Taboola CEO Credits AI and E-commerce for Strong Q3 Results, Stock Soars

Taboola.Com Ltd TBLA reported third-quarter FY23 revenues of $360.2 million, beating the analyst consensus of $345.1 million. Revenues grew by 8.3% year over year.

The artificial intelligence-enabled public advertising company reported an adjusted EPS of $0.02, beating the analyst consensus of $(0.04) loss.

Gross margin contracted 293 basis points to 28.0%, while gross profit slid 2% to $100.7 million.

Operating loss improved Y/Y to $(18.7) million, compared with $(21.5) million loss a year ago.

The company held cash and cash equivalents worth $250.7 million. 

CEO Adam Singolda attributed the performance to the momentum in its core business working with publishers and performance advertisers, Taboola growth engines, namely eCommerce and Taboola News, and its AI-powered bidding technology. 

In addition, the company made significant progress with Yahoo in Q3, expressing excitement in becoming the first ever “must buy” ad-platform in the Open Web.

Outlook: Taboola reiterated FY23 revenues outlook of $1.438 billion - $1.469 billion versus the consensus of $1.45 billion. 

It expects Q4 revenues of $418 million - $449 million versus the consensus of $450.21 million. 

Price Action: TBLA shares are trading higher by 17.20% to $4.08 on the last check Wednesday.