NASDAQ$TBLA

Taboola.com Ltd. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Taboola exceeded high end of guidance on all metrics.

Taboola's Q3 2023 revenues reached $360.2M, with a gross profit of $100.7M. The company experienced a net loss of $23.1M, but achieved a non-GAAP net income of $6.7M and an adjusted EBITDA of $22.8M. Net cash from operating activities was $32.5M, and free cash flow was $22.8M.

  • Q3 2023 Revenues of $360.2M, Gross Profit of $100.7M, ex-TAC Gross Profit of $128.4M, Net loss of $23.1M, Non-GAAP Net Income of $6.7M and Adjusted EBITDA of $22.8M.
  • Net cash provided by operating activities of $32.5M and Free Cash Flow in Q3 2023 of $22.8M.
  • eCommerce double-digit growth in Q3, on track to reach nearly 20% of ex-TAC in 2023.
  • Raising 2023 Adjusted EBITDA range to $75M - $82M and Non-GAAP Net Income range to $7M - $12M.

Headline financials

Total Revenue

$360M

Previous: $332M+8.3%
EPS (adj)

$0.02

Previous: $0.04-50.0%
Adjusted EBITDA

$22.8M

Previous: $24.2M-5.8%
ex-TAC Gross Profit

$128M

Previous: $129M-0.7%
Non-GAAP Net Income

$6.7M

Previous: $10.2M-34.3%
Capital Expenditures

-$19.8M

Previous: $12.2M-262.3%
Free Cash Flow

-$43M

Previous: $11M-490.9%
Net Income

-$23.1M

Previous: $15.2M-252.4%
Operating Income

-$18.7M

Previous: $25M-174.8%
Gross Profit

$101M

Previous: $133M-24.4%
Cash & Equivalents

$238M

Previous: $188M+26.4%
Total Assets

$1.73B

No prior period
R&D Expense

$35.3M

No prior period
Stock-Based Comp

$16.3M

Previous: $18.7M-13.1%

Revenue & EPS history

Taboola · Revenue · Quarterly

$360M

Q3 2023+8.3%vs Q3 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Taboola raises 2023 Adjusted EBITDA range to $75M - $82M and Non-GAAP Net Income range to $7M - $12M. The company continue to expect positive Free Cash Flow and are reiterating 2024 guidance of $200M+ Adjusted EBITDA, $100M+ Free Cash Flow.

Tailwinds

  • Revenue from new publisher partners continues to be an area of strength.
  • Renewed relationships with many well-known publishers.
  • Rolled out a new Taboola News partnership with realme, the world’s fastest-growing smartphone brand, powering recommendations on mobile devices for audiences in Europe, Southeast Asia and beyond, representing more than 6M devices.
  • New features and momentum for our Generative AI technology, including the introduction of Taboola Generative AI Admaker
  • Raising 2023 Adjusted EBITDA range to $75M - $82M and Non-GAAP Net Income range to $7M - $12M.

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 Q3 2023

Historical avgQ3 2023

+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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