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Taboola.Com Ltd. (TBLA)
:TBLA
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Taboola.com
(NASDAQ:TBLA)
66Neutral
Positive Factors
Financial Performance
Management announced 1QE is tracking to the high end of guidance ranges.
Product Launch
Investor Day presented a compelling case for Taboola becoming the new Robinhood of the performance advertising market with its recent Realize product launch.
Negative Factors
Customer Demand
Initial customer demand for Realize remains unclear as it does not appear the product underwent extensive pilot testing.
Revenue Guidance
1QE revenue ex-TAC guidance implies TBLA's worst sequential growth comparison for 1Q in company history.
Taboola.com (TBLA) vs. S&P 500 (SPY)
Market Cap
$965.80M
Dividend YieldN/A
Average Volume (3M)3.08M
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth22.68%
EPS Growth95.70%
CountryUS
Employees2,000
SectorCommunication Services
Sector Strength59
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.01
Shares Outstanding294,665,440
10 Day Avg. Volume1,935,630
30 Day Avg. Volume3,077,259
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.56
Price to Cash Flow (P/CF)4.00
P/FCF Ratio4.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.13Price Target Upside55.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Taboola.com Business Overview & Revenue Model
Company DescriptionTaboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United Kingdom, the United States, Germany, France, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. Taboola.com Ltd. was incorporated in 2006 and is headquartered in New York, New York.
How the Company Makes MoneyTaboola.com makes money primarily through its native advertising platform, where it charges advertisers to promote their content across a network of publisher sites. The company employs a cost-per-click (CPC) and cost-per-mille (CPM) pricing model, earning revenue every time users interact with or view the ads. Key revenue streams include partnerships with digital publishers who integrate Taboola's recommendation widgets to monetize their content by displaying sponsored content. Additionally, Taboola collaborates with advertisers and marketers to optimize campaigns, leveraging data analytics and machine learning to improve targeting and engagement. Significant partnerships with major media companies and a wide network of publishers play a crucial role in expanding its reach and enhancing revenue opportunities.
Taboola.com Financial Statement Overview
Summary
Taboola.com demonstrates a promising trajectory towards financial health, with improvements across income, balance sheet, and cash flow statements. The income statement shows significant improvement, with a better gross profit margin and recent positive net income. The balance sheet is strengthening with stable equity and improved debt management. Cash flow analysis indicates robust operating cash flows and positive free cash flows, though there are fluctuations in investing and financing cash flows.Income Statement
Taboola.com has shown a significant improvement in its income statement over the years. The gross profit margin has improved, indicating better cost management. Despite fluctuations in EBIT and EBITDA margins, recent positive net income suggests a turnaround. However, revenue growth has been inconsistent, requiring sustained growth to maintain momentum.72
Positive
Balance Sheet
The balance sheet of Taboola.com reveals a strengthening position with a stable equity base and improved debt management, as indicated by a decrease in total debt over recent years. The debt-to-equity ratio is within a manageable range, and the equity ratio has seen improvement. However, the company needs to continue managing liabilities and enhancing its asset base for greater financial stability.68
Positive
Cash Flow
Cash flow analysis indicates robust operating cash flows, which have been pivotal in generating positive free cash flows. The company has successfully increased its free cash flow, reflecting efficient cash management practices. However, fluctuations in investing and financing cash flows suggest potential volatility in strategic investments and financial structuring.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 664.66M | 1.44B | 1.40B | 1.38B | 1.19B | Gross Profit |
| 534.22M | 425.56M | 464.25M | 441.07M | 319.50M | EBIT |
| 25.92M | -63.74M | -13.66M | -13.27M | 26.19M | EBITDA |
| 25.92M | 32.77M | 77.56M | 39.85M | 60.15M | Net Income Common Stockholders |
| -3.76M | -82.04M | -11.97M | -24.95M | 8.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 230.36M | 181.83M | 262.81M | 319.32M | 242.81M | Total Assets |
| 1.72B | 1.71B | 1.53B | 1.60B | 580.17M | Total Debt |
| 180.89M | 214.88M | 298.73M | 362.89M | 78.79M | Net Debt |
| -45.69M | 38.77M | 132.84M | 43.57M | -164.02M | Total Liabilities |
| 666.75M | 650.74M | 695.09M | 830.28M | 533.53M | Stockholders Equity |
| 1.05B | 1.06B | 834.53M | 767.57M | 46.64M |
| Cash Flow | Free Cash Flow | |||
| 149.18M | 52.24M | 18.57M | 24.45M | 121.31M | Operating Cash Flow |
| 184.33M | 84.37M | 53.48M | 63.52M | 139.09M | Investing Cash Flow |
| -30.11M | 59.64M | -139.56M | -620.46M | 10.88M | Financing Cash Flow |
| -99.98M | -134.61M | -62.87M | 631.13M | 2.60M |
Taboola.com Technical Analysis
Negative
2.66
Price Trends
3.32
Negative
3.49
Negative
3.42
Negative
Market Momentum
-0.09
Negative
44.19
Neutral
37.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLA, the sentiment is Negative. The current price of 2.66 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 3.32, and below the 200-day MA of 3.42, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 44.19 is Neutral, neither overbought nor oversold. The STOCH value of 37.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TBLA.
