Workflow
Realize
icon
Search documents
TTD to Rollout Audience Unlimited: Monetization Tailwind Ahead?
ZACKS· 2025-10-03 14:56
Core Insights - Advertisers are cautious about third-party data due to high costs and effectiveness uncertainty, leading to low adoption rates and significant media spend losses [1] - The Trade Desk is addressing these challenges with Audience Unlimited, enhancing its marketplace for third-party data [1][9] Group 1: Audience Unlimited and Koa Adaptive Trading Modes - Audience Unlimited utilizes AI to rank third-party data segments for campaign relevance, offering a simplified pricing model that reduces costs for advertisers [2][9] - Koa Adaptive Trading Modes provide two options: Performance Mode, which optimizes bids and budgets dynamically, and Control Mode, which allows manual management with AI recommendations [3][4] - In Performance Mode, Audience Unlimited is included at no extra cost, while Control Mode has tiered rates of 3.3% or 4.4% of impression costs [4] Group 2: Performance Improvements and Ecosystem Developments - The Trade Desk's Kokai platform, powered by Koa AI, has led to over 20-point KPI lifts for clients, with spending on Kokai growing 20% faster than non-users [5] - OpenPath enhances supply chain transparency, benefiting publishers and clients, and promotes unbiased access to premium inventory [5] Group 3: Competitor Innovations - Magnite is enhancing its supply-side platform with updates to ClearLine for unified inventory management and AI tools from Streamr.ai to streamline workflows [6] - Taboola is expanding its performance advertising platform, Realize, with new Generative AI features to improve measurable results for advertisers [8] Group 4: Financial Performance and Market Position - The Trade Desk's shares have declined 54.4% over the past year, contrasting with the rise of the Zacks Internet -Services industry and S&P 500 [11] - TTD's forward price/earnings ratio stands at 24.98X, higher than the industry average of 24.15 [12]
Realize Drives Performance Outcomes for Advertisers Such as Homes.com, Tripadvisor, Philips Home Appliances, NerdWallet, Motley Fool; Select Advertisers Beat Performance Goals by More than 30%
Globenewswire· 2025-09-24 13:00
Taboola Bolsters Realize with New Generative AI Technology to Turn Static Images into Motion Ads, Driving 20% Increase in Conversion Rates for Select Advertisers Realize: An industry-first platform that specializes only in performance outcomes at scale beyond search and social. Realize is a technology platform that delivers outcomes at scale for advertisers, leveraging Taboola’s unique supply, first party data and AI technology. It delivers simplicity and efficiency for advertisers to run performance-base ...
TTD Banks on Kokai's Widespread Adoption: Path to Greater Monetization?
ZACKS· 2025-08-22 14:15
Core Insights - The Trade Desk launched Kokai in 2023, a next-generation platform that integrates advanced AI, measurement, partner integrations, and user experience for programmatic advertising [1] - Kokai has shown significant performance improvements, with clients like Samsung and Cash Rewards reporting increases in campaign effectiveness [2][11] - The adoption of Kokai is accelerating, with three-quarters of clients using it and full adoption expected by the end of 2025 [3][11] Performance Metrics - Samsung achieved a 43% increase in reaching its target audience for an omnichannel campaign in Europe, while Cash Rewards saw a 73% improvement in cost-per-acquisition for campaigns in Asia [2] - Campaigns on Kokai are showing over a 20-point increase across key performance indicators [2][11] - Clients shifting their spend to Kokai are increasing overall investment in The Trade Desk by more than 20% faster than others [3] Revenue and Growth Projections - The Trade Desk reported a 19% year-over-year revenue growth, driven by Kokai and strength in connected TV [5] - The company forecasts a 14% revenue increase for the third quarter, projecting at least $717 million in revenue [5] Competitive Landscape - Taboola.com Inc. is expanding its performance advertising platform, targeting a $55 billion market with its new offering, Realize [6][7] - Magnite operates as a leading supply-side platform, with significant growth driven by its partnerships and ad server technology [8][9] Valuation and Market Performance - The Trade Desk's shares have declined 49.3% over the past year, contrasting with the S&P 500's rise of 15.2% [12] - The company trades at a forward price-to-sales ratio of 8.02X, higher than the industry average of 5.38X [13]
