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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___ to ___
Commission file number 001-40643
Outbrain Inc.
(Exact name of registrant as specified in its charter)
Delaware
20-5391629
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
111 West 19th Street, New York, NY 10011
                                 (Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (646) 867-0149
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.001 per shareOBThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes   x   No  o 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  x   No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filer  Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes     No  x
As of July 31, 2023, Outbrain Inc. had 50,972,793 shares of common stock outstanding.


Table of Contents
TABLE OF CONTENTS
Page
Item 1.
Financial Statements
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations
Condensed Consolidated Statements of Cash Flows
Notes to Condensed Consolidated Financial Statements
Legal Proceedings
Signatures
2

Table of Contents
Note About Forward-Looking Statements
This Quarterly Report on Form 10-Q (this “Report”) contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives. You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward-looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to:
overall advertising demand and traffic generated by our media partners;
factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, and other events or factors outside of our control, such as U.S. and global recession concerns, geopolitical concerns, including the ongoing conflict between Russia and Ukraine, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the pace of recovery or any resurgences of the COVID-19 pandemic, and the impact of unfavorable economic conditions and other factors that have and may further impact advertisers’ ability to pay;
our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions;
the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles;
our ability to grow our business and manage growth effectively;
our ability to compete effectively against current and future competitors;
the loss of one or more of our large media partners, and our ability to expand our advertiser and media partner relationships;
our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes;
the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market;
any failure of our recommendation engine to accurately predict user engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners;
limits on our ability to collect, use and disclose data to deliver advertisements;
our ability to extend our reach into evolving digital media platforms;
our ability to maintain and scale our technology platform;
our ability to meet demands on our infrastructure and resources due to future growth or otherwise;
outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure, which could adversely affect our business;
significant fluctuations in currency exchange rates;
political and regulatory risks in the various markets in which we operate;
the challenges of compliance with differing and changing regulatory requirements;
the timing and execution of, and the expected benefits from, our cost-saving measures, including our workforce reduction; any changes in management’s plans, assumptions, estimates and projections with respect to our cost-savings measures; the impact of the cost-saving measures, including the workforce reduction, on our business or strategy; and
the risks described in the section entitled “Risk Factors” in the Annual Report on Form 10-K filed for the year ended December 31, 2022 and elsewhere in this Report.
Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this Report relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law.
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Part I Financial Information
Item 1. Financial Statements
OUTBRAIN INC.
Condensed Consolidated Balance Sheets
(In thousands, except for number of shares and par value)
June 30, 2023December 31, 2022
(Unaudited)
ASSETS:
Current assets:
Cash and cash equivalents$59,802 $105,580 
Short-term investments in marketable securities113,168 166,905 
Accounts receivable, net of allowances168,879 181,258 
Prepaid expenses and other current assets47,336 46,761 
Total current assets389,185 500,504 
Non-current assets:
Long-term investments in marketable securities44,828 78,761 
Property, equipment and capitalized software, net42,092 39,890 
Operating lease right-of-use assets, net13,701 11,065 
Intangible assets, net22,116 24,574 
Goodwill63,063 63,063 
Deferred tax assets34,831 35,735 
Other assets23,790 27,556 
TOTAL ASSETS$633,606 $781,148 
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities:
Accounts payable$140,918 $147,653 
Accrued compensation and benefits16,871 19,662 
Accrued and other current liabilities102,782 126,092 
Deferred revenue6,607 6,698 
Total current liabilities267,178 300,105 
Non-current liabilities:
Long-term debt118,000 236,000 
Operating lease liabilities, non-current10,967 8,445 
Other liabilities17,242 18,812 
TOTAL LIABILITIES$413,387 $563,362 
Commitments and Contingencies (Note 12)
STOCKHOLDERS’ EQUITY:
   Common stock, par value of $0.001 per share − one billion shares authorized, 60,856,628 shares issued and 51,305,013 shares outstanding as of June 30, 2023; one billion shares authorized, 60,175,020 shares issued and 52,226,745 shares outstanding as of December 31, 2022.
61 60 
Preferred stock, par value of $0.001 per share − 100,000,000 shares authorized, none issued and outstanding as of June 30, 2023 and December 31, 2022
  
Additional paid-in capital462,209 455,831 
Treasury stock, at cost − 9,551,615 shares as of June 30, 2023 and 7,948,275 shares as of December 31, 2022
(56,700)(49,168)
Accumulated other comprehensive loss(12,004)(9,913)
Accumulated deficit(173,347)(179,024)
TOTAL STOCKHOLDERS’ EQUITY220,219 217,786 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$633,606 $781,148 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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OUTBRAIN INC.
