Taboola.com (NasdaqGS:TBLA) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Company ParticipantsAadam Anwar - Head of Investor RelationsAdam Singolda - Founder and CEOMatthew Condon - Director of Equity ResearchStephen Walker - CFOConference Call ParticipantsBarton Crockett - Managing Director and Senior Research AnalystJames Kopelman - VP and TMT Research AnalystLaura Martin - Senior Entertainment and Internet AnalystMark Zgutowicz - Equity Research AnalystTyler DiMatteo - VP and Digital Media and Live ...

Taboola.com (NasdaqGS:TBLA) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Company ParticipantsAadam Anwar - Head of Investor RelationsAdam Singolda - Founder and CEOMatthew Condon - Director of Equity ResearchStephen Walker - CFOConference Call ParticipantsBarton Crockett - Managing Director and Senior Research AnalystJames Kopelman - VP and TMT Research AnalystLaura Martin - Senior Entertainment and Internet AnalystMark Zgutowicz - Equity Research AnalystTyler DiMatteo - VP and Digital Media and Live ...

Financial Data and Key Metrics Changes - In 2025, ex-TAC Gross Profit reached $714 million, up 7% year-over-year, and Adjusted EBITDA grew 7% to $260 million [5][18] - Free cash flow generated was $163 million, up 10% year-over-year, representing approximately 76% conversion from Adjusted EBITDA [6][20] - Revenues in Q4 grew 6% to $522.3 million, and for the full year, increased 8% to $1.91 billion [15][18] Business Line Data and Key Metrics Changes - Scaled advertisers grew 6% in 2025, with an average revenue per scaled advertiser up 2% [6][16] - In Q4, there was a 3% increase in the number of scaled advertisers and a 2% increase in average revenue per scaled advertiser [16] - Personal finance revenue generated in 2025 was $120 million within a $15 billion U.S. market, capturing only 1%-10% of advertisers' total spend [9][12] Market Data and Key Metrics Changes - The company reported strong growth in the rest of the world, with revenue from this segment growing about 10% in Q4, indicating faster growth compared to the U.S. market [86] - The exposure to search traffic remains in the single digits, with about 1/3 of supply coming from in-app usage [12] Company Strategy and Development Direction - The company is focused on three priorities: investing in technology to advance the Realize platform, restructuring the sales organization around ideal customer profiles, and enhancing brand perception [7][9] - The strategy aims to position Taboola as a leading performance advertising company outside of search and social, leveraging proprietary data and distribution [11][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in the long term, with 2025 performance indicating progress in the right direction [6][13] - The company anticipates continued investment in technology and brand perception to attract new advertisers and deepen existing relationships [9][10] Other Important Information - The company repurchased 77 million shares for a total of $254 million in 2025, reducing the share count by roughly 18% [4][22] - The company ended the fourth quarter with a net cash balance of $18.6 million and cash and cash equivalents totaling $120.9 million [21] Q&A Session Summary Question: Variance in revenues versus guidance - Management explained that the variance was due to a revenue mix, with more business in higher-margin areas and less in lower-margin segments [28][31] Question: Disconnect between growth in non-scaled advertisers and revenue guidance - Management indicated that the guidance reflects current performance from Realize, with conservative estimates based on existing trends [36][38] Question: Incremental investments in Realize and growth from existing versus new advertisers - Management highlighted that growth is expected from both existing advertisers increasing budgets and new advertisers being onboarded [51][52] Question: Impact of generative AI on traffic and advertising - Management noted that trusted publishers will continue to thrive, and AI adoption by these publishers could enhance revenue opportunities [60][61] Question: Factors influencing Adjusted EBITDA guidance for Q1 - Management mentioned foreign exchange headwinds and increased marketing expenses as key factors affecting EBITDA in the first quarter [94][96]

Core Viewpoint - Pinterest has raised its first-quarter revenue forecast following the acquisition of connected-TV advertising platform tvScientific, indicating a positive outlook despite recent stock performance challenges [1] Group 1: Revenue Forecast - The company now expects first-quarter revenue to be between $958 million and $978 million, an increase from the previous forecast of $951 million to $971 million [1] - The revised forecast reflects a partial-quarter contribution from the newly acquired tvScientific business [1] Group 2: Acquisition Details - The acquisition of tvScientific, announced in December 2025, marks Pinterest's first major deal since 2022 [1] - This deal integrates tvScientific's outcome-based CTV buying platform into Pinterest's performance-advertising suite, enhancing its media buying capabilities [1] - The integration allows Pinterest to utilize Performance+ AI optimization tools, automate media buying, and improve campaign optimization through machine learning [1]

