|
|
|
||
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification Number)
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
|
|
|
||
|
|
|
Exhibit No.
|
Description
|
Press Release dated November 8, 2023, as corrected
|
|
Letter to Shareholders dated November 8, 2023, as corrected
|
|
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
TABOOLA.COM LTD.
|
|||
By:
|
/s/ Stephen Walker
|
||
Name:
|
Stephen Walker
|
||
Title:
|
Chief Financial Officer
|
||
Date: November 8, 2023
|
- |
Exceeded high end of guidance on all metrics - Q3 2023 Revenues of $360.2M, Gross Profit of $100.7M, ex-TAC Gross Profit of $128.4M, Net loss of $23.1M, Non-GAAP Net Income of
$6.7M and Adjusted EBITDA of $22.8M.
|
- |
Net cash provided by operating activities of $32.5M and Free Cash Flow in Q3 2023 of $22.8M.
|
- |
eCommerce double-digit growth in Q3, on track to reach nearly 20% of ex-TAC in 2023.
|
- |
Taboola News, distributing content to Android OEMs continues strong momentum in Q3; on track to grow from $50M in 2022 to almost $100M in 2023.
|
- |
Q3 share buyback of $18.6M brings total buyback to $23.0M through Sept 30, 2023. Announcing additional share repurchase authority of up to $40M and debt repayment of up to $30M.
|
- |
Significant progress on Yahoo partnership with 100% of Yahoo’s global supply now available through Taboola.
|
- |
Raising 2023 Adjusted EBITDA range to $75M - $82M and Non-GAAP Net Income range to $7M - $12M. Continue to expect positive Free Cash Flow.
|
- |
Reiterating 2024 guidance of $200M+ Adjusted EBITDA, $100M+ Free Cash Flow.
|
(dollars in millions, except per share data)
|
Three months ended
September 30,
|
||||||||||||||||
|
2023
|
|
2022
|
||||||||||||||
|
Unaudited
|
% change
YoY
|
Guidance
|
||||||||||||||
Revenues
|
$
|
360.2
|
$
|
332.5
|
8.3
|
%
|
|
$331 - $357
|
|||||||||
Gross profit
|
$
|
100.7
|
$
|
102.7
|
(2.0
|
%)
|
|
$83 - $95
|
|||||||||
Net loss
|
$
|
(23.1
|
)
|
$
|
(26.0
|
)
|
(11.1
|
%)
|
|||||||||
EPS diluted (1)
|
$
|
(0.07
|
)
|
$
|
(0.10
|
)
|
(35.7
|
%)
|
|||||||||
Ratio of net loss to gross profit
|
(23.0
|
%)
|
(25.3
|
%)
|
—
|
||||||||||||
Cash flow provided by operating activities
|
$
|
32.5
|
$
|
23.2
|
39.8
|
%
|
|||||||||||
Cash, cash equivalents, short-term deposits and investments
|
$
|
250.7
|
$
|
308.3
|
(18.7
|
%)
|
|||||||||||
|
|||||||||||||||||
Non-GAAP Financial Data *
|
|||||||||||||||||
ex-TAC Gross Profit
|
$
|
128.4
|
$
|
129.3
|
(0.7
|
%)
|
|
$112 - $124
|
|||||||||
Adjusted EBITDA
|
$
|
22.8
|
$
|
24.2
|
(5.5
|
%)
|
|
($2) - $10
|
|
||||||||
Non-GAAP Net Income (Loss)
|
$
|
6.7
|
$
|
10.2
|
(34.4
|
%)
|
|
($20) - ($8
|
)
|
||||||||
Ratio of Adjusted EBITDA to ex-TAC Gross Profit
|
17.8
|
%
|
18.7
|
%
|
—
|
||||||||||||
Free Cash Flow
|
$
|
22.8
|
$
|
11.0
|
107.3
|
%
|
○ |
Revenue from new publisher partners continues to be an area of strength - Publisher wins that were new and from competitors included Nexstar, Adversports, Absolute Sports,
Portal da Torcida, Nate, Excite Japan.
|
○ |
Renewed relationships with many well-known publishers including Gannett, Cox Media Group, Sport 1, NDTV, India Today, El Financiero, Internet Group.
|
○ |
Rolled out a new Taboola News partnership with realme, the world’s fastest-growing smartphone brand, powering recommendations on mobile devices for audiences in Europe, Southeast Asia and beyond,
representing more than 6M devices.
