Taboola's Strategic Expansions And AI Investments Yield Solid Q1 Results: Details

Taboola.Com Ltd TBLA reported first-quarter fiscal 2024 revenue growth of 26.3% year-over-year to $414 million, beating the consensus of $403.097 million.

Taboola’s revenue growth was propelled by adding new publisher partners such as 20 Minutes, Ringier Axel Springer Poland, Webedia Group, RTL Belgium, and El Colombiano, alongside renewing partnerships with notable publishers like Globes and El Nacional. 

The artificial intelligence-enabled public advertising company reported an adjusted EPS of $0.01, above the consensus of $(0.03).

Gross margin contracted 101 basis points to 26.3%, while gross profit rose 21.6% to $109 million. Operating loss improved YoY to $(18.23) million, compared with $(28.79) million loss a year ago.

TBLA’s cash flow provided by operating activities totaled $32.4 million, up from $17.5 million a year ago. Free cash flow stood at $26.8 million, up from $11.2 million.

The company held cash and cash equivalents worth $182 million at the end of the quarter. The company bought back $28 million in shares in the quarter, with $92 million remaining under the current buyback authorization.

“We had a strong start to 2024 and Q1, where our business momentum and growth rates accelerated. With Q1 beating the high end of the guidance on every metric, and with Q2 guidance showing double-digit growth versus the same time last year, we are reiterating our 2024 guidance. 2024 projects continued acceleration in the business through the remainder of the year, making it a record year for us. Our main focus this year is advertiser success and ramping Yahoo. We are on track to complete the migration by mid-year,” commented Adam Singolda, CEO of Taboola.

Q2 Outlook: Taboola expects net revenue of $410 million – $440 million Vs. $432.346 million consensus, and expects non-GAAP net income of $0-$10 million.

2024 Outlook: TBLA still sees revenue of $1.892 billion-$1.942 billion versus a consensus of $1.922 billion and non-GAAP net income of $84 million-$104 million.

Price Action: TBLA shares are trading lower by 3.97% at $4.35 at the last check Wednesday.

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