Taboola Stock Soars On Strong Q2 Performance, Hiked Outlook: The Details

Taboola.Com Ltd TBLA reported second-quarter FY23 revenues of $332 million, beating the analyst consensus of $315.44 million. Revenues fell 3.1% year over year.

The artificial intelligence company reported an adjusted EPS of (0.00) loss, beating the analyst consensus of $(0.05) loss.

Gross margin contracted 472 basis points to 29.2%, while gross profit slid 16.6% to $97.1 million.

Operating loss widened Y/Y to $(25) million, compared with $(9.55) million loss a year ago.

The company held cash and cash equivalents worth $246.9 million. 

The company saw new and competitive wins this quarter from Barstool Sports, Cambium Media, Nexstar Media, Futura, and A Cidade On. 

This is on top of key partners like Time, Disney, Unidad Editorial, BBC, One India, The Print and Bangkok Post renewing their relationships. 

The company saw eCommerce and Taboola News significantly outpacing its expectations, with eCommerce now being nearly 20% of its ex-TAC and Taboola News roughly doubling in size. 

The company focused on making its four company priorities successful–Yahoo, Performance Advertising, eCommerce, and Bidding–each representing a $1 billion opportunity. 

Raised FY23 Outlook:  Taboola expects revenues of $1.438 billion - $1.469 billion (prior $1.427 billion-$1.469 billion) versus the consensus of $1.45 billion. 

It expects Q3 revenues of $331 million-$357 million versus the consensus of $345.46 million. 

Price Action: TBLA shares are trading higher by 13.10% to $3.81 on the last check Wednesday.