TransAlta -Taboola Reports Strong Q2 2024, Beating Revenues, ex-TAC and Adj. EBITDA; Reiterating ex-TAC, Adj.

Core Insights - Taboola reported strong financial performance for Q2 2024, with revenues of $428.2 million, a 29% year-over-year increase, and a significant reduction in net loss to$ 4.3 million from $31.3 million in Q2 2023 [1][3][4] - The company is focusing on growth through partnerships and AI investments, with expectations for continued revenue and profit growth in Q3 and FY 2024 [4][6] Financial Performance - Q2 2024 financial highlights include: - Revenues:$ 428.2 million, up from $332.0 million in Q2 2023 - Gross profit:$ 114.8 million, compared to $97.1 million in the previous year - Net loss:$ 4.3 million, significantly improved from $31.3 million [1][5] - Year-over-year growth rates for key metrics: - Revenues: +29% - ex-TAC Gross Profit: +21% - Adjusted EBITDA: +138% - Free Cash Flow: +237% [1][6] Guidance and Projections - Q3 2024 guidance includes: - Revenues:$ 431 million (+20% YoY) - Gross profit: $134 million (+33% YoY) - Adj. EBITDA:$ 47 million (+106% YoY) [1][7] - Full Year 2024 guidance: - Revenues: $1.735-$ 1.765 billion - ex-TAC Gross Profit: $667 million (+25% YoY) - Adj. EBITDA:$ 200 million+ (2x+ YoY) [1][7] Strategic Initiatives - The company completed the migration of Yahoo advertisers and is ramping up spending, indicating a focus on user engagement and revenue generation [2][6] - Taboola launched "Audience Solution" to assist publishers in traffic growth, and secured a significant exclusive global OEM partnership with Taboola News [2][6] Market Position and Future Outlook - CEO Adam Singolda emphasized the transformational nature of 2024 for Taboola, driven by AI investments and partnerships with major brands like Yahoo and Apple [4][6] - The company aims to capture a share of the growing digital advertising market, projected to reach a trillion dollars [4][6]