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
Taboola (TBLA) reported strong Q3 2024 results, beating guidance with revenues of $433M (+20% YoY), ex-TAC gross profit of $166M (+30% YoY), and Adjusted EBITDA of $48M (+110% YoY). Free Cash Flow reached $43M (+88% YoY) with 89% conversion from Adj. EBITDA. The company reiterated its 2024 guidance for revenues of $1,750M (+22% YoY) and ex-TAC gross profit of $667M (+25% YoY), while raising its FCF target to $105M+. Q4 guidance projects revenues of $475M (+13% YoY) and Adj. EBITDA of $91M (+82% YoY).
Taboola (TBLA) ha riportato risultati robusti per il terzo trimestre del 2024, superando le previsioni con un fatturato di 433 milioni di dollari (+20% su base annua), un utile lordo di 166 milioni di dollari al netto delle TAC (+30% su base annua) e un EBITDA rettificato di 48 milioni di dollari (+110% su base annua). Il flusso di cassa libero ha raggiunto 43 milioni di dollari (+88% su base annua) con una conversione dell'89% dall'EBITDA rettificato. L'azienda ha ribadito le sue previsioni per il 2024, con un fatturato di 1.750 milioni di dollari (+22% su base annua) e un utile lordo di 667 milioni di dollari al netto delle TAC (+25% su base annua), mentre ha alzato il suo obiettivo di flusso di cassa libero a oltre 105 milioni di dollari. Le previsioni per il quarto trimestre indicano un fatturato di 475 milioni di dollari (+13% su base annua) e un EBITDA rettificato di 91 milioni di dollari (+82% su base annua).
Taboola (TBLA) reportó resultados sólidos para el tercer trimestre de 2024, superando las previsiones con ingresos de 433 millones de dólares (+20% interanual), una ganancia bruta de 166 millones de dólares sin TAC (+30% interanual) y un EBITDA ajustado de 48 millones de dólares (+110% interanual). El flujo de caja libre alcanzó 43 millones de dólares (+88% interanual) con una conversión del 89% desde el EBITDA ajustado. La empresa reiteró su orientación para 2024 de ingresos de 1,750 millones de dólares (+22% interanual) y una ganancia bruta de 667 millones de dólares sin TAC (+25% interanual), mientras elevó su objetivo de flujo de caja libre a más de 105 millones de dólares. La guía para el cuarto trimestre proyecta ingresos de 475 millones de dólares (+13% interanual) y un EBITDA ajustado de 91 millones de dólares (+82% interanual).
타불라 (TBLA)는 2024년 3분기 실적이 강력하다고 보고하며, 수익이 4억 3천 3백만 달러(+20% 전년 대비), TAC 제외 총 이익이 1억 6천 6백만 달러(+30% 전년 대비), 조정 EBITDA가 4천 8백만 달러(+110% 전년 대비)에 이르며 가이던스를 초과했다고 밝혔다. 자유 현금 흐름은 4천 3백만 달러(+88% 전년 대비)에 도달하며 조정 EBITDA에서 89%의 전환율을 기록했습니다. 이 회사는 2024년 수익 목표를 1,750백만 달러(+22% 전년 대비)와 TAC 제외 총 이익 6억 6천 7백만 달러(+25% 전년 대비)로 재확인하고, 자유 현금 흐름 목표를 1억 5백만 달러 이상으로 상향 조정했습니다. 4분기 가이던스는 수익 4억 7천 5백만 달러(+13% 전년 대비)와 조정 EBITDA가 9천 1백만 달러(+82% 전년 대비)를 예상하고 있습니다.
Taboola (TBLA) a annoncé des résultats solides pour le troisième trimestre 2024, dépassant les prévisions avec des revenus de 433 millions de dollars (+20 % par rapport à l'année précédente), un bénéfice brut hors TAC de 166 millions de dollars (+30 % par rapport à l'année précédente) et un EBITDA ajusté de 48 millions de dollars (+110 % par rapport à l'année précédente). Le flux de trésorerie libre a atteint 43 millions de dollars (+88 % par rapport à l'année précédente) avec un taux de conversion de 89 % de l'EBITDA ajusté. L'entreprise a réitéré ses prévisions pour 2024, avec des revenus de 1,750 million de dollars (+22 % par rapport à l'année précédente) et un bénéfice brut hors TAC de 667 millions de dollars (+25 % par rapport à l'année précédente), tout en augmentant son objectif de flux de trésorerie libre à plus de 105 millions de dollars. Les prévisions pour le quatrième trimestre indiquent des revenus de 475 millions de dollars (+13 % par rapport à l'année précédente) et un EBITDA ajusté de 91 millions de dollars (+82 % par rapport à l'année précédente).
