TEAD 8-K/A

Teads Holding Co. (TEAD)

8-K/A 2025-02-24 For: 2025-02-03

View Original

Added on April 09, 2026


Exhibit No.						Description
23.1						Consent of Deloitte Audit S.à r.l.
99.1						Audited Consolidated Financial Statements of TEADS as of December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022 and 2021 (incorporated by reference to the Index to Consolidated Financial Statements of Teads in the Definitive Proxy Statement on Schedule 14A of the Company filed on October 31, 2024).
99.2						Unaudited Condensed Interim Consolidated Financial Statements of TEADS as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023 (incorporated by reference to Exhibit 99.2 to the Company’s second Form 8-K filed on February 3, 2025).
99.3						Unaudited Pro Forma Condensed Combined Financial Statements of the Company as of September 30, 2024, for the nine months ended September 30, 2024 and for the year ended December 31, 2023.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


	OUTBRAIN INC.
Date: February 24, 2025	By:	/s/ David Kostman
		Name: David Kostman
		Title: Chief Executive Officer


	Outbrain Historical		Teads Historical After Reclassifications (see Note 3)		GAAP & Policy Adjustments		Notes	Transaction Accounting and Financing Adjustments		Notes	Pro Forma Combined
ASSETS
Current assets:
Cash and cash equivalents	$	57,061	$	64,597	$	—		$	(625,000)	5	$	92,711
								596,053		7(a)
Short-term investments in marketable securities	73,467		—		—			—			73,467
Accounts receivable, net of allowances	157,542		210,267		—			(29)		6(a)	367,780
Prepaid expenses and other current assets	38,133		618,021		—			(593,584)		6(b)	62,570
Total current assets	326,203		892,885		—			(622,560)			596,528
Non-current assets:
Long-term investments in marketable securities	—		—		—			—			—
Property, equipment and capitalized software, net	43,934		4,287		21,198		4(a)	(20,957)		6(c)	48,462
Operating lease right-of-use assets, net	15,791		14,831		615		4(c)	(639)		6(d)	30,598
Intangible assets, net	17,834		21,692		(21,198)		4(a)	375,506		6(e)	393,834
Goodwill	63,063		37,013		—			382,848		6(f)	482,924
Deferred tax assets	42,166		11,383		—			28,636		6(j)	82,185
Other assets	21,140		2,596		—			21,019		6(k)	45,658
								1,710		7(a)
								(807)		7(b)
TOTAL ASSETS	$	530,131	$	984,687	$	615		$	164,756		$	1,680,189

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	123,355	$	121,229	$	—		$	(29)	6(a)	$	244,555
Accrued compensation and benefits	18,721		20,833		—			—			39,554
Accrued and other current liabilities	124,053		37,671		(868)		4(c)	(673)		6(d)	182,429
								21,420		6(g)
								826		7(b)
Deferred revenue	6,598		2,894		—			—			9,492
Total current liabilities	272,727		182,627		(868)			21,544			476,030
Non-current liabilities:
Long-term debt	—		21		—			611,626		7(a)	611,647
Operating lease liabilities, non-current	12,634		12,363		(1,076)		4(c)	(389)		6(d)	23,532
Deferred tax liabilities	3,459		1,484		650		4(c)	72,726		6(j)	78,319
Other liabilities	14,155		1,886		—			21,019		6(k)	37,060
TOTAL LIABILITIES	$	302,975	$	198,381	$	(1,294)		$	726,526		$	1,226,588

Commitments and Contingencies

STOCKHOLDERS’ EQUITY:
Common stock	63		17,379		—			(17,379)		6(i)	93
								30		7(b)
Additional paid-in capital	480,440		99,178		—			(99,178)		6(i)	667,636
								188,829		7(b)
								(1,633)		7(b)


	Outbrain Historical		Teads Historical After Reclassifications (see Note 3)		GAAP & Policy Adjustments		Notes	Transaction Accounting and Financing Adjustments		Notes	Pro Forma Combined
Treasury stock, at cost	(74,079)		—		—			74,079		7(b)	—
Accumulated other comprehensive loss	(9,942)		(29,107)		—			29,107		6(i)	(9,942)
Accumulated deficit	(169,326)		698,856		1,909		4(c)	423		6(d)	(204,186)
								(21,420)		6(g)
								(700,765)		6(i)
								(13,863)		7(a)
TOTAL STOCKHOLDERS’ EQUITY:	227,156		786,306		1,909			(561,770)			453,601
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY:	$	530,131	$	984,687	$	615		$	164,756		$	1,680,189