Condensed Consolidated Statements of Operations
(In thousands, except for share and per share data)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2023202220232022
Revenue$225,800 $250,883 $457,574 $505,099 
Cost of revenue:
Traffic acquisition costs171,224 191,554 350,800 382,250 
Other cost of revenue10,555 10,610 21,598 20,199 
Total cost of revenue181,779 202,164 372,398 402,449 
Gross profit44,021 48,719 85,176 102,650 
Operating expenses:
Research and development10,041 10,519 19,352 20,947 
Sales and marketing25,896 28,122 51,644 55,517 
General and administrative15,743 12,957 31,149 28,991 
Total operating expenses51,680 51,598 102,145 105,455 
Loss from operations(7,659)(2,879)(16,969)(2,805)
Other income (expense), net:
Gain on repurchase of convertible debt22,594  22,594  
Interest expense(1,105)(1,953)(2,972)(3,824)
Interest income and other income (expense), net1,515 (3,828)5,375 (4,909)
Total other income (expense), net23,004 (5,781)24,997 (8,733)
Income (loss) before provision for income taxes15,345 (8,660)8,028 (11,538)
Provision for income taxes4,063 1,658 2,351 670 
Net income (loss)$11,282 $(10,318)$5,677 $(12,208)
Weighted average shares outstanding:
Basic51,223,988 57,590,308 51,329,055 57,414,636 
Diluted56,678,916 57,590,308 51,387,151 57,414,636 
Net income (loss) per common share:
Basic$0.22 $(0.18)$0.11 $(0.21)
Diluted$0.21 $(0.18)$0.11 $(0.21)
See Accompanying Notes to Condensed Consolidated Financial Statements.
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OUTBRAIN INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In thousands)
(Unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net income (loss)$11,282 $(10,318)$5,677 $(12,208)
Other comprehensive (loss) income:
Foreign currency translation adjustments(1,441)(1,996)(2,661)(2,737)
 Unrealized gains on available-for-sale investments in debt securities (net of tax of $45 and $168 for the three and six months ended June 30, 2023)
150  570  
Total other comprehensive loss(1,291)(1,996)(2,091)(2,737)
Comprehensive income (loss)$9,991 $(12,314)$3,586 $(14,945)
See Accompanying Notes to Condensed Consolidated Financial Statements.
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OUTBRAIN INC.
Condensed Consolidated Statements of Stockholders’ Equity
(In thousands, except for number of shares)
(Unaudited)
Common Stock
Additional
Paid-In
Capital
Treasury Stock
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Stockholders’
Equity
SharesAmountSharesAmount
Balance – January 1, 2023
60,175,020 $60 $455,831 (7,948,275)$(49,168)$(9,913)$(179,024)$217,786 
Vesting of restricted stock units, net of shares withheld for taxes
281,469 — — (48,202)(213)— — (213)
Shares repurchased under the share repurchase program— — — (1,313,073)(6,142)— — (6,142)
Stock-based compensation— — 2,895 — — — — 2,895 
Other comprehensive loss— — — — — (800)— (800)
Net loss
— — — — — — (5,605)(5,605)
Balance – March 31, 202360,456,489 $60 $458,726 (9,309,550)$(55,523)$(10,713)$(184,629)$207,921 
Vesting of restricted stock units, net of shares withheld for taxes
400,139 1 (1)(42,065)(189)— — (189)
Shares repurchased under the share repurchase program— — — (200,000)(988)— — (988)
Stock-based compensation— — 3,484 — — — — 3,484 
Other comprehensive loss— — — — — (1,291)— (1,291)
Net income
— — — — — — 11,282 11,282 
Balance – June 30, 2023
60,856,628 $61 $462,209 (9,551,615)$(56,700)$(12,004)$(173,347)$220,219 
Common Stock
Additional
Paid-In
Capital
Treasury Stock
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Stockholders’
Equity
SharesAmountSharesAmount
Balance – January 1, 2022
58,015,075 $58 $434,945 (1,313,681)$(16,504)$(4,474)$(157,250)$256,775 
Exercise of employee stock options, warrants and restricted stock awards, net of shares withheld for taxes411,855 1 2,273 (95,138)(1,425)— — 849 
Vesting of restricted stock units, net of shares withheld for taxes211,713 — — (22,499)(293)— — (293)
Acquisition stock consideration355,786 — 4,190 — — — — 4,190 
Stock-based compensation— — 2,810 — — — 2,810 
Other comprehensive loss— — — — — (741)— (741)
Net loss— — — — — — (1,890)(1,890)
Balance – March 31, 202258,994,429 $59 $444,218 (1,431,318)$(18,222)$(5,215)$(159,140)$261,700 
Exercise of stock options, net of shares withheld for taxes284,1301,4791,479
Vesting of restricted stock units, net of shares withheld for taxes264,0981(1)(38,864)(353)(353)
Shares repurchased under the share repurchase program(1,388,317)(7,501)(7,501)
Stock-based compensation3,586 3,586
Other comprehensive loss(1,996)(1,996)
Net loss(10,318)(10,318)
Balance – June 30, 2022
59,542,657 $60 $449,282 (2,858,499)$(26,076)$(7,211)$(169,458)$246,597 
See Accompanying Notes to Condensed Consolidated Financial Statements.
