Taboola.com (TBLA) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: 22.68%
• EPS Growth: 95.70%
• Country: US
• Employees: 2,000
• Sector: Communication Services
• Sector Strength: 82
• Industry: Internet Content & Information
• EPS (TTM): -0.01
• Shares Outstanding: 294,819,030
• 10 Day Avg. Volume: 1,643,747
• 30 Day Avg. Volume: 1,956,052
• PEG Ratio: N/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 Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.13
• Price Target Upside: 39.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Taboola's overall score reflects strong financial performance and strategic initiatives tempered by technical weakness and valuation concerns. The company's aggressive buyback program and strategic platform launch show promise, but conservative growth guidance and valuation metrics weigh on the score.

Positive Factors

Competitive Advantage

Taboola's strategic use of 1st party cookies through exclusive publisher contracts provides a competitive edge over rivals relying on 3rd party cookies.

Financial Performance

Management announced that 1QE is tracking to the high end of guidance ranges, indicating strong financial performance.

Product Launch

The launch of Realize by Taboola is positioned to significantly enhance the performance advertising market, potentially unlocking a $20B incremental total addressable market.

Negative Factors

Native Advertising

Taboola's core native ads business is expected to experience notable growth deceleration, contributing to a disappointing outlook for 1Q and 2025.

Product Demand

Initial customer demand for the Realize product remains unclear due to a lack of extensive pilot testing, raising concerns about its market reception.

Revenue Growth

1QE revenue ex-TAC guidance suggests Taboola is facing its worst sequential growth comparison for 1Q in company history, indicating potential revenue challenges.

Taboola.com Business Overview & Revenue Model

Company Description

Taboola.com (TBLA) is a leading content discovery and native advertising platform that operates in the digital media and advertising sectors. The company connects online users with personalized content recommendations, enhancing user engagement and driving traffic to websites. Taboola offers a variety of solutions for publishers, advertisers, and brands, including native advertising, video advertising, and audience targeting tools.

How the Company Makes Money

Taboola.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.

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.

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.

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

• Technical Analysis Sentiment: Neutral
• Last Price: 2.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLA, the sentiment is Neutral. The current price of 2.96 is above the 20-day moving average (MA) of 2.82, below the 50-day MA of 3.04, and below the 200-day MA of 3.38, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 54.80 is Neutral, neither overbought nor oversold. The STOCH value of 90.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TBLA.

Taboola.com Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EVER	81 Outperform	$834.87M	26.84	29.75%	―	73.72%	―
TBLA	60 Neutral	$1.01B	―	-0.36%	―	22.68%	95.70%
ANGI	59 Neutral	$617.88M	17.31	3.42%	―	-17.69%	―
Sector *	59 Neutral	$13.73B	6.72	-2.47%	3.83%	2.30%	-35.22%
OB	53 Neutral	$356.97M	―	-0.31%	―	-4.91%	-107.37%
KIND	46 Neutral	$579.45M	―	-19.38%	―	13.27%	34.93%
IZEA	45 Neutral	$32.98M	―	-33.05%	―	-0.92%	-140.08%

Taboola.com Corporate Events

Taboola Secures $270 Million Credit Facility for Growth

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%.

Taboola Reports Strong 2024 Financial Results and Expansion

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.