Core Insights - Taboola has expanded its leadership team by hiring Krishan Bhatia as Chief Business Officer to drive global sales and partnerships, focusing on revenue growth across its product portfolio [1][2] Company Overview - Taboola's product portfolio includes the Realize performance advertising platform, a network of publisher partnerships, CTV performance, and generative AI products [2] - The company has surpassed two billion dollars in revenue, indicating strong growth and a solid foundation for future success [4] Leadership and Strategy - Krishan Bhatia has a proven track record in accelerating growth at major companies like Amazon and NBCUniversal, where he led significant advertising initiatives [3] - The CEO of Taboola, Adam Singolda, emphasized the importance of Bhatia's experience in scaling advertising businesses and executing disciplined strategies [4] - Bhatia expressed excitement about joining Taboola at a pivotal growth moment, highlighting the company's innovative technology and commitment to performance advertising [4] Market Position - Taboola aims to redefine performance advertising beyond traditional search and social media, positioning itself as a leading player in the market [4] - The company reaches approximately 600 million daily active users through its advertising technology, which is utilized by major publishers like NBC News and Yahoo [5]

Core Insights - Yelp Inc. reported better-than-expected fourth-quarter 2025 results with earnings of 61 cents per share, surpassing the Zacks Consensus Estimate by 29.1% despite a year-over-year decline of 1.6% from 62 cents [1][11] - The company's revenues decreased by 1% year over year to $360 million but exceeded the consensus mark by 0.5%, primarily due to a decline in advertising revenues [2][11] Financial Performance - Advertising revenues, which account for 94% of total revenues, fell by 2% year over year to $338 million, driven by a decrease in ad clicks [3][11] - The Services business saw advertising revenues grow by 2.9% year over year to $231.4 million, while the Restaurants, Retail & Other (RR&O) division's revenues dropped by 11.6% to $106.8 million due to macroeconomic challenges [4] - Total costs and expenses increased by 1% year over year to $311 million, with adjusted EBITDA plunging 15% to $86 million, resulting in a margin decrease from 28% to 24% [6] Balance Sheet and Cash Flow - As of December 31, 2025, Yelp held $319 million in cash and equivalents with no debt, generating an operating cash flow of $84.5 million and free cash flow of $72.3 million in the fourth quarter [7] Guidance - For Q1 2026, Yelp anticipates revenues between $350 million and $355 million, which is below the Zacks Consensus Estimate of $360.4 million and the previous year's revenues of $359 million [8][11] - For the full year 2026, the company expects revenues between $1.455 billion and $1.475 billion, compared to 2025 revenues of $1.465 billion and the consensus estimate of $1.5 billion [9]

Financial Data and Key Metrics Changes - In Q4 2025, global revenue reached $1.319 billion, reflecting a 14% year-over-year increase or 13% on a constant currency basis [31] - Adjusted EBITDA for Q4 was $542 million, with an Adjusted EBITDA margin of 41%, up 20 basis points year-over-year [33] - Free cash flow for the full year 2025 increased by 33% to $1.25 billion, representing a free cash flow conversion of 99% [34] Business Line Data and Key Metrics Changes - The company ended Q4 with 619 million global monthly active users (MAUs), a 12% increase year-over-year, marking the tenth consecutive quarter of record-high users [30] - In Q4, ad impressions grew by 41%, while ad pricing declined by 19% year-over-year, primarily due to a mix shift from growing ad impressions in under-monetized international markets [32] - Revenue from the US and Canada was $979 million, growing 9%, while Europe saw revenue of $245 million, growing 25% [31] Market Data and Key Metrics Changes - The US and Canada region had 105 million MAUs, growing 4%, Europe had 158 million MAUs, growing 9%, and the rest of the world had 356 million MAUs, growing 16% [30] - Revenue from the rest of the world was $96 million, growing 64% on a reported and constant currency basis [32] Company Strategy and Development Direction - The company aims to broaden its revenue mix and accelerate growth with mid-market, SMB, and international advertisers, moving away from a heavy reliance on large retailers [19][21] - The introduction of new leadership, including a Chief Business Officer, is expected to enhance monetization efforts and sales execution [20] - The company is focused on leveraging AI to improve user experiences and optimize internal operations, with AI at the core of its strategy [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed dissatisfaction with Q4 revenue performance, attributing it to external factors such as tariffs affecting ad spend from top retail advertisers [5][17] - The company anticipates continued headwinds in Q1 due to the same dynamics impacting large retailers and is undergoing a sales and go-to-market transformation [44] - Management remains optimistic about long-term growth potential, citing strong user engagement and the need to close the monetization gap [66][74] Other Important Information - The company has made significant progress in AI initiatives, with approximately 50% of new code being AI-generated [16] - The acquisition of tvScientific is expected to enhance monetization opportunities beyond Pinterest's own surfaces [24] Q&A Session Summary Question: Can you talk more about the drivers of Q4 revenue and the Q1 guidance? - Management noted that larger retail advertisers created a headwind in Q4 as they pulled back on ad spend, which is expected to continue into Q1 [43][44] Question: How is the new go-to-market team likely to drive wallet share and digital advertising for Pinterest? - The new team is focused on broadening revenue and improving performance selling capabilities, particularly among mid-market and SMB advertisers [48][49] Question: What tech investment is necessary to broaden and deepen the advertiser base? - Management indicated that significant tech investment is needed to enhance measurement and attribution capabilities, which are crucial for attracting a broader advertiser base [55][61]