|
○ |
New features and momentum for our Generative AI technology, including the introduction of Taboola Generative AI Admaker, which allows advertisers to edit existing creative automatically, instead of
just creating images from scratch. For self service advertisers, every 4th new creative generated in our system is based on Generative AI tools we have released.
|
|
Q4 2023
Guidance
|
FY 2023
Guidance
|
||||||
|
Unaudited
|
|||||||
|
(dollars in millions)
|
|||||||
Revenues
|
|
$418 - $449
|
|
$1,438 - $1,469
|
||||
Gross profit
|
|
$132 - $148
|
|
$420 - $436
|
||||
ex-TAC Gross Profit*
|
|
$164 - $179
|
|
$531 - $546
|
||||
Adjusted EBITDA*
|
|
$26 - $33
|
$75 - $82
|
|||||
Non-GAAP Net Income (Loss)*
|
|
$6 - $11
|
|
$7 - $12
|
Investor Contact:
|
Press Contact:
|
Jessica Kourakos
|
Dave Struzzi
|
investors@taboola.com
|
press@taboola.com
|
|
September 30,
2023 |
December 31,
2022 |
||||||
|
Unaudited
|
|||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
238,259
|
$
|
165,893
|
||||
Short-term investments
|
12,467
|
96,914
|
||||||
Restricted deposits
|
1,487
|
750
|
||||||
Trade receivables (net of allowance for credit losses of $10,794 and $6,748 as of September 30, 2023 and December 31, 2022, respectively)
|
232,118
|
256,708
|
||||||
Prepaid expenses and other current assets
|
71,549
|
73,643
|
||||||
Total current assets
|
555,880
|
593,908
|
||||||
NON-CURRENT ASSETS
|
||||||||
Long-term prepaid expenses
|
40,854
|
42,945
|
||||||
Commercial agreement asset
|
289,451
|
—
|
||||||
Restricted deposits
|
4,111
|
4,059
|
||||||
Deferred tax assets, net
|
3,467
|
3,821
|
||||||
Operating lease right of use assets
|
65,003
|
66,846
|
||||||
Property and equipment, net
|
75,792
|
73,019
|
||||||
Intangible assets, net
|
141,235
|
189,156
|
||||||
Goodwill
|
555,931
|
555,869
|
||||||
Total non-current assets
|
1,175,844
|
935,715
|
||||||
Total assets
|
$
|
1,731,724
|
$
|
1,529,623
|
|
September 30,
2023 |
December 31,
2022 |
||||||
|
Unaudited
|
|||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Trade payables
|
$
|
252,727
|
$
|
247,504
|
||||
Short-term operating lease liabilities
|
19,015
|
14,753
|
||||||
Accrued expenses and other current liabilities
|
108,229
|
102,965
|
||||||
Current maturities of long-term loan
|
53,000
|
3,000
|
||||||
Total current liabilities
|
432,971
|
368,222
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Long-term loan, net of current maturities
|
141,829
|
223,049
|
||||||
Long-term operating lease liabilities
|
52,232
|
57,928
|
||||||
Warrants liability
|
6,023
|
6,756
|
||||||
Deferred tax liabilities, net
|
25,560
|
34,133
|
||||||
Other long-term liabilities
|
6,000
|
5,000
|
||||||
Total long-term liabilities
|
231,644
|
326,866
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Ordinary shares with no par value- Authorized: 700,000,000 as of September 30, 2023 and December 31, 2022; 300,692,928 and 254,133,863 shares
issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
|
—
|
—
|
||||||
Non-voting Ordinary shares with no par value- Authorized: 46,000,000 as of September 30, 2023 and December 31, 2022; 45,198,702 and 0 shares
issued and outstanding as of September 30, 2023 and December 31, 2022, respectively
|
—
|
—
|
||||||
Treasury Ordinary shares, at cost - 6,672,915 and 0 shares as of September 30, 2023 and December 31, 2022, respectively
|
(23,157
|
)
|
—
|
