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]

Financial Performance - Revenues for Q1 2025 were $427.5 million, a 3% increase compared to $414.0 million in Q1 2024, driven by a 9% growth in Scaled Advertisers[5] - Gross profit for Q1 2025 was $119.3 million, up 10% from $109.0 million in Q1 2024, with ex-TAC Gross Profit at $151.7 million, a 9% increase[15] - Adjusted EBITDA for Q1 2025 reached $35.9 million, a 53% increase from $23.5 million in Q1 2024, with adjusted EBITDA margins expanding to 23.7% from 16.9%[15] - The operating loss improved to $6 million in Q1 2025 from an operating loss of $18 million in Q1 2024, with the ratio of net loss to gross profit improving to (7.3%) from (24%)[5] - The company reported a Non-GAAP Net Income of $25.0 million for Q1 2025, compared to $3.8 million in Q1 2024[15] - The net loss for the three months ended March 31, 2025, was $8,750,000, a significant improvement from a net loss of $26,158,000 in 2024[21] - Operating loss narrowed to $6,262,000 in Q1 2025 from $18,233,000 in Q1 2024[21] - Net loss for Q1 2025 was $8,750,000, a significant improvement from a net loss of $26,158,000 in Q1 2024, representing a reduction of approximately 66.5%[32] - Adjusted EBITDA for Q1 2025 increased to $35,935,000, up from $23,489,000 in Q1 2024, reflecting a growth of about 53.0%[32] - Non-GAAP Net Income for Q1 2025 was $25,000,000, compared to $3,832,000 in Q1 2024, indicating a substantial increase of approximately 553.5%[37] Cash Flow and Liquidity - Cash flow generated by operating activities was $48.1 million in Q1 2025, compared to $32.4 million in Q1 2024, while Free Cash Flow increased to $36.1 million from $26.8 million[15] - Cash and cash equivalents at the end of the period were $216,223,000, compared to $178,534,000 at the end of Q1 2024[25] - Net cash provided by operating activities for Q1 2025 was $48,111,000, compared to $32,395,000 in Q1 2024, marking a growth of about 48.7%[36] - Free Cash Flow for Q1 2025 was $36,070,000, an increase from $26,806,000 in Q1 2024, representing a rise of approximately 34.5%[36] - The cash, cash equivalents, and short-term deposits totaled $216.2 million as of March 31, 2025, compared to $181.0 million as of March 31, 2024[15] Revenue Guidance - For Q2 2025, the company expects revenues between $438 million and $458 million, and for FY 2025, revenues are projected to be between $1.838 billion and $1.888 billion[4] - Revenue guidance for Q2 2025 is projected to be between $438 million and $458 million, while full-year 2025 revenue is expected to be between $1,838 million and $1,888 million[40] Shareholder Equity and Liabilities - Total current liabilities decreased to $437,269,000 as of March 31, 2025, down from $485,582,000 at the end of 2024[19] - Total shareholders' equity as of March 31, 2025, was $1,008,209,000, a decrease from $1,051,906,000 at the end of 2024[19] Expenses and Costs - Share-based compensation expenses totaled $15,517,000 for the three months ended March 31, 2025, down from $16,082,000 in 2024[23] - The company incurred finance expenses of $4,500,000 in Q1 2025, compared to $3,638,000 in Q1 2024[21] - The company incurred $1,972,000 in professional and legal expenses related to litigation in Q1 2025, which is not part of ongoing business operations[34] - Amortization of acquired intangibles for Q1 2025 was $17,783,000, compared to $15,935,000 in Q1 2024, reflecting an increase of approximately 11.6%[37] - The company reported foreign currency exchange rate losses of $1,524,000 in Q1 2025, compared to gains of $1,041,000 in Q1 2024[37] User Engagement - The company has approximately 600 million daily active users across its advertising platform, Realize, which is utilized by major publishers like NBC News and Yahoo[13] Strategic Focus - The company plans to continue investing in growth areas and return capital through share repurchases, focusing on becoming a leader in performance advertising beyond search and social[3]

Core Insights - Taboola has announced a new multi-year partnership with Samsung to provide news recommendations on Samsung devices and news channels, enhancing user engagement with premium content [1][2] - This partnership builds on an existing long-term relationship, expanding the ways Samsung device users can access content from Taboola's extensive publisher network [2][3] - The CEO of Taboola expressed excitement about the partnership, emphasizing the goal of delivering personalized content and driving traffic to publishers while enhancing mobile experiences for users [3] Company Overview - Taboola specializes in performance advertising technology that extends beyond traditional search and social media, aiming to deliver measurable outcomes at scale [4] - The company collaborates with thousands of businesses, reaching approximately 600 million daily active users through its ad platform, Realize, which is utilized by major publishers like NBC News and Yahoo [5]

