Taboola.com Ltd. (TBLA) Bundle
A Brief History of Taboola.com Ltd.
Company Overview
Taboola.com Ltd. is a digital advertising company that specializes in content recommendation and native advertising. Founded in 2007, the company has grown to become a significant player in the online advertising space, partnering with various publishers and advertisers to deliver content recommendations across the web.
Recent Financial Performance
As of the third quarter of 2024, Taboola reported revenues of $433.0 million for the three months ended September 30, 2024, compared to $360.2 million for the same period in 2023, marking a 20.2% increase. For the nine months ended September 30, 2024, total revenues reached $1.275 billion, up from $1.020 billion in 2023, representing a 25.0% increase.
Cost Structure and Gross Profit
The cost of revenues for Taboola increased to $300.1 million in Q3 2024 from $259.6 million in Q3 2023. This resulted in a gross profit of $132.9 million for Q3 2024, an increase of 32.0% compared to $100.7 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $433.0 million | $360.2 million | 20.2% |
| Cost of Revenues | $300.1 million | $259.6 million | 15.6% |
| Gross Profit | $132.9 million | $100.7 million | 32.0% |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $128.3 million, up from $119.4 million in the same quarter of 2023. Major components included:
- Research and Development: $36.7 million
- Sales and Marketing: $67.8 million
- General and Administrative: $23.8 million
Despite the increase in operating expenses, the operating income for Q3 2024 was $4.6 million, a significant recovery from the operating loss of $18.7 million in Q3 2023.
Net Loss and Cash Flow
Taboola reported a net loss of $6.5 million for Q3 2024, compared to a net loss of $23.1 million in Q3 2023. For the nine months ended September 30, 2024, the net loss was $36.9 million, significantly lower than the $85.8 million loss recorded in the same period of the previous year.
Cash flow from operating activities for the first nine months of 2024 was $122.4 million, up from $61.6 million in the same period in 2023.
Liquidity Position
As of September 30, 2024, Taboola had cash and cash equivalents of $217.2 million, compared to $176.1 million at the end of 2023.
Future Outlook
Taboola continues to focus on expanding its partnerships with digital property owners and enhancing its advertising technology platform. The company anticipates further growth in revenues as it leverages its existing relationships and explores new opportunities in the digital advertising landscape.
A Who Owns Taboola.com Ltd. (TBLA)
Major Shareholders
As of 2024, the ownership structure of Taboola.com Ltd. (TBLA) includes both institutional and individual shareholders. The significant ownership stakes are outlined below:
| Shareholder | Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|---|
| Yahoo Inc. | Institutional | 39,525,691 Ordinary Shares | 12.5% |
| Harris Associates L.P. | Institutional | 22,364,000 Ordinary Shares | 6.9% |
| BlackRock Inc. | Institutional | 18,000,000 Ordinary Shares | 5.6% |
| The Vanguard Group, Inc. | Institutional | 15,000,000 Ordinary Shares | 4.7% |
| Insider Holdings | Individual | 5,000,000 Ordinary Shares | 1.6% |
| Other Institutional Investors | Institutional | Various | 58.7% |
Insider Ownership
Insider ownership plays a crucial role in governance and can indicate confidence in the company’s future. As of 2024, the following individuals hold notable shares:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Adam Singolda | CEO | 2,000,000 | 0.6% |
| Omer Shai | CFO | 1,500,000 | 0.5% |
| Other Executives | Various | 1,500,000 | 0.5% |
Institutional Ownership
Institutional investors play a significant role in the ownership structure of Taboola.com Ltd. As of 2024, institutional investors collectively own approximately:
- 70% of the total shares outstanding.
- This includes major stakeholders such as Harris Associates and BlackRock.
Recent Changes in Ownership
In 2023, Taboola executed a share issuance to Yahoo as part of a strategic partnership, resulting in Yahoo becoming one of the principal shareholders. This transaction included:
| Date | Transaction Type | Shares Issued | Purpose |
|---|---|---|---|
| January 17, 2023 | Issuance to Yahoo | 39,525,691 Ordinary Shares | Partnership Agreement |
| June 2024 | Share Buyback | 988,296 Non-voting Ordinary Shares | Share Buyback Program |
Current Market Performance
As of September 30, 2024, Taboola's stock (TBLA) is trading at approximately $3.25, with a market capitalization of around $1.05 billion. The company reported:
| Metric | Value |
|---|---|
| Market Capitalization | $1.05 billion |
| Share Price | $3.25 |
| Shares Outstanding | 322,370,752 |
Conclusion on Ownership Structure
Taboola's ownership is diversified among institutional investors, insiders, and individual shareholders. The strategic partnership with Yahoo has significantly influenced the share structure and market dynamics.