Taboola (TBLA) berichtete über starke Ergebnisse im dritten Quartal 2024, die die Prognosen übertrafen, mit Umsätzen von 433 Millionen Dollar (+20% im Jahresvergleich), einem Bruttogewinn von 166 Millionen Dollar ohne TAC (+30% im Jahresvergleich) und einem bereinigten EBITDA von 48 Millionen Dollar (+110% im Jahresvergleich). Der freie Cashflow erreichte 43 Millionen Dollar (+88% im Jahresvergleich) mit einer Umwandlungsrate von 89% vom bereinigten EBITDA. Das Unternehmen bekräftigte seine Prognose für 2024 mit einem Umsatz von 1,750 Millionen Dollar (+22% im Jahresvergleich) und einem Bruttogewinn von 667 Millionen Dollar ohne TAC (+25% im Jahresvergleich) und hob sein Ziel für den freien Cashflow auf über 105 Millionen Dollar an. Die Prognose für das vierte Quartal geht von Umsätzen von 475 Millionen Dollar (+13% im Jahresvergleich) und einem bereinigten EBITDA von 91 Millionen Dollar (+82% im Jahresvergleich) aus.
- Revenue growth of 20% YoY to $433M in Q3
- Ex-TAC gross profit increased 30% YoY to $166M
- Adjusted EBITDA grew 110% YoY to $48M
- Free Cash Flow up 88% YoY to $43M
- Raised 2024 FCF target from $100M+ to $105M+
- Net loss of $6.5M in Q3 2024
- 4.9% ratio of net loss to gross profit
Insights
Taboola's Q3 2024 results demonstrate remarkable financial strength with significant YoY improvements.
The company's free cash flow generation is particularly noteworthy, with
Q4 guidance suggests continued momentum with projected revenue growth of
The introduction of Abby, Taboola's GenAI ad assistant, marks a significant competitive advantage in the adtech space. The ability for advertisers to launch campaigns through conversational AI streamlines the ad creation process and could drive increased platform adoption. The
Strategic partnerships, particularly the Xiaomi expansion and Apple News/Stocks integration, demonstrate Taboola's success in penetrating high-value distribution channels. The doubling of advertiser numbers on Apple News/Stocks from July to September suggests strong product-market fit in premium environments.
| Q3 2024 and FY 2024 Key Highlights |
Q3 Financials - Beat on Revenues, ex-TAC, and Adj. EBITDA; $97M YTD FCF already approaching FY 2024 target of
|
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: | |||
| (dollars in millions, except per share data) | Three months ended | ||
| September 30, | |||
| 2024 | | 2023 | |
| Unaudited | |||
| Revenues | |||
| Gross profit | |||
| Net loss | |||
| EPS diluted (1) | |||
| Ratio of net loss to gross profit | ( | ( | |
| Cash flow provided by operating activities | |||
| Cash, cash equivalents, short-term deposits and investments | |||
| Non-GAAP Financial Data * | |||
| ex-TAC Gross Profit | |||
| Adjusted EBITDA | |||
| Non-GAAP Net Income | |||
| Ratio of Adjusted EBITDA to ex-TAC Gross Profit | |||
| Free Cash Flow | |||
| 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) 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 | |||
| Gross profit | |||
| ex-TAC Gross Profit* | |||
| Adjusted EBITDA* | |||
| Non-GAAP Net Income (Loss)* | |||
| 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.
The Company believes non-GAAP financial measures provide useful supplemental information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them, which may vary from period to period. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.
Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “guidance”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “target”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company’s future performance and cause results to differ from the forward-looking statements in this press release include, but are not limited to: the Company’s ability to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; changes in applicable laws or regulations; the Company’s estimates of expenses and profitability and underlying assumptions with respect to accounting presentations and purchase price and other adjustments; the extent to which we will buyback any of our Ordinary shares pursuant to authority granted by the Company’s Board of Directors, which may depend upon market and economic conditions, other business opportunities and priorities, satisfying required conditions under the Israeli Companies Law and the Companies Regulations or other factors; the ability to generate or achieve the increase in Adjusted EBITDA and Free Cash Flow in 2024 or our expected revenue now that the Yahoo integration is live, in each case to the levels assumed in this press release or at all; ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company’s ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to prioritize investments to improve profitability and free cash flow; ability to make continued investments in the Company’s AI-powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising; continued engagement by users who interact with the Company’s platform on various digital properties; reliance on a limited number of partners for a significant portion of the Company’s revenue; changes in laws and regulations related to privacy, data protection, advertising regulation, competition and other areas related to digital advertising; ability to enforce, protect and maintain intellectual property rights; risks related to the fact that we are incorporated in Israel and governed by Israeli law; the potential impacts of the war in Israel to the Company’s operations; and other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under Part 1, Item 1A “Risk Factors” and in the Company’s subsequent filings with the Securities and Exchange Commission.
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.
About Taboola
Taboola is a market leading technology powering recommendations for the open web.
The Company’s platform, powered by artificial intelligence, is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the top digital properties in the world, including CNBC, BBC, NBC News, Business Insider, The Independent and El Mundo.
Approximately 18,000 advertisers use Taboola to reach nearly 600 million daily active users in a brand-safe environment. Following the acquisition of Connexity in 2021, Taboola is a leader in powering e-commerce recommendations, driving more than 1 million monthly transactions. Leading brands, including Walmart, Macy’s, Wayfair, Skechers and eBay are among key customers.
Learn more at www.taboola.com and follow @taboola on X.
| Investor Contact: | Press Contact: | |
| Jessica Kourakos | Dave Struzzi | |
| investors@taboola.com | press@taboola.com | |
| CONSOLIDATED BALANCE SHEETS | |||||
| U.S. dollars in thousands, except share and per share data | |||||
| September 30, | December 31, | ||||
| 2024 | 2023 | ||||
| Unaudited | |||||
| ASSETS | |||||
| CURRENT ASSETS | |||||
| Cash and cash equivalents | |||||
| Short-term investments | — | 5,725 | |||
| Restricted deposits | 1,312 | 1,407 | |||
| Trade receivables (net of allowance for credit losses of | 297,330 | 306,307 | |||
| Prepaid expenses and other current assets | 61,995 | 69,865 | |||
| Total current assets | 577,867 | 559,412 | |||
| NON-CURRENT ASSETS | |||||
| Long-term prepaid expenses | 24,470 | 39,602 | |||
| Commercial agreement asset | 288,061 | 289,451 | |||
| Restricted deposits | 4,078 | 4,247 | |||
| Operating lease right of use assets | 60,329 | 61,746 | |||
| Property and equipment, net | 73,696 | 72,155 | |||
| Intangible assets, net | 78,485 | 125,258 | |||
| Goodwill | 555,931 | 555,931 | |||
| Total non-current assets | 1,085,050 | 1,148,390 | |||
| Total assets | $ 1,662,917 | $ 1,707,802 | |||
| CONSOLIDATED BALANCE SHEETS | |||
| U.S. dollars in thousands, except share and per share data | |||
| September 30, | December 31, | ||
| 2024 | 2023 | ||
| Unaudited | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| CURRENT LIABILITIES | |||
| Trade payables | |||
| Short-term operating lease liabilities | 21,873 | 20,264 | |