|||||
Additional paid-in capital
|
1,244,667
|
903,789
|
||||||
Accumulated other comprehensive loss
|
(218
|
)
|
(834
|
)
|
||||
Accumulated deficit
|
(154,183
|
)
|
(68,420
|
)
|
||||
Total shareholders’ equity
|
1,067,109
|
834,535
|
||||||
Total liabilities and shareholders’ equity
|
$
|
1,731,724
|
$
|
1,529,623
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
Unaudited
|
|||||||||||||||
Revenues
|
$
|
360,221
|
$
|
332,462
|
$
|
1,019,911
|
$
|
1,029,883
|
||||||||
Cost of revenues:
|
||||||||||||||||
Traffic acquisition cost
|
231,786
|
203,125
|
652,602
|
619,109
|
||||||||||||
Other cost of revenues
|
27,776
|
26,649
|
80,001
|
79,695
|
||||||||||||
Total cost of revenues
|
259,562
|
229,774
|
732,603
|
698,804
|
||||||||||||
Gross profit
|
100,659
|
102,688
|
287,308
|
331,079
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Research and development
|
35,890
|
36,237
|
101,876
|
100,728
|
||||||||||||
Sales and marketing
|
59,664
|
63,216
|
181,431
|
190,989
|
||||||||||||
General and administrative
|
23,839
|
24,685
|
76,533
|
78,062
|
||||||||||||
Total operating expenses
|
119,393
|
124,138
|
359,840
|
369,779
|
||||||||||||
Operating loss
|
(18,734
|
)
|
(21,450
|
)
|
(72,532
|
)
|
(38,700
|
)
|
||||||||
Finance income (expenses), net
|
(4,402
|
)
|
(3,570
|
)
|
(11,383
|
)
|
12,389
|
|||||||||
Loss before income taxes expenses
|
(23,136
|
)
|
(25,020
|
)
|
(83,915
|
)
|
(26,311
|
)
|
||||||||
Income tax expenses
|
—
|
(1,006
|
)
|
(1,848
|
)
|
(848
|
)
|
|||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
|
||||||||||||||||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted
|
$
|
(0.07
|
)
|
$
|
(0.10
|
)
|
$
|
(0.25
|
)
|
$
|
(0.11
|
)
|
||||
Weighted-average shares used in computing net loss per share, basic and diluted
|
352,591,043
|
255,160,597
|
345,631,022
|
251,865,831
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
|
Unaudited
|
|||||||||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Other comprehensive income (loss):
|
||||||||||||||||
Unrealized gains (losses) on available-for-sale marketable securities
|
46
|
(445
|
)
|
503
|
(704
|
)
|
||||||||||
Unrealized gains (losses) on derivative instruments, net
|
570
|
1,504
|
113
|
(2,020
|
)
|
|||||||||||
Other comprehensive income (loss)
|
616
|
1,059
|
616
|
(2,724
|
)
|
|||||||||||
Comprehensive loss
|
$
|
(22,520
|
)
|
$
|
(24,967
|
)
|
$
|
(85,147
|
)
|
$
|
(29,883
|
)
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
||||||||||||||||
Cost of revenues
|
$
|
999
|
$
|
673
|
$
|
3,082
|
$
|
2,227
|
||||||||
Research and development
|
6,256
|
7,343
|
18,281
|
20,888
|
||||||||||||
Sales and marketing
|
4,127
|
5,654
|
12,813
|
18,351
|
||||||||||||
General and administrative
|
4,869
|
5,040
|
14,692
|
17,505
|
||||||||||||
Total share-based compensation expenses
|
$
|
16,251
|
$
|
18,710
|
$
|
48,868
|
$
|
58,971
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Unaudited
|
||||||||||||||||
Cost of revenues
|
$
|
11,006
|
$
|
8,669
|
$
|
27,764
|
$
|
25,189
|
||||||||
Research and development
|
564
|
654
|
1,758
|
1,994
|
||||||||||||
Sales and marketing
|
13,531
|
13,692
|
40,566
|
40,917
|
||||||||||||
General and administrative
|
215
|
207
|
621
|
611
|
||||||||||||
Total depreciation and amortization expense
|
$
|
25,316
|
$
|
23,222
|
$
|
70,709
|
$
|
68,711
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
