Maniv Eldad, the President and COO of Taboola.com Ltd. (NASDAQ:TBLA), recently sold a significant portion of company shares according to a filing with the Securities and Exchange Commission. The transactions, which took place on December 10 and 11, involved the sale of a combined 113,166 ordinary shares for a total value of $464,733. The sale comes as Taboola, currently valued at $1.36 billion, shows strong momentum with an 8.4% return over the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
On December 10, Eldad sold 71,691 shares at a weighted average price of $4.07 per share. The following day, he sold an additional 41,475 shares at an average price of $4.17 per share. These sales were conducted under a pre-arranged trading plan established on March 13, 2024, in accordance with Rule 10b5-1. Notably, InvestingPro data reveals that management has been aggressively buying back shares, with analysts maintaining a bullish consensus and setting price targets between $5-6 per share.
Following these transactions, Eldad retains ownership of 9,593,009 shares in the company. The sales were made to address tax obligations arising from differences in tax laws between the United States and Israel. For deeper insights into Taboola's valuation and over 12 additional ProTips, including detailed financial health analysis showing a "Good" overall score, visit InvestingPro.
In other recent news, Taboola, the prominent discovery platform, demonstrated a sturdy performance in its Q3 2024 financial results. The company's revenue saw a 20% rise, reaching $433 million, while ex-TAC gross profits experienced a growth of 30%, amounting to $166.4 million. The adjusted EBITDA reported a significant increase of 110%, achieving $47.9 million with a 29% margin. Despite a net loss of $6.5 million for the quarter, Taboola maintains a robust net cash position of $64.5 million and continues its share repurchase program.
These recent developments also highlight the company's free cash flow for the year, which exceeded $105 million, more than double the figure from the previous year. The firm's CEO, Adam Singolda, emphasized AI adoption, distribution channel expansion, and revenue per user enhancement as key growth opportunities. Partnerships with major companies like Microsoft (NASDAQ:MSFT), Yahoo, and Apple (NASDAQ:AAPL) are driving ad spend growth.
Furthermore, Taboola reaffirms its annual guidance, projecting revenues between $1.735 billion and $1.765 billion. The company also expects the adjusted EBITDA to surpass $200 million for the full year. Strategic investments in AI and technology aim to enhance advertiser relationships and drive revenue growth. The company remains optimistic about continued growth in Q4 and beyond, with an Investor Day scheduled for early 2025.
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