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OUTBRAIN INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
20232022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$5,677 $(12,208)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Gain on repurchase of convertible debt(22,594) 
Depreciation and amortization of property and equipment3,458 5,160 
Amortization of capitalized software development costs4,909 4,711 
Amortization of intangible assets2,449 3,153 
Amortization of discount on marketable securities(2,098) 
Stock-based compensation6,107 6,090 
Non-cash operating lease expense2,282 2,133 
Provision for credit losses4,835 978 
Deferred income taxes(220)(3,995)
Other(1,436)3,530 
Changes in operating assets and liabilities:
Accounts receivable10,049 8,523 
Prepaid expenses and other current assets(536)(4,598)
Accounts payable and other current liabilities(33,401)(16,123)
Operating lease liabilities(2,145)(1,936)
Deferred revenue(231)904 
Other non-current assets and liabilities4,244 2,548 
Net cash used in operating activities(18,651)(1,130)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of a business, net of cash acquired(285)(34,524)
Purchases of property and equipment(5,091)(10,355)
Capitalized software development costs(5,503)(6,333)
Purchases of marketable securities(60,718) 
Proceeds from sales and maturities of marketable securities151,003  
Other(8)(97)
Net cash provided by (used in) investing activities79,398 (51,309)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt obligations(96,170) 
Proceeds from exercise of common stock options and warrants 3,753 
Treasury stock repurchases and share withholdings on vested awards(7,532)(9,572)
Principal payments on finance lease obligations(1,028)(1,871)
Payment of contingent consideration liability up to acquisition-date fair value(547) 
Net cash used in financing activities(105,277)(7,690)
Effect of exchange rate changes(1,246)(3,875)
Net decrease in cash, cash equivalents and restricted cash
(45,776)(64,004)
Cash, cash equivalents and restricted cash — Beginning
105,765 455,592 
Cash, cash equivalents and restricted cash — Ending
$59,989 $391,588 
RECONCILIATION OF CASH, CASH EQUIVALENTS, AND RESTRICTED CASH TO THE CONDENSED CONSOLIDATED BALANCE SHEETS
Cash and cash equivalents$59,802 $391,409 
Restricted cash, included in other assets$187 $179 
Total cash, cash equivalents, and restricted cash$59,989 $391,588 
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OUTBRAIN INC.
Condensed Consolidated Statements of Cash Flows (Continued)
(In thousands)
Six Months Ended June 30,
20232022
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes, net of refunds$6,080 $2,746 
Cash paid for interest$4,427 $3,733 
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Stock consideration issued for acquisition of a business$ $4,190 
Purchases of property and equipment included in accounts payable$2,424 $32 
Operating lease right-of-use assets obtained in exchange for lease obligations$4,630 $503 
Acquisition consideration payable$285 $12,017 
Stock-based compensation capitalized for software development costs$272 $306 


See Accompanying Notes to Condensed Consolidated Financial Statements.
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)

1. Organization, Description of Business and Summary of Significant Accounting Policies
Organization and Description of Business
Outbrain Inc., together with its subsidiaries (“Outbrain,” the “Company,” “we,” “our” or “us”), was incorporated in August 2006 in Delaware. The Company is headquartered in New York, New York with various wholly-owned subsidiaries, including in Israel, Europe and Asia. In connection with the Company’s initial public offering (“IPO”), its common stock began trading on The Nasdaq Stock Market LLC (“Nasdaq”) on July 23, 2021 under the “OB” ticker symbol.
Outbrain is a leading technology platform that drives business results by engaging people across the open Internet. Outbrain’s technology provides personalization, engagement and monetization solutions to thousands of digital media properties, including a number of the world’s most prestigious publishers. The Company pays traffic acquisition costs to its media owner partners on whose digital properties the recommendations are shown. The Company’s advertiser solutions are mainly priced using a performance-based model based on the actual number of engagements generated by users, which is highly dependent on its ability to generate trustworthy and interesting recommendations to individual users based on its proprietary algorithms. A portion of the Company’s revenue is generated through advertisers participating in programmatic auctions wherein the pricing is determined by the auction results and not dependent on user engagement.
Basis of Presentation
The accompanying condensed consolidated financial statements were prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and are unaudited. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 15, 2023 (“2022 Form 10-K”).
Use of Estimates
The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures as of the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates and judgments are based on historical information and on various other assumptions that the Company believes are reasonable under the circumstances. Estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to, the allowance for credit losses, sales allowance, software development costs eligible for capitalization, valuation of deferred tax assets, the useful lives of property and equipment, the useful lives and fair value of intangible assets, valuation of goodwill, the fair value of stock-based awards, and the recognition and measurement of income tax uncertainties and other contingencies. Actual results could differ materially from these estimates.
Reclassifications
Certain reclassifications have been made to the prior periods’ financial information in order to conform to the current period’s presentation.
Cash and Cash Equivalents and Investments
The Company considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand and highly liquid investments in money market funds, U.S. government bonds and commercial paper. Most of the Company’s cash deposits are above the $250,000 Federal Deposit Insurance Corporation (“FDIC”) limit and, therefore, not insured.
The Company’s investments in debt securities are classified as available-for-sale and are recorded at fair value. The Company classifies its investments in debt securities as short-term or long-term, based on each security’s maturity date. Unrealized gains and losses on available-for-sale securities are recognized in other comprehensive (loss) income (“OCI”), net of taxes.
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Restricted Cash
Restricted cash represents security deposits for facility leases and is included in other assets in the accompanying condensed consolidated balance sheets.
Certain Risks and Concentrations
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, restricted cash, and accounts receivable. The Company’s cash and cash equivalents and restricted cash are generally invested in high-credit quality financial instruments with both banks and financial institutions to reduce the amount of exposure to any single financial institution.
The Company generally does not require collateral to secure accounts receivable. No single marketer accounted for 10% or more of the Company’s total revenue for the three and six months ended June 30, 2023 or 2022, or 10% or more of its gross accounts receivable balance as of June 30, 2023 and December 31, 2022.
During the three and six months ended June 30, 2023 and 2022, none of the Company’s media owners accounted for 10% of its total traffic acquisition costs.