Unaudited
|
|||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Adjustments to reconcile net loss to net cash flows provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
25,316
|
23,222
|
70,709
|
68,711
|
||||||||||||
Share-based compensation expenses
|
16,251
|
18,710
|
48,868
|
58,971
|
||||||||||||
Net loss from financing expenses
|
1,033
|
3,417
|
1,269
|
7,733
|
||||||||||||
Revaluation of the Warrants liability
|
241
|
(988
|
)
|
(733
|
)
|
(26,988
|
)
|
|||||||||
Amortization of loan and credit facility issuance costs
|
329
|
291
|
1,220
|
1,006
|
||||||||||||
Amortization of premium and accretion of discount on short-term investments, net
|
(393
|
)
|
(185
|
)
|
(923
|
)
|
(322
|
)
|
||||||||
Change in operating assets and liabilities:
|
||||||||||||||||
Decrease (increase) in trade receivables, net
|
(14,681
|
)
|
15,056
|
24,590
|
60,672
|
|||||||||||
Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses
|
(6,088
|
)
|
(7,571
|
)
|
2,554
|
(13,921
|
)
|
|||||||||
Increase (decrease) in trade payables
|
31,952
|
(2,134
|
)
|
2,222
|
(54,659
|
)
|
||||||||||
Increase (decrease) in accrued expenses and other current liabilities and other long-term liabilities
|
3,565
|
(2,570
|
)
|
5,377
|
(25,516
|
)
|
||||||||||
Increase (decrease) in deferred taxes, net
|
(1,724
|
)
|
2,800
|
(8,218
|
)
|
(9,676
|
)
|
|||||||||
Change in operating lease right of use assets
|
4,372
|
3,897
|
12,447
|
11,536
|
||||||||||||
Change in operating lease liabilities
|
(4,578
|
)
|
(4,700
|
)
|
(12,038
|
)
|
(16,962
|
)
|
||||||||
Net cash provided by operating activities
|
32,459
|
23,219
|
61,581
|
33,426
|
||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Purchase of property and equipment, including capitalized internal-use software
|
(9,661
|
)
|
(12,224
|
)
|
(19,839
|
)
|
(28,476
|
)
|
||||||||
Cash paid in connection with acquisitions, net of cash acquired
|
—
|
(7,361
|
)
|
—
|
(7,981
|
)
|
||||||||||
Proceeds from (investment in) restricted deposits
|
(253
|
)
|
88
|
(594
|
)
|
98
|
||||||||||
Proceeds from sales and maturities of short-term investments
|
30,033
|
6,160
|
107,669
|
6,160
|
||||||||||||
Purchase of short-term investments
|
—
|
(51,527
|
)
|
(21,991
|
)
|
(126,382
|
)
|
|||||||||
Release of escrow funds in connection with acquisition of subsidiary
|
—
|
2,100
|
—
|
—
|
||||||||||||
Net cash provided by (used in) investing activities
|
20,119
|
(62,764
|
)
|
65,245
|
(156,581
|
)
|
||||||||||
Cash flows from financing activities
|
||||||||||||||||
Exercise of options and vested RSUs
|
2,973
|
1,435
|
5,429
|
7,467
|
||||||||||||
Payment of tax withholding for share-based compensation expenses
|
(1,305
|
)
|
(1,925
|
)
|
(3,213
|
)
|
(4,110
|
)
|
||||||||
Repurchase of Ordinary shares
|
(18,799
|
)
|
—
|
(23,157
|
)
|
—
|
||||||||||
Repayment of long-term loan
|
(750
|
)
|
(750
|
)
|
(32,250
|
)
|
(2,250
|
)
|
||||||||
Costs associated with entering into a revolving credit facility
|
—
|
(1,061
|
)
|
—
|
(1,061
|
)
|
||||||||||
Net cash provided by (used in) financing activities
|
(17,881
|
)
|
(2,301
|
)
|
(53,191
|
)
|
46
|
|||||||||
Exchange rate differences on balances of cash and cash equivalents
|
(1,033
|
)
|
(3,417
|
)
|
(1,269
|
)
|
(7,733
|
)
|
||||||||
Increase (decrease) in cash and cash equivalents
|
33,664
|
(45,263
|
)
|
72,366
|
(130,842
|
)
|
||||||||||
Cash and cash equivalents - at the beginning of the period
