Financial Data and Key Metrics Changes - The company reported Q1 revenues of $427 million, representing a 3% year-over-year growth, with ex TAC gross profit of $152 million, which is 9% higher than last year [8][21] - Adjusted EBITDA for Q1 was $36 million, reflecting a 53% year-over-year growth, with margins expanding significantly [8][25] - Free cash flow for the quarter was $36 million, growing 35% year-over-year [8][25] Business Line Data and Key Metrics Changes - The number of scaled advertisers grew by 9% year-over-year, reaching 1,996, while the average revenue per scaled advertiser declined by 3% [12][22] - The core native business saw positive growth, and the company completed its format testing with Yahoo, which had a marginal revenue reduction impact [23][24] Market Data and Key Metrics Changes - The company noted a 1% decrease in advertising spend related to tariffs, primarily affecting its China business, which now accounts for around 5% of total Q2 revenue [9][53] - The company is seeing positive trends in Taboola News and other parts of the business, supporting its decision to maintain full-year guidance [9][10] Company Strategy and Development Direction - The company is focused on capturing a $55 billion market opportunity in performance advertising outside of search and social channels [6][10] - The launch of the Realize platform is a significant step forward, offering new ad formats and a CPC pricing model, which is expected to unlock previously inaccessible advertising budgets [13][14][15] - The company aims to drive incremental ad spend through Realize's new capabilities and is focusing on verticalizing its sales organization [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business despite macroeconomic uncertainties, emphasizing cost discipline and investment in growth initiatives [19][20] - The company reiterated its full-year guidance for 2025, expecting revenues between $1.84 billion and $1.89 billion [30][31] Other Important Information - The company has a strong balance sheet with a net cash balance of $89.7 million and cash equivalents totaling $216.2 million [28][29] - The company repurchased approximately 16.2 million shares at an average price of $3.3 during Q1, with an additional 15.1 million shares repurchased since then [30][31] Q&A Session Summary Question: Progress on verticalizing the sales force and the impact on scaled advertisers - Management indicated that the restructuring of the sales teams is complete and early returns are positive, with the number of scaled advertisers growing by 9% [34][36][38] Question: Impact of Google news on the ad tech industry - Management noted that the shift towards privacy and the potential reduction of cookies could benefit companies with first-party data, positioning them well in the market [45][46][48] Question: Performance of different business components in uncertain macro environments - Management stated that the performance advertising space is well-positioned, and they have not seen material impacts from macroeconomic changes so far [64][66][68] Question: Guidance for the second half of the year - Management explained that the expected decline in ex TAC revenue in the second half is due to conservative guidance and the impact of prior testing with Yahoo [69][72] Question: Future hiring trends and cost management - Management indicated that while there will be some ramp in R&D hiring, overall cost increases will be limited, focusing on productivity improvements through AI [88][90]

Company Performance - Taboola.com Ltd. reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, compared to a loss of $0.08 per share a year ago, representing an earnings surprise of 600% [1] - The company posted revenues of $427.49 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.30%, and showing an increase from year-ago revenues of $414.01 million [2] - Over the last four quarters, Taboola.com has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Outlook - Taboola.com shares have declined approximately 15.3% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the coming quarter is $0.07 on revenues of $448.62 million, and for the current fiscal year, it is $0.36 on revenues of $1.86 billion [7] - The estimate revisions trend for Taboola.com is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Taboola.com belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Investor Presentation First Quarter 2025 May 2025 Forward-Looking Statements - Disclaimer Certain statements in this presentation are forward-looking statements, including our Q2 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 ...