| Accrued expenses and other current liabilities | 146,732 | 118,689 | |
| Current maturities of long-term loan | — | 3,000 | |
| Total current liabilities | 442,223 | 423,965 | |
| LONG-TERM LIABILITIES | |||
| Long-term loan, net of current maturities | 146,070 | 142,164 | |
| Long-term operating lease liabilities | 44,970 | 49,450 | |
| Warrants liability | 1,504 | 6,129 | |
| Deferred tax liabilities, net | 3,853 | 14,815 | |
| Other long-term liabilities | 12,482 | 14,217 | |
| Total long-term liabilities | 208,879 | 226,775 | |
| SHAREHOLDERS' EQUITY | |||
| Ordinary shares with no par value - Authorized: 700,000,000 as of September 30, 2024 and December 31, 2023; 322,370,752 and 310,911,091 shares issued, and 292,633,697 and 295,670,620 shares outstanding as of September 30, 2024 and December 31, 2023, respectively | — | — | |
| Non-voting Ordinary shares with no par value - Authorized: 46,000,000 as of September 30, 2024 and December 31, 2023; 45,198,702 shares issued, and 44,210,406 and 45,198,702 shares outstanding as of September 30, 2024 and December 31, 2023, respectively | — | — | |
| Treasury Ordinary shares, at cost - 30,725,351 (29,737,055 Ordinary shares and 988,296 Non-voting Ordinary shares) and 15,240,471 Ordinary shares as of September 30, 2024 and December 31, 2023, respectively | (120,030) | (55,513) | |
| Additional paid-in capital | 1,319,043 | 1,262,093 | |
| Accumulated other comprehensive income | 165 | 942 | |
| Accumulated deficit | (187,363) | (150,460) | |
| Total shareholders' equity | 1,011,815 | 1,057,062 | |
| Total liabilities and shareholders' equity | |||
| CONSOLIDATED STATEMENTS OF LOSS | |||||||
| U.S. dollars in thousands, except share and per share data | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Unaudited | |||||||
| Revenues | |||||||
| Cost of revenues: | |||||||
| Traffic acquisition cost | 267,997 | 231,786 | 821,737 | 652,602 | |||
| Other cost of revenues | 32,138 | 27,776 | 96,835 | 80,001 | |||
| Total cost of revenues | 300,135 | 259,562 | 918,572 | 732,603 | |||
| Gross profit | 132,877 | 100,659 | 356,608 | 287,308 | |||
| Operating expenses: | |||||||
| Research and development | 36,727 | 35,890 | 106,264 | 101,876 | |||
| Sales and marketing | 67,808 | 59,664 | 200,253 | 181,431 | |||
| General and administrative | 23,784 | 23,839 | 71,397 | 76,533 | |||
| Total operating expenses | 128,319 | 119,393 | 377,914 | 359,840 | |||
| Operating income (loss) | 4,558 | (18,734) | (21,306) | (72,532) | |||
| Finance expenses, net | (1,106) | (4,402) | (3,740) | (11,383) | |||
| Income (loss) before income taxes | 3,452 | (23,136) | (25,046) | (83,915) | |||
| Income tax expenses | (9,906) | — | (11,857) | (1,848) | |||
| Net loss | |||||||
| Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted | |||||||
| Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted | 342,886,216 | 352,591,043 | 343,606,187 | 345,631,022 | |||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||||||
| U.S. dollars in thousands | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Unaudited | |||||||
| Net loss | |||||||
| Other comprehensive income (loss): | |||||||
| Unrealized and realized gains on available-for-sale marketable securities, net | — | 46 | 6 | 503 | |||
| Unrealized gains (losses) on derivative instruments, net | 204 | 570 | (783) | 113 | |||
| Other comprehensive income (loss) | 204 | 616 | (777) | 616 | |||
| Comprehensive loss | |||||||
| SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE | |||||||
| U.S. dollars in thousands | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Unaudited | |||||||
| Cost of revenues | | ||||||
| Research and development | 6,785 | 6,256 | 20,015 | 18,281 | |||
| Sales and marketing | 4,671 | 4,127 | 13,526 | 12,813 | |||
| General and administrative | 4,797 | 4,869 | 15,311 | 14,692 | |||
| Total share-based compensation expenses | $ 17,186 | $ 16,251 | $ 51,892 | $ 48,868 | |||
| DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE | |||||||
| U.S. dollars in thousands | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Unaudited | |||||||
| Cost of revenues | |||||||
| Research and development | 1,384 | 564 | 3,493 | 1,758 | |||
| Sales and marketing | 12,669 | 13,531 | 39,597 | 40,566 | |||
| General and administrative | 160 | 215 | 1,680 | 621 | |||
| Total depreciation and amortization expense | $ 24,793 | $ 25,316 | $ 75,976 | $ 70,709 | |||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| U.S. dollars in thousands | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Unaudited | |||||||