Core Insights - Taboola has announced an update to its long-term partnership with Gannett, enhancing collaboration to provide performance advertisers access to display inventory on Gannett properties through a new platform called Realize [1][2]. Company Overview - Taboola is a global leader in performance advertising technology, working with thousands of businesses and reaching approximately 600 million daily active users across major publishers [5]. - Gannett Co., Inc. is a diversified media company with a national and local reach, operating the USA TODAY NETWORK and providing digital marketing solutions through its brand LocaliQ [6]. Partnership Details - The partnership between Taboola and Gannett, which began in 2013, has been deepened to include performance advertising capabilities, allowing advertisers to access a broader range of display inventory [2][4]. - Realize, powered by an AI performance engine, enables advertisers to optimize campaigns across Taboola's extensive network of publishers and apps, leveraging unique data from Taboola's integrations [3][4]. Strategic Goals - The collaboration aims to drive audience development, engagement, and monetization for both companies, with a focus on providing performance advertisers with greater access to trusted sites [4].

Since 2013, Taboola has partnered with Gannett by powering recommendations across Gannett's digital properties. Now, as part of Taboola's expansion beyond native and into performance, Taboola has deepened its partnership with Gannett to offer performance advertisers access to display inventory on Gannett properties with Realize. For the first time ever, Realize allows advertisers to tap into display and even more parts of Taboola's large network of publishers, apps and OEMs. Realize is powered by an AI perf ...

Core Insights - Taboola has announced an expansion of its long-term partnership with Gannett, enhancing its offerings for performance advertisers [1][2] - The partnership now includes access to display inventory on Gannett properties through Taboola's Realize platform, which utilizes an AI performance engine [2][3] - This collaboration aims to leverage first-party data and AI to optimize advertising campaigns across a wide network of publishers and apps [4] Company Overview - Taboola is a leader in performance advertising technology, reaching approximately 600 million daily active users and partnering with major publishers like NBC News and Yahoo [5] - Gannett is a diversified media company with a national and local presence, operating the USA TODAY NETWORK and focusing on empowering communities through journalism and digital marketing solutions [6] Partnership Details - The partnership between Taboola and Gannett has been in place since 2013, with a focus on audience development, engagement, and monetization [2][4] - Realize, the new platform, allows advertisers to access a broader range of display opportunities, enhancing the effectiveness of their campaigns [3][4]

Core Viewpoint - Taboola is set to release its first quarter 2025 financial results on May 7, 2025, and will host a conference call to discuss these results [1] Group 1: Financial Results Announcement - The financial results for the first quarter of 2025 will be announced on May 7, 2025, at 8:30 a.m. ET [1] - A conference call and webcast will be held to discuss the financial results, accessible via a provided link [1] - The webcast will be available for replay for one year, until May 7, 2026 [1] Group 2: Company Overview - Taboola specializes in performance advertising technology that extends beyond traditional search and social media, focusing on measurable outcomes at scale [2] - The company collaborates with thousands of businesses, utilizing its ad platform, Realize, to reach approximately 600 million daily active users [3] - Major publishers such as NBC News and Yahoo, along with OEMs like Samsung and Xiaomi, leverage Taboola's technology to enhance audience engagement and revenue [3]

Core Insights - Taboola has released a report indicating that performance advertising on social media is experiencing significant growth, with ad spend expected to reach $239 billion in 2025 and $273 billion in 2026 [2] - Despite this growth, nearly 75% of performance marketers report diminishing returns on their social media ad investments, highlighting a barrier to achieving better results with increased spending [2][6] - The report, based on a survey of over 300 advertisers, reveals that diminishing returns affect over 30% of marketers' spending, driven by factors such as audience saturation, rising costs, and ad fatigue [6] Industry Trends - The performance advertising landscape is shifting as marketers seek solutions to combat diminishing returns, with over 80% employing multiple tactics and more than half exploring additional digital channels beyond social media [6] - Taboola's technology is positioned to empower businesses by delivering measurable outcomes at scale, indicating a potential opportunity for growth in performance advertising beyond traditional social media platforms [3][4]

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]