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Taboola.com (TBLA)
NASDAQ:TBLA
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Taboola.com
(NASDAQ:TBLA)
Rating:74Outperform
Price Target:
$4.00
▲( 14.61% Upside)
Positive Factors
Financial Performance
Taboola's adjusted EBITDA is $35.9 million, marking a 53% increase year-over-year and 50% above the analyst's estimate.
Product Innovation
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
Market Conditions
Revenue guidance reflects no '25E incrementality from Realize, China-based advertiser weakness, and additional macro deterioration.
Revenue Guidance
Analyst reduces the price target to $4.00 from $4.50 due to conservative revenue guidance.
Taboola.com (TBLA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.10B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)91.6
Beta (1Y)0.97
Revenue Growth16.62%
EPS GrowthN/A
CountryUS
Employees2,000
SectorCommunication Services
Sector Strength81
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.03
Shares Outstanding284,728,300
10 Day Avg. Volume2,355,961
30 Day Avg. Volume1,924,667
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)1.09
Price to Sales (P/S)0.00
P/FCF Ratio7.29
Enterprise Value/Market Cap0.94
Enterprise Value/Revenue0.16
Enterprise Value/Gross Profit1.95
Enterprise Value/Ebitda3.71
Forecast
1Y Price Target
$3.84Price Target Upside10.03% 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 significant improvements across income, balance sheet, and cash flow statements. Key challenges remain in achieving consistent revenue growth and managing strategic investments, but overall financial stability is strengthening.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 |
| 126.84M | 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 |
| 692.71M | 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
Positive
3.49
Price Trends
3.01
Positive
3.29
Positive
3.36
Negative
Market Momentum
0.13
Negative
61.19
Neutral
76.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TBLA, the sentiment is Positive. The current price of 3.49 is above the 20-day moving average (MA) of 3.21, above the 50-day MA of 3.01, and above the 200-day MA of 3.36, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.10B | 91.60 | 1.35% | ― | 16.62% | ― | |
71 Outperform | $867.40M | 22.98 | 32.17% | ― | 113.43% | ― | |
69 Neutral | $803.78M | 15.65 | 5.05% | ― | -16.79% | ― | |
61 Neutral | $48.58M | ― | -28.40% | ― | 7.16% | -90.90% | |
60 Neutral | $14.06B | 6.51 | -3.76% | 3.69% | 2.48% | -35.40% | |
50 Neutral | $262.15M | ― | -14.61% | ― | 4.15% | -394.93% | |
44 Neutral | $554.75M | ― | -18.77% | ― | 12.01% | 35.71% |
* Communication Services Sector Average
Performance Comparison
TBLA
Taboola.com
3.36
-0.76
-18.45%
ANGI
Angi
15.86
-5.54
-25.89%
IZEA
IZEA Worldwide
2.81
0.19
7.25%
EVER
EverQuote
22.61
-1.55
-6.42%
KIND
Nextdoor Holdings
1.44
-1.02
-41.46%
OB
Outbrain
2.67
-2.05
-43.43%
Taboola.com Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 12.94%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a strong start to the year with significant achievements in financial performance, new product launches, and strategic partnerships. However, challenges such as tariff impacts and macroeconomic uncertainties were also noted. Despite these lowlights, the overall sentiment remains cautiously optimistic, buoyed by strong execution and growth initiatives.Q1-2025 Updates
Positive Updates
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.
Negative Updates
Impact of Tariff Issues
The company experienced a 1% decrease in advertising spend related to tariffs, primarily affecting the China market, which now accounts for approximately 5% of Q2 revenue.
Decline in Average Revenue per Scaled Advertiser
Despite the increase in scaled advertisers, the average revenue per scaled advertiser declined by 3% year-over-year due to the onboarding of new advertisers, which initially lowers the average.
Macroeconomic Uncertainty
The company cited macroeconomic uncertainty as a reason for not raising its full-year guidance, despite strong Q1 performance.
Company Guidance
In Taboola's first quarter 2025 earnings call, the company reported robust financial performance with revenues of $427 million, marking a 3% year-over-year growth. The ex-TAC gross profit reached $152 million, a 9% increase from the previous year, while adjusted EBITDA stood at $36 million, reflecting a 53% year-over-year growth with significant margin expansion. Free cash flow also grew by 35% to $36 million. Despite a minor 1% decrease in advertising spend due to tariffs, primarily affecting business from China, the company's China operations only constitute about 5% of total Q2 revenue. Taboola reaffirmed its full-year guidance, projecting revenues between $1.84 billion and $1.89 billion, with an adjusted EBITDA ranging from $201 million to $209 million. The company also highlighted its $200 million share buyback program and emphasized the positive early reception of its Realize platform.Taboola.com Corporate Events
Financial Disclosures
Taboola Reports Strong Q1 2025 Financial Results
Positive
May 7, 2025
On May 7, 2025, Taboola announced its first quarter financial results for 2025, reporting revenues of $427 million, a 3% increase from the previous year. The company achieved growth across all key metrics, surpassing its guidance, with significant improvements in gross profit and adjusted EBITDA. This performance reflects broad-based growth and disciplined execution, positioning Taboola strongly in the competitive digital advertising sector.
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.