On August 7, 2024, Taboola.com Ltd (TBLA, Financial) released its 8-K filing for the second quarter of 2024, showcasing a robust financial performance that surpassed analyst expectations. Taboola.com Ltd is a technology company that powers recommendations across the Open Web with an artificial intelligence-based, algorithmic engine. It partners with websites, devices, and mobile apps to recommend editorial content and advertisements, generating the majority of its revenue from the United States.
Q2 2024 Financial Performance
Taboola.com Ltd reported revenues of $428 million for Q2 2024, slightly below the analyst estimate of $428.67 million. The company also reported a gross profit of $115 million and an ex-TAC gross profit of $150 million. Despite a net loss of $4 million, the company achieved a non-GAAP net income of $23 million and an adjusted EBITDA of $37 million. Free cash flow for the quarter was $26 million.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenues | $428.2M | $332.0M |
| Gross Profit | $114.8M | $97.1M |
| Net Loss | $(4.3)M | $(31.3)M |
| EPS Diluted | $(0.01) | $(0.09) |
| Cash Flow from Operations | $38.8M | $11.6M |
| Cash and Equivalents | $182.2M | $246.9M |
| ex-TAC Gross Profit | $149.5M | $123.1M |
| Adjusted EBITDA | $37.2M | $15.7M |
| Non-GAAP Net Income | $23.0M | $(1.4)M |
| Free Cash Flow | $26.2M | $7.8M |
Business Highlights and Strategic Initiatives
Taboola.com Ltd has made significant strides in engaging and reaching users, completing the Yahoo advertiser migration and ramping up spending. The company also secured a significant exclusive global OEM partnership for Taboola News and launched an Audience Solution to help publishers grow traffic. Additionally, the onboarding for Apple News & Stocks is complete, with a focus on sales enablement.
In terms of improving yield, the company has seen a high adoption rate of its Max Conversion feature, which now accounts for nearly 70% of revenue. The number of ad campaigns has doubled compared to Q1 2024. The launch of Taboola Select aims to drive performance at scale for brands and agencies, and the eCommerce segment continues to exceed expectations with strong performance in Q2.
Financial Guidance for Q3 and FY 2024
For Q3 2024, Taboola.com Ltd expects revenues between $416 million and $446 million, gross profit between $129 million and $139 million, and adjusted EBITDA between $42 million and $52 million. For the full year 2024, the company has updated its revenue guidance to a range of $1.735 billion to $1.765 billion, with an ex-TAC gross profit of $656 million to $679 million and adjusted EBITDA of over $200 million.
2024 is a transformational year for Taboola. We've achieved impressive results in the first half of the year and are poised to build on this success," said Adam Singolda, CEO of Taboola. "Our success is driven by our investment in AI, access to unique data, and focus on driving value to our partners and advertisers."
For more detailed insights and a comprehensive analysis of Taboola.com Ltd's Q2 2024 earnings, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Taboola.com Ltd for further details.
