NEW YORK - Taboola (NASDAQ:TBLA), a leading technology company in the recommendation engine space, reported first-quarter earnings that matched analyst expectations, while revenue exceeded forecasts. The company's guidance for the second quarter also surpassed analyst estimates, prompting a 1.7% uptick in its stock price.
For the first quarter ended March 31, 2024, Taboola announced revenues of $414 million, a 26% increase YoY, and a significant beat over the consensus estimate of $403.23 million. The adjusted net income stood at $3.8 million, with a non-GAAP EPS of -$0.08, aligning with analyst predictions. The company's adjusted EBITDA saw a substantial jump of 132% YoY to $23.5 million, and free cash flow rose by an impressive 140% YoY to $27 million.
Taboola's CEO, Adam Singolda, commented on the quarter's performance, "We had a strong start to 2024 with Q1 beating the high end of the guidance on every metric. Our focus on advertiser success and ramping Yahoo is on track, and we are leaning in more heavily to premium advertising experiences."
Looking ahead, Taboola provided an optimistic outlook for the second quarter of 2024, with revenue guidance ranging between $410 million to $440 million, which at the midpoint of $425 million represents a 28% increase YoY and is above the analyst consensus of $403.1 million. The company reiterated its full-year 2024 guidance, projecting significant growth across all metrics, including revenues approaching $2 billion, a 33% increase YoY, and adjusted EBITDA of over $200 million.
Taboola's strategic initiatives, such as the expansion of its partnership with Apple (NASDAQ:AAPL) News & Stocks to include US and UK markets and the focus on its Maximize Conversion/AI technology, which now accounts for nearly 60% of revenue, are contributing to the company's growth trajectory.
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