Investors might want to bet on Taboola.com Ltd. (TBLA) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The pow ...

Summary of Taboola.com (TBLA) FY Conference Call - August 12, 2025 Company Overview - **Company**: Taboola.com (TBLA) - **Industry**: Performance Advertising in the Open Web - **Market Opportunity**: $55 billion market opportunity in performance advertising [4][5] Core Business Model - **Unique Offering**: Taboola is a leading performance advertising platform that complements search and social advertising by providing targeted ads based on first-party data [3][4] - **Daily Reach**: The company reaches approximately 600 million people daily through partnerships with major publishers like Yahoo, Apple News, Disney, and NBC [4] - **Revenue Goals**: Targeting $2 billion in revenue from a $55.7 billion market, with over $200 million in adjusted EBITDA, representing a margin of over 30% [5] Financial Performance - **EBITDA Margin**: The company maintains a strong EBITDA margin of over 30% and a free cash flow of 70% of EBITDA, which is being used for share buybacks [5][67] - **Share Buybacks**: Taboola has repurchased 12% of its shares in the first half of the year and plans to continue aggressive buybacks [5][69] Market Position and Strategy - **Two-Sided Marketplace**: Taboola operates a two-sided marketplace with exclusive long-term relationships with 11,000 publishers, providing predictable inventory and access to consumer data [6][7] - **Shift to Performance Marketing**: The introduction of the Realize product marks a pivot towards broader performance marketing, allowing advertisers to use various ad formats beyond native advertising [12][14] - **Display Advertising Market**: Taboola estimates a $10 billion display ad market among its publishers, aiming to capture 30% market share [18] Growth and Future Outlook - **Growth Strategy**: The company aims to double its revenue from $2 billion to $4 billion primarily through increased demand and spending from advertisers [15][25] - **Realize Product Adoption**: Early signs of success with Realize include 650 advertisers trying the product, with existing advertisers increasing their spending [27][28] - **Focus on Performance Advertising**: Taboola is committed to performance advertising, avoiding branding-focused areas like CTV, which is seen as a competitive and less favorable market [36][39] Challenges and Market Dynamics - **Native Advertising Growth**: The native advertising space is not growing as expected, prompting the shift to a broader performance advertising strategy [22][23] - **Impact of Search Traffic**: Currently, only 5% of Taboola's traffic is driven by search, and the company has not seen significant impacts from changes in search dynamics [48][49] Technology and Innovation - **Use of AI and LLMs**: Taboola is leveraging machine learning and large language models (LLMs) across various departments to enhance productivity and create value [65][66] - **Predictive Audiences**: The company is developing features like predictive audiences to help advertisers optimize their campaigns [64] Conclusion - **Investment Philosophy**: Taboola prioritizes growth while maintaining profitability, with a focus on responsible business practices and maximizing shareholder value through buybacks and strategic investments [56][68] - **Future Expectations**: The company is optimistic about returning to double-digit growth through the successful adoption of Realize and continued investment in technology and partnerships [25][60]

Financial Data and Key Metrics Changes - The company reported Q2 revenues of $465 million, representing a 9% year-over-year growth [9] - Gross profit was $172 million, a 15% increase compared to the previous year [10] - Adjusted EBITDA reached $45 million, reflecting a 21% year-over-year growth with a significant margin expansion [10][26] - Free cash flow grew by 31% year-over-year to $34 million, enabling the company to repurchase approximately $100 million worth of stock in the quarter [10][26] Business Line Data and Key Metrics Changes - The number of scaled advertisers increased by nearly 9%, indicating strong retention and growth among existing clients [11] - Average revenue per scaled advertiser rose by about 2% year-over-year [22] - The growth in gross profit was driven by higher advertising spend and margin expansion on certain digital publishers [23] Market Data and Key Metrics Changes - The company expects nearly $2 billion in gross revenue for 2025, with approximately $700 million in gross profit [7] - The performance advertising market is estimated to be a $55 billion opportunity, with the company positioned to capture a significant share [8] Company Strategy and Development Direction - The company is focusing on its new performance advertising platform, Realize, which aims to expand its reach beyond native advertising into display and social [12] - The strategy includes attracting new advertisers and increasing budgets from existing clients, particularly in the performance advertising segment [19] - The company is also working on adding new open web partners to enhance its supply and data offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and raised full-year guidance across all key metrics [5][30] - The company noted minimal impact from recent changes in search dynamics driven by LLM, maintaining stable performance [16][18] - Management highlighted the potential for growth in the open web, particularly as advertisers seek alternatives to search and social platforms [19] Other Important Information - The board approved an additional $200 million for the share repurchase program, reflecting confidence in the long-term value of the business [10][29] - The company ended Q2 with a net cash balance of $27.2 million and cash equivalents totaling $115.2 million [28] Q&A Session Summary Question: What is the roadmap to return to double-digit growth? - Management indicated that the path to double-digit growth relies on the success of Realize in capturing more budgets from social and display advertising [34][35] Question: Why is the average revenue per scaled advertiser only increasing by 2%? - Management explained that while the number of scaled advertisers is growing, new advertisers typically start at lower spend levels, which affects the average revenue [46][47] Question: How does the company view the impact of generative AI on the open web? - Management noted minimal impact from LLM-driven changes and highlighted the potential for new traffic opportunities on publisher sites [54][56][59] Question: What is the current state of the tariff environment and its impact on advertising spend? - Management stated that the impact from China is not material, accounting for less than 1% of revenue, and they do not expect significant recovery in the second half of the year [77][78] Question: What is the geographic split of the company's business? - The company is approximately 50% U.S. based but is well diversified globally, with many advertisers spending across multiple regions [95] Question: Why prioritize share buybacks over paying down debt? - Management explained that they are using the revolving credit facility to maintain cash neutrality while aggressively repurchasing shares, which they believe is a capital-efficient strategy [60][62]

