NASDAQ$TBLA

Taboola.com Ltd. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Taboola's Q3 2024 earnings were strong, beating revenue, ex-TAC, and Adjusted EBITDA. The company reiterated its 2024 revenue, ex-TAC, and Adjusted EBITDA guidance and raised its 2024 Free Cash Flow target.

Taboola reported strong Q3 2024 results, exceeding expectations for revenue, ex-TAC gross profit, and Adjusted EBITDA. The company raised its 2024 free cash flow target, and the CEO expressed confidence in achieving full-year guidance.

  • Revenues reached $433 million, gross profit was $133 million, ex-TAC gross profit was $166 million, and free cash flow was $43 million.
  • Net loss amounted to $6 million, while non-GAAP net income was $22 million, and Adjusted EBITDA was $48 million.
  • Revenue grew by 20% year-over-year, ex-TAC gross profit grew by 30% year-over-year, Adjusted EBITDA grew by 110% year-over-year, and Free Cash Flow grew by 88% year-over-year.
  • The company raised 2024 FCF target from $100M+ FCF (2x+ YoY) to $105M+

Headline financials

Total Revenue

$433M

Previous: $360M+20.2%
EPS

-$0.02

Previous: $0.02-200.0%
Capital Expenditures

-$25.1M

Previous: -$19.8M-26.7%
Free Cash Flow

-$31.6M

Previous: -$43M+26.5%
Net Income

-$6.45M

Previous: -$23.1M+72.1%
Operating Income

$4.56M

Previous: -$18.7M+124.3%
Gross Profit

$133M

Previous: $101M+32.0%
Cash & Equivalents

$217M

Previous: $238M-8.8%
Total Assets

$1.66B

Previous: $1.73B-4.0%
R&D Expense

$36.7M

Previous: $35.3M+4.2%
Stock-Based Comp

$17.2M

Previous: $16.3M+5.8%

Revenue & EPS history

Taboola · Revenue · Quarterly

$433M

Q3 2024+20.2%vs Q3 2023
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

For Q4 2024, Taboola anticipates revenues of $460 - $490 million, gross profit of $180 - $196 million, ex-TAC Gross Profit of $205 - $221 million, and Adjusted EBITDA of $83 - $99 million. For the full year 2024, the company expects revenues of $1,735 - $1,765 million, gross profit of $535 - $555 million, ex-TAC Gross Profit of $656 - $679 million, and Adjusted EBITDA of $200+ million.

Tailwinds

  • Q4 revenue is expected to be $460 - $490 million (+13% YoY).
  • Q4 gross profit is expected to be $180 - $196 million (+36% YoY).
  • Q4 ex-TAC Gross Profit is expected to be $205 - $221 million (+26% YoY).
  • Q4 Adjusted EBITDA is expected to be $83 - $99 million (+82% YoY).
  • Raising 2024 FCF target from $100M+ FCF (2x+ YoY) to $105M+

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 2024

Historical avgQ3 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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