NASDAQ$TBLA

Taboola.com Ltd. · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Taboola's Q1 2024 results surpassed the high end of guidance, with accelerating growth across key metrics and reiterated 2024 guidance.

Taboola had a strong start to 2024, with Q1 revenues of $414 million. The company's business momentum and growth rates accelerated, leading to the reiteration of its 2024 guidance. The primary focus for the year is advertiser success and ramping up Yahoo integration.

  • Q1 2024 revenues reached $414 million, gross profit was $109 million, and ex-TAC gross profit was $139 million.
  • Net loss for Q1 2024 was $26 million, while non-GAAP net income was $4 million, and adjusted EBITDA was $23 million.
  • Revenue growth was driven by new publisher partners added to the Taboola network.
  • Maximize Conversions, an AI-bidding technology, reached nearly 60% of revenue.

Headline financials

Total Revenue

$414M

Previous: $328M+26.3%
EPS

-$0.08

Previous: -$0.01-700.0%
Adjusted EBITDA

$23.5M

Previous: $10.1M+132.7%
ex-TAC Gross Profit

$139M

No prior period
Non-GAAP Net Income

$3.8M

No prior period
Adj. EBITDA to ex-TAC Gross Profit Ratio

16.9%

No prior period
Capital Expenditures

-$5.59M

Previous: -$6.35M+12.0%
Free Cash Flow

-$31.7M

Previous: -$37.7M+15.7%
Net Income

-$26.2M

Previous: -$31.3M+16.5%
Operating Income

-$18.2M

Previous: -$28.8M+36.7%
Gross Profit

$109M

Previous: $89.6M+21.6%
Cash & Equivalents

$179M

Previous: $219M-18.4%
Total Assets

$1.66B

Previous: $1.77B-6.1%
R&D Expense

$36.1M

No prior period
Stock-Based Comp

$16.4M

Previous: $16.1M+2.0%

Revenue & EPS history

Taboola · Revenue · Quarterly

$414M

Q1 2024+26.3%vs Q1 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

The company is expecting strong Q2 and FY 2024 YoY growth across all metrics and reiterating 2024 Adj. EBITDA $200M+ (30% margin) and $100M+ Free Cash Flow

Tailwinds

  • Expecting strong Q2 and FY 2024 YoY growth across all metrics
  • Q2 revenue guidance: $425M (+28% YoY)
  • Q2 gross profit guidance: $115M (+18% YoY)
  • Q2 ex-TAC gross profit guidance: $145M (+18% YoY)
  • Q2 Adj. EBITDA guidance: $25M+ (+60% YoY)

Headwinds

  • Certain elements of net income (loss), including share-based compensation expenses and warrant valuations, are not predictable
  • Intense competition in the digital advertising space
  • Reliance on a limited number of partners for a significant portion of the Company’s revenue
  • Potential impacts of the war in Israel to the Company’s operations
  • Changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.0%

Avg return

Earnings day

+3.0%

Avg return

5 days after

-1.5%

Avg return

30 days after

48%

10 / 21 earnings

Positive

+28.9%

Q1 2023

Best reaction

-24.8%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+24.7%+34.6%+19.9%
Q4 2025-5.4%+0.6%-4.5%
Q3 2025+1.6%+11.6%+6.5%
Q1 2025-0.6%+10.0%+17.8%
Q4 2024-16.5%-24.1%-20.0%
Q3 2024-3.0%+0.0%+20.7%
Q2 2024+6.2%+9.3%+8.2%
Q1 2024+0.7%-6.8%-18.8%
Q4 2023-9.0%-2.3%-7.3%
Q3 2023+7.8%+9.8%+2.9%
Q2 2023+4.5%+2.7%+5.3%
Q1 2023+28.9%+39.0%+29.8%
Q4 2022-24.8%-23.3%-37.5%
Q3 2022+13.1%+20.0%+58.7%
Q2 2022+13.1%+9.5%-9.5%
Q1 2022-8.2%-17.8%-23.0%
Q4 2020-2.3%-2.0%-19.4%
Q4 2019-2.3%-2.0%-19.4%
Q4 2021-5.1%-0.9%-19.7%
Q3 2021+1.0%+5.2%-15.7%
Q2 2021-2.8%-9.5%-7.0%
Q1 2021
Q3 2020
Q2 2020
Q1 2020

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