Financial Performance - Revenues for Q1 2025 were $427.5 million, a 3.6% increase from $414.0 million in Q1 2024[106] - Gross profit for Q1 2025 was $119.3 million, compared to $109.0 million in Q1 2024, reflecting a growth of 9.9%[106] - The net loss for Q1 2025 was $8.8 million, significantly improved from a net loss of $26.2 million in Q1 2024[106] - Adjusted EBITDA for Q1 2025 was $35.9 million, compared to $23.5 million in Q1 2024, marking a 52.7% increase[106] - Non-GAAP Net Income for Q1 2025 was $25,000,000, significantly higher than $3,832,000 in Q1 2024[124] - Operating loss for the three months ended March 31, 2025, was $6.3 million, a significant improvement from a loss of $18.2 million in the same period of 2024[142] Client and Revenue Metrics - The number of Scaled Advertiser clients increased to approximately 2,000 in Q1 2025, up from 1,800 in Q1 2024[101] - Average Revenue per Scaled Advertiser was approximately $184,000 in Q1 2025, slightly down from $190,000 in Q1 2024[101] - Revenue contribution from Scaled Advertisers represented 86% of total revenues in Q1 2025, compared to 84% in Q1 2024[101] - Revenues for the three months ended March 31, 2025, increased by $13.5 million, or 3.3%, to $427.5 million compared to $414.0 million for the same period in 2024, driven by an increase in the number of Scaled Advertisers[142][143] Cash Flow and Investments - Cash flow from operating activities was $48.1 million in Q1 2025, an increase from $32.4 million in Q1 2024[106] - Free Cash Flow for Q1 2025 was $36.1 million, up from $26.8 million in Q1 2024[106] - Net cash provided by operating activities was $48.1 million for the three months ended March 31, 2025, an increase of $15.7 million compared to $32.4 million for the same period in 2024[163] - Net cash used in investing activities for Q1 2025 was $8.3 million, an increase of $6.7 million from $1.6 million in Q1 2024, primarily due to a $12.0 million purchase of property and equipment[169][170] - Net cash used in financing activities for Q1 2025 was $51.2 million, an increase of $22.4 million from $28.8 million in Q1 2024, mainly due to $122.7 million repayment of a long-term loan and $49.3 million repurchase of ordinary shares[171][172] Expenses and Costs - Total cost of revenues increased by $3.1 million, or 1.0%, with traffic acquisition costs rising by $4.7 million, or 1.7%[145] - Research and development expenses are expected to increase in future periods to support growth and technology improvements[135] - General and administrative expenses are anticipated to remain relatively flat in 2025[137] - Traffic acquisition costs for Q1 2025 were $279,797,000, slightly up from $275,120,000 in Q1 2024[113] Tax and Financial Obligations - Tax expenses decreased by $6.3 million, resulting in a tax benefit of $2.0 million for the three months ended March 31, 2025[153] - Total contractual obligations as of March 31, 2025, amounted to $140.5 million, with $51.3 million due in 2025 and $35.0 million in 2026[174] - As of March 31, 2025, the company had $126.5 million of outstanding borrowings under the 2025 Revolving Credit Facility with a variable interest rate[185] Market and Risk Factors - A 10% increase in the NIS against the USD would impact operating income by $1.6 million, while a 10% decrease would have the opposite effect[182] - The company has established a hedging program using foreign currency forward contracts to manage exposure to foreign currency risks[182] - Inflation has resulted in higher equipment and labor costs, which could adversely affect the company's financial condition if not effectively mitigated[188] - The company does not hold short-term investments as of March 31, 2025, and seeks to mitigate credit risk by limiting counterparties to major financial institutions[192] Shareholder Actions - The company repurchased 16.2 million shares at an average price of $3.03 per share during the three months ended March 31, 2025, with remaining authorization for buybacks totaling $196.4 million[161] - The company plans to continue significant investments in research and development and technology platform, and may consider future acquisitions[155] Cash and Equivalents - The company had $216.2 million in cash and cash equivalents as of March 31, 2025, down from $226.6 million at the end of 2024[156] - The company generated cash from operations of $48.1 million for the three months ended March 31, 2025, primarily due to a net loss of $8.8 million adjusted by non-cash charges of $44.5 million[163] Customer Concentration - No single customer accounted for 10% or more of accounts receivable or total revenue as of March 31, 2025[190]

