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Taboola.com(TBLA) - 2024 Q2 - Quarterly Results
TBLATaboola.com(TBLA)2024-08-07 10:01

Financial Performance - Q2 2024 revenues reached 428M,representinga29428M, representing a 29% year-over-year growth, with ex-TAC gross profit at 150M, up 21% YoY[1] - Adjusted EBITDA for Q2 2024 was 37M,asignificantincreaseof13837M, a significant increase of 138% YoY, with free cash flow soaring by 237% to 26M[1] - The company reiterated its 2024 guidance, projecting revenues between 1.735Band1.735B and 1.765B, with ex-TAC gross profit expected to be 667M,a25667M, a 25% increase YoY[1][5] - Q3 2024 guidance includes revenues of 431M, a 20% YoY increase, and adjusted EBITDA of 47M,up10647M, up 106% YoY[1] - The company reported a net loss of 4M in Q2 2024, a significant improvement from a net loss of 31MinQ22023[3]−TotalrevenuesforthethreemonthsendedJune30,2024,were31M in Q2 2023[3] - Total revenues for the three months ended June 30, 2024, were 428,160, an increase of 29% compared to 332,004forthesameperiodin2023[18]−GrossprofitforthesixmonthsendedJune30,2024,was332,004 for the same period in 2023[18] - Gross profit for the six months ended June 30, 2024, was 223,731, up from 186,649forthesameperiodin2023,reflectingagrossmarginimprovement[18]−ThenetlossforthethreemonthsendedJune30,2024,was186,649 for the same period in 2023, reflecting a gross margin improvement[18] - The net loss for the three months ended June 30, 2024, was 4,291, significantly reduced from a net loss of 31,314forthesameperiodin2023[19]−RevenuesforQ22024reached31,314 for the same period in 2023[19] - Revenues for Q2 2024 reached 428.16 million, a 29% increase from 332.00millioninQ22023[25]−GrossprofitforQ22024was332.00 million in Q2 2023[25] - Gross profit for Q2 2024 was 114.78 million, up 18% from 97.06millioninQ22023[25]−AdjustedEBITDAforQ22024was97.06 million in Q2 2023[25] - Adjusted EBITDA for Q2 2024 was 37.23 million, compared to 15.66millioninQ22023,reflectinga13715.66 million in Q2 2023, reflecting a 137% increase[26] - Free cash flow for the three months ended June 30, 2024, was 26,158 thousand, up from 7,770thousandinthesameperiodlastyear[30]CashFlowandAssets−Taboola′scashflowfromoperatingactivitieswas7,770 thousand in the same period last year[30] Cash Flow and Assets - Taboola's cash flow from operating activities was 38.8M in Q2 2024, compared to 11.6Minthesameperiodlastyear[3]−CashprovidedbyoperatingactivitiesforQ22024was11.6M in the same period last year[3] - Cash provided by operating activities for Q2 2024 was 38.79 million, a substantial increase from 11.60millioninQ22023[22]−CashandcashequivalentsattheendofQ22024totaled11.60 million in Q2 2023[22] - Cash and cash equivalents at the end of Q2 2024 totaled 182.20 million, down from 204.60millionattheendofQ22023[22]−Thecompanyreportedadecreaseintradereceivablesof204.60 million at the end of Q2 2023[22] - The company reported a decrease in trade receivables of 2.57 million in Q2 2024, compared to an increase of 5.09millioninQ22023[22]−CashusedinfinancingactivitiesforQ22024was5.09 million in Q2 2023[22] - Cash used in financing activities for Q2 2024 was 23.81 million, an improvement from 35.10millioninQ22023[22]ShareholderActions−Thecompanycompleteda35.10 million in Q2 2023[22] Shareholder Actions - The company completed a 27M share buyback in Q2 2024, with 66Mremainingunderthecurrentauthorization[1]−Share−basedcompensationexpensesforQ22024were66M remaining under the current authorization[1] - Share-based compensation expenses for Q2 2024 were 18.31 million, compared to 16.54 million in Q2 2023, reflecting ongoing employee incentives[22] Operational Highlights - The onboarding for Apple News & Stocks is complete, focusing on sales enablement to enhance user engagement[1] - The number of ad campaigns doubled compared to Q1 2024, indicating strong growth in advertising activity[1] - Taboola launched "Audience Solution," an AI-powered technology aimed at helping publishers increase traffic by over 10%[4] Liabilities and Equity - Total current assets decreased to 534,804 as of June 30, 2024, from 559,412asofDecember31,2023,primarilyduetoareductioninprepaidexpenses[15]−Totalliabilitiesdecreasedto559,412 as of December 31, 2023, primarily due to a reduction in prepaid expenses[15] - Total liabilities decreased to 621,289 as of June 30, 2024, from 650,740asofDecember31,2023,indicatingimprovedfinancialstability[16]−Shareholders′equityasofJune30,2024,was650,740 as of December 31, 2023, indicating improved financial stability[16] - Shareholders' equity as of June 30, 2024, was 1,010,233, down from 1,057,062asofDecember31,2023,reflectingadecreaseinaccumulateddeficit[16]Expenses−ResearchanddevelopmentexpensesforthethreemonthsendedJune30,2024,were1,057,062 as of December 31, 2023, reflecting a decrease in accumulated deficit[16] Expenses - Research and development expenses for the three months ended June 30, 2024, were 33,288, slightly down from 34,001forthesameperiodin2023,indicatingcostcontrolefforts[18]−Thecompanyreportedtotalshare−basedcompensationexpensesof34,001 for the same period in 2023, indicating cost control efforts[18] - The company reported total share-based compensation expenses of 18,305 for the three months ended June 30, 2024, compared to 16,535forthesameperiodin2023[20]−TotaldepreciationandamortizationexpenseforthesixmonthsendedJune30,2024,was16,535 for the same period in 2023[20] - Total depreciation and amortization expense for the six months ended June 30, 2024, was 51,183, an increase from 45,393forthesameperiodin2023,reflectingincreasedassetutilization[21]FutureProjections−ThecompanyexpectsQ32024revenuestobebetween45,393 for the same period in 2023, reflecting increased asset utilization[21] Future Projections - The company expects Q3 2024 revenues to be between 416 million and 446million,withFY2024revenuesprojectedbetween446 million, with FY 2024 revenues projected between 1,735 million and 1,765million[32]−GrossprofitforQ32024isprojectedtobebetween1,765 million[32] - Gross profit for Q3 2024 is projected to be between 129 million and 139million,whileex−TACgrossprofitisexpectedtobebetween139 million, while ex-TAC gross profit is expected to be between 159 million and 169million[32]−TrafficacquisitioncostsforQ32024areanticipatedtobebetween169 million[32] - Traffic acquisition costs for Q3 2024 are anticipated to be between 257 million and 277million,withFY2024costsprojectedbetween277 million, with FY 2024 costs projected between 1,079 million and $1,086 million[32] - The company is unable to provide projections for net cash provided by operating activities due to unpredictability in certain elements, making it impractical to reconcile Free Cash Flow projections[32]