Taboola.com(US:TBLA)2025-02-26 11:20Financial Performance - The company reported a total revenue of $500 million for the year ended December 31, 2024, representing a 15% increase compared to $435 million in 2023[433]. - Total revenues for the year ended December 31, 2024, increased to $1,766,220, representing a 22.7% growth compared to $1,439,685 in 2023[459]. - Gross profit for 2024 was $534,218, up from $425,558 in 2023, indicating a gross margin improvement[459]. - Operating income for 2024 was $25,917, a significant recovery from an operating loss of $63,737 in 2023[459]. - Net loss for 2024 narrowed to $3,760 compared to a net loss of $82,040 in 2023, reflecting improved financial performance[459]. - Cash provided by operating activities increased to $184.33 million in 2024, up from $84.37 million in 2023, reflecting a growth of approximately 118%[464]. - The net loss for 2024 was $3.76 million, a significant improvement from a net loss of $82.04 million in 2023, representing a reduction of approximately 95.4%[461]. - Comprehensive loss for 2024 was $4.28 million, compared to $80.26 million in 2023, indicating a decrease of about 94.7%[461]. Liquidity and Cash Management - The company maintained cash balances exceeding $100 million as of December 31, 2024, ensuring strong liquidity for future investments[425]. - Cash and cash equivalents increased to $226,583 as of December 31, 2024, up from $176,108 in 2023[455]. - Total current assets increased to $656,001 in 2024, up from $559,412 in 2023, showing improved liquidity[455]. - The total cash and cash equivalents at the end of 2024 were $226.58 million, up from $176.11 million at the end of 2023, representing a growth of about 28.6%[464]. Investments and Acquisitions - The Company completed the acquisition of Gravity R&D Zrt. in July 2022 for a total consideration of $7,035 thousand, with $5,925 thousand attributed to goodwill[565]. - The acquisition of Gravity R&D was consolidated into the Company's financial statements but had an immaterial impact on the results for the year ended December 31, 2022[567]. Shareholder Activities - The company repurchased ordinary shares amounting to $73.6 million in 2024, compared to $55.5 million in 2023, reflecting an increase of approximately 32.6%[464]. - The Company repurchased a total of 18,287,890 shares in 2024 at an average price of $4.06 per share, with remaining authorization to repurchase up to $45,562[594]. - In February 2025, the Company's board authorized an additional $200,000 for the Buyback Program, subject to legal conditions[595]. Expenses and Costs - Share-based compensation expenses rose to $67.1 million in 2024 from $64.3 million in 2023, marking an increase of about 4.3%[464]. - The Company reported a depreciation and amortization expense of $100.93 million in 2024, compared to $96.51 million in 2023, which is an increase of approximately 4.9%[464]. - Traffic acquisition costs rose to $1,101,556 in 2024, up from $903,866 in 2023, reflecting higher investment in customer acquisition[459]. - Total interest expenses related to the long-term loan were $15,549 in 2024, down from $19,885 in 2023[584]. Risk Management - A 10% increase in the NIS against the USD would have negatively impacted operating income by approximately $2.16 million, while a 10% decrease would have positively impacted it by the same amount[418]. - The company has established a hedging program to manage foreign currency risks, specifically using foreign currency forward contracts[418]. - The company faces risks related to competition, regulatory changes, and potential disruptions from geopolitical events[22]. Revenue Recognition and Accounting Policies - The Company recognizes revenue based on the control of promised goods or services, with significant judgment required to determine gross or net reporting[521][523]. - The Company accounts for leases under ASU 2016-02, with operating lease right of use assets measured at the present value of future lease payments[8]. - The Company amortizes internal-use software development costs over an estimated useful life of three years[508]. Other Financial Metrics - The company recognized revenues from related parties amounting to $233,640 in 2024, compared to $40,902 in 2023, highlighting increased transactions with affiliates[459]. - Trade receivables rose to $370,110 in 2024, compared to $306,307 in 2023, indicating growth in customer credit[455]. - Total liabilities decreased to $666,752 in 2024 from $650,740 in 2023, indicating a reduction in financial obligations[455]. - The fair value of total warrants liability decreased from $6,129 thousand as of December 31, 2023, to $3,368 thousand as of December 31, 2024, a reduction of 45.0%[558].