Core Insights - Taboola has reached a ten-year milestone in its advertising partnership with Microsoft, enhancing its collaboration to serve ads on more Microsoft properties [1][4] - The partnership includes advertising on popular Microsoft applications such as Outlook and within the Microsoft 365 productivity suite, expanding Taboola's reach [2][4] - Taboola's AI-powered technology enables monetization and user engagement across various digital properties, connecting advertisers with approximately 600 million daily active users [3][6] Company Overview - Taboola specializes in performance advertising technology, aiming to deliver measurable outcomes at scale beyond traditional search and social media [5] - The company collaborates with thousands of businesses and publishers, including major names like NBC News and Yahoo, to enhance audience growth and revenue [6]

NEW YORK, March 18, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced it has reached a ten-year milestone serving advertising on select Microsoft properties and has deepened this relationship even further. For years, Taboola has served ads on Microsoft-owned digital properties and apps including MSN, one of the most read news destinations in the world, Microsoft Edge, one of the world’s leading AI-powered browsers, and other ...

Core Insights - The article discusses the investment potential of Taboola (NASDAQ: TBLA), highlighting a previous "Strong Buy" rating based on expected double-digit revenue growth [1] Group 1: Company Overview - Taboola is positioned as a platform for matching ads on the open web, indicating its role in digital advertising [1] Group 2: Investment Strategy - The investment approach combines fundamental analysis with options strategies, focusing on various investment styles including income-oriented, growth at a reasonable price, deep value, and dividend aristocrats [1] - The analyst employs 20-25 options strategies for purposes such as hedging, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Group 3: Analyst's Position - The analyst holds a beneficial long position in Taboola shares through stock ownership, options, or other derivatives, indicating confidence in the company's future performance [2]

Taboola (NASDAQ: TBLA ), a company providing digital advertising platform, is a stock I have been following for some time. Previously, I have made two bullish calls on the stock. The first one was in 2023 and another oneAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TBLA over the next 72 hours. I wrote this ...

Financial Data and Key Metrics Changes - In 2024, the company achieved ex-TAC gross profit of $667 million, representing a 25% growth year-over-year, and adjusted EBITDA of $201 million, more than doubling the previous year's results [13][41] - Free cash flow for 2024 reached $149 million, exceeding the original target of $100 million by 49% and representing nearly three times the free cash flow compared to the prior year [13][46] - The company reported a net income of $33.1 million for Q4 2024, with a full-year net loss of $3.8 million, while non-GAAP net income for the full year was $122.4 million [45][49] Business Line Data and Key Metrics Changes - The enterprise advertising business saw strong growth, contributing to the overall revenue increase, particularly with the onboarding of partners like Yahoo and Apple [42][14] - Adjusted EBITDA margin for 2024 was 30.1%, reflecting strong cost discipline and the benefits of prior investments [44] Market Data and Key Metrics Changes - The company reached 600 million people daily, leveraging first-party data and AI to enhance advertising effectiveness [11][12] - The competitive landscape is shifting, with advertisers increasingly favoring standard display ads over native advertising, which has been identified as a limitation for growth [18][21] Company Strategy and Development Direction - The company is launching a new advertising platform called Realize, aimed at expanding beyond native advertising to capture the full performance advertising market [31][34] - The strategic focus for 2025 includes investing in AI and strengthening partnerships to drive demand and growth [16][24] - The company sees a $55 billion opportunity in performance advertising, particularly as advertisers shift budgets from social platforms due to diminishing returns [25][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that projected single-digit growth for 2025 is below historical rates and long-term ambitions, emphasizing the need to lay groundwork for future growth [16][53] - The company is optimistic about the potential of Realize to unlock demand and drive growth, despite current challenges in the native advertising market [89][106] Other Important Information - The board approved an additional $200 million for the share repurchase program, bringing the total authorization to approximately $240 million [50][52] - The company plans to introduce new metrics, including scaled advertisers and average revenue per scaled advertiser, to track growth initiatives [55][56] Q&A Session Summary Question: Concerns about Amazon's new strategy affecting connectivity business - Management views Amazon's strategy as an opportunity for growth outside of walled gardens, emphasizing the potential for retailers to diversify their reach [60][64] Question: Limitations of mobile device ecosystem and CTV growth - Management believes that while CTV is primarily for branding, there is an opportunity for performance advertising outside of traditional channels, positioning the company to fill that gap [66][71] Question: Product changes with Realize and Q1 2025 guidance - Realize aims to provide more demand-side tools and access to a broader range of ad placements, with the guidance reflecting a cautious approach to allow for traction [75][86] Question: Revenue growth expectations and competition with established DSPs - Management acknowledges the competitive landscape but believes that their unique positioning and focus on performance advertising will differentiate them from competitors like Trade Desk and Amazon [96][111]