Segment Information
The Company has one operating and reporting segment. The Company’s chief operating decision maker is its Co-Chief Executive Officer who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis.
New Accounting Pronouncements
Under the JOBS Act, the Company meets the definition of an emerging growth company and can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards would otherwise apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the Company is no longer an emerging growth company or until the Company affirmatively and irrevocably opts out of the extended transition period.
Recently Issued Accounting Pronouncements
The Company has considered all new accounting pronouncements and has concluded that based on the current information, there are no new pronouncements that are expected to have a material impact on its results of operations, financial condition, or cash flows.
See Note 1 to the Company’s audited consolidated financial statements for the year ended December 31, 2022 in the Company’s 2022 Form 10-K for a complete disclosure of the Company’s significant accounting policies.
2. Revenue Recognition
The following table presents total revenue based on where the Company’s marketers are physically located:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(In thousands)
USA$68,889 $85,079 $141,105 $170,656 
Europe, the Middle East and Africa (EMEA)134,486 140,293 268,240 279,968 
Other22,425 25,511 48,229 54,475 
Total revenue$225,800 $250,883 $457,574 $505,099 
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Contract Balances. There were no contract assets as of June 30, 2023 or December 31, 2022. Contract liabilities primarily relate to advance payments and consideration received from customers. As of June 30, 2023 and December 31, 2022, the Company’s contract liabilities were recorded as deferred revenue in its condensed consolidated balance sheets.
3. Acquisition
On January 5, 2022, the Company acquired all of the outstanding shares of video intelligence AG (“vi”), a Swiss-based contextual video technology company for digital media owners, for an aggregate purchase price of approximately $54.2 million, which was paid in the form of cash and Outbrain common stock. The equity portion of the purchase price was comprised of 355,786 shares of the Company’s common stock with a fair value of $4.2 million. The first installment of $37.3 million in cash and the equity portion were paid at closing, an additional $10.6 million was paid in the third quarter of 2022, and $1.2 million was paid in the first quarter of 2023. The consideration paid during the first quarter of 2023 included $0.9 million of contingent consideration, $0.5 million of which was recognized on the acquisition date, and $0.4 million recorded as a fair value adjustment in the Company’s consolidated statement of operations for the year ended December 31, 2022, based on the market price of the Company’s stock determined one year from closing. This acquisition expanded the Company’s video product offerings to include in-stream high-quality video content, delivering a better user experience and more value to its advertisers.
This acquisition was accounted for as a business combination under the acquisition method of accounting and the results of operations of vi have been included in the Company’s results of operations since January 5, 2022. The Company incurred transaction costs relating to the vi acquisition of $0.2 million, which were included in general and administrative expenses in the Company’s condensed consolidated statement of operations for the three months ended March 31, 2022.
See Note 2 to the Company’s audited consolidated financial statements for the year ended December 31, 2022 in the Company’s 2022 Form 10-K for additional information relating to purchase price allocation and intangible assets recorded in connection with this transaction.
4. Restructuring

On May 31, 2023, the Company announced a reduction in its global workforce of approximately 10%, to adjust to the continued macroeconomic uncertainty, create additional operating efficiencies, and support the Company’s strategic growth and profitability objectives. The Company began notifying the affected employees of their termination on May 31, 2023 and recognized the majority of the related charges during the three months ended June 30, 2023.

The following is a summary of pre-tax restructuring charges for severance and related personnel costs in the three and six months ended June 30, 2023:

Three Months Ended June 30, 2023Six Months Ended June 30, 2023
(In thousands)
Research and development$425 $425 
Sales and marketing1,463 2,306 
(1)
General and administrative417 417 
  Total$2,305 $3,148 
_________________________________________
(1) Includes $0.8 million of severance and related costs relating to reorganization costs incurred during the first quarter of 2023.
As of June 30, 2023, accrued severance and related liabilities recorded within accrued compensation and benefits in the Company’s condensed consolidated balance sheet was $1.5 million, reflecting cash payments of $1.6 million made during the six months ended June 30, 2023. The remainder of the liability is expected to be paid by the end of 2023.

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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
5. Investments in Marketable Securities
All of the Company’s debt securities are classified as available-for-sale. The Company’s cash equivalents and investments as of June 30, 2023 and December 31, 2022 consisted of the following:
June 30, 2023
(In thousands)Fair Value Level
Amortized cost (1)
Gross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash EquivalentsShort-term investmentsLong-term investments
Money market funds1$16,869 $ $ $16,869 $16,869 $ $ 
U.S. Treasuries210,821  (118)10,703  10,703  
U.S. government bonds243,952  (457)43,495  35,226 8,269 
Commercial paper228,715  (49)28,666  28,666  
U.S. Corporate bonds275,807  (675)75,132  38,573 36,559 
Total cash equivalents and investments$176,164 $ $(1,299)$174,865 $16,869 $113,168 $44,828 
December 31, 2022
(In thousands)Fair Value Level
Amortized cost (1)
Gross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash EquivalentsShort-term investmentsLong-term investments
Money market funds1$39,198 $ $ $39,198 $39,198 $ $ 
U.S. Treasuries231,721  (317)31,404  23,701 7,703 
U.S. government bonds277,259  (899)76,360  52,254 24,106 
Commercial paper243,126 3 (161)42,968  42,968  
U.S. Corporate bonds295,599 29 (694)94,934  47,982 46,952 
Total cash equivalents and investments$286,903 $32 $(2,071)$284,864 $39,198 $166,905 $78,761 
___________________________
(1) The amortized cost of debt securities excludes accrued interest of $0.9 million and $1.0 million, respectively, as of June 30, 2023 and December 31, 2022.
