Strong Financial Performance in Q1 2025
Taboola reported Q1 2025 revenues of $427 million, representing a 3% growth year-over-year, ex-TAC gross profit of $152 million, 9% higher than last year, and adjusted EBITDA of $36 million, a 53% increase from the previous year. Free cash flow also increased by 35% year-over-year.
Successful Launch of Realize Platform
Realize was launched in Q1, offering new ad formats like vertical videos, social creatives, and display. It allows advertisers to pay on a CPC basis and includes predictive audience solutions. Initial reception has been positive, with early adoption by advertisers like Babel and Motley Fool.
Growth in Scaled Advertisers
The number of scaled advertisers grew by 9% in Q1, reaching 1,996. This growth is seen as a positive indicator for future revenue as it adds more advertisers to work with over time.
Partnership Expansions
Taboola expanded partnerships with Microsoft and Gannett, and signed an exclusive global partnership with LINE, a major messaging app in Asia, to bring personalized content and ads to LINE users.
Aggressive Share Buyback Program
Taboola repurchased approximately 16.2 million shares in Q1 at an average price of $3.03. An additional 15.1 million shares were repurchased after Q1 at an average price of $2.83, reflecting confidence in the company's long-term growth prospects.