Taboola.com(US:TBLA)2024-11-07 11:04Financial Performance - Q3 2024 revenues reached $433 million, a 20% year-over-year increase, with ex-TAC gross profit at $166 million, up 30% YoY[1] - Adjusted EBITDA for Q3 2024 was $48 million, reflecting a 110% increase compared to the previous year, with a free cash flow of $43 million, an 88% increase YoY[1] - The company is reiterating its 2024 guidance of $1,750 million in revenues (+22% YoY) and $200 million+ in adjusted EBITDA, which is more than double the previous year[1] - Q4 2024 guidance includes expected revenues of $475 million (+13% YoY) and adjusted EBITDA of $91 million (+82% YoY)[5] - Total revenues for the three months ended September 30, 2024, were $433,012, an increase of 20.2% compared to $360,221 for the same period in 2023[18] - Adjusted EBITDA for the three months ended September 30, 2024, was $47,927 thousand, compared to $22,833 thousand for the same period in 2023, reflecting a significant improvement[27] - Free Cash Flow for the three months ended September 2024 was $42,864 thousand, significantly higher than $22,798 thousand in the prior year[31] Cash Flow and Assets - The company achieved a strong cash flow from operating activities of $49.8 million in Q3 2024, compared to $32.5 million in Q3 2023[3] - Cash provided by operating activities for the three months ended September 30, 2024, was $49,772 thousand, up from $32,459 thousand in the same period of 2023[22] - Cash and cash equivalents increased to $217,230 as of September 30, 2024, from $176,108 as of December 31, 2023, a rise of 23.4%[5] - Total current assets increased to $577,867 as of September 30, 2024, compared to $559,412 as of December 31, 2023, reflecting a growth of 3.1%[5] - The company reported a net cash used in investing activities of $(6,908) thousand for the three months ended September 30, 2024, compared to cash provided of $20,119 thousand in the same period of 2023[22] Profitability and Loss - Net loss for the three months ended September 30, 2024, was $(6,454), a decrease from $(23,136) in the same period of 2023, indicating an improvement of 72%[18] - Operating income for the three months ended September 30, 2024, was $4,558, compared to an operating loss of $(18,734) for the same period in 2023[18] - Non-GAAP Net Income increased to $22,211 thousand for the three months ended September 2024, up from $6,704 thousand in the same period last year[29] Expenses and Liabilities - Total liabilities increased to $442,223 as of September 30, 2024, from $423,965 as of December 31, 2023, marking a rise of 4.8%[16] - Research and development expenses for the nine months ended September 30, 2024, were $106,264, up from $101,876 in the same period of 2023, reflecting a growth of 4.7%[18] - Share-based compensation expenses for the three months ended September 30, 2024, were $17,186 thousand, compared to $16,251 thousand in the same period of 2023[22] Strategic Initiatives - The introduction of Abby, a Generative AI ad assistant, aims to enhance advertiser engagement and streamline ad campaign management[4] - The company reported a significant increase in Tier 1 brand and agency spending, particularly in the auto, e-commerce, and finance sectors[1] - The number of advertisers using the Max Conversions feature increased by 1,500 quarter-over-quarter, with a 36% increase in campaigns[1] - Taboola's partnership with Xiaomi is expanding to more global markets, enhancing its reach and touchpoints[1] Future Projections - Free cash flow target for 2024 has been raised from $100 million to $105 million[1] - Q4 2024 revenue guidance is projected between $460 million and $490 million, with FY 2024 guidance between $1,735 million and $1,765 million[33] - Gross profit for Q4 2024 is expected to be between $180 million and $196 million, with ex-TAC Gross Profit projected between $205 million and $221 million[33]