On April 14, 2023, in connection with the Company’s partial repurchase of its Convertible Notes, the Company redeemed some of its available-for-sale marketable securities prior to their maturities to finance the debt repurchase. The proceeds from the sales of securities were $78.9 million, which included a gross realized loss of $0.6 million, which was released from other comprehensive loss and recorded within interest income and other income (expense), net in the Company’s condensed consolidated statement of operations for the three and six months ended June 30, 2023. The gross realized loss was determined using the specific identification method. The total estimated fair value of debt securities in an unrealized loss position as of June 30, 2023 was $158.0 million, all of which has been in an unrealized loss position for less than twelve months. For marketable securities with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis. No allowance for credit losses was recorded for these securities as of June 30, 2023 and December 31, 2022.
The following table shows the fair value of the Company’s available-for-sale securities by contractual maturity:
June 30, 2023
(In thousands)
Within 1 year$130,037 
After 1 year through 2 years44,828 
Total fair value$174,865 
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
6. Goodwill and Intangible Assets
The Company’s goodwill balance as of June 30, 2023 and December 31, 2022 was $63.1 million. The Company has not recorded any accumulated impairments of goodwill.
The gross carrying amount and accumulated amortization of the Company’s intangible assets are as follows:
June 30, 2023
Weighted Average Amortization
Period
Gross Value
Accumulated
Amortization
Net Carrying
Value
(In thousands)
Developed technology8.0 years$18,411 $(10,276)$8,135 
Customer relationships5.0 years5,902 (5,387)515 
Publisher relationships8.0 years18,830 (10,046)8,784 
Trade names8.8 years5,298 (1,457)3,841 
Content provider relationships5.0 years284 (84)200 
Other15.8 years896 (255)641 
Total intangible assets, net$49,621 $(27,505)$22,116 
December 31, 2022
Weighted Average Amortization
Period
Gross Value
Accumulated
Amortization
Net Carrying
Value
(In thousands)
Developed technology5.8 years$18,411 $(9,652)$8,759 
Customer relationships4.1 years5,856 (5,022)834 
Publisher relationships6.3 years18,738 (8,782)9,956 
Trade names8.7 years5,279 (1,143)4,136 
Content provider relationships5.0 years284 (56)228 
Other15.8 years888 (227)661 
Total intangible assets, net$49,456 $(24,882)$24,574 
No impairment charges were recorded for the Company’s intangible assets subject to amortization during the three and six months ended June 30, 2023 and 2022.
As of June 30, 2023, estimated amortization related to the Company’s identifiable acquisition-related intangible assets in future periods was as follows:
Amount
(In thousands)
Remainder of 2023$1,732 
20243,465 
20253,465 
20263,465 
20273,116 
Thereafter6,873 
Total$22,116 
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
7. Balance Sheet Components
Accounts Receivable and Allowance for Credit Losses
Accounts receivable, net of allowance for credit losses consists of the following:
June 30, 2023December 31, 2022
(In thousands)
Accounts receivable$176,952 $186,770 
Allowance for credit losses(8,073)(5,512)
Accounts receivable, net of allowance for credit losses$168,879 $181,258 
The allowance for credit losses consists of the following activity:
Six Months Ended
June 30, 2023
Year Ended December 31, 2022
(In thousands)
Allowance for credit losses, beginning balance
$5,512 $4,402 
Provision for credit losses, net of recoveries
5,113 3,227 
Write-offs
(2,552)(2,117)
Allowance for credit losses, ending balance
$8,073 $5,512 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consists of the following:
June 30, 2023December 31, 2022
(In thousands)
Prepaid traffic acquisition costs$23,160 $23,149 
Prepaid taxes15,461 15,280 
Prepaid software licenses2,722 2,465 
Other prepaid expenses and other current assets5,993 5,867 
Total prepaid expenses and other current assets$47,336 $46,761 
Property, Equipment and Capitalized Software, Net
Property, equipment and capitalized software, net consists of the following:
June 30, 2023December 31, 2022
(In thousands)
Capitalized software development costs$73,491 $67,685 
Computer and equipment63,130 59,536 
Software3,198 3,113 
Leasehold improvements3,149 2,859 
Furniture and fixtures1,113 1,177 
Property, equipment, and capitalized software, gross144,081 134,370 
Less: accumulated depreciation and amortization(101,989)(94,480)
Total property, equipment and capitalized software, net$42,092 $39,890 
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Accrued and Other Current Liabilities
Accrued and other current liabilities consists of the following:
June 30, 2023December 31, 2022
(In thousands)
Accrued traffic acquisition costs$58,852 $73,396 
Accrued tax liabilities13,398 15,013 
Accrued agency commissions10,482 13,451 
Accrued professional fees4,671 4,915 
Operating lease obligations, current 3,487 3,236 
Interest payable1,565 3,074 
Finance lease obligations, current 1,025 1,758 
Other 9,302 11,249 
Total accrued and other current liabilities$102,782 $126,092 
In addition to accrued traffic acquisition costs, accounts payable includes $127.8 million and $136.8 million of traffic acquisition costs as of June 30, 2023 and December 31, 2022, respectively.