| Cash flows from operating activities | |||||||
| Net loss | |||||||
| Adjustments to reconcile net loss to net cash flows provided by operating activities: | |||||||
| Depreciation and amortization | 24,793 | 25,316 | 75,976 | 70,709 | |||
| Share-based compensation expenses | 17,186 | 16,251 | 51,892 | 48,868 | |||
| Commercial agreement asset amortization | 1,390 | — | 1,390 | — | |||
| Net loss (income) from financing expenses | (1,909) | 1,033 | (1,131) | 1,269 | |||
| Revaluation of the Warrants liability | (738) | 241 | (4,625) | (733) | |||
| Amortization of loan and credit facility issuance costs | 363 | 329 | 1,092 | 1,220 | |||
| Amortization of premium and accretion of discount on short-term investments, net | 147 | (393) | 230 | (923) | |||
| Change in operating assets and liabilities: | |||||||
| Decrease (increase) in trade receivables, net | (11,656) | (14,681) | 12,977 | 24,590 | |||
| Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses | 8,797 | (6,088) | 23,787 | 2,554 | |||
| Increase (decrease) in trade payables | (1,004) | 31,952 | (12,901) | 2,222 | |||
| Increase in accrued expenses and other current liabilities and other long-term liabilities | 21,449 | 3,565 | 23,027 | 5,377 | |||
| Decrease in deferred taxes, net | (3,061) | (1,724) | (10,962) | (8,218) | |||
| Change in operating lease right of use assets | 5,354 | 4,372 | 14,638 | 12,447 | |||
| Change in operating lease liabilities | (4,885) | (4,578) | (16,091) | (12,038) | |||
| Net cash provided by operating activities | 49,772 | 32,459 | 122,396 | 61,581 | |||
| Cash flows from investing activities | |||||||
| Purchase of property and equipment, including capitalized internal-use software | (6,908) | (9,661) | (25,130) | (19,839) | |||
| Business acquisition deferred payment | — | — | (719) | — | |||
| Investments in restricted deposits | — | (253) | — | (594) | |||
| Proceeds from maturities of short-term investments | — | 30,033 | 5,765 | 107,669 | |||
| Purchase of short-term investments | — | — | — | (21,991) | |||
| Net cash provided by (used in) investing activities | (6,908) | 20,119 | (20,084) | 65,245 | |||
| Cash flows from financing activities | |||||||
| Issuance costs | — | — | (695) | — | |||
| Exercise of options and vested RSUs | 968 | 2,973 | 5,709 | 5,429 | |||
| Payment of tax withholding for share-based compensation expenses | (709) | (1,305) | (2,396) | (3,213) | |||
| Repurchase of Ordinary shares | (9,578) | (18,799) | (64,517) | (23,157) | |||
| Payments on account of repurchase of Ordinary shares | (422) | — | (422) | — | |||
| Repayment of long-term loan | — | (750) | — | (32,250) | |||
| Net cash used in financing activities | (9,741) | (17,881) | (62,321) | (53,191) | |||
| Exchange rate differences on balances of cash and cash equivalents | 1,909 | (1,033) | 1,131 | (1,269) | |||
| Increase in cash and cash equivalents | 35,032 | 33,664 | 41,122 | 72,366 | |||
| Cash and cash equivalents - at the beginning of the period | 182,198 | 204,595 | 176,108 | 165,893 | |||
| Cash and cash equivalents - at end of the period | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
| U.S. dollars in thousands | |||||||||||
| Three months ended | Nine months ended | ||||||||||
| September 30, | September 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||
| Unaudited | |||||||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid during the year for: | |||||||||||
| Income taxes | |||||||||||
| Interest | |||||||||||
| Non-cash investing and financing activities: | |||||||||||
| Purchase of property and equipment, including capitalized internal-use software | |||||||||||
| Share-based compensation included in capitalized internal-use software | |||||||||||
| Creation of operating lease right-of-use assets | |||||||||||
| APPENDIX: Non-GAAP Reconciliation | |||||||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (UNAUDITED) | |||||||
| The following table provides a reconciliation of revenues to ex-TAC Gross Profit. | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (dollars in thousands) | |||||||
| Revenues | $ 433,012 | | $ 360,221 | | $ 1,275,180 | | $ 1,019,911 |
| Traffic acquisition cost (1) | 267,997 | 231,786 | 821,737 | 652,602 | |||
| Other cost of revenues | 32,138 | 27,776 | 96,835 | 80,001 | |||
| Gross profit | |||||||
| Add back: Other cost of revenues and amortization (1) | 33,528 | 27,776 | | 98,225 | | 80,001 | |
| ex-TAC Gross Profit | $ 166,405 | | $ 128,435 | | $ 454,833 | | $ 367,309 |
| 1 The three and nine months ended September 30, 2024 included | |||||||
