Financial Data and Key Metrics Changes - The company reported Q2 revenues of $465 million, representing a 9% year-over-year growth [9] - Gross profit was $172 million, a 15% increase compared to the previous year [10] - Adjusted EBITDA reached $45 million, reflecting a 21% year-over-year growth with a significant margin expansion [10][26] - Free cash flow grew by 31% year-over-year to $34 million, enabling the company to repurchase approximately $100 million worth of stock in the quarter [10][26] Business Line Data and Key Metrics Changes - The number of scaled advertisers increased by nearly 9%, indicating strong retention and growth among existing clients [11] - Average revenue per scaled advertiser rose by about 2% year-over-year [22] - The growth in gross profit was driven by higher advertising spend and margin expansion on certain digital publishers [23] Market Data and Key Metrics Changes - The company expects nearly $2 billion in gross revenue for 2025, with approximately $700 million in gross profit [7] - The performance advertising market is estimated to be a $55 billion opportunity, with the company positioned to capture a significant share [8] Company Strategy and Development Direction - The company is focusing on its new performance advertising platform, Realize, which aims to expand its reach beyond native advertising into display and social [12] - The strategy includes attracting new advertisers and increasing budgets from existing clients, particularly in the performance advertising segment [19] - The company is also working on adding new open web partners to enhance its supply and data offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and raised full-year guidance across all key metrics [5][30] - The company noted minimal impact from recent changes in search dynamics driven by LLM, maintaining stable performance [16][18] - Management highlighted the potential for growth in the open web, particularly as advertisers seek alternatives to search and social platforms [19] Other Important Information - The board approved an additional $200 million for the share repurchase program, reflecting confidence in the long-term value of the business [10][29] - The company ended Q2 with a net cash balance of $27.2 million and cash equivalents totaling $115.2 million [28] Q&A Session Summary Question: What is the roadmap to return to double-digit growth? - Management indicated that the path to double-digit growth relies on the success of Realize in capturing more budgets from social and display advertising [34][35] Question: Why is the average revenue per scaled advertiser only increasing by 2%? - Management explained that while the number of scaled advertisers is growing, new advertisers typically start at lower spend levels, which affects the average revenue [46][47] Question: How does the company view the impact of generative AI on the open web? - Management noted minimal impact from LLM-driven changes and highlighted the potential for new traffic opportunities on publisher sites [54][56][59] Question: What is the current state of the tariff environment and its impact on advertising spend? - Management stated that the impact from China is not material, accounting for less than 1% of revenue, and they do not expect significant recovery in the second half of the year [77][78] Question: What is the geographic split of the company's business? - The company is approximately 50% U.S. based but is well diversified globally, with many advertisers spending across multiple regions [95] Question: Why prioritize share buybacks over paying down debt? - Management explained that they are using the revolving credit facility to maintain cash neutrality while aggressively repurchasing shares, which they believe is a capital-efficient strategy [60][62]

"We've had a long and productive history working with Gannett, partnering closely for mutual growth," said Adam Singolda, CEO of Taboola. "Through this expanded partnership, we're providing performance advertisers with greater access to drive results on trusted sites, using Realize. Our deepened partnership with Gannett is yet another proof point of how we're combining the best first-party data, AI, and distribution capabilities that performance advertisers need." NEW YORK, April 23, 2025 (GLOBE NEWSWIRE) - ...