Q2 2025 Highlights & Supplemental Information August 6, 2025 Certain statements in this presentation are forward-looking statements, including our Q3 2025 and full-year 2025 guidance and our expectations for Realize, our new performance advertising platform. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the "Company"). In some cases, you can identify forward-looking statements by terminology such as "may", "should", "exp ...

NEW YORK, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the second quarter ended June 30, 2025. "We delivered a strong second quarter, beating the high end of our guidance across our key metrics,” said Adam Singolda, CEO of Taboola. "We bought back nearly 12% of the company in the first half of the year which reflects our confidence in the business and our long-term vision. As a result, we’re rais ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 ☐ 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: 001-40566 TABOOLA.COM LTD. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. ...

Exhibit 99.1 Taboola Reports Strong Q2 2025 Financial Results, Surpassing High-End of Guidance; Increases Full-Year Guidance & Announces $200M Share Repurchase Expansion NEW YORK, Aug. 6, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the second quarter ended June 30, 2025. "We delivered a strong second quarter, beating the high end of our guidance across our key metrics," said Adam Singolda, CEO of Taboola ...

Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules and factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than solely relying on statistical studies [1] - The individual combines factor analysis with classic fundamental analysis to uncover the true story of companies and their stocks, highlighting the importance of future potential over past performance [1] Experience and Background - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles include managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, contributing to the development of Robo Advising [1] - The individual has authored two books on stock selection and analysis and has a passion for investor education, having conducted numerous seminars [1]

Core Insights - Taboola.com Inc.'s Realize platform significantly enhances the efficiency and performance of the company's advertising operations, targeting a $55 billion market through its AI-driven engine [1][4] - The platform utilizes deep-learning algorithms for real-time user signal analysis and historical behavior, leading to improved user engagement and campaign results, which encourages advertisers to increase their investments [2] - Realize empowers mid-sized and smaller advertisers with simplified, self-serve campaign tools, allowing for growth in the advertiser base without increasing operational costs [3] Competitive Landscape - Competitors like The Trade Desk and Magnite do not possess a proprietary platform like Realize but are establishing their niches in the digital advertising space [5][6] - The Trade Desk focuses on transparent, data-driven programmatic solutions, enhancing its leadership in digital advertising through AI innovation and partnerships [5] - Magnite aims to maximize publisher revenues through transparent monetization strategies, solidifying its position as the largest independent sell-side platform [6] Financial Performance - Taboola's shares have declined by 12% year to date, underperforming the industry [7] - The company is currently trading at a price-to-earnings multiple of 18.1, which is lower than the industry average of 28.4, indicating an affordable valuation [10] - Consensus estimates for Taboola's EPS for 2025 and 2026 show no movement over the past 60 days, with projections indicating year-over-year increases [11][12]

Industry Overview - The digital advertising industry is rapidly transforming due to advancements in AI, privacy regulations, and diverse media channels, leading to increased digital ad spending as marketers shift budgets from traditional formats to online platforms [1][3] - Global digital ad spending was valued at $600 billion in 2024 and is projected to reach $1.5 trillion by 2034, with a CAGR of 9.47% from 2025 to 2034 [3] Company Analysis: Taboola (TBLA) - Taboola is a global leader in performance advertising, connecting thousands of advertisers to approximately 600 million daily users through its Realize platform [2] - The company has shifted focus from native advertising to performance advertising, reflecting the rising demand for comprehensive performance solutions beyond traditional platforms [4] - Taboola's revenue growth strategy includes enhancing Realize's capabilities and refining its go-to-market strategy, resulting in a 3% revenue growth, 53% increase in adjusted EBITDA, and 48% improvement in operating cash flow in Q1 2025 [5] - For 2025, Taboola expects revenues between $1.84 billion and $1.89 billion, with net income projected between $122 million and $128 million [6] - The company is investing around 8% of 2024 revenues in R&D to advance AI features and has expanded its share repurchase authorization by $200 million [6] Company Analysis: Magnite (MGNI) - Magnite operates as a leading supply-side platform (SSP) in the Connected TV (CTV) ad-tech sector, processing billions of impressions monthly [7][10] - The company has established significant partnerships with major players like Netflix, Roku, and Warner Bros. Discovery, enhancing its market position [8][10] - Magnite's strategy focuses on continuous investment in technology and expanding its sales organization, capitalizing on the shift towards CTV advertising [10] - The company is projected to benefit from increased regulatory scrutiny on Google, which may shift publisher preference towards independent platforms like Magnite [8][11] - For 2025, Magnite's revenues and EPS are expected to increase by 14% and 15.5% year-over-year, respectively [14] Financial Metrics - Taboola is trading at a forward P/E of 19.9, while Magnite is at 45.5, both below their respective three-year medians [9][17] - Year-to-date, MGNI shares have gained 51%, while TBLA shares have lost 2% [18]