|
204,595
|
233,740
|
165,893
|
319,319
|
||||||||||||
Cash and cash equivalents - at end of the period
|
$
|
238,259
|
$
|
188,477
|
$
|
238,259
|
$
|
188,477
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
Unaudited
|
|||||||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||||||
Cash paid during the year for:
|
||||||||||||||||
Income taxes
|
$
|
3,102
|
$
|
6,437
|
$
|
9,935
|
$
|
22,599
|
||||||||
Interest
|
$
|
4,813
|
$
|
4,721
|
$
|
14,580
|
$
|
15,094
|
||||||||
Non-cash investing and financing activities:
|
||||||||||||||||
Purchase of property and equipment, including capitalized internal-use software
|
$
|
5,694
|
$
|
2,764
|
$
|
5,694
|
$
|
2,764
|
||||||||
Share-based compensation included in capitalized internal-use software
|
$
|
399
|
$
|
440
|
$
|
1,731
|
$
|
1,460
|
||||||||
Creation of operating lease right-of-use assets
|
$
|
5,011
|
$
|
8,541
|
$
|
10,604
|
$
|
11,648
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Revenues
|
$
|
360,221
|
$
|
332,462
|
$
|
1,019,911
|
$
|
1,029,883
|
||||||||
Traffic acquisition cost
|
231,786
|
203,125
|
652,602
|
619,109
|
||||||||||||
Other cost of revenues
|
27,776
|
26,649
|
80,001
|
79,695
|
||||||||||||
Gross profit
|
$
|
100,659
|
$
|
102,688
|
$
|
287,308
|
$
|
331,079
|
||||||||
Add back: Other cost of revenues
|
27,776
|
26,649
|
80,001
|
79,695
|
||||||||||||
ex-TAC Gross Profit
|
$
|
128,435
|
$
|
129,337
|
$
|
367,309
|
$
|
410,774
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Adjusted to exclude the following:
|
|
|
|
|
||||||||||||
Finance (income) expenses, net
|
4,402
|
3,570
|
11,383
|
(12,389
|
)
|
|||||||||||
Income tax expenses
|
—
|
1,006
|
1,848
|
848
|
||||||||||||
Depreciation and amortization
|
25,316
|
23,222
|
70,709
|
68,711
|
||||||||||||
Share-based compensation expenses
|
13,605
|
15,937
|
41,022
|
50,616
|
||||||||||||
Restructuring expenses (1)
|
—
|
3,383
|
—
|
3,383
|
||||||||||||
Holdback compensation expenses (2)
|
2,646
|
2,773
|
7,846
|
8,355
|
||||||||||||
M&A and other costs (3)
|
—
|
292
|
1,571
|
816
|
||||||||||||
Adjusted EBITDA
|
$
|
22,833
|
$
|
24,157
|
$
|
48,616
|
$
|
93,181
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Gross profit
|
$
|
100,659
|
$
|
102,688
|
$
|
287,308
|
$
|
331,079
|
||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Ratio of net loss to gross profit
|
(23.0
|
%)
|
(25.3
|
%)
|
(29.9
|
%)
|
(8.2
|
%)
|
||||||||
|
||||||||||||||||
ex-TAC Gross Profit
|
$
|
128,435
|
$
|
129,337
|
$
|
367,309
|
$
|
410,774
|
||||||||
Adjusted EBITDA
|
$
|
22,833
|
$
|
24,157
|
$
|
48,616
|
$
|
93,181
|
||||||||
Ratio of Adjusted EBITDA margin to ex-TAC Gross Profit
|
17.8
|
%
|
18.7
|
%
|
13.2
|
%
|
22.7
|
%
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Amortization of acquired intangibles
|
15,980
|
15,983
|
47,911
|
47,591
|
||||||||||||
Share-based compensation expenses
|
13,605
|
15,937
|
41,022
|
50,616
|
||||||||||||
Restructuring expenses (1)
|
—
|
3,383
|
—
|
3,383
|
||||||||||||
Holdback compensation expenses (2)
|
2,646
|
2,773
|
7,846
|
8,355
|
||||||||||||
M&A and other costs (3)
|
—
|
292
|
1,571
|
816
|
||||||||||||
Revaluation of Warrants
|
241
|
(988
|
)
|
(733
|
)
|
(26,988
|
)
|
|||||||||
Foreign currency exchange rate losses (4)
|
859
|
347
|
625
|
3,053
|
||||||||||||
Income tax effects
|
(3,491
|
)
|
(1,486
|
)
|
(11,282
|
)
|
(11,563
|