Core Insights - Taboola reported strong first-quarter results for 2025, exceeding guidance across all key metrics, indicating robust momentum in performance advertising [2][3] - The company aims to continue investing in growth areas, return capital through share repurchases, and solidify its position as a leader in performance advertising beyond search and social [2] Financial Performance - Revenues for Q1 2025 were $427 million, a 3% increase from Q1 2024, driven by a 9% growth in scaled advertisers, despite a 3% decline in average revenue per scaled advertiser [6][13] - Gross profit reached $119 million, up 10% year-over-year, with ex-TAC gross profit at $152 million, reflecting a 9% increase [6][13] - Adjusted EBITDA was $36 million, a significant increase of 53%, with adjusted EBITDA margins expanding to 23.7% from 16.9% [6][13] Guidance for Future Performance - For Q2 2025, Taboola expects revenues between $438 million and $458 million, and for the full year 2025, revenues are projected to be between $1.838 billion and $1.888 billion [3][14] - The company anticipates adjusted EBITDA for Q2 2025 to be between $38 million and $44 million, and for the full year, between $201 million and $209 million [3][15] Cash Flow and Financial Health - Cash flow from operating activities was $48 million, compared to $32 million in the previous year, with free cash flow at $36 million, up from $27 million [6][13] - The company reported a net loss of $8.8 million for Q1 2025, an improvement from a net loss of $26.2 million in Q1 2024 [6][13] Shareholder Returns - Taboola is committed to returning capital to shareholders through share repurchases, reflecting confidence in its long-term growth strategy [2][3]

For the Second Quarter and Full Year 2025, the Company currently expects (dollars in millions): | | Q2 2025 | | FY 2025 | | | --- | --- | --- | --- | --- | | | Guidance | | Guidance | | | | | | Unaudited | | | Revenues | $ | 438 - $458 | | $ 1,838 - $1,888 | | Gross profit | $ | 124 - $134 | $ | 536 - $552 | | ex-TAC Gross Profit* | $ | 156 - $166 | $ | 674 - $690 | | Adjusted EBITDA* | $ | 38 - $44 | $ | 201 - $209 | | Non-GAAP Net Income (Loss)* | $ | 26 - $32 | $ | 122 - $128 | Although we provide guidan ...

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA) today announced it has reached a new partnership with Samsung to serve news recommendations on Samsung devices and news channels. Under this new multi-year relationship, Taboola will power news recommendations on Samsung News, the popular news application found on millions of Samsung mobile devices worldwide, in markets across Europe and India. Today’s news extends on a long-term relationship between Taboola and Samsung and adds even more w ...

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced that it will release first quarter 2025 financial results on Wednesday, May 7, 2025. Management will host a conference call and webcast to discuss financial results at 8:30 a.m. ET. What: Taboola First Quarter 2025 Financial Results Conference Call When: Wednesday, May 7, 2025 at 8:30 a.m. ET Details: Taboola's senior management team will discuss the Compan ...

NEW YORK, April 02, 2025 (GLOBE NEWSWIRE) -- Taboola, a global leader in delivering performance at scale for advertisers, today announced a new report based on a survey conducted with Qualtrics, a leading company in experience management working with nearly 20,000 organizations worldwide. Performance advertising on social media is rapidly growing—industry forecasts predict that social media ad spend will reach $239 billion in 2025 and is projected to reach $273 billion in 2026. However, new research found t ...

Core Insights - Taboola is tracking toward the high end of its previously disclosed guidance ranges for key financial metrics in Q1 2025, including Revenues, Gross Profit, ex-TAC Gross Profit, and Adjusted EBITDA [1] Financial Performance - The company will report its Q1 2025 results on May 7, 2025, before market opening [2] - Preliminary indications for financial metrics are unaudited and subject to change [2] Investor Engagement - Taboola is hosting its Investor Day on March 26, 2025, at 10:00 a.m. ET, which can be accessed via its website [3] Company Overview - Taboola specializes in performance advertising technology, aiming to deliver measurable outcomes at scale beyond traditional search and social media [4] - The company collaborates with thousands of businesses, reaching approximately 600 million daily active users through its ad platform, Realize [5]