David Kostman will take over as the sole CEO of the company. Yaron Galai, the co-founder and current co-CEO, will step down from his executive role but will continue as the Chairman of the Board and serve as an advisor until the end of 2024.
Galai, who has been at the helm of Outbrain for over 17 years, expressed pride in the company's achievements and confidence in its strategic direction, highlighting the development of new offerings such as Onyx and Keystone. He praised the team's capabilities under Kostman's leadership.
Kostman, acknowledging the contributions of his colleague, is looking forward to driving the company towards renewed growth and increased profitability. He emphasized the team's commitment to innovation within the industry.
Shlomo Dovrat, independent Lead Director of the Outbrain Board, thanked Galai for his pioneering work and for steering the company to its current status as a billion-dollar enterprise. The board expressed its confidence in the seamless transition to Kostman's leadership, noting his respect within the company, among market partners, and shareholders.
Outbrain, founded in 2006 and headquartered in New York, has established a global presence with its AI and machine learning technology, partnering with over 8,000 online properties worldwide. The company has offices across the United States, Europe, Asia-Pacific, and South America.
This leadership transition is based on a press release statement from Outbrain Inc.
InvestingPro Insights
As Outbrain Inc. (NASDAQ:OB) prepares for a leadership transition with David Kostman at the helm, investors and market watchers may find the latest metrics and insights from InvestingPro particularly valuable. The company's market capitalization currently stands at $196.11 million USD, reflecting the scale of its operations within the technology and engagement sector.
Despite the challenges faced by the company, one of the InvestingPro Tips notes that Outbrain holds more cash than debt on its balance sheet, which could provide a cushion for strategic maneuvers or weathering economic fluctuations. Additionally, another tip points out that the company's management has been aggressively buying back shares, a sign that could be interpreted as confidence in the company's value proposition and future prospects.
InvestingPro's real-time data further illustrates the financial landscape of Outbrain, with a Price / Book ratio of 0.9 as of the last twelve months ending Q3 2023, which may indicate that the company's stock is potentially undervalued relative to its book value. Moreover, the company has a Gross Profit Margin of 19.0% for the same period, a figure that speaks to its ability to retain earnings after the cost of goods sold has been accounted for.
In the context of the company's future, it is noteworthy that analysts have revised their earnings downwards for the upcoming period, according to InvestingPro Tips. This is an important consideration for investors who are evaluating the implications of the new CEO's strategies and the company's growth trajectory.
For those looking to delve deeper into the financials and forecasts for Outbrain Inc., InvestingPro offers additional tips and a comprehensive suite of tools. Interested readers can access these by visiting the dedicated page for Outbrain at https://www.investing.com/pro/OB. Moreover, users can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 9 InvestingPro Tips for Outbrain Inc. to inform their investment decisions.
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