)
|
||||||||
Non-GAAP Net Income
|
$
|
6,704
|
$
|
10,215
|
$
|
1,197
|
$
|
48,104
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Net cash provided by operating activities
|
$
|
32,459
|
$
|
23,219
|
$
|
61,581
|
$
|
33,426
|
||||||||
Purchases of property and equipment, including capitalized internal-use software
|
(9,661
|
)
|
(12,224
|
)
|
(19,839
|
)
|
(28,476
|
)
|
||||||||
Free Cash Flow
|
$
|
22,798
|
$
|
10,995
|
$
|
41,742
|
$
|
4,950
|
Q4 2023
Guidance
|
FY 2023
Guidance
|
|||||||
|
Unaudited
|
|||||||
|
(dollars in millions)
|
|||||||
Revenues
|
|
$418 - $449
|
$1,438 - $1,469
|
|||||
Traffic acquisition cost
|
($255) - ($270)
|
$907 - $923
|
||||||
Other cost of revenues
|
($31) - ($30)
|
($111) - ($110)
|
|
|||||
Gross profit
|
$132 - $148
|
$420 - $436
|
||||||
Add back: Other cost of revenues
|
($31) - ($30)
|
($111) - ($110)
|
|
|||||
ex-TAC Gross Profit
|
$164 - $179
|
$531 - $546
|
● |
Beat the high-end of our Q3 guidance across all metrics, and raise Adj. EBITDA for the year
|
● |
Free Cash Flow over the last 12 months is $55M, 3x+ what it was a year ago, same time.
|
● |
Reiterating 2024 guidance of over $200M in Adj. EBITDA and over $100M Free Cash Flow
|
● |
Microsoft is nearly 2x in Q3 vs prior year, thanks to our AI-powered bidding technology
|
● |
Yahoo integration on track, making us the first ever “must buy” ad-platform in the open web
|
● |
Since launching Gen-AI for advertisers, it is already over 2% of our revenue
|
● |
We plan to continue to buy back shares and pay down debt
|
Yahoo DSP now has Taboola Ad Console integrated inside, and it looks awesome. That was an initial part of enabling Yahoo Omnichannel advertisers to migrate to Taboola.
We’ve launched our first Omnichannel advertisers with very promising results. In summary, we have seen good progress on migration to date and we’re seeing encouraging results for our
advertisers. Lots of work still to do, but feeling good about the progress so far.
|
Bidding - New bidding models and the opening of new demand categories in Q3 provided us with ex-TAC improvement in the
quarter. Very good progress with Microsoft and our ability to leverage new bidding technology in many more places. We told investors a year ago in April when Microsoft shifted to our new bidding technology, which Microsoft helped us design,
that it will make Microsoft a growing partnership, and in Q3 Microsoft was nearly 2x bigger than Q3 of last year.
|
|
(dollars in millions)
|
Q3 2023
Actuals
|
Q3 2023 Guidance
|
||||||
Revenues
|
$
|
360.2
|
$331 - $357
|
|||||
Gross profit
|
$
|
100.7
|
$83 - $95
|
|||||
ex-TAC Gross Profit*
|
$
|
128.4
|
$112 - $124
|
|||||
Adjusted EBITDA*
|
$
|
22.8
|
($2) - $10
|
|||||
Non-GAAP Net Income (Loss)*
|
$
|
6.7
|
|
($20) - ($8)
|
|
Q4 2023
Guidance
|
FY 2023
Guidance
|
||||||
|
Unaudited
|
|||||||
|
(dollars in millions)
|
|||||||
Revenues
|
$418 - $449
|
$1,438 - $1,469
|
||||||
Gross profit
|
$132 - $148
|
$420 - $436
|
||||||
ex-TAC Gross Profit*
|
$164 - $179
|
$531 - $546
|
||||||
Adjusted EBITDA*
|
$26 - $33
|
$75 - $82
|
||||||
Non-GAAP Net Income (Loss)*
|
$6 - $11
|
$7 - $12
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Revenues
|
$
|
360,221
|
$
|
332,462
|
$
|
1,019,911
|
$
|
1,029,883
|
||||||||
Traffic acquisition cost
|
231,786
|
203,125
|
652,602
|
619,109
|
||||||||||||
Other cost of revenues
|
27,776
|
26,649
|
