Taboola.com (TBLA) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with revenue of $428.2M, ex-TAC gross profit of $150M, and adjusted EBITDA of $37.2M, all exceeding guidance and showing accelerated year-over-year growth.

• Net loss narrowed to $4.3M from $31.3M a year ago, while non-GAAP net income reached $23M, reflecting significant operational improvement.

• Strategic focus on AI investments, premium supply, and advertiser success initiatives, with major milestones including Yahoo advertiser migration, Apple partnership rollout, and a new global OEM deal for Taboola News.

• Free cash flow surged to $26.2M, up 237% year-over-year, with a conversion rate above 70% from adjusted EBITDA.

• Taboola is positioned as a leading native advertising platform for the $80B+ open web ad market, leveraging exclusive publisher relationships and AI-driven technology.

Financial highlights

• Q2 2024 revenue reached $428.2M, up 29% year-over-year; ex-TAC gross profit was $150M, up 21%.

• Adjusted EBITDA was $37.2M, up 138% year-over-year, with a margin of 24.9% on ex-TAC gross profit.

• Free cash flow was $26.2M, up 237%, with 70% conversion from adjusted EBITDA.

• GAAP net loss narrowed to $4.3M from $31.3M a year ago; non-GAAP net income was $23M.

• Cash and equivalents at quarter-end were $182.2M, exceeding long-term debt of $152.7M.

Outlook and guidance

• FY 2024 guidance reiterated: ex-TAC gross profit $656M–$679M (25% YoY growth), adjusted EBITDA over $200M, free cash flow over $100M, and non-GAAP net income $84M–$104M.

• Revenue guidance updated to $1.735B–$1.765B (22% growth at midpoint) due to Yahoo ad format test impacting revenue recognition.

• Q3 2024 guidance: revenue $416M–$446M, ex-TAC gross profit $159M–$169M, adjusted EBITDA $42M–$52M, non-GAAP net income $20M–$30M.