Financial Data and Key Metrics Changes - In 2024, the company achieved ex-TAC gross profit of $667 million, representing a 25% growth year-over-year, and adjusted EBITDA of $201 million, which more than doubled from the previous year [13][42] - Free cash flow reached $149 million, exceeding the original target of $100 million by 49% and representing nearly three times the free cash flow compared to the prior year [13][46] - For Q4 2024, revenues reached $491 million, with ex-TAC gross profit of $212.7 million, growing 26% year-over-year [40][41] Business Line Data and Key Metrics Changes - The enterprise advertising business saw strong growth, contributing to the overall revenue increase, particularly with the onboarding of partners like Yahoo and Apple [42][14] - Adjusted EBITDA for Q4 was $92.3 million, growing 84% year-over-year, reflecting a 30.1% adjusted EBITDA margin [43][44] Market Data and Key Metrics Changes - The company noted that the native advertising market alone is not sufficient to support its ambitious growth plans, as many advertisers prefer standard display ads over native formats [18][21] - The company identified a $55 billion opportunity in performance advertising beyond search and social, driven by challenges in the EdTech landscape and diminishing returns from social platforms [25][28] Company Strategy and Development Direction - The company announced a strategic shift to expand beyond native advertising into the broader performance advertising market with the launch of its new platform, Realize [31][34] - The focus will be on leveraging first-party data and AI to enhance performance advertising capabilities and meet the needs of advertisers seeking better returns [36][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that projected single-digit growth for 2025 is below historical rates and long-term ambitions, emphasizing the need to lay groundwork for accelerated growth [15][16] - The company plans to invest in scaling demand and strengthening partnerships while maintaining a focus on cash generation and shareholder value [15][53] Other Important Information - The board approved an additional $200 million for the share repurchase program, bringing the total authorization to approximately $240 million [50][52] - The company will introduce new metrics, including scaled advertisers and average revenue per scaled advertiser, to track growth in advertiser demand [55][56] Q&A Session Summary Question: Concerns about Amazon's new strategy affecting connectivity business - Management views Amazon's actions as an opportunity for growth in the open web and believes that retailers will continue to seek diverse revenue streams [60][64] Question: Limitations of mobile device ecosystem and CTV growth - Management believes that while CTV is primarily for branding, there is an opportunity for performance advertising outside of traditional channels [66][69] Question: Product changes with Realize and Q1 2025 guidance - Realize aims to provide more demand-side tools and access to various ad placements, while the guidance reflects a cautious approach to allow the new product to gain traction [75][86] Question: Revenue growth expectations and competition with established DSPs - Management is optimistic about the potential of Realize to unlock growth and believes that the company can differentiate itself by focusing on performance advertising [96][104]

TRENOWATCH 11 2.2.2.8.8.6.6 P .... NYWHERE. MOVIES | the | 22 Tab99la ��@@0 What are Blue Zones and why they are the secret to ANYTHING. ANYWHERE. AGENDA 2 Q4 Updates & Momentum 1 3 ● Platform advantage driven by Taboola's technology (Brands & Agencies, Taboola News, Newsroom) EXPANDING EX-TAC MARGINS ex-TAC Margin By Year 40.00% 40.7% 37.3% 35.00% 32.3% <-TAC Marg 31.0% 30.00% 28.2% 27.0% 25.00% 22.5% 20.00% 18.8% 15.00% 2020A 2022A 2015A 2016A 2017A 2018A 2019A 2021A → Margins increase as competitive adva ...

Financial Data and Key Metrics Changes - In 2024, the company achieved ex TAC gross profit of $667 million, representing a 25% growth year-over-year, and adjusted EBITDA of $201 million, more than doubling the previous year's results [9][30] - Free cash flow for 2024 reached $149 million, exceeding the original target of $100 million by 49% and growing nearly three times compared to the prior year [9][31] - The company ended 2024 with a net cash balance of $103.9 million, with cash and cash equivalents totaling $226.6 million, surpassing long-term loan obligations of $122.7 million [33] Business Line Data and Key Metrics Changes - The enterprise advertising business saw strong growth, contributing to the overall revenue increase, particularly with the onboarding of Yahoo [30] - Excluding the impact of the Yahoo deal, the company estimates it grew over 10% on an ex TAC gross profit basis in 2024 [30] Market Data and Key Metrics Changes - The company reaches 600 million people daily, providing real-time insights into consumer behavior, which is a competitive advantage [8] - The advertising landscape is shifting, with many advertisers preferring standard display ads over native advertising, which has been identified as a limitation for growth [12][14] Company Strategy and Development Direction - The company is expanding beyond native advertising to capture the full performance advertising market, which is estimated to be a $55 billion opportunity [16] - The new advertising platform, Realize, aims to drive performance outcomes across various formats and placements, moving away from a sole focus on native advertising [20][21] - The company plans to leverage its first-party data and AI to enhance its offerings and meet the evolving needs of advertisers [24][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the projected single-digit growth for 2025 is below historical rates and long-term ambitions, but emphasizes the importance of laying groundwork for future growth [11][36] - The company is optimistic about the potential of Realize to unlock demand and drive growth, despite current challenges in the native advertising market [69][70] Other Important Information - The company has approved an additional $200 million for its share repurchase program, bringing the total authorization to approximately $240 million [33] - The introduction of new metrics, such as scaled advertisers and average revenue per scaled advertiser, will help track progress in driving advertiser demand [37] Q&A Session Summary Question: Amazon's new strategy to pay media companies for traffic - Management views Amazon's strategy as an opportunity for growth in social commerce and believes that retailers will continue to seek ways to diversify their reach [40][42] Question: Concerns about being limited to mobile devices and CTV growth - Management believes there is a significant opportunity in performance advertising outside of traditional channels and aims to fill the gap left by competitors in the performance space [44][46] Question: Details on the Realize platform and its impact on demand - The Realize platform will provide advertisers with more options and ease of use, allowing them to upload existing creatives and access a wider range of ad placements [55][56] Question: Clarification on Yahoo's performance and future growth expectations - Management acknowledges that while the Yahoo deal has provided valuable supply, the expected growth from Yahoo's advertisers has not materialized as anticipated [66][68] Question: Competition with established DSPs like Trade Desk and Amazon - Management believes that the company can differentiate itself by focusing on performance advertising and capturing budgets from social platforms experiencing diminishing returns [73][75]

Core Viewpoint - Taboola.com Ltd. reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.11 per share, but showing an improvement from $0.09 per share a year ago, indicating a mixed performance in earnings expectations [1][2]. Financial Performance - The company posted revenues of $491.04 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.96% and showing a year-over-year increase from $419.77 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 Movement and Outlook - Taboola.com shares have increased by approximately 1.4% since the beginning of the year, slightly outperforming the S&P 500's gain of 1.3% [3]. - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at -$0.02 on revenues of $461.14 million, and $0.11 on revenues of $2.07 billion for the current fiscal year [7]. Industry Context - The Computers - IT Services industry, to which Taboola.com belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable environment for performance [8].

Core Insights - Taboola experienced a transformative year in 2024, focusing on performance advertising and launching a new independent platform called Realize [2] - The company has increased its share repurchase authorization by up to $200 million, indicating confidence in future growth [2] Financial Performance - For Q4 2024, Taboola reported revenues of $491 million, a 17% increase from $420 million in Q4 2023 [3] - Gross profit for Q4 2024 was $178 million, up from $138 million in Q4 2023, representing a 28% increase [3] - The net income for Q4 2024 was $33 million, compared to a net income of $0 in Q4 2023 [3] - The diluted EPS for Q4 2024 was $0.10, compared to $0.01 in Q4 2023 [3] - For the full year 2024, revenues reached $1.766 billion, a 23% increase from $1.440 billion in 2023 [3] - The full year gross profit was $534 million, up from $426 million in 2023 [3] - The company reported a net loss of $3.8 million for the full year 2024, a significant improvement from a loss of $82 million in 2023 [3] Cash Flow and Guidance - Cash flow from operating activities for Q4 2024 was $62 million, compared to $23 million in Q4 2023 [3] - Free cash flow for Q4 2024 was $52 million, up from $11 million in Q4 2023 [3] - For Q1 2025, Taboola expects revenues between $407 million and $427 million, and for the full year 2025, revenues are projected to be between $1.838 billion and $1.888 billion [4][5] Upcoming Events - Taboola will host an Investor Day on March 26, 2025, to discuss its strategy, market opportunities, and financial outlook [7]