Taboola.com(TBLA) - 2025 Q1 - Quarterly Results

Financial Performance - Revenues for Q1 2025 were $427.5 million, a 3% increase compared to $414.0 million in Q1 2024, driven by a 9% growth in Scaled Advertisers[5] - Gross profit for Q1 2025 was $119.3 million, up 10% from $109.0 million in Q1 2024, with ex-TAC Gross Profit at $151.7 million, a 9% increase[15] - Adjusted EBITDA for Q1 2025 reached $35.9 million, a 53% increase from $23.5 million in Q1 2024, with adjusted EBITDA margins expanding to 23.7% from 16.9%[15] - The operating loss improved to $6 million in Q1 2025 from an operating loss of $18 million in Q1 2024, with the ratio of net loss to gross profit improving to (7.3%) from (24%)[5] - The company reported a Non-GAAP Net Income of $25.0 million for Q1 2025, compared to $3.8 million in Q1 2024[15] - The net loss for the three months ended March 31, 2025, was $8,750,000, a significant improvement from a net loss of $26,158,000 in 2024[21] - Operating loss narrowed to $6,262,000 in Q1 2025 from $18,233,000 in Q1 2024[21] - Net loss for Q1 2025 was $8,750,000, a significant improvement from a net loss of $26,158,000 in Q1 2024, representing a reduction of approximately 66.5%[32] - Adjusted EBITDA for Q1 2025 increased to $35,935,000, up from $23,489,000 in Q1 2024, reflecting a growth of about 53.0%[32] - Non-GAAP Net Income for Q1 2025 was $25,000,000, compared to $3,832,000 in Q1 2024, indicating a substantial increase of approximately 553.5%[37] Cash Flow and Liquidity - Cash flow generated by operating activities was $48.1 million in Q1 2025, compared to $32.4 million in Q1 2024, while Free Cash Flow increased to $36.1 million from $26.8 million[15] - Cash and cash equivalents at the end of the period were $216,223,000, compared to $178,534,000 at the end of Q1 2024[25] - Net cash provided by operating activities for Q1 2025 was $48,111,000, compared to $32,395,000 in Q1 2024, marking a growth of about 48.7%[36] - Free Cash Flow for Q1 2025 was $36,070,000, an increase from $26,806,000 in Q1 2024, representing a rise of approximately 34.5%[36] - The cash, cash equivalents, and short-term deposits totaled $216.2 million as of March 31, 2025, compared to $181.0 million as of March 31, 2024[15] Revenue Guidance - For Q2 2025, the company expects revenues between $438 million and $458 million, and for FY 2025, revenues are projected to be between $1.838 billion and $1.888 billion[4] - Revenue guidance for Q2 2025 is projected to be between $438 million and $458 million, while full-year 2025 revenue is expected to be between $1,838 million and $1,888 million[40] Shareholder Equity and Liabilities - Total current liabilities decreased to $437,269,000 as of March 31, 2025, down from $485,582,000 at the end of 2024[19] - Total shareholders' equity as of March 31, 2025, was $1,008,209,000, a decrease from $1,051,906,000 at the end of 2024[19] Expenses and Costs - Share-based compensation expenses totaled $15,517,000 for the three months ended March 31, 2025, down from $16,082,000 in 2024[23] - The company incurred finance expenses of $4,500,000 in Q1 2025, compared to $3,638,000 in Q1 2024[21] - The company incurred $1,972,000 in professional and legal expenses related to litigation in Q1 2025, which is not part of ongoing business operations[34] - Amortization of acquired intangibles for Q1 2025 was $17,783,000, compared to $15,935,000 in Q1 2024, reflecting an increase of approximately 11.6%[37] - The company reported foreign currency exchange rate losses of $1,524,000 in Q1 2025, compared to gains of $1,041,000 in Q1 2024[37] User Engagement - The company has approximately 600 million daily active users across its advertising platform, Realize, which is utilized by major publishers like NBC News and Yahoo[13] Strategic Focus - The company plans to continue investing in growth areas and return capital through share repurchases, focusing on becoming a leader in performance advertising beyond search and social[3]