NASDAQ$TBLA

Taboola.com Ltd. · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Taboola met guidance for Q4 and FY2022, and is guiding for positive free cash flow in 2023 and $100M+ in 2024.

Taboola's Q4 2022 financial performance was solid despite a challenging year for advertising spend. Revenues were $371.3 million, gross profit was $133.2 million, net income was $15.2 million, and Non-GAAP Net Income was $43.3 million.

  • New digital property partners increased by $34.6 million of revenues.
  • New publisher partnerships revenue added per month was over 90% higher than the average of 2020 and 2021.
  • Key renewals were signed with partners including CBSi, Tegna, and Fox Sports.
  • A transformative 30-year partnership with Yahoo was announced.

Headline financials

Total Revenue

$371M

Previous: $408M-8.9%
EPS (adj)

$0.16

Previous: $0.01+1540.0%
Adjusted EBITDA

$63.5M

No prior period
ex-TAC Gross Profit

$159M

No prior period
Non-GAAP Net Income

$43.3M

No prior period
Capital Expenditures

$6.44M

Previous: $39.1M-83.5%
Free Cash Flow

$13.6M

Previous: $24.5M-44.4%
Net Income

$15.2M

Previous: $3.89M+290.5%
Operating Income

$25M

Previous: -$7.7M+425.2%
Gross Profit

$133M

Previous: $112M+18.9%
Cash & Equivalents

$166M

Previous: $319M-48.0%
Total Assets

$1.53B

Previous: $1.6B-4.2%
Stock-Based Comp

$16M

Previous: $128M-87.5%

Revenue & EPS history

Taboola · Revenue · Quarterly

$371M

Q4 2022-8.9%vs Q4 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Taboola provided guidance for Q1 2023 and FY 2023, anticipating continued macro-economic challenges and investments related to the Yahoo partnership, but expects positive Free Cash Flow.

Tailwinds

  • Revenues of $299M - $325M for Q1 2023 and $1.419B - $1.469B for FY 2023.
  • Gross profit of $76M - $88M for Q1 2023 and $416M - $436M for FY 2023.
  • ex-TAC Gross Profit of $103M - $115M for Q1 2023 and $526M - $546M for FY 2023.
  • Adjusted EBITDA of ($6M) - $6M for Q1 2023 and $60M - $80M for FY 2023.
  • Non-GAAP Net Income (loss) of ($23M) - ($11M) for Q1 2023 and ($10M) - $10M for FY 2023.

Headwinds

  • Macro economy continues to be challenged.
  • Current softness in the online advertising market continues.
  • A substantial ramp in investment related to Yahoo partnership agreement.
  • Continued investment in performance advertising, eCommerce and Header Bidding.
  • Year-on-year comparison is distorted due to an unusually strong first half of 2022 and a weaker second half of 2022.

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 Q4 2022

Historical avgQ4 2022

+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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