80,001
|
79,695
|
||||||||||||
Gross profit
|
$
|
100,659
|
$
|
102,688
|
$
|
287,308
|
$
|
331,079
|
||||||||
Add back: Other cost of revenues
|
27,776
|
26,649
|
80,001
|
79,695
|
||||||||||||
ex-TAC Gross Profit
|
$
|
128,435
|
$
|
129,337
|
$
|
367,309
|
$
|
410,774
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Adjusted to exclude the following:
|
|
|
|
|
||||||||||||
Finance (income) expenses, net
|
4,402
|
3,570
|
11,383
|
(12,389
|
)
|
|||||||||||
Income tax expenses
|
—
|
1,006
|
1,848
|
848
|
||||||||||||
Depreciation and amortization
|
25,316
|
23,222
|
70,709
|
68,711
|
||||||||||||
Share-based compensation expenses
|
13,605
|
15,937
|
41,022
|
50,616
|
||||||||||||
Restructuring expenses (1)
|
—
|
3,383
|
—
|
3,383
|
||||||||||||
Holdback compensation expenses (2)
|
2,646
|
2,773
|
7,846
|
8,355
|
||||||||||||
M&A and other costs (3)
|
—
|
292
|
1,571
|
816
|
||||||||||||
Adjusted EBITDA
|
$
|
22,833
|
$
|
24,157
|
$
|
48,616
|
$
|
93,181
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Net loss
|
$
|
(23,136
|
)
|
$
|
(26,026
|
)
|
$
|
(85,763
|
)
|
$
|
(27,159
|
)
|
||||
Amortization of acquired intangibles
|
15,980
|
15,983
|
47,911
|
47,591
|
||||||||||||
Share-based compensation expenses
|
13,605
|
15,937
|
41,022
|
50,616
|
||||||||||||
Restructuring expenses (1)
|
—
|
3,383
|
—
|
3,383
|
||||||||||||
Holdback compensation expenses (2)
|
2,646
|
2,773
|
7,846
|
8,355
|
||||||||||||
M&A and other costs (3)
|
—
|
292
|
1,571
|
816
|
||||||||||||
Revaluation of Warrants
|
241
|
(988
|
)
|
(733
|
)
|
(26,988
|
)
|
|||||||||
Foreign currency exchange rate losses (4)
|
859
|
347
|
625
|
3,053
|
||||||||||||
Income tax effects
|
(3,491
|
)
|
(1,486
|
)
|
(11,282
|
)
|
(11,563
|
)
|
||||||||
Non-GAAP Net Income
|
$
|
6,704
|
$
|
10,215
|
$
|
1,197
|
$
|
48,104
|
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
Net cash provided by operating activities
|
$
|
32,459
|
$
|
23,219
|
$
|
61,581
|
$
|
33,426
|
||||||||
Purchases of property and equipment, including capitalized internal-use software
|
(9,661
|
)
|
(12,224
|
)
|
(19,839
|
)
|
(28,476
|
)
|
||||||||
Free Cash Flow
|
$
|
22,798
|
$
|
10,995
|
$
|
41,742
|
$
|
4,950
|
Q4 2023
Guidance
|
FY 2023
Guidance
|
|||||||
Unaudited
|
||||||||
(dollars in millions)
|
||||||||
Revenues
|
$418 - $449
|
$1,438 - $1,469
|
||||||
Traffic acquisition cost
|
($255) - ($270)
|
$907 - $923
|
||||||
Other cost of revenues
|
($31) - ($30)
|
($111) - ($110)
|
||||||
Gross profit
|
$132 - $148
|
$420 - $436
|
||||||
Add back: Other cost of revenues
|
($31) - ($30)
|
($111) - ($110)
|
||||||
ex-TAC Gross Profit
|
$164 - $179
|
$531 - $546
|
● |
Revenue baseline is equal to the expected FY 2022 financials for TBLA at guidance midpoint (66% of combined Revenues) + FY 2022 expected financials for Yahoo Native supply* that will
be serviced by TBLA (34% of combined Revenues)
|
● |
Revenue uplift on Yahoo supply from improved yield due to the application of Taboola technology and data
|
● |
Revenue uplift on stand-alone Taboola supply from improved yield due to advertiser demand from Yahoo and additional data
|
● |
Operating expenses based on bottom up model of resources needed to support deal
|
● |
Assumes no ramp up time - numbers assume Yahoo is part of Taboola network from the beginning of 2022 and assumes uplifts and operating expenses start from the beginning of the year
|