Group 1 - Google is facing potential EU antitrust scrutiny over concerns that it may be unfairly increasing online advertising prices, as indicated in a letter to advertisers [1][2] - The European Commission is particularly focused on Google's auction practices for advertising on Google Search, alleging that the company is artificially raising auction clearing prices to the detriment of advertisers [2][4] - Google maintains that its search ads support small businesses and that ad prices are determined through a real-time auction process that considers factors like competition and ad quality [3] Group 2 - The U.S. Justice Department has accused Google of manipulating online auctions to benefit its own financial interests, which could escalate tensions between the U.S. government and EU regulators [4] - The European Commission is prepared to investigate anti-competitive practices across all sectors if concrete evidence is found, and recipients of the letter have until March 2 to provide feedback [4]

Market Overview - Market volatility remains elevated, with current levels around 17.5%, leading to sharp swings in both directions [3] - There was a rotation back into defensive sectors, such as utilities and consumer staples, as the market digests economic data ahead of the upcoming inflation report [4] Cisco Earnings - Cisco's shares are down approximately 6.5% in premarket trading despite beating revenue expectations, reporting $15.35 billion against an expected $15.12 billion, reflecting a year-over-year growth of around 10% [6][7] - Adjusted earnings per share came in at $1.04, slightly above the expected $1.02 [7] - AI infrastructure orders increased to $2.1 billion in Q2 from $1.3 billion in Q1, with expectations of over $5 billion in AI orders for fiscal year 2026 [8] - The company is facing pricing pressures due to increased memory prices and is renegotiating supplier contracts, which has contributed to market concerns about margins [9][10] Applovin Earnings - Applovin reported revenue of $1.66 billion, a 66% year-over-year increase, and adjusted earnings per share of $3.24, surpassing expectations of around $2.90 to $2.93 [12][13] - Despite strong top-line growth, concerns about increasing competition in the AI-powered advertising space may impact future margins [14][15] - Analysts are adjusting price targets but maintaining buy ratings, indicating confidence in the company's long-term prospects despite short-term challenges [17] Tariff Developments - The House passed a measure to end tariffs imposed on Canada related to fentanyl, with a vote of 219 to 211, indicating some bipartisan support [18] - The measure faces significant challenges in the Senate, and analysts believe its implementation is unlikely, but it signals potential shifts in tariff policy [20][21] Market Levels and Trends - The S&P 500 is facing resistance at the 7000 level, with downside support at 6905, indicating a wide range of price movement expectations [22][25] - Elevated volatility is leading traders to price in potential downside moves, reflecting a bearish sentiment in the market [25][26]

Core Insights - Taboola has partnered with Reach to implement DeeperDive, a Generative AI answer engine that enhances user engagement on publisher websites [1][6] - The adoption of DeeperDive by major publishers aims to combat challenges posed by Generative AI-powered search engines that scrape content, affecting traffic [2][3] Company Developments - DeeperDive has been adopted by several leading publishers since its launch in 2025, including Gannett, India Today Group, and BuzzFeed Asia [3] - The technology allows readers to ask questions and receive instant answers sourced from trusted journalists, enhancing the user experience [4][5] Industry Trends - Publishers are increasingly seeking innovative technologies to maintain competitiveness and reader engagement in a rapidly evolving digital landscape [2][5] - DeeperDive is designed to provide smarter, more diverse answers, leveraging real-time insights from over 600 million daily active users across a network of 9,000 publisher partners [7] Monetization Opportunities - DeeperDive presents new monetization channels for publishers by integrating contextually relevant, high-intent ads into AI-powered results pages, creating commercial opportunities while maintaining user experience [7]