| The following table provides a reconciliation of net income (loss) to Adjusted EBITDA. | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (dollars in thousands) | |||||||
| Net loss | $ (6,454) | $ (23,136) | $ (36,903) | $ (85,763) | |||
| Adjusted to exclude the following: | | | | | | | |
| Finance expenses, net | 1,106 | 4,402 | 3,740 | 11,383 | |||
| Income tax expenses | 9,906 | — | 11,857 | 1,848 | |||
| Depreciation and amortization (1) | 26,183 | | 25,316 | | 77,366 | | 70,709 |
| Share-based compensation expenses | 15,423 | | 13,605 | | 44,838 | | 41,022 |
| Holdback compensation expenses (2) | 1,763 | 2,646 | 7,054 | 7,846 | |||
| Other costs (3) | — | | — | | 695 | | 1,571 |
| Adjusted EBITDA | $47,927 | | $22,833 | | $108,647 | | $48,616 |
| 1 The three and nine months ended September 30, 2024 included | |||||||
| 2 Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition. | |||||||
| 3 The nine months ended September 30, 2024 and September 30, 2023 included one-time professional service costs and one-time costs related to the Commercial agreement, respectively. | |||||||
| The following table provides a reconciliation of net income (loss) to Non-GAAP Net Income (loss). | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (dollars in thousands) | |||||||
| Net loss | $ (6,454) | $ (23,136) | $ (36,903) | $ (85,763) | |||
| Amortization (1) | 16,474 | 15,980 | 48,163 | 47,911 | |||
| Share-based compensation expenses | 15,423 | 13,605 | 44,838 | 41,022 | |||
| Holdback compensation expenses (2) | 1,763 | 2,646 | 7,054 | 7,846 | |||
| Other costs (3) | — | — | 695 | 1,571 | |||
| Revaluation of Warrants | (737) | 241 | (4,624) | (733) | |||
| Foreign currency exchange rate losses (gains) (4) | (738) | 859 | 650 | 625 | |||
| Income tax effects | (3,520) | (3,491) | (10,820) | (11,282) | |||
| Non-GAAP Net Income | $ 22,211 | $ 6,704 | $ 49,053 | $ 1,197 | |||
| 1 The three and nine months ended September 30, 2024 included | |||||||
| 2 Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition. | |||||||
| 3 The nine months ended September 30, 2024 and September 30, 2023 included one-time professional service costs and one-time costs related to the Commercial agreement, respectively. | |||||||
| 4 Represents foreign currency exchange rate gains or losses related to the remeasurement of monetary assets and liabilities to the Company’s functional currency using exchange rates in effect at the end of the reporting period. | |||||||
| The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow. | |||||||
| Three months ended | Nine months ended | ||||||
| September 30, | September 30, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| (dollars in thousands) | |||||||
| Net cash provided by operating activities | $ 49,772 | $ 32,459 | $ 122,396 | $ 61,581 | |||
| Purchases of property and equipment, including capitalized internal-use software | (6,908) | (9,661) | (25,130) | (19,839) | |||
| Free Cash Flow | $ 42,864 | $ 22,798 | $ 97,266 | $ 41,742 | |||
| APPENDIX: Non-GAAP Guidance Reconciliation | |||
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q4 2024 AND FULL YEAR 2024 GUIDANCE | |||
| (Unaudited) | |||
| The following table provides a reconciliation of projected Gross profit to ex-TAC Gross Profit. | |||
| Q4 2024 | | FY 2024 | |
| Guidance | Guidance | ||
| Unaudited | |||
| (dollars in millions) | |||
| Revenues | |||
| Traffic acquisition cost | ( | ( | |
| Other cost of revenues | ( | ( | |
| Gross profit | |||
| Add back: Other cost of revenues | ( | | ( |
| ex-TAC Gross Profit | | ||
| Although we provide a projection for Free Cash Flow, we are not able to provide a projection for net cash provided by operating activities, the most directly comparable GAAP measure. Certain elements of net cash provided by operating activities, including taxes and timing of collections and payments, are not predictable therefore projecting an accurate forecast is difficult. As a result, it is impractical for us to provide projections on net cash provided by operating activities or to reconcile our Free Cash Flow projections without unreasonable efforts. Consequently, no disclosure of projected net cash provided by operating activities is included. For the same reasons, we are unable to address the probable significance of the unavailable information. | |||
FAQ
What was Taboola's (TBLA) revenue growth in Q3 2024?
How much did Taboola (TBLA) raise its 2024 Free Cash Flow target?
What is Taboola's (TBLA) Q4 2024 revenue guidance?
What was Taboola's (TBLA) net loss in Q3 2024?