Taboola.com (TBLA) FY Conference Transcript
2025-08-12 18:15
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]
Taboola.com(TBLA) - 2025 Q2 - Earnings Call Transcript
2025-08-06 13:30
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]
Taboola.com(TBLA) - 2025 Q2 - Earnings Call Presentation
2025-08-06 12:30
Q2 2025 Performance - Revenues reached $465.5 million, a 9% year-over-year increase, exceeding the high end of the guidance range of $438 to $458 million[10] - Gross profit was $135.6 million, up 18% year-over-year, also surpassing the guidance range of $124 to $134 million[10] - ex-TAC Gross Profit reached $172.1 million, a 15% year-over-year increase, exceeding the guidance range of $156 to $166 million[10] - Adjusted EBITDA was $45.2 million, a 21% year-over-year increase, also surpassing the guidance range of $33 to $44 million[10] Scaled Advertisers - Revenue from Scaled Advertisers accounted for 86% of Total Revenue[16] - The number of Scaled Advertisers grew by 8.5% year-over-year to 2,046[16] - Average Revenue Per Scaled Advertiser grew by 1.8% to approximately $196,000[16] Guidance - Q3 2025 revenue is projected to be between $461 to $469 million, a 5% year-over-year increase[17] - Full year 2025 revenue is projected to be between $1.858 to $1.888 billion, a 6% year-over-year increase[17] - Full year 2025 Adjusted EBITDA is projected to be between $208 to $214 million, a 5% year-over-year increase[17] Additional Modeling Assumptions - Interest payments are estimated to be approximately $7 million in 2025, with about $1.3 million per quarter associated with an average of $100 million RCF usage[18] - Share-based compensation is estimated at $66 million for 2025[18] - Capital Expenditures (CapEx) are projected to be $48 million in 2025[18]
Taboola Reports Strong Q2 2025 Financial Results, Surpassing High-End of Guidance; Increases Full-Year Guidance & Announces $200M Share Repurchase Expansion
Globenewswire· 2025-08-06 10:15
Core Insights - Taboola reported strong second quarter results for 2025, exceeding guidance across key metrics and raising full-year guidance [2][3] - The company has repurchased nearly 12% of its shares in the first half of the year, reflecting confidence in its business and long-term vision [2] - Taboola is experiencing early traction with its new performance advertising platform, Realize, indicating potential for future growth [2] Financial Performance - Revenues for Q2 2025 reached $465.5 million, an increase of 8.7% compared to $428.2 million in Q2 2024 [6][16] - Gross profit for Q2 2025 was $135.6 million, up 18.2% from $114.8 million in Q2 2024 [6][16] - Adjusted EBITDA for Q2 2025 was $45.2 million, a 21.3% increase from $37.2 million in Q2 2024 [6][16] - The net loss remained flat at $(4.3) million for both Q2 2025 and Q2 2024 [6][16] Guidance - For Q3 2025, Taboola expects revenues between $461 million and $469 million, and for the full year 2025, revenues are projected at $1.888 billion [3][18] - The company anticipates gross profit for Q3 2025 to be between $127 million and $133 million, and for the full year 2025, gross profit is expected to be between $541 million and $555 million [3][18] - Adjusted EBITDA guidance for Q3 2025 is set between $43 million and $48 million, with full-year guidance between $208 million and $214 million [3][18] Cash Flow and Investments - Cash flow from operating activities for Q2 2025 was $47.4 million, compared to $38.8 million in Q2 2024 [6][16] - Free cash flow for Q2 2025 was $34.2 million, up from $26.2 million in Q2 2024 [6][16] - The company has shown strong collections and lower publisher prepayments contributing to improved cash flow [6][16] Shareholder Returns - The company has aggressively continued its share buyback program, indicating a commitment to returning value to shareholders [2][3] - The weighted-average shares used in computing diluted EPS for Q2 2025 were 313,572,282, compared to 342,566,112 for Q2 2024 [17]
Can Taboola's Realize Platform Drive Scalable, AI-Powered Ad Growth?
