Taboola Reports Strong Q1 2025 Financial Results; Results Above High-End of Guidance Across All Key Metrics

Core Insights - Taboola reported strong first-quarter results for 2025, exceeding guidance across all key metrics, indicating robust momentum in performance advertising [2][3] - The company aims to continue investing in growth areas, return capital through share repurchases, and solidify its position as a leader in performance advertising beyond search and social [2] Financial Performance - Revenues for Q1 2025 were $427 million, a 3$119 million, up 10% year-over-year, with ex-TAC gross profit at $152 million, reflecting a 9$36 million, a significant increase of 53%, with adjusted EBITDA margins expanding to 23.7% from 16.9% [6][13] Guidance for Future Performance - For Q2 2025, Taboola expects revenues between $438 million and$458 million, and for the full year 2025, revenues are projected to be between $1.838 billion and$1.888 billion [3][14] - The company anticipates adjusted EBITDA for Q2 2025 to be between $38 million and$44 million, and for the full year, between $201 million and$209 million [3][15] Cash Flow and Financial Health - Cash flow from operating activities was $48 million, compared to$32 million in the previous year, with free cash flow at $36 million, up from$27 million [6][13] - The company reported a net loss of $8.8 million for Q1 2025, an improvement from a net loss of$26.2 million in Q1 2024 [6][13] Shareholder Returns - Taboola is committed to returning capital to shareholders through share repurchases, reflecting confidence in its long-term growth strategy [2][3]