8. Fair Value Measurements
The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company’s financial instruments include restricted time deposits, severance pay fund deposits and foreign currency forward contracts. The Company determines the fair value of its financial instruments based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the Company uses the fair value hierarchy described below to distinguish between observable and unobservable inputs:
Level I — Valuations based on quoted prices in active markets for identical assets and liabilities at the measurement date;
Level II — Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be principally corroborated by observable market data for substantially the full term of the related assets or liabilities; and
Level III — Valuations based on unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.
The following table sets forth the fair value of the Company’s financial assets and liabilities measured on a recurring basis by level within the fair value hierarchy:
June 30, 2023
Level ILevel IILevel IIITotal
(In thousands)
Financial Assets:
Cash equivalents and investments (1)
$16,869 $157,996 $ $174,865 
Restricted time deposit (2)
 187  187 
Severance pay fund deposits (2)
 4,779  4,779 
Foreign currency forward contract (3)
 358  358 
Total financial assets$16,869 $163,320 $ $180,189 
Financial Liabilities:
Foreign currency forward contract (4)
 977  977 
Total financial liabilities
$ $977 $ $977 
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
December 31, 2022
Level ILevel IILevel IIITotal
(In thousands)
Financial Assets:
Cash equivalents and investments (1)
$39,198 $245,666 $ $284,864 
Restricted time deposit (2)
 185  185 
Severance pay fund deposits (2)
 5,378  5,378 
Foreign currency forward contract (3)
 726  726 
Total financial assets$39,198 $251,955 $ $291,153 
Financial Liabilities:
Foreign currency forward contract (4)
 1,463  1,463 
Total financial liabilities
$ $1,463 $ $1,463 
_____________________
(1)Money market securities are valued using Level I of the fair value hierarchy, while the fair values of U.S. Treasuries, government bonds, commercial paper, and corporate bonds are considered Level II and are obtained from independent pricing services, which may use various methods, including quoted prices for identical or similar securities in active and inactive markets. See Note 5 for additional detail of the Company’s fixed income securities by balance sheet location.
(2)Recorded within other assets.
(3)Recorded within prepaid expenses and other current assets.
(4)Recorded within accrued and other current liabilities.
The Company records the fair values of the assets and liabilities relating to its undesignated foreign currency forward contracts on a gross basis in its condensed consolidated balance sheets, as they are not subject to master netting arrangements. There is no cash collateral required to be pledged by the Company or its counterparties. The Company enters into foreign currency forward exchange contracts to manage the effects of fluctuations in foreign currency exchange rates on its net cash flows from non-U.S. dollar denominated operations.
By entering into foreign currency forward contracts, the Company is exposed to a potential credit risk that the counterparty to its contracts will fail to meet its contractual obligations. If a counterparty fails to perform, the Company’s maximum credit risk exposure would be the positive fair value of the foreign currency forward contracts, or any asset balance, which represents the amount the counterparty owes to the Company. In order to mitigate the counterparty risk, the Company performs an evaluation of its counterparty credit worthiness, and its forward contracts have a term of no more than 12 months. The Company had foreign currency forward contracts with Silicon Valley Bank (“SVB”), which was closed by the California regulators on March 10, 2023. On March 12, 2023, the Department of the Treasury, Federal Reserve and the FDIC approved actions enabling the FDIC to complete its resolution of SVB in a manner that fully protected all depositors and converted SVB to Silicon Valley Bridge Bank, N.A. On March 27, 2023, First-Citizens Bank & Trust Company (“First Citizens Bank”) entered into an agreement with the FDIC to acquire Silicon Valley Bridge Bank, N.A and the Company’s existing foreign currency forward contracts were assumed by First Citizens Bank. During the three and six months ended June 30, 2023, the Company recognized net losses of $0.1 million and $0.2 million, respectively, within interest income and other income (expense), net in its condensed consolidated statements of operations, related to mark-to-market adjustments on its undesignated foreign currency forward contacts. The Company recorded corresponding losses of $3.3 million and $4.1 million, respectively, for the three and six months ended June 30, 2022.
The Company’s 2.95% Convertible Senior Notes due 2026 (“Convertible Notes”) are recorded within long-term debt in its condensed consolidated balance sheets at their carrying value, which may differ from their fair value. The fair value of Convertible Notes is estimated using external pricing data, including any available market data for other debt instruments with similar characteristics. The following table summarizes the carrying value and the estimated fair value of the Company’s Convertible Notes, based on Level II measurements of the fair value hierarchy:
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
June 30, 2023December 31, 2022
Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
(In thousands)
Convertible Notes
$118,000$94,624$236,000$180,752
See Note 10 for additional information relating to Convertible Notes, half of which were repurchased in April 2023.
9. Leases
The Company leases certain equipment and computers under finance lease arrangements, as well as office facilities and managed data center facilities under non-cancelable operating lease arrangements for its U.S. and international locations that expire on various dates through 2032.