	Outbrain Historical		Teads Historical After Reclassifications (see Note 3)		GAAP & Policy Adjustments		Notes	Transaction Accounting and Financing Adjustments		Notes	Pro Forma Combined
Revenue	$	655,289	$	428,482	$	—		$	(107)	6(a)	$	1,083,664
Cost of revenue:
Traffic acquisition costs	487,484		210,314		(48,575)		4(b)	(107)		6(a)	649,116
Other cost of revenue	31,765		31,398		8,539		4(a)	(8,539)		6(c)	75,249
								12,086		6(e)
Total cost of revenue	519,249		241,712		(40,036)			3,440			724,365
Gross profit	136,040		186,770		40,036			(3,547)			359,299
Operating expenses:
Research and development	27,646		28,781		(8,539)		4(a)	(5,629)		6(h)	42,294
					35		4(c)
Sales and marketing	71,762		85,554		48,575		4(b)	21,735		6(e)	218,481
					309		4(c)	(10,402)		6(h)
								948		6(k)
General and administrative	51,805		41,987		44		4(c)	(12,058)		6(h)	83,824
					2,046		4(d)
Total operating expenses	151,213		156,322		42,470			(5,406)			344,599
(Loss) income from operations	(15,173)		30,448		(2,434)			1,859			14,700
Other income (expense), net:

Gain on convertible debt	8,782		—		—			—			8,782
Interest expense	(2,950)		(1,060)		813		4(c)	(52,712)		7(a)	(55,909)
Interest income and other income, net	7,687		12,431		2,046		4(d)	(18,423)		6(b)	3,741
Total other income (expense), net	13,519		11,371		2,859			(71,135)			(43,386)
(Loss) income before income taxes	(1,654)		41,819		425			(69,276)			(28,686)
(Benefit) provision for income taxes	(1,110)		22,113		108		4(c)	(24,036)		6(j)	(2,485)
								440		6(k)
Net (loss) income	$	(544)	$	19,706	$	317		$	(45,680)		$	(26,201)

Weighted average common shares outstanding (Note 8):
Basic	49,171,414							43,750,000			92,921,414
Diluted	53,701,925							43,750,000			97,451,925

Net loss per common share (Note 8):
Basic	$	(0.01)									$	(0.28)
Diluted	$	(0.10)									$	(0.32)


		As of September 30, 2024
Teads Historical Consolidated Balance Sheet Line Items	Outbrain Historical Consolidated Balance Sheet Line Items	Teads Before Reclassifications		Reclassification Adjustments		Notes	Teads After Reclassifications
		(in thousands)
ASSETS	ASSETS
Cash and cash equivalents	Cash and cash equivalents	$	64,597	$	—		$	64,597
Trade receivables	Accounts receivable, net of allowances	210,267		—			210,267
Financial assets (current)		574,158		(574,158)		(a)	—
Other receivables	Prepaid expenses and other current assets	43,863		574,158		(a)	618,021
Property, plant and equipment	Property, equipment and capitalized software, net	4,287		—			4,287
Right-of-use assets	Operating lease right-of-use assets, net	14,831		—			14,831
Intangible assets	Intangible assets, net	21,692		—			21,692
Goodwill	Goodwill	37,013		—			37,013
Deferred tax assets	Deferred tax assets	11,383		—			11,383
Financial assets (non-current)	Other assets	2,596		—			2,596
Total assets	Total assets	$	984,687	$	—		$	984,687

EQUITY AND LIABILITIES	LIABILITIES AND STOCKHOLDERS’ EQUITY
Trade and other payables	Accounts payable	$	121,229	$	—		$	121,229
	Accrued compensation and benefits	—		20,833		(b)	$	20,833
Short-term borrowings		16,855		(16,855)		(c)	—
Lease liabilities		5,450		(5,450)		(c)	—
Current tax liabilities		2,653		(2,653)		(c)	—
Contract liabilities	Deferred revenue	2,871		23		(c)	2,894
Other current liabilities	Accrued and other current liabilities	33,569		4,102		(b),(c)	37,671
Long term borrowings	Long-term debt	21		—			21
Lease liabilities	Operating lease liabilities, non-current	12,363		—			12,363
Non-current provisions		1,882		(1,882)		(d)	—
Deferred tax liabilities		1,484		—			1,484
Other non-current liabilities	Other liabilities	4		1,882		(d)	1,886
	Total liabilities	198,381		—			198,381

