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].

Financial Performance - Revenues for Q3 2025 were $496.8 million, representing a 14.7% increase compared to Q3 2024, driven by a 4.4% growth in Scaled Advertisers and a 10.9% increase in Average Revenue per Scaled Advertiser[4] - Gross Profit for Q3 2025 was $139.0 million, up 4.6%, with ex-TAC Gross Profit at $176.8 million, a 6.3% increase, benefiting from strong advertising spend[4] - Net Income improved to $5.2 million from a Net Loss of $(6.5) million in Q3 2024, with Adjusted EBITDA at $48.2 million, a 0.6% increase[4] - Revenues for Q3 2025 reached $496.764 million, a 14.7% increase from $433.012 million in Q3 2024[19] - Gross profit for Q3 2025 was $139.019 million, compared to $132.877 million in Q3 2024, reflecting a growth of 4.3%[19] - Net income for Q3 2025 was $5.244 million, a significant improvement from a net loss of $6.454 million in Q3 2024[20] - Adjusted EBITDA for Q3 2025 was $48,223, slightly higher than $47,927 in Q3 2024, indicating stable operational performance[30] Cash Flow and Liquidity - Cash Flow from operating activities was $53.2 million, up from $49.8 million, while Free Cash Flow increased to $46.3 million from $42.9 million[4] - Cash flows from operating activities for Q3 2025 were $53,203, compared to $49,772 in Q3 2024, showing improved cash generation[23] - Cash and cash equivalents at the end of Q3 2025 were $115,475, down from $217,230 at the end of Q3 2024, indicating liquidity challenges[23] - Free Cash Flow for the three months ended September 30, 2025, was $46,289, compared to $42,864 in the same period of 2024, indicating a year-over-year increase of 8.9%[39] - The company reported a Free Cash Flow of $116,520 for the nine months ended September 30, 2025, an increase from $97,266 in the same period of 2024, reflecting a growth of 19.8%[39] Shareholder Equity and Liabilities - Total current liabilities decreased to $466.223 million as of September 30, 2025, down from $485.582 million at the end of 2024, a reduction of 4.4%[18] - Long-term liabilities decreased to $151.661 million as of September 30, 2025, compared to $181.170 million at the end of 2024, a decline of 16.3%[18] - Total shareholders' equity as of September 30, 2025, was $911.462 million, down from $1,051.906 million at the end of 2024, a decrease of 13.4%[18] Expenses - Research and development expenses for Q3 2025 were $37.867 million, slightly up from $36.727 million in Q3 2024[19] - Total operating expenses for Q3 2025 were $132.514 million, compared to $128.319 million in Q3 2024, an increase of 3.5%[19] - Share-based compensation expenses totaled $15.714 million for Q3 2025, down from $17.186 million in Q3 2024[21] - Total depreciation and amortization expense for Q3 2025 was $20.331 million, compared to $24.793 million in Q3 2024, a decrease of 18.0%[22] Future Guidance - For Q4 2025, the company expects revenues between $1,914 million and $1,932 million, with a gross profit guidance of $550 million to $564 million[3] - The company expects Q4 2025 revenues to be between $532 million and $542 million, with a projected Gross Profit of $166 million to $171 million[42] - For the full year 2025, the company projects revenues of $1,914 million to $1,932 million, with an ex-TAC Gross Profit guidance of $700 million to $710 million[42] Strategic Initiatives - The company continues to focus on expanding its performance platform, Realize, which is driving significant success for advertisers[2] - The company has repurchased 14% of its shares this year, reflecting confidence in its strategy and performance[2] Tax and Financing Activities - The company reported a significant increase in income tax payments, totaling $9,202 in Q3 2025 compared to $3,796 in Q3 2024[25] - The company experienced a net cash used in financing activities of $46,476 in Q3 2025, compared to $9,741 in Q3 2024, highlighting increased financing pressures[23] Foreign Currency Impact - The company experienced foreign currency exchange rate losses of $(667) for the three months ended September 30, 2025, compared to losses of $(738) in the same period of 2024[34]

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]

Core Insights - The partnership between Paramount and Taboola aims to revolutionize the advertising industry by combining high-impact TV ads with performance-driven online advertising technology [3][9] - The traditional approach to TV advertising is being challenged as advertisers seek measurable results rather than relying on hope for consumer action [2][4] Advertising Industry Transformation - The TV advertising market is valued at approximately $100 billion and is undergoing significant changes as advertisers demand more accountability [2] - Advertisers can now utilize a dashboard provided by Paramount to enable Taboola's technology, allowing them to track conversions and performance across the open web [6][8] Technology Integration - The integration of AI technology from Taboola allows advertisers to see their TV ads and related content across various online platforms, enhancing visibility and engagement [3][4] - This new service is expected to launch across all Paramount properties by Q1, targeting small business advertisers initially [8] Competitive Landscape - The partnership draws inspiration from Amazon's successful advertising model, which demonstrates the effectiveness of tracking consumer actions from ads to purchases [9][10] - The shift towards performance-based advertising is seen as essential for various sectors beyond retail, including healthcare and small businesses [6][10] Future Outlook - There is optimism regarding the role of AI in enhancing the open web experience for both consumers and advertisers, emphasizing the importance of trusted publishers in decision-making processes [13][15] - The younger generation's preference for authenticity and trust in media sources is expected to drive demand for reliable advertising platforms [15]

Core Insights - Taboola and Paramount Advertising have announced a strategic partnership to launch "Performance Multiplier," a solution aimed at enhancing the effectiveness of TV advertising for small and medium-sized businesses (SMBs) [1][2] Group 1: Partnership Overview - The Performance Multiplier will integrate into Paramount Ads Manager, allowing SMB advertisers to access premium streaming advertising while measuring its impact [2][4] - This partnership marks the first time a major streaming provider has adopted a solution like Taboola Realize, setting a new standard for how TV advertising can drive performance across digital channels [3] Group 2: Technology and Capabilities - The Performance Multiplier leverages Taboola's Realize AI technology to enhance targeting and attribution capabilities, extending brand messages beyond Paramount's reach to matched and lookalike viewers across Taboola's network [2][4] - Advertisers will be able to track post-view outcomes such as clicks, sign-ups, and purchases directly within the Paramount Ads Manager dashboard [7] Group 3: Market Impact - The initiative aims to make CTV advertising more measurable and actionable for SMBs, driving performance outcomes beyond traditional advertising environments [4] - The Performance Multiplier is currently in BETA within Paramount Ads Manager, with general availability expected by early 2026 [4]