Core Insights - Taboola has launched a new solution called Performance Enhancer in partnership with LG Ad Solutions, which connects premium CTV exposure to measurable digital conversions globally [1][2] Group 1: Partnership Overview - The partnership aims to create a more connected and measurable advertising ecosystem, allowing brands to extend campaigns from Smart TVs into high-quality digital environments [3] - Performance Enhancer combines LG Ad Solutions' audience insights, powered by first-party ACR data, with Taboola's performance advertising technology [3][4] Group 2: Benefits for Advertisers - Advertisers can drive more site visits and conversions by optimizing campaigns toward audiences most likely to act [3][7] - The solution allows for quantifying ROI by attributing site visits, engagement, and conversions directly back to TV exposure [7] - It enhances efficiency by consolidating cross-platform measurement, which strengthens future media planning and reduces fragmentation [7] Group 3: Company Background - LG Ad Solutions, formerly known as Alphonso Inc., is a leader in advanced advertising for Connected TV and cross-screen devices, focusing on creating meaningful connections between brands and audiences [5] - Taboola empowers businesses through performance advertising technology, reaching approximately 600 million daily active users across major publishers [6]

Core Insights - Taboola has partnered with BuzzFeed Asia to launch DeeperDive, a Gen AI answer engine designed to enhance user engagement and create new revenue streams for publishers [1][4][5] Group 1: Product Overview - DeeperDive integrates AI search capabilities directly on publisher websites, utilizing high-quality content from journalists to provide instant answers to user inquiries [2][7] - The service will initially be available in Singapore, Malaysia, and the Philippines, targeting key Southeast Asian markets [1] Group 2: User Engagement and Experience - The platform encourages users to ask questions and receive immediate, relevant answers, fostering a more interactive and engaging experience [3][7] - By offering multifaceted answers and links to related articles, DeeperDive aims to increase time spent on site and enhance reader loyalty [7] Group 3: Revenue Opportunities - DeeperDive presents a new monetization channel for publishers by allowing contextually relevant ads to be integrated into AI-generated results, capturing search-like advertising revenue [7] - This innovation positions publishers to leverage user inquiries as commercial opportunities while maintaining a seamless user experience [7]

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.

Core Insights - Taboola has partnered with The Bangkok Post to implement DeeperDive, a generative AI answer engine designed to enhance readership and engagement while creating new revenue streams [1][4] Group 1: DeeperDive Overview - DeeperDive integrates generative AI search capabilities directly onto publisher websites, utilizing high-quality content from journalists and editors [2] - The tool allows readers to ask questions and receive instant, reliable answers, enhancing the user experience and engagement [3][5] Group 2: Benefits for The Bangkok Post - The Bangkok Post aims to leverage its 79-year history in journalism to provide innovative content experiences through DeeperDive [4] - The implementation of DeeperDive is expected to increase reader engagement by offering multifaceted answers and encouraging deeper exploration of content [5] Group 3: Revenue Opportunities - DeeperDive presents a new monetization channel for publishers by integrating contextually relevant, high-intent ads into AI-generated results, allowing for search-like advertising revenue [5] - This approach enables publishers to transform user inquiries into commercial opportunities while maintaining a seamless reader experience [5]

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]

分组1 - Taboola.com Ltd. reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, compared to a loss of $0.02 per share a year ago, representing an earnings surprise of +10.00% [1] - The company posted revenues of $496.76 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 6.69%, and showing an increase from year-ago revenues of $433.01 million [2] - Over the last four quarters, Taboola.com has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] 分组2 - The stock has underperformed the market, losing about 8.8% since the beginning of the year, while the S&P 500 gained 15.1% [3] - The current consensus EPS estimate for the coming quarter is $0.19 on revenues of $514.9 million, and for the current fiscal year, it is $0.45 on revenues of $1.87 billion [7] - The Computers - IT Services industry, to which Taboola.com belongs, is currently in the top 30% of Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

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].