Summary of Taboola.com (TBLA) FY Conference Call - August 12, 2025 Company Overview - **Company**: Taboola.com (TBLA) - **Industry**: Performance Advertising in the Open Web - **Market Opportunity**: $55 billion market opportunity in performance advertising [4][5] Core Business Model - **Unique Offering**: Taboola is a leading performance advertising platform that complements search and social advertising by providing targeted ads based on first-party data [3][4] - **Daily Reach**: The company reaches approximately 600 million people daily through partnerships with major publishers like Yahoo, Apple News, Disney, and NBC [4] - **Revenue Goals**: Targeting $2 billion in revenue from a $55.7 billion market, with over $200 million in adjusted EBITDA, representing a margin of over 30% [5] Financial Performance - **EBITDA Margin**: The company maintains a strong EBITDA margin of over 30% and a free cash flow of 70% of EBITDA, which is being used for share buybacks [5][67] - **Share Buybacks**: Taboola has repurchased 12% of its shares in the first half of the year and plans to continue aggressive buybacks [5][69] Market Position and Strategy - **Two-Sided Marketplace**: Taboola operates a two-sided marketplace with exclusive long-term relationships with 11,000 publishers, providing predictable inventory and access to consumer data [6][7] - **Shift to Performance Marketing**: The introduction of the Realize product marks a pivot towards broader performance marketing, allowing advertisers to use various ad formats beyond native advertising [12][14] - **Display Advertising Market**: Taboola estimates a $10 billion display ad market among its publishers, aiming to capture 30% market share [18] Growth and Future Outlook - **Growth Strategy**: The company aims to double its revenue from $2 billion to $4 billion primarily through increased demand and spending from advertisers [15][25] - **Realize Product Adoption**: Early signs of success with Realize include 650 advertisers trying the product, with existing advertisers increasing their spending [27][28] - **Focus on Performance Advertising**: Taboola is committed to performance advertising, avoiding branding-focused areas like CTV, which is seen as a competitive and less favorable market [36][39] Challenges and Market Dynamics - **Native Advertising Growth**: The native advertising space is not growing as expected, prompting the shift to a broader performance advertising strategy [22][23] - **Impact of Search Traffic**: Currently, only 5% of Taboola's traffic is driven by search, and the company has not seen significant impacts from changes in search dynamics [48][49] Technology and Innovation - **Use of AI and LLMs**: Taboola is leveraging machine learning and large language models (LLMs) across various departments to enhance productivity and create value [65][66] - **Predictive Audiences**: The company is developing features like predictive audiences to help advertisers optimize their campaigns [64] Conclusion - **Investment Philosophy**: Taboola prioritizes growth while maintaining profitability, with a focus on responsible business practices and maximizing shareholder value through buybacks and strategic investments [56][68] - **Future Expectations**: The company is optimistic about returning to double-digit growth through the successful adoption of Realize and continued investment in technology and partnerships [25][60]

Core Insights - Taboola.com Ltd. (TBLA) shares have increased by 36.5% over the past three months, outperforming its industry, sector, and the Zacks S&P 500 composite [1][9] - The company is positioned to capitalize on a $55 billion market through its Realize platform, which focuses on performance advertising [2][11] - TBLA is currently trading at a price-to-earnings multiple of 20.2, which is lower than the industry average of 29.7, indicating affordability [8] Company Performance - TBLA generated approximately $1.8 billion in revenues in 2024, with expectations to reach between $1.84 billion and $1.89 billion in 2025 [9][14] - The company reported over $200 million in adjusted EBITDA and about $150 million in free cash flow last year, with significant improvements in first-quarter results [13] - Management is increasing R&D spending to enhance AI capabilities while also expanding share buyback authorization to $240 million [15] Market Position and Strategy - Taboola is shifting its focus from native advertising to a broader performance advertising market, aligning with the growing demand for comprehensive digital solutions [11] - The company aims to drive incremental ad spend through new capabilities in its Realize platform and a targeted go-to-market strategy [12] - Online shopping is projected to grow at about 8% annually through 2027, which is expected to benefit TBLA as advertising budgets shift from traditional media to digital channels [11] Analyst Sentiment - The Zacks Consensus Estimate for TBLA's 2025 earnings per share indicates a significant increase of 3900% on higher revenues, with a Growth Score of A [16][18] - Analysts have shown optimistic sentiment, with earnings estimates for 2025 and 2026 moving upward in the past 60 days [16][18] Investment Consideration - Given its growth prospects, affordability, and positive analyst sentiment, TBLA is considered a strong candidate for investment [19][20]