Share capital	Common stock	17,379		—			17,379
Share premium	Additional paid-in capital	99,178		—			99,178
Reserves	Accumulated other comprehensive income	(29,107)		—			(29,107)
Retained earnings	Accumulated retained earnings (deficit)	698,856		—			698,856
Total equity	Total stockholders’ equity	$	786,306	$	—		$	786,306
Total equity and liabilities	Total liabilities and stockholders’ equity	$	984,687	$	—		$	984,687


		For the Nine Months Ended September 30, 2024
Teads Historical Consolidated Statement of Operations Line Items	Outbrain Historical Consolidated Statement of Operations Line Items	Teads Before Reclassifications		Reclassification Adjustments		Notes	Teads After Reclassifications
		(in thousands)
Revenue	Revenue	$	428,482	$	—		$	428,482
	Cost of revenue:
Cost of revenue	Traffic acquisition costs	241,712		(31,398)		(a)	210,314
	Other cost of revenue			31,398		(a)	31,398
	Total cost of revenue						241,712
	Gross profit						186,770
	Operating expenses:
Technology and development expenses	Research and development	28,781		—			28,781
Sales and marketing expenses	Sales and marketing	85,554		—			85,554
General and administrative expenses	General and administrative	41,987		—			41,987
	Total operating expenses						156,322
Profit from operations	Income from operations	30,448		—			30,448
	Other income (expense), net:
Finance costs	Interest expense	(1,060)		—			(1,060)
Other financial income and (expenses)	Interest income and other income (expense), net	12,431		—			12,431
	Total other income (expense), net						11,371
Profit before tax	Income before income taxes	41,819		—			41,819
Income tax expense	Provision for income taxes	22,113		—			22,113
Profit for the period	Net income	$	19,706	$	—		$	19,706


		For the Year Ended December 31, 2023
Teads Historical Consolidated Statement of Operations Line Items	Outbrain Historical Consolidated Statement of Operations Line Items	Teads Before Reclassifications		Reclassification Adjustments		Notes	Teads After Reclassifications
		(in thousands)
Revenue	Revenue	$	649,812	$	—		$	649,812
	Cost of revenue:
Cost of revenue	Traffic acquisition costs	328,635		(42,549)		(a)	286,086
	Other cost of revenue			42,549		(a)	42,549
	Total cost of revenue						328,635
	Gross profit						321,177
	Operating expenses:
Technology and development expenses	Research and development	31,181		—			31,181
Sales and marketing expenses	Sales and marketing	108,534		—			108,534
General and administrative expenses	General and administrative	47,073		—			47,073
	Total operating expenses						186,788
Profit from operations	Income from operations	134,389		—			134,389
	Other income (expense), net:
Finance costs	Interest expense	(929)		—			(929)
Other financial income and (expenses)	Interest income and other income (expense), net	4,549		—			4,549
	Total other income (expense), net						3,620
Profit before tax	Income before income taxes	138,009		—			138,009
Income tax expense	Provision for income taxes	42,186		—			42,186
Profit for the year	Net income	$	95,823	$	—		$	95,823


	September 30, 2024
	Teads Finance Leases under IFRS		Teads Operating Leases Under U.S. GAAP		Adjustment
	(in thousands)
Operating lease right-of-use assets, net	$	14,831	$	15,446	$	615
Accrued and other current liabilities	5,450		4,582		(868)
Operating lease liabilities, non-current	12,363		11,287		(1,076)
Net adjustment	$	(2,982)	$	(423)	$	2,559


	Nine Months Ended September 30, 2024						Year Ended December 31, 2023
	Teads Finance Leases under IFRS		Teads Operating Leases Under U.S. GAAP		Difference		Teads Finance Leases under IFRS		Teads Operating Leases Under U.S. GAAP		Difference
	(in thousands)
Interest expense - finance leases	813		—		(813)		891		—		(891)

Operating expenses - finance lease depreciation	$	4,116	$	—	$	(4,116)	$	5,256	$	—	$	(5,256)
Operating expenses - fixed lease costs	—		4,504		4,504		—		5,909		5,909
	$	4,116	$	4,504	$	388	$	5,256	$	5,909	$	653

Research and development					$	35					$	59
Sales and marketing					$	309					$	520
General and administrative					$	44					$	74
					$	388					$	653


	Amount
	(in thousands)
Cash consideration	$	625,000
Common equity consideration (including Treasury Stock) (1)	262,938
Preliminary Aggregate Purchase Consideration	$	887,938