ZACKS· 2025-07-30 17:46
Core Insights - Taboola.com Inc.'s Realize platform significantly enhances the efficiency and performance of the company's advertising operations, targeting a $55 billion market through its AI-driven engine [1][4] - The platform utilizes deep-learning algorithms for real-time user signal analysis and historical behavior, leading to improved user engagement and campaign results, which encourages advertisers to increase their investments [2] - Realize empowers mid-sized and smaller advertisers with simplified, self-serve campaign tools, allowing for growth in the advertiser base without increasing operational costs [3] Competitive Landscape - Competitors like The Trade Desk and Magnite do not possess a proprietary platform like Realize but are establishing their niches in the digital advertising space [5][6] - The Trade Desk focuses on transparent, data-driven programmatic solutions, enhancing its leadership in digital advertising through AI innovation and partnerships [5] - Magnite aims to maximize publisher revenues through transparent monetization strategies, solidifying its position as the largest independent sell-side platform [6] Financial Performance - Taboola's shares have declined by 12% year to date, underperforming the industry [7] - The company is currently trading at a price-to-earnings multiple of 18.1, which is lower than the industry average of 28.4, indicating an affordable valuation [10] - Consensus estimates for Taboola's EPS for 2025 and 2026 show no movement over the past 60 days, with projections indicating year-over-year increases [11][12]
Taboola vs. Magnite: Which Ad-Tech Stock Should Be in Your Portfolio?
ZACKS· 2025-07-17 17:56
Industry Overview - The digital advertising industry is rapidly transforming due to advancements in AI, privacy regulations, and diverse media channels, leading to increased digital ad spending as marketers shift budgets from traditional formats to online platforms [1][3] - Global digital ad spending was valued at $600 billion in 2024 and is projected to reach $1.5 trillion by 2034, with a CAGR of 9.47% from 2025 to 2034 [3] Company Analysis: Taboola (TBLA) - Taboola is a global leader in performance advertising, connecting thousands of advertisers to approximately 600 million daily users through its Realize platform [2] - The company has shifted focus from native advertising to performance advertising, reflecting the rising demand for comprehensive performance solutions beyond traditional platforms [4] - Taboola's revenue growth strategy includes enhancing Realize's capabilities and refining its go-to-market strategy, resulting in a 3% revenue growth, 53% increase in adjusted EBITDA, and 48% improvement in operating cash flow in Q1 2025 [5] - For 2025, Taboola expects revenues between $1.84 billion and $1.89 billion, with net income projected between $122 million and $128 million [6] - The company is investing around 8% of 2024 revenues in R&D to advance AI features and has expanded its share repurchase authorization by $200 million [6] Company Analysis: Magnite (MGNI) - Magnite operates as a leading supply-side platform (SSP) in the Connected TV (CTV) ad-tech sector, processing billions of impressions monthly [7][10] - The company has established significant partnerships with major players like Netflix, Roku, and Warner Bros. Discovery, enhancing its market position [8][10] - Magnite's strategy focuses on continuous investment in technology and expanding its sales organization, capitalizing on the shift towards CTV advertising [10] - The company is projected to benefit from increased regulatory scrutiny on Google, which may shift publisher preference towards independent platforms like Magnite [8][11] - For 2025, Magnite's revenues and EPS are expected to increase by 14% and 15.5% year-over-year, respectively [14] Financial Metrics - Taboola is trading at a forward P/E of 19.9, while Magnite is at 45.5, both below their respective three-year medians [9][17] - Year-to-date, MGNI shares have gained 51%, while TBLA shares have lost 2% [18]
Taboola to Announce Second Quarter 2025 Financial Results on August 6, 2025
Globenewswire· 2025-07-16 10:30
Core Points - Taboola will release its second quarter 2025 financial results on August 6, 2025, at 8:30 a.m. ET [1] - A conference call and webcast will be held to discuss the financial results, accessible via a provided link [1] Company Overview - Taboola is a leader in performance advertising technology, focusing on measurable outcomes beyond traditional search and social media [2] - The company collaborates with thousands of businesses, reaching approximately 600 million daily active users through its ad platform, Realize [3] - Major publishers like NBC News and Yahoo, as well as OEMs such as Samsung and Xiaomi, utilize Taboola's technology to enhance audience engagement and revenue [3]