Taboola.com(US:TBLA)2025-11-05 11:16Financial Performance - Revenues for the three months ended September 30, 2025, were $496.764 million, a 14.7% increase from $433.012 million in the same period of 2024[116] - Gross profit for the same period was $139.019 million, compared to $132.877 million in 2024, reflecting a growth of 4.6%[116] - The net income for Q3 2025 was $5.244 million, a significant recovery from a net loss of $6.454 million in Q3 2024[116] - Adjusted EBITDA for the three months ended September 30, 2025, was $48.223 million, slightly up from $47.927 million in the same period of 2024[116] - Non-GAAP Net Income for the three months ended September 30, 2025, was $34,263 thousand, compared to $22,211 thousand in 2024, reflecting a significant increase of 54.3%[133] - For the nine months ended September 30, 2025, revenues increased by $114.6 million, or 9.0%, compared to the same period in 2024, primarily due to an increase in the number of Scaled Advertisers[165] - Gross profit for the nine months ended September 30, 2025, increased by $37.3 million, or 10.5%, compared to the same period in 2024[166] Client and Revenue Metrics - The number of Scaled Advertiser clients increased to approximately 2,100 in Q3 2025, up from 2,000 in Q3 2024, representing a 5% growth[110] - Average Revenue per Scaled Advertiser rose to approximately $208,000 in Q3 2025, compared to $187,000 in Q3 2024, marking an increase of 11.2%[110] - Revenue contribution from Scaled Advertisers accounted for 86% of total revenues in Q3 2025, up from 85% in Q3 2024[110] - Revenues increased by $63.8 million, or 14.7%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a 10.9% increase in Average Revenue per Scaled Advertiser and a 4.4% increase in the number of Scaled Advertisers[153] Cash Flow and Operating Activities - Cash flow provided by operating activities was $53.203 million for Q3 2025, compared to $49.772 million in Q3 2024, indicating a growth of 4.3%[116] - Free Cash Flow for the nine months ended September 30, 2025, was $116.520 million, compared to $97.266 million in the same period of 2024, showing a growth of 19.8%[116] - Net cash provided by operating activities was $148.7 million for the nine months ended September 30, 2025, an increase of $26.3 million compared to $122.4 million for the same period in 2024[184] Costs and Expenses - Total cost of revenues increased by $57.6 million, or 19.2%, for the three months ended September 30, 2025, compared to the same period in 2024[156] - Traffic acquisition cost for the three months ended September 30, 2025, was $324,079 thousand, which is a 20.8% increase from $267,997 thousand in 2024[123] - Research and development expenses increased by $5.0 million, or 4.7%, mainly due to a $5.8 million increase in salaries and related expenses[170] - Sales and marketing expenses increased by $7.0 million, or 3.5%, primarily due to a $5.2 million increase in advertising and promotion expenses related to the launch of Realize[171] - General and administrative expenses increased by $3.7 million, or 5.2%, mainly due to a $2.5 million increase in professional fees[172] Shareholder and Financing Activities - The company repurchased 58.3 million shares at an average price of $3.15 per share during the nine months ended September 30, 2025[181] - Net cash used in financing activities was $236.5 million, an increase of $174.2 million compared to $62.3 million in the same period in 2024, primarily due to $184.6 million repurchase of shares[192] Financial Position and Risks - As of September 30, 2025, the company had $115.5 million in cash and cash equivalents, down from $226.6 million as of December 31, 2024[177] - The company has a provision related to unrecognized tax benefit liabilities totaling $11.5 million as of September 30, 2025[196] - A 10% increase in the NIS against the U.S. dollar would result in a $1,260 thousand increase in operating income, while a 10% decrease would lead to a $220 thousand loss[201] - Inflation has resulted in higher equipment and labor costs, which could adversely affect the company's financial condition if not effectively mitigated[206] Accounting and Compliance - There have been no material changes to the company's critical accounting policies and estimates for the year ended December 31, 2024[200] - The company does not require collateral for accounts receivable, and historically has not experienced material losses related to receivables from advertisers[207] - As of September 30, 2025, no single customer accounted for 10% or more of accounts receivable or total revenue[208]