On November 8, 2023, Taboola.com Ltd (TBLA, Financial), a global leader in powering recommendations for the open web, reported its third-quarter results, surpassing the high end of its guidance on all metrics. The company announced a robust ex-TAC Gross Profit of $128.4 million, an Adjusted EBITDA of $22.8 million, and an impressive Free Cash Flow of $22.8 million. CEO Adam Singolda attributed this overperformance to the momentum in Taboola's core business, growth engines such as eCommerce and Taboola News, and the effective deployment of AI-powered bidding technology.
Financial Performance Overview
Taboola's revenue for the quarter increased by 8.3% year-over-year to $360.2 million, exceeding the guidance range of $331 to $357 million. Despite a slight year-over-year decrease in Gross Profit and ex-TAC Gross Profit, the company managed to reduce its Net Loss by 11.1% to $23.1 million and improve its EPS diluted by 35.7%. The company's cash flow from operating activities grew by 39.8%, and it ended the quarter with $250.7 million in cash, cash equivalents, short-term deposits, and investments.
Balance Sheet and Cash Flow Highlights
Taboola's balance sheet as of September 30, 2023, shows a total asset value of $1.73 billion, with current assets accounting for $555.88 million. The company's liabilities totaled $664.61 million, with current liabilities at $432.97 million. Shareholders' equity stood strong at $1.07 billion. The cash flow statement revealed a healthy operating cash flow of $32.5 million for the quarter.
Guidance for Q4 and Full Year 2023
Looking ahead, Taboola has raised its guidance for the full year 2023, with revenue projections between $1,438 to $1,469 million and an Adjusted EBITDA forecast of $75 to $82 million. The company expects ex-TAC Gross Profit to range from $531 to $546 million and has set a Non-GAAP Net Income target of $7 to $12 million.
Strategic Business Highlights
Taboola's strategic partnership with Yahoo has been a significant highlight, granting exclusive access to Yahoo's global supply. This collaboration is expected to solidify Taboola's position as a "must buy" ad-platform in the Open Web. The company's shareholder letter provides further insights into its quarterly achievements and strategic direction.
Non-GAAP Financial Measures
Taboola emphasizes the importance of non-GAAP financial measures such as ex-TAC Gross Profit, Adjusted EBITDA, and Free Cash Flow, which offer additional perspectives on the company's financial health and business trends. These measures are reconciled with GAAP metrics in the appendix of the earnings release, providing transparency and a comprehensive understanding of the company's financial performance.
Taboola's Q3 results demonstrate a resilient business model and a strong trajectory for growth. With strategic partnerships and technological advancements driving performance, the company is well-positioned for continued success in the dynamic digital advertising landscape.
For a deeper dive into Taboola.com Ltd (TBLA, Financial)'s financials and strategic initiatives, investors and interested parties can access the full earnings report and shareholder letter on the company's website or join the earnings call webcast.
Explore the complete 8-K earnings release (here) from Taboola.com Ltd for further details.
