Summary of Taboola.com Conference Call Company Overview - **Company**: Taboola.com (NasdaqGS:TBLA) - **Industry**: Performance Advertising - **Core Business**: Taboola operates as a performance advertising platform, focusing on placing ads outside of traditional search and social media environments, leveraging data from a wide range of publishers and users. Key Points and Arguments Business Model and Revenue Generation - Taboola generates over 90% of its revenue from cost-per-click advertising, meaning revenue is only earned when a consumer clicks on an ad [7][8] - The company has long-term exclusive agreements with approximately 11,000 publishers, which allows it to gather first-party data and effectively target ads [2][6] - The average traffic acquisition cost (TAC) is about 65% of revenue, with the remaining 35% representing XTAC (gross profit), which is the primary measure of the company's revenue growth [7][9] New Platform: Realize - In February 2025, Taboola launched a new advertising platform called Realize, transitioning from a native advertising model to a more comprehensive performance advertising model [10][12] - Realize allows for various ad formats, including display and vertical video, and includes new features like Predictive Audiences to enhance advertiser success [11][12] - The transition to Realize was a significant investment, aimed at improving advertiser performance and increasing ad spend [12][14] Growth and Market Position - Taboola is optimistic about returning to double-digit growth, driven by new platform features, a focus on ideal customer profiles, and increased marketing spend [16][18] - The company estimates a $10 billion opportunity in performance budgets currently going to other ad tech players, which it aims to capture [26][27] - Taboola's unique data and technology position it favorably against traditional demand-side platforms (DSPs) [26][28] Market Stability and Competition - The advertising market is currently stable, with performance advertising showing resilience amid economic uncertainties [19][20] - Taboola's competitive strategy includes maintaining long-term publisher relationships and expanding into new ad formats [28][29] Taboola News Product - Taboola News, akin to Apple News for Android devices, is a growing segment that provides unique supply opportunities and is expanding its global footprint [40][41] - The product is expected to grow faster than the overall business, with potential for more touchpoints and device partnerships [42] Future Opportunities and Challenges - The transition from native to performance advertising is seen as a significant growth opportunity, with the potential to tap into a $50 billion market [70][71] - The company is focused on enhancing its product features to compete with industry leaders like Facebook and Google [45][46] - There is a need to reposition the brand in the minds of advertisers to gain trust for broader ad campaigns beyond native advertising [74][75] Impact of AI and LLMs - Taboola is leveraging generative AI tools to enhance productivity and improve advertiser onboarding processes [66][68] - The company has low exposure to search traffic, with only about 5% of US traffic coming from search, which mitigates risks associated with the rise of LLMs in search [59][61] Additional Important Insights - Taboola is cautious about entering the long tail of the internet due to quality concerns and focuses on mid-tail and premium supply [39][40] - The company is exploring innovative products like Deeper Dive, which enhances user engagement on publisher sites through AI-driven interactions [47][51] This summary encapsulates the key insights from the conference call, highlighting Taboola's strategic direction, market positioning, and growth opportunities in the performance advertising landscape.

Partnership Focused on Increasing Readership and Engagement, While Opening Additional Revenue StreamsNEW YORK, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Taboola today announced that The Bangkok Post, Thailand’s oldest daily newspaper, has selected DeeperDive, an industry-first Gen AI answer engine that lives directly on publisher websites and leverages their own content. As part of the agreement, Bangkok Post will use DeeperDive across its sites.DeeperDive brings the power of GenAI search engines directly onto publ ...

Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 1: Momentum Investing Strategy - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify these opportunities [2] - The 'Fast-Paced Momentum at a Bargain' screen helps in spotting fast-moving stocks that remain attractively priced [2] Group 2: Taboola.com Ltd. (TBLA) Analysis - Taboola.com Ltd. (TBLA) has shown a significant price increase of 34.4% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, TBLA's stock gained 26.6%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - TBLA has a beta of 1.27, suggesting it moves 27% more than the market in either direction, indicating fast-paced momentum [4] Group 3: Valuation and Earnings Estimates - TBLA has a Momentum Score of B, suggesting it is an opportune time to invest in the stock to leverage its momentum [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [6] - TBLA is trading at a Price-to-Sales ratio of 0.63, indicating it is relatively cheap, as investors pay only 63 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides TBLA, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - The Zacks Premium Screens offer over 45 different strategies tailored to help investors find winning stock picks [8]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of $497 million, representing a 15% year-over-year increase [12] - Ex-TAC gross profit was $177 million, up 6% year-over-year, with an adjusted EBITDA of $48 million, reflecting a strong EBITDA margin of over 27% [6][12] - Free cash flow for the quarter was $46 million, with a year-to-date total of $117 million, indicating a 96% conversion of adjusted EBITDA in Q3 [6][18] Business Line Data and Key Metrics Changes - The number of scaled advertisers grew by 4% to 2,064, while average revenue per scaled advertiser increased by 11% [8][13] - The growth in ex-TAC gross profit was primarily driven by strong advertising spending, particularly from scaled advertisers [14] Market Data and Key Metrics Changes - The company expects nearly $2 billion in gross revenue for 2025, with over $700 million in Ex-TAC gross profit [5] - The advertising market is estimated to be a $55 billion opportunity, with Taboola positioned to capture market share as advertisers seek alternatives to search and social platforms [6] Company Strategy and Development Direction - The company is focusing on its performance platform, Realize, which aims to enhance advertiser success and drive growth [4][10] - Taboola is committed to increasing its market presence in performance advertising, aiming to become a leading platform outside of Google, Meta, and Amazon [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to double-digit growth over time, citing strong momentum and positive feedback from advertisers [4][22] - The company raised its full-year guidance, expecting revenues between $1.91 billion and $1.93 billion, reflecting continued business momentum [21] Other Important Information - The company repurchased approximately 10 million shares for a total consideration of $34.4 million in Q3, representing 14% of the company year-to-date [7][20] - The company secured a new $270 million revolving credit facility, allowing for reduced interest expenses and increased liquidity [19] Q&A Session Summary Question: What are the next steps for the Realize platform to capture more advertiser budgets? - Management highlighted three key areas: shifting market perception, focusing on the right clients, and continuous technology iteration [26][27] Question: Can you elaborate on the partnership with Paramount and its implications for CTV? - Management described the partnership as a demand generation opportunity, integrating TV and performance advertising to track conversions effectively [29][30] Question: What is the current state of traffic and its quality? - Management reported an increase in overall traffic, particularly from app traffic, and emphasized the importance of maintaining high-quality traffic for advertisers [40][41] Question: How is AI being utilized to improve yields and conversion rates? - Management explained that AI is used extensively for ad targeting and campaign optimization, with a focus on driving higher yields for advertisers [45][46] Question: What are the expectations for operating expenses and headcount growth? - Management indicated that operating expenses would grow in line with business growth while maintaining a target of 30% adjusted EBITDA margins [96][97] Question: What is the sustainability of growth for Taboola News? - Management expressed optimism about the growth of Taboola News, noting its unique supply strategy and immunity to LLM disintermediation [115]

Taboola.com Ltd. (TBLA) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of $0.1 per share. This compares to a loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +10.00%. A quarter ago, it was expected that this company would post earnings of $0.09 per share when it actually produced earnings of $0.1, delivering a surprise of +11.11%.Over the last four quarters, the company h ...

Q3 2025 Highlights & Supplemental Information November 5, 2025 Forward-Looking Statements - Disclaimer Certain statements in this presentation are forward-looking statements, including our Q4 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 ...

Financial Performance - Revenues for the three months ended September 30, 2025, were $496.764 million, a 14.7% increase from $433.012 million in the same period of 2024[116] - Gross profit for the same period was $139.019 million, compared to $132.877 million in 2024, reflecting a growth of 4.6%[116] - The net income for Q3 2025 was $5.244 million, a significant recovery from a net loss of $6.454 million in Q3 2024[116] - Adjusted EBITDA for the three months ended September 30, 2025, was $48.223 million, slightly up from $47.927 million in the same period of 2024[116] - Non-GAAP Net Income for the three months ended September 30, 2025, was $34,263 thousand, compared to $22,211 thousand in 2024, reflecting a significant increase of 54.3%[133] - For the nine months ended September 30, 2025, revenues increased by $114.6 million, or 9.0%, compared to the same period in 2024, primarily due to an increase in the number of Scaled Advertisers[165] - Gross profit for the nine months ended September 30, 2025, increased by $37.3 million, or 10.5%, compared to the same period in 2024[166] Client and Revenue Metrics - The number of Scaled Advertiser clients increased to approximately 2,100 in Q3 2025, up from 2,000 in Q3 2024, representing a 5% growth[110] - Average Revenue per Scaled Advertiser rose to approximately $208,000 in Q3 2025, compared to $187,000 in Q3 2024, marking an increase of 11.2%[110] - Revenue contribution from Scaled Advertisers accounted for 86% of total revenues in Q3 2025, up from 85% in Q3 2024[110] - Revenues increased by $63.8 million, or 14.7%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a 10.9% increase in Average Revenue per Scaled Advertiser and a 4.4% increase in the number of Scaled Advertisers[153] Cash Flow and Operating Activities - Cash flow provided by operating activities was $53.203 million for Q3 2025, compared to $49.772 million in Q3 2024, indicating a growth of 4.3%[116] - Free Cash Flow for the nine months ended September 30, 2025, was $116.520 million, compared to $97.266 million in the same period of 2024, showing a growth of 19.8%[116] - Net cash provided by operating activities was $148.7 million for the nine months ended September 30, 2025, an increase of $26.3 million compared to $122.4 million for the same period in 2024[184] Costs and Expenses - Total cost of revenues increased by $57.6 million, or 19.2%, for the three months ended September 30, 2025, compared to the same period in 2024[156] - Traffic acquisition cost for the three months ended September 30, 2025, was $324,079 thousand, which is a 20.8% increase from $267,997 thousand in 2024[123] - Research and development expenses increased by $5.0 million, or 4.7%, mainly due to a $5.8 million increase in salaries and related expenses[170] - Sales and marketing expenses increased by $7.0 million, or 3.5%, primarily due to a $5.2 million increase in advertising and promotion expenses related to the launch of Realize[171] - General and administrative expenses increased by $3.7 million, or 5.2%, mainly due to a $2.5 million increase in professional fees[172] Shareholder and Financing Activities - The company repurchased 58.3 million shares at an average price of $3.15 per share during the nine months ended September 30, 2025[181] - Net cash used in financing activities was $236.5 million, an increase of $174.2 million compared to $62.3 million in the same period in 2024, primarily due to $184.6 million repurchase of shares[192] Financial Position and Risks - As of September 30, 2025, the company had $115.5 million in cash and cash equivalents, down from $226.6 million as of December 31, 2024[177] - The company has a provision related to unrecognized tax benefit liabilities totaling $11.5 million as of September 30, 2025[196] - A 10% increase in the NIS against the U.S. dollar would result in a $1,260 thousand increase in operating income, while a 10% decrease would lead to a $220 thousand loss[201] - Inflation has resulted in higher equipment and labor costs, which could adversely affect the company's financial condition if not effectively mitigated[206] Accounting and Compliance - There have been no material changes to the company's critical accounting policies and estimates for the year ended December 31, 2024[200] - The company does not require collateral for accounts receivable, and historically has not experienced material losses related to receivables from advertisers[207] - As of September 30, 2025, no single customer accounted for 10% or more of accounts receivable or total revenue[208]