The following table summarizes assets and liabilities related to the Company’s operating and finance leases:
 Condensed Consolidated Balance Sheets LocationJune 30, 2023December 31, 2022
(In thousands)
Lease assets:
 Operating leasesOperating lease right-of-use assets, net$13,701 $11,065 
    Finance leasesProperty, equipment and capitalized software, net930 1,858 
Total lease assets$14,631 $12,923 
Lease liabilities:
Current liabilities:
Operating leasesAccrued and other current liabilities$3,487 $3,236 
Finance leasesAccrued and other current liabilities1,025 1,758 
Non-current liabilities:
Operating leasesOperating lease liabilities, non-current10,967 8,445 
Finance leasesOther liabilities 254 
Total lease liabilities$15,479 $13,693 
The following table presents the components of the Company’s total lease expense:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(In thousands)
Operating lease cost
   Fixed lease costs (1)
$1,136 $965 $2,282 $2,133 
   Variable lease costs (2)
126 32 158 62 
   Short-term lease costs (1)
163 134 302 274 
Finance lease cost:
    Depreciation (3)
463 803 927 1,746 
    Interest (4)
25 71 59 159 
Total lease cost$1,913 $2,005 $3,728 $4,374 
_____________________
(1)Recorded within cost of revenue and operating expenses.
(2)Recorded within operating expenses.
(3)Recorded within cost of revenue.
(4)Recorded within interest expense.
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
As of June 30, 2023, the maturities of the Company’s lease liabilities under operating and finance leases were as follows:
YearOperating LeasesFinance Leases
(In thousands)
Remainder of 2023$2,168 $796 
20244,324 256 
20253,986  
20262,751  
20272,125  
Thereafter1,768  
Total minimum payments required$17,122 $1,052 
Less: imputed interest(2,668)(27)
Total present value of lease liabilities$14,454 $1,025 
10. Long-Term Debt
Convertible Notes
On July 27, 2021, in connection with the closing of the Company’s IPO and pursuant to the terms of the Note Purchase Agreement, the Company exchanged $200 million aggregate principal amount of the Notes due July 1, 2026 for $236.0 million aggregate principal amount of Convertible Notes, pursuant to an indenture, dated as of July 27, 2021 (the “Indenture”), between the Company and The Bank of New York Mellon, as trustee. The Convertible Notes mature on July 27, 2026, unless earlier converted, redeemed, or repurchased.
On April 14, 2023, the Company repurchased $118.0 million aggregate principal amount of the Convertible Notes out of the initially issued principal balance of $236.0 million via a privately negotiated repurchase agreement with Baupost Group Securities, L.L.C., the sole holder of the Convertible Notes, for approximately $96.2 million in cash, including accrued interest, representing a discount of approximately 19% to the principal amount of the repurchased notes. As a result, the Company recorded a pre-tax gain of approximately $22.6 million in its condensed consolidated statement of operations for the three months ended June 30, 2023. Following the closing of the repurchase, the repurchased notes were cancelled by the Trustee, and $118.0 million principal amount of the Convertible Notes out of the initially issued principal balance of $236.0 million, remains outstanding as of June 30, 2023 and continues to be subject to the terms of the Indenture pursuant to which they were issued.
Interest on the Convertible Notes is payable semi-annually in arrears on January 27 and July 27 of each year, beginning on January 27, 2022, at a rate of 2.95% per year. The initial conversion rate for the Convertible Notes is 40 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of $25 per share of the Company’s common stock), subject to adjustment.
See Note 7 to the Company’s 2022 Annual Report on Form 10-K for additional information relating to the Company’s Convertible Notes, including the redemption and conversion provisions.
Revolving Credit Facility
On November 2, 2021, the Company entered into the Second Amended and Restated Loan and Security Agreement with SVB (the “2021 Revolving Credit Facility”), which provides, subject to borrowing availability and certain other conditions, for revolving loans in an aggregate principal amount of up to $75.0 million (the “Facility”), with a $15.0 million sub-facility for letters of credit. On July 18, 2023, the Company entered into a first amendment to the 2021 Revolving Credit Facility agreement by and among Silicon Valley Bank, a division of First Citizens Bank and Trust Company, to convert the borrowing rate from LIBOR to SOFR and reduce the required level of domestic cash deposits that the Company is required to maintain at SVB. The Company’s borrowing availability under the Facility is calculated by reference to a borrowing base which is determined by specified percentages of eligible accounts receivable. The Facility will terminate on the earlier of (i) November 2, 2026 or (ii) 120 days prior to the maturity date of Convertible Notes, unless the Convertible Notes have been converted to common equity securities of the Company.
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Outstanding loans under the Facility, as recently amended, accrue interest, at the Company’s option based upon borrowing availability under the Facility, at a rate equal to either (a) a base rate minus an applicable margin ranging from 1.5% to 1.0% per annum or (b) SOFR plus an applicable margin of 1.5% to 2.0% per annum, subject to a SOFR adjustment ranging from 0.10% to 0.15%, depending on the length of the borrowing. The undrawn portions of the commitments under the Facility are subject to a commitment fee at a rate ranging from 0.20% per annum to 0.30% per annum, based upon borrowing availability under the Facility.