Financial Data and Key Metrics Changes - Taboola's current gross revenue run rate is just under $2 billion, while the performance advertising market opportunity is estimated at over $55 billion [1][9] - The company has seen a 17% growth in scaled advertisers, which represent about 75-80% of its revenue, over the last two years [40][41] Business Line Data and Key Metrics Changes - Taboola is focusing on performance advertising, particularly in the open web, which is seen as a significant growth area due to diminishing returns in social media advertising [5][9] - The company has launched the Realize platform, which allows advertisers to pay on a CPC basis for display ads, enhancing the ease of use and performance tracking [21][24] Market Data and Key Metrics Changes - The performance advertising market is segmented, with approximately $25 billion from open web performance advertising and $30 billion from diminishing returns in social media [9][10] - 75% of advertisers are experiencing diminishing returns on their social media spend, indicating a shift in advertising strategies [16] Company Strategy and Development Direction - Taboola aims to capture a larger share of the performance advertising market by leveraging unique first-party data and AI capabilities [7][39] - The company is focusing on verticals such as travel, financial services, and direct-to-consumer products, where it has seen lower churn rates and higher spending growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management believes that the shift towards performance advertising will continue due to macroeconomic challenges and the saturation of search and social media advertising [4][5] - The company is optimistic about its growth potential, particularly with the Realize platform, which is expected to contribute meaningfully to the business by 2026 [40][41] Other Important Information - Taboola has access to a unique dataset of 600 million daily active users and over a trillion monthly recommendations, which enhances its advertising effectiveness [35][39] - The company is committed to maintaining a conservative approach to guidance, allowing for potential upside as it executes its strategy [63] Q&A Session Summary Question: Can you walk us through the performance advertising opportunity? - The performance advertising market is estimated at over $55 billion, with significant potential in open web advertising and diminishing returns in social media [1][9] Question: How does the Realize platform enhance advertiser engagement? - Realize allows advertisers to pay only for clicks, improving transparency and performance measurement [21][24] Question: What metrics will be used to track Realize's client adoption? - The company will track scaled advertisers spending over $100,000 annually, which has grown 17% over the last two years [40][41] Question: What is the outlook for potential M&A opportunities? - Management is open to small, synergistic acquisitions but is focused on executing its current strategy without dilutive events [65][66]

Summary of Double Verify Conference Call Company Overview - **Company**: Double Verify - **Industry**: Digital Advertising Verification Key Points and Arguments 1. **Business Model**: Double Verify operates as an ad platform that ensures advertisers' digital media spend is viewable, brand safe, geographically aligned, and free from fraud. The company positions itself as an independent arbiter of digital media quality [4][5][6]. 2. **Q1 Performance**: The company reported a 17% revenue growth in Q1, a significant improvement from the previous year's growth rates of 10-15%. This growth was attributed to strong customer adoption of new solutions and scaling of existing customers [5][7][8]. 3. **Customer Adoption**: Notable new customers include KenView and Microsoft, with existing customers like Lilly and Novartis increasing their spending. The company emphasized the importance of upselling premium solutions to current customers [8][15][49]. 4. **Social Media Activation**: The launch of activation solutions on Meta in February has gained traction, with 20 new customers acquired, including major brands. The potential revenue from these new solutions is estimated to be between $40 million to $100 million over the next couple of years [10][11][12]. 5. **Market Diversification**: The company has a diversified revenue stream, with only 6% of total revenue coming from the auto industry, which is expected to be impacted by economic downturns. This diversification helps mitigate risks associated with specific sectors [24][25][49]. 6. **Advertising Spend Resilience**: Advertisers have become more performance-oriented and agile, learning from past economic shocks. This has led to a more resilient advertising spend, with less immediate reaction to market volatility [25][29]. 7. **Performance Solutions**: The company is evolving from a verification specialist to a performance and analytics provider. This includes the introduction of tools like SciBids AI and RockerBox, which help advertisers optimize their media spend and measure performance effectively [34][56]. 8. **Data Measurement**: Double Verify measures a vast amount of digital ad transactions, amounting to $8.3 trillion last year. This data is used to assess media quality and performance, providing valuable insights for advertisers [59][60]. 9. **Future Growth Potential**: The company anticipates significant growth in its social business and performance metrics, with projections of reaching $100 million in revenue from SciBids by 2028. The total addressable market (TAM) is expected to expand into billions due to these developments [66][67]. 10. **Competitive Differentiation**: Double Verify's competitive edge lies in its scale, breadth of offerings, and the ability to provide integrated solutions that enhance advertising performance. The company has established itself as a leader in the digital advertising verification space [70][71]. Other Important Content - **AI Utilization**: The company is leveraging AI to combat challenges posed by AI-generated content and fraud, while also improving operational efficiencies [73][74]. - **Innovation Day**: The upcoming innovation day is expected to highlight the company's long-term vision of becoming an essential performance platform for advertisers, along with financial insights [75][76].