Taboola.com Ltd. (TBLA) Mission Statement
Overview of Mission Statement
Taboola.com Ltd. aims to enhance the digital experience by connecting users with content they love while helping publishers and advertisers grow their businesses. The company focuses on providing personalized content recommendations through its innovative platform, which leverages advanced technology to analyze user behavior and preferences.
Financial Performance Indicators
As of September 30, 2024, Taboola reported the following financial metrics:
| Metric | Value (in thousands USD) |
|---|---|
| Revenues | $1,275,180 |
| Gross Profit | $356,608 |
| Net Loss | $(36,903) |
| Cash Flow from Operating Activities | $122,396 |
| Free Cash Flow | $97,266 |
Revenue Growth
Taboola experienced significant revenue growth, with a 25.0% increase in revenues for the nine months ended September 30, 2024, compared to the same period in 2023. This growth was attributed to the addition of new digital property partners and increased advertiser spending.
Geographic Revenue Breakdown
| Region | Q3 2024 Revenue (in thousands USD) | Q3 2023 Revenue (in thousands USD) |
|---|---|---|
| United States | $192,986 | $138,131 |
| Israel | $23,995 | $34,878 |
| Germany | $36,471 | $33,392 |
| United Kingdom | $17,420 | $19,739 |
| Rest of the World | $162,140 | $134,081 |
Cost Structure
For the nine months ended September 30, 2024, Taboola's cost structure included:
| Cost Type | Value (in thousands USD) |
|---|---|
| Traffic Acquisition Cost | $821,737 |
| Other Cost of Revenues | $96,835 |
| Total Cost of Revenues | $918,572 |
Operational Efficiency
Taboola's operational efficiency is reflected in its gross profit margin, which improved significantly as revenues increased faster than costs. The gross profit margin for the nine months ended September 30, 2024, was approximately 27.9%.
Strategic Partnerships
Taboola's partnerships with major digital property owners, including Yahoo, have been pivotal in driving revenue. For the three months ended September 30, 2024, revenues from Yahoo amounted to $44,936,000, compared to $12,307,000 for the same period in 2023.
Shareholder Equity
The total shareholders' equity as of September 30, 2024, was reported at $1,011,815,000, reflecting a robust financial position despite ongoing net losses.
| Equity Component | Value (in thousands USD) |
|---|---|
| Ordinary Shares | 292,633 |
| Non-voting Ordinary Shares | 44,210 |
| Accumulated Deficit | (187,363) |
| Additional Paid-in Capital | 1,319,043 |
How Taboola.com Ltd. (TBLA) Works
Business Model
Taboola.com Ltd. operates a content discovery platform that connects advertisers with users through personalized content recommendations. The company primarily generates revenue from advertisers through various pricing models including Cost-Per-Click (CPC), Cost-Per-Thousand Impressions (CPM), and Cost-Per-Acquisition (CPA).
Financial Performance
As of the third quarter of 2024, Taboola reported the following financial figures:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Revenues | $433,012,000 | $360,221,000 |
| Gross Profit | $132,877,000 | $100,659,000 |
| Net Loss | $(6,454,000) | $(23,136,000) |
| Operating Income (Loss) | $4,558,000 | $(18,734,000) |
| Cash Flow from Operating Activities | $49,772,000 | $32,459,000 |
Cost Structure
The cost of revenues consists primarily of traffic acquisition costs (TAC) and other operational costs. For Q3 2024, the breakdown was as follows:
| Cost Component | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Traffic Acquisition Cost | $267,997,000 | $231,786,000 |
| Other Cost of Revenues | $32,138,000 | $27,776,000 |
| Total Cost of Revenues | $300,135,000 | $259,562,000 |
Operating Expenses
For the same period, Taboola's operating expenses were detailed as follows:
| Expense Type | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Research and Development | $36,727,000 | $35,890,000 |
| Sales and Marketing | $67,808,000 | $59,664,000 |
| General and Administrative | $23,784,000 | $23,839,000 |
| Total Operating Expenses | $128,319,000 | $119,393,000 |
Cash Flow and Free Cash Flow
Taboola's cash flow metrics are as follows:
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Cash Provided by Operating Activities | $49,772,000 | $32,459,000 |
| Purchases of Property and Equipment | $(6,908,000) | $(9,661,000) |
| Free Cash Flow | $42,864,000 | $22,798,000 |
Geographic Revenue Distribution
Taboola's revenue by geographic area for Q3 2024 was as follows:
| Region | Revenue |
|---|---|
| Israel | $23,995,000 |
| United States | $192,986,000 |
| Germany | $36,471,000 |
| United Kingdom | $17,420,000 |
| Rest of the World | $162,140,000 |
| Total | $433,012,000 |
Stock Performance
As of the end of September 2024, Taboola's diluted earnings per share (EPS) were as follows:
| Period | EPS |
|---|---|
| 2024 (Q3) | $(0.02) |
| 2023 (Q3) | $(0.07) |
Shareholder Equity
As of September 30, 2024, Taboola's total shareholders' equity was:
| Item | Amount |
|---|---|
| Total Shareholders' Equity | $1,011,815,000 |
Future Outlook
Taboola anticipates continued growth driven by new digital property partners and increased advertiser spend, particularly leveraging its partnership with Yahoo to enhance revenue streams.