	As of September 30, 2024
	(in thousands)
Purchase consideration	$	887,938

Amounts of identifiable assets acquired and liabilities assumed
Book value of Teads’ net assets (1)	$	788,215
Less:
Elimination of intercompany transactions with Altice Teads	(593,584)
Elimination of historical goodwill	(37,013)
Elimination of historical capitalized software	(20,957)
Elimination of historical intangible assets	(494)
Add:
Preliminary value of identifiable intangible assets	376,000
Deferred tax impact of identifiable intangible assets	(44,090)
Preliminary estimate of fair value of identifiable net assets acquired	$	468,077
Preliminary estimate of goodwill	$	419,861


							Estimated Amortization
	Teads Historical Amounts After Reclassifications, net		Estimated Fair Value		Increase/Decrease		Nine Months Ended September 30, 2024		Year Ended December 31, 2023		Estimated Weighted Average Useful Life (Years)
	(dollars in thousands)
Publishers(2)	$	—	$	56,400	$	56,400	$	4,230	$	5,640	10
Customers(2)	326		169,200		168,874		14,100		18,800		9
Technology(1)	—		112,800		112,800		12,086		16,114		7
Trade name(2)	—		37,600		37,600		3,525		4,700		8
Other intangible assets	168		—		(168)		—		—
Total estimated intangible assets	$	494	$	376,000	$	375,506	$	33,941	$	45,254

Less: elimination of historical amortization(2)							120		159
Total increase in amortization of intangible assets							$	33,821	$	45,095


	Balance Sheet									Statement of Operations Adjustments
(in thousands)	Recorded as of September 30, 2024			Adjustment As of September 30, 2024			Total Amount			Nine Months Ended September 30, 2024		Year Ended December 31, 2023
Long-term debt, net of discount of $12.2 million	$	—		$	625,305		$	625,305		$	49,433	$	65,717
Deferred issuance costs	(526)			(13,153)			(13,679)			$	2,052	$	2,736
Total long-term debt (1)	$	(526)	(2)	$	612,152	(3)	$	611,626	(4)

Deferred issuance costs - New Revolving Credit Facility	$	110		$	3,675	(5)	$	3,785		$	568	$	757
Deferred issuance costs - prior facility	231		(6)	(231)			—			(83)		(111)
Increase in deferred financing fees	$	341		$	3,444	(7)	$	3,785

Bridge Facility fees (1)	$	1,208		$	(1,208)	(8)	$	—		$	538	$	12,374	(9)
Bridge facility interest expense (1)										—		1,258		(9)
Commitment fee - New Revolving Credit Facility										375		500
Commitment fee - prior facility										(171)		(228)
Total incremental expenses										$	52,712	$	83,003


	September 30, 2024
	(in thousands)
Common stock, par value of $0.001 per share(1)	$	30
Reissuance of treasury stock (1)	74,079
Additional paid in capital (1)	188,829
Pro-forma adjustment to stockholders’ equity	$	262,938


	Decrease to additional paid-in capital		Recorded on Balance Sheet As of September 30, 2024			Equity Issuance Costs Net of Amounts Recorded
	(in thousands)

Total equity issuance costs	$	1,633	$	807	(1)	$	826	(2)


	Nine Months Ended September 30, 2024		Twelve Months Ended December 31, 2023
	(Dollars in thousands)
Numerator:
Pro-forma net (loss) income attributed to common stockholders - basic	$	(26,201)	$	1,503
Adjustments related to convertible debt (1)	(4,834)		(13,930)
Pro-forma net loss attributable to common stockholders - diluted	$	(31,035)	$	(12,427)

Denominator:
Basic weighted average number of common shares outstanding - reported	49,171,414		50,900,422
Common shares issued as part of the Acquisition	43,750,000		43,750,000
Pro-forma weighted average shares - basic	92,921,414		94,650,422
Convertible debt (1)	4,530,511		6,064,877
Restricted stock units	—		—
Pro-forma weighted average shares - diluted	97,451,925		100,715,299

Pro forma net (loss) income per common share:
Basic	$	(0.28)	$	0.02
Diluted	$	(0.32)	$	(0.12)


	Nine Months Ended September 30, 2024	Twelve Months Ended December 31, 2023
Options to purchase common stock	2,337,331	2,523,643
Warrants	188,235	188,235
Restricted stock units	3,854,406	3,275,430
Performance-based stock units	492,353	51,534
Total shares excluded from diluted loss per share	6,872,325	6,038,842