Summary of Taboola.com (TBLA) FY Conference Call - May 13, 2025 Company Overview - **Company**: Taboola.com (TBLA) - **Industry**: Performance Advertising - **Core Business**: Taboola is a leading global performance advertising platform that helps businesses place performance ads across the open internet, leveraging unique data and AI to target ads effectively [7][8][9]. Financial Projections - **2025 Revenue Projection**: Expected to achieve approximately $1.9 billion in revenue [10]. - **EBITDA Margin Target**: Aiming for 30% EBITDA margins, translating to about $211 million to $212 million in adjusted EBITDA [10]. - **Free Cash Flow Conversion**: Targeting a conversion rate of 50% to 60% of adjusted EBITDA to free cash flow, with expectations to be closer to the 60% end [10]. New Product Launch - **Realize Platform**: Introduction of a new advertising platform that expands beyond native advertising to include display ads and vertical video ads, allowing performance advertisers to achieve their goals across various media formats [11][12]. Market Position and Strategy - **Addressable Market Expansion**: The company aims to capture a larger share of the display ad market, which is three times larger than the native ad market [13]. - **Performance vs. Branding**: Emphasizes the difference between performance advertising (specific goals like CPA and CPL) and branding advertising, noting a gap in the market for automated performance advertising solutions [14][15][16]. - **Unique Data Advantage**: Taboola's data is derived from being hard-coded on publisher pages, providing a unique targeting capability that competitors may struggle to replicate [28][29]. Competitive Landscape - **End-to-End Solution**: Taboola operates as both a Demand-Side Platform (DSP) and Supply-Side Platform (SSP), providing a competitive edge in the open internet space [26][27]. - **Response to Competitors**: Acknowledges competition from other DSPs and SSPs but believes its unique data and direct relationships with advertisers and publishers provide a significant advantage [27][30]. Generative AI and Technology Integration - **Generative AI Utilization**: The company is integrating generative AI to enhance internal productivity and improve customer experience through tools like Abby, a self-service generative AI assistant for advertisers [70][72][123]. - **Deep Learning AI**: Continues to invest in deep learning AI to optimize ad targeting and improve revenue per ad spot [118][120]. Capital Allocation and Financial Strategy - **Share Buybacks**: The primary focus for excess cash flow is on aggressive share buybacks, with over $90 million repurchased in the first quarter and a half of the year [105]. - **M&A Strategy**: Plans to pursue smaller, tuck-in acquisitions rather than large-scale mergers, while also considering debt repayment as a lower priority following a recent refinancing [106][107]. Yahoo Integration and Performance - **Impact of Yahoo Deal**: The acquisition of Yahoo has significantly increased adjusted EBITDA and free cash flow, although some expected demand sources have not materialized as quickly as anticipated [94][96]. - **Brand Advertiser Engagement**: The company has successfully transitioned several large brand advertisers to its platform, although some have opted to remain exclusive to Yahoo supply [96][97]. Future Outlook - **Focus on Incremental Demand**: Plans to bring in new forms of demand and verticalize the sales team to better serve specific industries [48][49]. - **CTV Opportunities**: Exploring potential in Connected TV (CTV) advertising, particularly in connecting video ads to performance outcomes [36][37]. Key Takeaways - Taboola is positioning itself as a leader in performance advertising by leveraging unique data and AI technology to meet the evolving needs of advertisers. - The company is focused on expanding its market reach, improving profitability through technology, and maintaining a strong financial position through strategic capital allocation.