Core Insights - Taboola reported strong third quarter results for 2025, exceeding guidance across all metrics, with CEO Adam Singolda highlighting the success of the Realize platform and ongoing share repurchase efforts [2][3]. Financial Performance - Revenues for Q3 2025 reached $496.8 million, a 14.7% increase from $433.0 million in Q3 2024, driven by a 4.4% growth in Scaled Advertisers and a 10.9% increase in Average Revenue per Scaled Advertiser [6][16]. - Gross Profit for Q3 2025 was $139.0 million, up 4.6% from $132.9 million in Q3 2024. Ex-TAC Gross Profit was $176.8 million, reflecting a 6.3% increase [6][16]. - Net Income improved to $5.2 million from a net loss of $6.5 million in the previous year, with Adjusted EBITDA at $48.2 million, a slight increase of 0.6% [6][16]. - Cash flow from operating activities was $53.2 million, compared to $49.8 million in Q3 2024, while Free Cash Flow increased to $46.3 million from $42.9 million [6][16]. Guidance - For Q4 2025, Taboola expects revenues between $532 million and $542 million, with full-year 2025 revenue guidance set at $1.914 billion to $1.932 billion [3][18]. - Gross profit guidance for Q4 2025 is projected between $166 million and $171 million, with full-year guidance of $550 million to $564 million [3][18]. - Adjusted EBITDA for Q4 2025 is expected to be between $83 million and $85 million, with full-year guidance of $209 million to $214 million [3][18]. Shareholder Actions - The company has repurchased 14% of its shares in 2025, indicating a commitment to returning value to shareholders [2][3].

Exhibit 99.1 Taboola Reports Strong Q3 2025 Financial Results, Surpassing High-End of Guidance; Raises Full-Year Outlook NEW YORK, Nov. 5, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced its results for the third quarter ended September 30, 2025. "We delivered another strong quarter with our third quarter results beating the high-end of our guidance across all metrics" said Adam Singolda, CEO of Taboola. "Realize is at an i ...

Core Insights - Taboola.com Ltd. (NASDAQ:TBLA) is highlighted as a promising stock under $5, particularly following its partnership with Paramount Advertising to launch the Performance Multiplier, aimed at enhancing CTV advertising for small and medium-sized businesses [1][3] Group 1: Partnership and Product Launch - Taboola and Paramount Advertising have announced a partnership to introduce the Performance Multiplier, a solution designed to extend and measure the impact of Connected TV advertising across the open web for SMBs [1][2] - The Performance Multiplier leverages Taboola's extensive network and performance marketing expertise, integrating into Paramount Ads Manager, which allows SMB advertisers to access premium streaming advertising [2][3] Group 2: Technology and Reach - The integration of Taboola's Realize AI technology into Paramount Ads Manager will enhance targeting and attribution capabilities for advertisers [3] - This collaboration enables advertisers to extend their brand message from Paramount's extensive CTV reach to matched and lookalike viewers across Taboola's network, which includes over 9,000 publisher partners, reaching hundreds of millions of users [3][4]