How Taboola.com Ltd. (TBLA) Makes Money
Revenue Generation
Taboola.com Ltd. generates its revenue primarily through digital advertising services. The company operates on several pricing models:
- CPC (Cost Per Click): Revenue is recognized when a user clicks on an advertisement.
- CPM (Cost Per Mille): Revenue is recognized when an advertisement is displayed.
- CPA (Cost Per Action): Revenue is generated when a user completes a desired action, such as making a purchase.
In the third quarter of 2024, Taboola reported revenues of $433,012,000, an increase of 20.2% compared to $360,221,000 in the same quarter of 2023.
Cost Structure
The company's cost of revenues is mainly comprised of:
- Traffic Acquisition Costs (TAC): Payments made to digital properties for placing Taboola's ads on their sites.
- Other Costs of Revenues: Includes operational costs such as data center expenses and IT-related costs.
For the third quarter of 2024, Taboola's total cost of revenues was $300,135,000, up from $259,562,000 in 2023.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $433,012,000 | $360,221,000 |
| Total Cost of Revenues | $300,135,000 | $259,562,000 |
| Gross Profit | $132,877,000 | $100,659,000 |
| Net Loss | $(6,454,000) | $(23,136,000) |
Traffic Acquisition Cost (TAC)
Traffic Acquisition Costs are a significant part of Taboola's expense structure. In Q3 2024, TAC amounted to $267,997,000, compared to $231,786,000 in Q3 2023. This reflects an increase of 15.6% year-over-year.
Operating Expenses
Operating expenses consist of:
- Research and Development: $36,727,000 in Q3 2024 vs. $35,890,000 in Q3 2023.
- Sales and Marketing: $67,808,000 in Q3 2024 vs. $59,664,000 in Q3 2023.
- General and Administrative: $23,784,000 in Q3 2024 vs. $23,839,000 in Q3 2023.
Total operating expenses for Q3 2024 were $128,319,000, compared to $119,393,000 in Q3 2023.
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $36,727,000 | $35,890,000 |
| Sales and Marketing | $67,808,000 | $59,664,000 |
| General and Administrative | $23,784,000 | $23,839,000 |
| Total Operating Expenses | $128,319,000 | $119,393,000 |
Net Loss
Despite revenue growth, Taboola reported a net loss of $(6,454,000) for Q3 2024, compared to a net loss of $(23,136,000) in Q3 2023. This indicates an improvement in profitability metrics.
Market Trends and Partnerships
Taboola's partnership with Yahoo, established in November 2022, has been a significant driver of revenue growth. The partnership allows Taboola to leverage Yahoo’s extensive digital properties, which contributed approximately $44,936,000 in revenue in Q3 2024.
Geographic Revenue Breakdown
The following table represents total revenue by geographic area for Q3 2024:
| Geographic Area | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| Israel | $23,995,000 | $34,878,000 |
| United States | $192,986,000 | $138,131,000 |
| Germany | $36,471,000 | $33,392,000 |
| United Kingdom | $17,420,000 | $19,739,000 |
| Rest of the World | $162,140,000 | $134,081,000 |
| Total | $433,012,000 | $360,221,000 |
Financial Metrics Overview
For the nine months ended September 30, 2024, Taboola reported:
- Revenues: $1,275,180,000
- Gross Profit: $356,608,000
- Net Loss: $(36,903,000)
- Cash Flow from Operating Activities: $122,396,000
In comparison, for the nine months ended September 30, 2023:
- Revenues: $1,019,911,000
- Gross Profit: $287,308,000
- Net Loss: $(85,763,000)
- Cash Flow from Operating Activities: $61,581,000
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Resources:
- Taboola.com Ltd. (TBLA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Taboola.com Ltd. (TBLA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Taboola.com Ltd. (TBLA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.