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $427 million, representing a 3% year-over-year growth, with ex-TAC gross profit of $152 million, which is 9% higher than last year [9][21] - Adjusted EBITDA for Q1 was $36 million, reflecting a 53% year-over-year growth, with margins significantly expanding [9][27] - Free cash flow for the quarter was $36 million, growing 35% year-over-year [9][27] - The net loss for the quarter was $8.75 million, while non-GAAP net income was $25 million [26] Business Line Data and Key Metrics Changes - The number of scaled advertisers grew by 9% year-over-year, reaching 1,996, while the average revenue per scaled advertiser declined by 3% [22][38] - Revenue growth was broad-based, including positive growth in the core native business, Taboola News, and Bidded Supply [23][24] Market Data and Key Metrics Changes - The company has seen a 1% decrease in advertising spend related to tariffs, primarily affecting its China business, which now accounts for around 5% of total Q2 revenue [10][52] - The macroeconomic environment is being closely monitored, but no material impact has been observed on the business so far [19][66] Company Strategy and Development Direction - The company is focused on capturing a $55 billion market opportunity in performance advertising outside of search and social channels [7] - The launch of the Realize platform is a significant step forward, offering new ad formats and a CPC pricing model, which is expected to unlock previously inaccessible advertising budgets [14][16] - The company aims to drive incremental ad spend through Realize's new capabilities and is focusing on verticalizing its sales organization [12][13] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the future, emphasizing the importance of performance-driven advertising as advertisers seek measurable outcomes [6][46] - The company has reiterated its full-year guidance for 2025, expecting revenues between $1.84 billion and $1.89 billion [31][33] - Management is confident in the strength of the business and continues to prioritize cost discipline while investing in key growth initiatives [19][30] Other Important Information - The company has a strong balance sheet with a net cash balance of $89.7 million and cash equivalents totaling $216.2 million [29] - A new $270 million revolving credit facility was established, allowing for more proactive management of working capital [29][30] Q&A Session Summary Question: Progress on verticalizing the sales force and scaled advertiser growth - Management indicated that the restructuring of the sales teams is complete, and early returns are positive, with a 9% growth in scaled advertisers [36][38] Question: Yield improvements and sustainability - Management noted that there were no one-time benefits in Q1, and they expect to continue growing yield going forward [40][41] Question: Impact of Google’s AI initiatives on publisher traffic - Management acknowledged some effects on search traffic but emphasized that supply is not a concern, focusing instead on demand growth [96][98] Question: Financial impact of the LINE partnership - The LINE partnership is seen as a potential gateway to a new universe of publishers, although no material financial impact is expected this year [86][87] Question: Future hiring trends and cost management - Management expects limited additional investment in sales and marketing, with a focus on ramping R&D for the Realize platform while maintaining cost discipline [88][90]

Financial Data and Key Metrics Changes - The company reported revenues of $427 million for Q1 2025, representing a 3% year-over-year growth [9][22] - Ex-TAC gross profit reached $152 million, a 9% increase year-over-year [9][22] - Adjusted EBITDA was $36 million, reflecting a 53% year-over-year growth, with an adjusted EBITDA margin of 24% [9][27] - Free cash flow for the quarter was $36 million, growing 35% year-over-year [9][28] - The net loss was $8.75 million, with non-GAAP net income at $25 million [26] Business Line Data and Key Metrics Changes - The number of scaled advertisers grew by 9% to 1,996, while the average revenue per scaled advertiser declined by 3% [23][38] - Revenue growth was broad-based, with positive contributions from the core native business, Taboola News, and Bidded Supply [24][25] Market Data and Key Metrics Changes - The company noted a 1% decrease in advertising spend related to tariffs, primarily affecting the China business, which now accounts for about 5% of total Q2 revenue [10][55] - The macro environment is being closely monitored, but no material impact has been observed on the business [9][20] Company Strategy and Development Direction - The company is focused on performance advertising, targeting a $55 billion market opportunity outside of search and social channels [6][11] - The launch of the Realize platform aims to drive incremental ad spend and improve advertiser engagement through new capabilities [12][14] - The company is pursuing partnerships with unique data supply partners and expanding its inventory through collaborations with Microsoft and Gannett [19][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business and reiterated full-year guidance despite macro uncertainties [20][32] - The company is optimistic about the potential of the Realize platform to capture new advertising budgets and drive growth [17][63] Other Important Information - The company has a strong balance sheet with a net cash balance of $89.7 million and cash equivalents of $216.2 million [29] - A new $270 million revolving credit facility was established to enhance liquidity and reduce interest expenses [30] Q&A Session Summary Question: Progress on verticalizing the sales force and its capacity - Management indicated that the restructuring of the sales teams is complete, and early returns are positive, but it is still early in the process [36][38] Question: Relationship between scaled advertisers and average revenue - Management clarified that while the number of scaled advertisers increased, the average revenue per scaled advertiser declined, but historical averages remain strong [38][39] Question: Impact of Google’s AI initiatives on publisher traffic - Management noted some effects on search traffic but emphasized that supply is not a concern, focusing instead on demand growth [99][102] Question: Future revenue impact from the Realize platform - Management expects Realize to start impacting revenue meaningfully in late 2025 and into 2026, but it is still early to forecast specific financial impacts [61][62] Question: Resilience of different business components in uncertain macro environments - Management believes that performance advertising is well-positioned to withstand macroeconomic changes, as it focuses on direct outcomes rather than branding [68][70]

