Taboola Reports Strong Q3 2024, Beating Revenues, ex-TAC and Adj. EBITDA; Reiterating 2024 Revenues, ex-TAC, & Adj. EBITDA Guidance; Raising 2024 Free Cash Flow Target
Q3 2024 and FY 2024 Key Highlights
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Q3 Financials - Beat on Revenues, ex-TAC, and Adj.
EBITDA; $97M YTD FCF already approaching FY 2024 target
of $100M+
-- Q3 2024 Results: Revenues $433M, Gross profit $133M,
ex-TAC Gross Profit $166M, Net loss $6M, Non-GAAP Net
Income $22M, Adj. EBITDA $48M, Free Cash Flow $43M
-- Strong YoY growth: Revenues +20%, ex-TAC +30%, Adj.
EBITDA +110%, FCF +88%
-- Strong Free Cash Flow conversion: 89% conversion from
Adj. EBITDA
Reiterating 2024 Revenues, ex-TAC, Adj. EBITDA guidance;
Growth rates accelerate across all metrics; Raising
2024 FCF Target to $105M+
-- Q4 guidance: $475M in Revenues (+13% YoY), $188M
Gross profit (+36% YoY), $213M ex-TAC Gross Profit
(+26% YoY), $91M Adj. EBITDA (+82% YoY)*
-- Reiterating 2024 guidance: $1,750M Revenues (+22%
YoY), $667M ex-TAC Gross Profit (+25% YoY), $200M+
Adj. EBITDA (2x+ YoY; 30% margin)*
-- Raising 2024 FCF target from $100M+ FCF (2x+ YoY) to
$105M+
Business highlights - Yield growth turns positive
in Q3 driven by growth in ad spend; met our internal
Q3 Yahoo advertiser spend targets
-- Released Abby, advanced GenAI ad assistant, allowing
advertisers to "talk" to Taboola and successfully
launch ads in minutes
-- Max Conversions adoption of 70%; +1,500 advertisers
QoQ; # of campaigns +36% QoQ
-- Tier 1 brand & agency spend very strong led by auto,
e-commerce, and finance verticals
-- Another quarter when ad spend out of China is up 2x
vs last year
-- Apple News/Stocks seeing significant commercial
traction - Sept # advertisers 2x vs July
-- Taboola News - Xiaomi expands partnership to more
global markets and across more touchpoints per device
* References midpoints of guidance ranges, where applicable.
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NEW YORK, Nov. 07, 2024 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, today announced its results for the quarter ended September 30, 2024.
"I'm happy with our Q3 performance, beating our Revenues, ex-TAC and Adjusted EBITDA guidance and raising our 2024 Free Cash Flow target," said Adam Singolda, CEO of Taboola. "2024 is a big year for us, and I'm so proud of our execution, leading into a strong Q4. We are looking forward to delivering on our guidance, and having a very strong close to the year. We remain laser focused on driving demand and improving advertiser success. We are confident in our strategy of building the largest scale performance advertising company in the open web outside of the walled gardens, and look forward to sharing more about our long-term strategy at Taboola's Investor Day early next year."
Third Quarter 2024 Financial Highlights
The following table summarizes our consolidated financial
results for the three months ended September 30, 2024
and 2023:
Three months ended
(dollars in millions, except per share data) September 30,
--------------------
2024 2023
--------- ---------
Unaudited
--------------------
Revenues $ 433.0 $ 360.2
Gross profit $ 132.9 $ 100.7
Net loss $ (6.5) $ (23.1)
EPS diluted (1) $ (0.02) $ (0.07)
Ratio of net loss to gross profit (4.9%) (23.0%)
Cash flow provided by operating activities $ 49.8 $ 32.5
Cash, cash equivalents, short-term deposits and
investments $ 217.2 $ 250.7
Non-GAAP Financial Data *
ex-TAC Gross Profit $ 166.4 $ 128.4
Adjusted EBITDA $ 47.9 $ 22.8
Non-GAAP Net Income $ 22.2 $ 6.7
Ratio of Adjusted EBITDA to ex-TAC Gross Profit 28.8% 17.8%
Free Cash Flow $ 42.9 $ 22.8
(1) The weighted-average shares for the three months
ended September 30, 2024 and 2023 were 342,886,216
and 352,591,043 shares, respectively. The weighted-average
share count for the three months ended September 30,
2024 and 2023 includes 298,675,810 and 307,392,341
Ordinary shares and 44,210,406 and 45,198,702 Non-voting
Ordinary shares, respectively.
Third Quarter 2024 Business Highlights
-- Revenue Highlights
-- Revenue growth driven by the addition of new publisher partners
and Tier 1 advertisers to the Taboola network.
-- Publisher wins that were new and from competitors included
National World and Axiom Media Alliance.
-- Renewed relationships with many well-known publishers and OEM
partners including Xiaomi, El Universal, and Network18.
-- Notable product launches and advancements
-- Introduction of Abby, a Generative AI technology that advertisers
can use to start and manage campaigns, even without being an
expert in advertising.
-- Taboola was chosen as a winner for 'Best Native Advertising
Platform' with the Digiday Technology Awards.
-- Taboola was re-awarded the Interactive Advertising Bureau $(IAB.AU)$ UK
Gold Standard Certification in recognition of its commitment to
upholding the latest key advertising industry standards.
Fourth Quarter & Full Year 2024 Financial Guidance
For the Fourth Quarter and Full Year 2024, the Company
currently expects (dollars in millions):
Q4 2024 FY 2024
Guidance Guidance
-------------- ---------------
Unaudited
-------------------------------
(dollars in millions)
Revenues $460 - $490 $1,735 - $1,765
Gross profit $180 - $196 $535 - $555
ex-TAC Gross Profit* $205 - $221 $656 - $679
Adjusted EBITDA* $83 - $99 $200+
Non-GAAP Net Income (Loss)* $37 - $53 $84 - $104
Although we provide guidance for Adjusted EBITDA and
Non-GAAP Net Income (Loss), we are not able to provide
guidance for projected net income (loss), the most
directly comparable GAAP measure. Certain elements
of net income (loss), including share-based compensation
expenses and warrant valuations, are not predictable
due to the high variability and difficulty of making
accurate forecasts. As a result, it is impractical
for us to provide guidance on net income (loss) or
to reconcile our Adjusted EBITDA and Non-GAAP Net
Income (Loss) guidance without unreasonable efforts.
Consequently, no disclosure of projected net income
(loss) is included. For the same reasons, we are unable
to address the probable significance of the unavailable
information.
For more commentary on the quarter, please refer to Taboola's Q3 2024 Shareholder Letter and Investor Presentation, both of which are posted on Taboola's website today at investors.taboola.com
Webcast Details
Taboola's senior management team will discuss the Company's earnings on a call that will take place on November 7, 2024, at 8:30 AM ET. The call can be accessed via webcast at https://investors.taboola.com. To access the call by phone, please go to this link to register https://register.vevent.com/register/BI066e4776a6904de2b616a491677f1c32 and you will be provided with dial in details. The webcast will be available for replay for one year, through the close of business on November 7, 2025.
*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income (Loss), which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company's financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income (loss), cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to similarly-titled measures used by other companies.
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