Taboola.com Risk Analysis
Taboola.com disclosed 81 risk factors in its most recent earnings report. Taboola.com reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Taboola.com Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.77B | 17.07 | 10.43% | ― | -1.22% | 112.13% | |
67 Neutral | $366.15M | 28.25 | 1.75% | ― | -32.95% | -89.11% | |
67 Neutral | $406.17M | 36.08 | 4.36% | ― | 9.08% | 43.58% | |
66 Neutral | $24.35B | 59.24 | 15.37% | ― | 25.63% | 118.49% | |
66 Neutral | $965.80M | ― | -0.36% | ― | 22.68% | 95.70% | |
64 Neutral | $1.39B | 69.94 | 3.10% | ― | 7.82% | ― | |
59 Neutral | $27.83B | 1.88 | -18.16% | 4.00% | 2.13% | -44.45% |
* Communication Services Sector Average
Performance Comparison
TBLA
Taboola.com
2.66
-1.74
-39.55%
PERI
Perion Network
7.36
-13.75
-65.14%
CRTO
Criteo SA
30.06
-5.01
-14.29%
MGNI
Magnite
9.08
-0.71
-7.25%
TTD
Trade Desk
46.24
-39.59
-46.13%
PUBM
PubMatic
8.25
-15.44
-65.18%
Taboola.com Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -28.11% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance and strategic initiatives like the Realize platform launch, which positions Taboola.com Ltd. for growth beyond its current native advertising limitations. However, the 2025 growth guidance was conservative, reflecting challenges in scaling advertiser demand and reliance on Yahoo's network. While the company exceeded cash flow expectations and is investing aggressively in share buybacks, the guidance indicates caution due to slower growth in native advertising.Highlights
Record Free Cash Flow
Taboola.com Ltd. generated nearly 50% more free cash flow than planned in 2024, reaching $149 million, which is a significant increase from the original target of $100 million.
Strong Financial Performance
For the full year 2024, the company achieved ex-TAC gross profit of $667 million, representing a 25% growth versus the prior year, and an adjusted EBITDA of $201 million, more than doubling results from last year.
Major Product Launch: Realize
The launch of the Realize platform marks a strategic expansion beyond native advertising into a $55 billion performance advertising market, leveraging Taboola's first-party data, AI, and global distribution.
Solid Revenue and Growth in Key Segments
The company's revenues in 2024 reached $1.77 billion, with strong growth in enterprise advertising, e-commerce, and AI investments contributing to the performance.
Incremental Share Buyback Authorization
The board approved an additional $200 million for the share repurchase program, bringing the total authorization to approximately $240 million.
Lowlights
Below Historical Growth Guidance for 2025
The 2025 guidance reflects single-digit growth, with 2% ex-TAC gross profit and 2% adjusted EBITDA growth, which is below both historical rates and long-term ambition.
Challenges with Yahoo Advertiser Spend
Yahoo advertisers spent less than expected on the network, with less than $15 million on bottom-of-article native ads, highlighting a need to expand beyond native advertising.
Ex-TAC Gross Margin Impact from Testing
The Q4 ex-TAC gross margin of approximately 43% reflects the marginal benefit from Yahoo supply testing, which impacts the perceived growth in gross profit.
Company Guidance
During Taboola.com Ltd.'s Q4 2024 earnings call, the company announced its 2025 guidance, forecasting a 2% ex-TAC gross profit and adjusted EBITDA growth, aiming to maintain a 30% EBITDA margin. The call highlighted 2024 as a record year with a 25% increase in ex-TAC gross profit to $667 million and a 104% rise in adjusted EBITDA to $201 million. Free cash flow reached $149 million, surpassing its $100 million target by 49%. The company is launching a $200 million expansion to its buyback program. The introduction of the "Realize" platform marks a strategic shift to capture a share of the $55 billion performance advertising market, aiming for double-digit growth beyond its current single-digit forecast.Taboola.com Corporate Events
Private Placements and FinancingStock Buyback
Taboola Secures $270 Million Credit Facility for Growth
Positive
Mar 19, 2025
On March 18, 2025, Taboola entered into a new $270 million revolving credit facility, replacing its previous $90 million facility. This refinancing is expected to save the company $3 to $5 million annually in interest expenses, extend debt maturities to 2030, and provide $180 million in additional debt capacity, enhancing financial flexibility for future growth and share buybacks. Additionally, on March 14, 2025, Taboola and Yahoo updated their Share Repurchase Agreement, allowing Taboola to repurchase up to one-third of the weekly allowable limit under Rule 10b-18, preventing Yahoo’s ownership from exceeding 25%.
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Taboola Reports Strong 2024 Financial Results and Expansion
Positive
Feb 26, 2025
On February 26, 2025, Taboola announced its strong financial results for the fourth quarter and full year of 2024, highlighting a transformative year with significant revenue and profit growth. The company also launched the Realize platform, expanding into all performance advertising, and announced a $200 million share repurchase expansion, reinforcing confidence in its future prospects.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.