Financial Data and Key Metrics Changes - The company reported Q1 revenues of $427 million, representing a 3% year-over-year growth, with ex TAC gross profit of $152 million, which is 9% higher than last year [8][21] - Adjusted EBITDA for Q1 was $36 million, reflecting a 53% year-over-year growth, with margins expanding significantly [8][25] - Free cash flow for the quarter was $36 million, growing 35% year-over-year [8][25] Business Line Data and Key Metrics Changes - The number of scaled advertisers grew by 9% year-over-year, reaching 1,996, while the average revenue per scaled advertiser declined by 3% [12][22] - The core native business saw positive growth, and the company completed its format testing with Yahoo, which had a marginal revenue reduction impact [23][24] Market Data and Key Metrics Changes - The company noted a 1% decrease in advertising spend related to tariffs, primarily affecting its China business, which now accounts for around 5% of total Q2 revenue [9][53] - The company is seeing positive trends in Taboola News and other parts of the business, supporting its decision to maintain full-year guidance [9][10] Company Strategy and Development Direction - The company is focused on capturing a $55 billion market opportunity in performance advertising outside of search and social channels [6][10] - The launch of the Realize platform is a significant step forward, offering new ad formats and a CPC pricing model, which is expected to unlock previously inaccessible advertising budgets [13][14][15] - The company aims to drive incremental ad spend through Realize's new capabilities and is focusing on verticalizing its sales organization [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the business despite macroeconomic uncertainties, emphasizing cost discipline and investment in growth initiatives [19][20] - The company reiterated its full-year guidance for 2025, expecting revenues between $1.84 billion and $1.89 billion [30][31] Other Important Information - The company has a strong balance sheet with a net cash balance of $89.7 million and cash equivalents totaling $216.2 million [28][29] - The company repurchased approximately 16.2 million shares at an average price of $3.3 during Q1, with an additional 15.1 million shares repurchased since then [30][31] Q&A Session Summary Question: Progress on verticalizing the sales force and the impact on scaled advertisers - Management indicated that the restructuring of the sales teams is complete and early returns are positive, with the number of scaled advertisers growing by 9% [34][36][38] Question: Impact of Google news on the ad tech industry - Management noted that the shift towards privacy and the potential reduction of cookies could benefit companies with first-party data, positioning them well in the market [45][46][48] Question: Performance of different business components in uncertain macro environments - Management stated that the performance advertising space is well-positioned, and they have not seen material impacts from macroeconomic changes so far [64][66][68] Question: Guidance for the second half of the year - Management explained that the expected decline in ex TAC revenue in the second half is due to conservative guidance and the impact of prior testing with Yahoo [69][72] Question: Future hiring trends and cost management - Management indicated that while there will be some ramp in R&D hiring, overall cost increases will be limited, focusing on productivity improvements through AI [88][90]

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% increase from Q1 2024, driven by a 9% growth in scaled advertisers, despite a 3% decline in average revenue per scaled advertiser [6][13] - Gross profit reached $119 million, up 10% year-over-year, with ex-TAC gross profit at $152 million, reflecting a 9% increase [6][13] - Adjusted EBITDA was $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]

NEW YORK, April 16, 2025 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in delivering performance at scale for advertisers, today announced that it will release first quarter 2025 financial results on Wednesday, May 7, 2025. Management will host a conference call and webcast to discuss financial results at 8:30 a.m. ET. What: Taboola First Quarter 2025 Financial Results Conference Call When: Wednesday, May 7, 2025 at 8:30 a.m. ET Details: Taboola's senior management team will discuss the Compan ...