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Taboola.com (TBLA)
NASDAQ:TBLA
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Taboola.com (TBLA) AI Stock Analysis

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TBLA

Taboola.com

(NASDAQ:TBLA)

Rating:69Neutral
Price Target:
$4.00
▲(16.28%Upside)
Taboola's strong financial performance and positive earnings call sentiment are major strengths. However, technical analysis and valuation concerns weigh down the overall score, reflecting potential risks in market sentiment and high valuation.
Positive Factors
Financial Performance
Taboola reported a gross profit of $119.3 million, which is up 10% year-over-year and 6% above the analyst's estimate.
Growth Strategy
Investor Day presented a compelling case for Taboola becoming the new Robinhood of the performance advertising market with its recent Realize product launch.
Product Development
Realize is TBLA's new bidding platform that 100% of its ad buyers now use, showcasing a successful transition from the old platform.
Negative Factors
Cost Management
There is an expectation of needing to cut operational expenses in the second half to meet EBITDA guidance.
Market Conditions
China ad revenues are down 20% year-over-year, affecting the segment that previously contributed 5%-6% of total revenues.
Revenue Guidance
Revenue guidance reflects no '25E incrementality from Realize, China-based advertiser weakness, and additional macro deterioration.

Taboola.com (TBLA) vs. SPDR S&P 500 ETF (SPY)

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 makes money primarily through its native advertising services. The company partners with publishers and advertisers, allowing them to place sponsored content alongside organic content on publisher websites. Revenue is generated on a cost-per-click (CPC) or cost-per-impression (CPM) basis, where advertisers pay Taboola for the visibility and engagement their content receives. Taboola shares advertising revenue with its publisher partners, incentivizing them to host Taboola's content recommendations on their sites. Significant partnerships with large media companies and a robust network of advertisers and publishers contribute to Taboola's earnings. Additionally, Taboola offers advanced targeting and analytics capabilities to advertisers, enhancing the effectiveness of their campaigns and driving further revenue.

Taboola.com Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: 11.33%|
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 Financial Statement Overview

Summary
Taboola has shown strong revenue growth and improving operational metrics. The balance sheet is stable with a solid equity base, and cash flow generation is robust, providing financial flexibility. However, there is a need for improved net profitability and consistent returns.
Income Statement
75
Positive
Taboola has demonstrated strong revenue growth with a positive trajectory from 2020 to the TTM period ending in March 2025. The gross profit margin has been steady, indicating efficient cost management. However, the net profit margin has been volatile, with occasional negative results, reflecting challenges in controlling operational costs. The EBIT and EBITDA margins show improvement, indicating better operational efficiency, yet still require attention to boost profitability.
Balance Sheet
70
Positive
The balance sheet reflects a stable equity position with a steady increase in stockholders' equity over the years. The debt-to-equity ratio is manageable, suggesting a balanced capital structure. Return on equity has been inconsistent, linked to fluctuating net income levels. The equity ratio indicates a healthy proportion of equity financing, reducing financial risk. Overall stability is present, though profitability improvements are needed.
Cash Flow
80
Positive
Taboola's cash flow statement reveals strong operating cash flow generation, consistently exceeding net income. The company has been effective in maintaining positive free cash flow, which has shown growth in recent periods. The free cash flow to net income ratio underscores strong cash conversion capabilities, supporting liquidity and financial flexibility. Positive trends in cash flow metrics highlight operational robustness.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.78B664.66M1.44B1.40B1.38B1.19B
Gross Profit544.56M534.22M425.56M464.25M441.07M319.50M
EBITDA109.38M126.84M32.77M77.56M39.85M60.15M
Net Income33.46M-3.76M-82.04M-11.97M-24.95M8.49M
Balance Sheet
Total Assets1.65B1.72B1.71B1.53B1.60B580.17M
Cash, Cash Equivalents and Short-Term Investments216.22M230.36M181.83M262.81M319.32M242.81M
Total Debt213.48M180.89M214.88M298.73M362.89M78.79M
Total Liabilities642.57M692.71M650.74M695.09M830.28M533.53M
Stockholders Equity1.01B1.05B1.06B834.53M767.57M46.64M
Cash Flow
Free Cash Flow157.99M149.18M52.24M18.57M24.45M121.31M
Operating Cash Flow199.45M184.33M84.37M53.48M63.52M139.09M
Investing Cash Flow-36.77M-30.11M59.64M-139.56M-620.46M10.88M
Financing Cash Flow-122.03M-99.98M-134.61M-62.87M631.13M2.60M

Taboola.com Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.44
Price Trends
50DMA
3.57
Negative
100DMA
3.24
Positive
200DMA
3.44
Positive
Market Momentum
MACD
-0.01
Positive
RSI
38.18
Neutral
STOCH
13.62
Positive
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 3.44 is below the 20-day moving average (MA) of 3.62, below the 50-day MA of 3.57, and above the 200-day MA of 3.44, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 13.62 is Positive, 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$930.67M25.0132.17%113.43%
69
Neutral
$1.12B90.291.35%16.62%
69
Neutral
$800.42M15.985.05%-16.79%
66
Neutral
¥379.06B14.952.24%2.39%5.43%-14.83%
56
Neutral
$66.01M-28.40%7.16%-90.90%
55
Neutral
$271.58M-14.61%4.15%-394.93%
54
Neutral
$746.05M
12.01%35.71%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TBLA
Taboola.com
3.44
0.16
4.88%
ANGI
Angi
17.15
-4.85
-22.05%
IZEA
IZEA Worldwide
4.09
1.65
67.62%
EVER
EverQuote
25.74
1.03
4.17%
NXDR
Nextdoor Holdings
1.95
-0.90
-31.58%
TEAD
Teads Holding
3.11
-1.82
-36.92%

Taboola.com Corporate Events

Executive/Board ChangesShareholder Meetings
Taboola.com Holds Annual General Meeting Online
Neutral
Jun 4, 2025

On June 4, 2025, Taboola.com Ltd. held its Annual General Meeting of Shareholders online, where key resolutions were passed. Shareholders approved the re-election of a Class I director, an advisory proposal on executive compensation, amendments to the CEO’s compensation terms, and the re-appointment of Kost, Forer, Gabbay & Kasierer as the independent registered public accounting firm for 2025. These decisions reflect the company’s ongoing commitment to governance and operational stability.

The most recent analyst rating on (TBLA) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Taboola.com stock, see the TBLA Stock Forecast page.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 24, 2025