The 2021 Revolving Credit Facility contains representations and warranties, including, without limitation, with respect to collateral; accounts receivable; financials; litigation, indictment and compliance with laws; disclosure and no material adverse effect, each of which is a condition to funding. Additionally, the 2021 Revolving Credit Facility includes events of default and customary affirmative and negative covenants applicable to the Company and its subsidiaries, including, without limitation, restrictions on liens, indebtedness, investments, fundamental changes, dispositions, restricted payments, and prepayment of the Convertible Notes and of junior indebtedness. The 2021 Revolving Credit Facility contains a financial covenant that requires, in the event that credit extensions under the Facility equal or exceed 85% of the available commitments under the Facility or upon the occurrence of an event of default, the Company to maintain a minimum consolidated monthly fixed charge coverage ratio of 1.00. The obligations of the Company, and the other subsidiary co-borrowers under the 2021 Revolving Credit Facility are secured by a first-priority lien on substantially all the assets of the Company and such other subsidiary co-borrowers.
As previously discussed in Note 8, on March 27, 2023, First Citizens Bank entered into an agreement with FDIC to acquire the Silicon Valley Bridge Bank, N.A, assuming all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. As a result, the Company’s 2021 Revolving Credit Facility remains in effect with First Citizens Bank. The Company was in compliance with all of the related financial covenants as of June 30, 2023 and December 31, 2022. As of June 30, 2023 and December 31, 2022, the Company had no borrowings outstanding under the 2021 Revolving Credit Facility and its available borrowing capacity was $60.1 million and $70.7 million, respectively, based on the defined borrowing formula. Other assets in the Company’s condensed consolidated balance sheets as each of June 30, 2023 and December 31, 2022 included deferred financing costs of $0.4 million, which are being amortized over the term of the 2021 Revolving Credit Facility.
11. Income Taxes
The Company’s interim provision from income taxes is determined based on its annual estimated effective tax rate, applied to the actual year-to-date income, and adjusted for the tax effects of any discrete items. The Company’s effective tax rates for the three and six months ended June 30, 2023 were 26.5% and 29.3%, respectively. The Company’s effective tax rates for the three and six months ended June 30, 2022 were (19.1)% and (5.8)%, respectively. The Company’s effective tax rates for the three months and six months ended June 30, 2023 were higher than the United States federal statutory tax rate of 21%, primarily due to certain non-deductible stock-based compensation expenses, partially offset by a deduction related to foreign-derived intangible income. The Company’s effective tax rates for the three and six months ended June 30, 2022 were lower than the U.S. federal statutory tax rate of 21%, primarily due the tax impact related to the profitability of non-U.S. jurisdictions and certain non-deductible stock-based compensation expenses.
On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022, which among other things implements a 15% minimum tax on adjusted financial statement income of certain large corporations and a 1% excise tax on net stock repurchases. Based on the Company’s current level of income and share repurchase program, this legislation is not expected to have a material impact on its consolidated financial statements.
In addition, a provision enacted as part of the 2017 Tax Cuts & Jobs Act requires companies to capitalize certain research and experimental expenditures for tax purposes in tax years beginning after December 31, 2021. As a result, the Company expects to utilize a substantial portion of its federal net operating loss carryforwards in 2023.
12. Commitments and Contingencies
Legal Proceedings and Other Matters
From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. In addition, the Company may receive letters alleging infringement of patent or other intellectual property rights. The Company is not currently a party to any material legal proceedings, nor is it aware of any pending or threatened litigation that, in its opinion, would have a material adverse effect on its business, operating results, cash flows or financial condition should such litigation be resolved unfavorably.
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OUTBRAIN INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Since 2021, the Company had been cooperating with the previously disclosed criminal investigation being conducted by the Antitrust Division of the U.S. Department of Justice into the hiring practices in the Company’s industry that included the Company. On July 11, 2023, the U.S. Department of Justice informed the Company that it is no longer pursuing this investigation.
13. Stockholders’ Equity
Share Repurchases
On December 14, 2022, the Company’s Board of Directors (the “Board”) approved a new share repurchase program, authorizing the Company to repurchase up to $30 million of its common stock, par value $0.001 per share, with no requirement to purchase any minimum number of shares. The manner, timing, and actual number of shares repurchased under the program will depend on a variety of factors, including price, general business and market conditions, and other investment opportunities. Shares may be repurchased through privately negotiated transactions or open market purchases, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act. The repurchase program may be commenced, suspended, or terminated at any time by the Company at its discretion without prior notice. The following is a summary of the Company’s share repurchase activity under its share repurchase programs for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(In thousands, except share information)
Shares repurchased
200,000 1,388,317 1,513,073 1,388,317 
Fair value of shares repurchased
$988 $7,501 $7,130 $7,501 
As of June 30, 2023, the remaining availability under the Company’s $30 million share repurchase program was $22.9 million.
In addition, the Company may periodically withhold shares to satisfy employee tax withholding obligations arising in connection with the vesting of restricted stock units and exercise of options and warrants in accordance with the terms of the Company’s equity incentive plans and the underlying award agreements. During the three and six months ended June 30, 2023, the Company withheld 42,065 shares and 90,267 shares, respectively, with a fair value of $0.2 million and $0.4 million, respectively, to satisfy the employee tax withholding obligations. During the three and six months ended June 30, 2022, the Company withheld 38,864 shares and 156,501 shares, respectively, with a fair value of $0.4 million and $2.1 million, respectively.
Accumulated Other Comprehensive Loss
The following table details the changes in accumulated other compressive loss, net of tax:
Foreign Currency Translation LossUnrealized (Losses) Gains on Investments in Marketable SecuritiesTotal Accumulated Other Comprehensive Loss
(In thousands)
Balance–December 31, 2022$(8,344)$(1,569)$(9,913)
Other comprehensive (loss) income, net of tax: