Taboola.com(TBLA) - 2024 Q2 - Quarterly Results

Financial Performance - Q2 2024 revenues reached $428M, 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, 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 $1.735B and $1.765B, with ex-TAC gross profit expected to be $667M, a 25% increase YoY[1][5] - Q3 2024 guidance includes revenues of $431M, a 20% YoY increase, and adjusted EBITDA of $47M, up 106% YoY[1] - The company reported a net loss of $4M in Q2 2024, a significant improvement from a net loss of $31M in Q2 2023[3] - Total revenues for the three months ended June 30, 2024, were $428,160, an increase of 29% compared to $332,004 for the same period in 2023[18] - Gross profit for the six months ended June 30, 2024, was $223,731, up from $186,649 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 $31,314 for the same period in 2023[19] - Revenues for Q2 2024 reached $428.16 million, a 29% increase from $332.00 million in Q2 2023[25] - Gross profit for Q2 2024 was $114.78 million, up 18% from $97.06 million in Q2 2023[25] - Adjusted EBITDA for Q2 2024 was $37.23 million, compared to $15.66 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 $7,770 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 $11.6M in the same period last year[3] - Cash provided by operating activities for Q2 2024 was $38.79 million, a substantial increase from $11.60 million in Q2 2023[22] - Cash and cash equivalents at the end of Q2 2024 totaled $182.20 million, down from $204.60 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 $5.09 million in Q2 2023[22] - Cash used in financing activities for Q2 2024 was $23.81 million, an improvement from $35.10 million in Q2 2023[22] Shareholder Actions - The company completed a $27M share buyback in Q2 2024, with $66M 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 $559,412 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 $650,740 as of December 31, 2023, indicating improved financial stability[16] - Shareholders' equity as of June 30, 2024, was $1,010,233, down from $1,057,062 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 $34,001 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 $16,535 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 $45,393 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 $446 million, with FY 2024 revenues projected between $1,735 million and $1,765 million[32] - Gross profit for Q3 2024 is projected to be between $129 million and $139 million, while ex-TAC gross profit is expected to be between $159 million and $169 million[32] - Traffic acquisition costs for Q3 2024 are anticipated to be between $257 million and $277 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]