NASDAQ$TBLA

Taboola.com Ltd. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Taboola reported strong net income and Adj. EBITDA, exceeding the high end of guidance for Q4 and FY 2023. The 2024 guidance calls for a record year with substantial growth across all key metrics.

Taboola reported a strong end to 2023, with Q4 revenue up 13%, ex-TAC Gross Profit up 6% year-over-year, and Adjusted EBITDA significantly exceeding the top end of the guidance range. The company anticipates 2024 to be a step function growth year.

  • Q4 2023 revenue increased by 13% year-over-year.
  • Q4 2023 ex-TAC Gross Profit increased by 6% year-over-year.
  • Adjusted EBITDA for Q4 2023 was $50.1M, exceeding the high end of the guidance range.
  • The company announced a new $100M buyback authorization.

Headline financials

Total Revenue

$420M

Previous: $371M+13.1%
EPS (adj)

$0.09

Previous: $0.16-47.0%
Capital Expenditures

-$11.8M

Previous: $6.44M-283.2%
Free Cash Flow

$10.5M

Previous: $13.6M-22.8%
Net Income

$3.7M

Previous: $15.2M-75.6%
Operating Income

$8.8M

Previous: $25M-64.9%
Gross Profit

$138M

Previous: $133M+3.8%
R&D Expense

$33.5M

No prior period
Stock-Based Comp

$15.5M

Previous: $16M-3.1%

Revenue & EPS history

Taboola · Revenue · Quarterly

$420M

Q4 2023+13.1%vs Q4 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Taboola expects significant growth in 2024, with revenue and ex-TAC Gross profit midpoints expected to grow ~33% and ~25%, respectively. The company reiterates 2024 Adjusted EBITDA of $200M+ and Free Cash Flow of $100M+.

Tailwinds

  • Revenue and ex-TAC Gross profit midpoints expected to grow ~33% and ~25%, respectively.
  • Yahoo ramping with $100M+ in Q1 2024.
  • Investments in AI panning out with yields growing in 2024.
  • Another iconic consumer company selecting Taboola as a new official advertising partner.
  • Growth engines (eCommerce, Taboola News and Bidder) all having a lot of momentum.

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 2023

Historical avgQ4 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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