Taboola Achieves Impressive Q1 Financial Growth for 2025
Taboola's Strong Start to 2025 Financial Year
NEW YORK, May 07, 2025 — Taboola (NASDAQ: TBLA), a driving force in performance advertising, reported remarkable results for the first quarter ending March 31, 2025. The figures not only surpassed their guidance but also highlighted the company's continued momentum and growth potential.
"Starting the year with such strong performance across all metrics brings us great satisfaction," expressed Adam Singolda, CEO of Taboola. "Our Realize platform is gaining substantial traction, and this, combined with our sharp focus on operational excellence, drives our long-term ambitions. We are committed to reinvesting where we observe growth and rewarding our shareholders via share repurchases while striving to position ourselves as leaders in performance advertising beyond the realms of search and social media."
First Quarter Financial Highlights
The first quarter of 2025 presented remarkable financial results:
- Revenues reached $427 million, marking a 3% increase largely driven by a 9% rise in scaled advertisers, despite a minor 3% drop in average revenue per scaled advertiser. This growth reflects the robust performance across Taboola's native advertising sector.
- Gross profit stood at $119 million, representing a 10% improvement. After excluding Traffic Acquisition Costs (TAC), gross profit soared to $152 million, a 9% rise, primarily due to elevated advertising expenditures and a strategic shift towards more profitable digital partnerships.
- Operating loss decreased to $6 million, significantly improved from an operating loss of $18 million, showcasing a better ratio of net loss to gross profit at (7.3%), an improvement from (24%). Additionally, Adjusted EBITDA hit $36 million, a 53% increase, with margins expanding to 23.7% from 16.9%.
- Cash flow from operating activities was $48 million, up from $32 million, reflecting strong collections and reduced prepayments to publishers, leading to a free cash flow of $36 million compared to $27 million in the previous year.
Outlook for Q2 and Full Year 2025
With the successful results of Q1, Taboola has set the following expectations for the second quarter and the complete fiscal year of 2025 (in millions):
Second Quarter Guidance:
- Revenues: $438 - $458
- Gross Profit: $124 - $134
- ex-TAC Gross Profit: $156 - $166
- Adjusted EBITDA: $38 - $44
- Non-GAAP Net Income: $26 - $32
Full Year Guidance:
- Revenues: $1,838 - $1,888
- Gross Profit: $536 - $552
- ex-TAC Gross Profit: $674 - $690
- Adjusted EBITDA: $201 - $209
- Non-GAAP Net Income: $122 - $128
Despite providing guidance for Adjusted EBITDA and Non-GAAP Net Income, the company remains unable to predict net income accurately due to inherent uncertainty surrounding various accounting aspects.
Company Overview
Founded on innovation, Taboola is committed to empowering brands through advanced performance advertising capabilities that transcend conventional search and social avenues. Engaging with millions of users daily, Taboola connects advertisers with key publishers worldwide, enhancing their outreach and revenue growth opportunities.
Leading brands including NBC News and Yahoo leverage Taboola's technology to maximize their audience reach and monetization potential, backed by unique data insights and sophisticated algorithmic support.
Investor Relations
For further inquiries about investor relations, reach out to:
Jessica Kourakos
Aadam Anwar
investors@taboola.com
For press inquiries, please contact:
Dave Struzzi
press@taboola.com
Frequently Asked Questions
What are the key highlights from Taboola's Q1 2025 results?
Taboola reported revenues of $427 million, a 3% increase, and gross profit of $119 million, showing a 10% improvement compared to the previous year.
How does the current performance compare to previous quarters?
The performance shows significant improvement, with lower operating losses and higher Adjusted EBITDA compared to previous quarters of 2024.
What is Taboola's long-term strategy for growth?
Taboola aims to reinforce its leadership in performance advertising, focusing on the Realize platform and expanding partnerships while maintaining operational discipline.
What are the projections for Q2 2025?
Guidance for Q2 includes revenues between $438 - $458 million and a gross profit of $124 - $134 million.
How can I learn more about Taboola's financial performance?
Details about Taboola's financials can be found through their investor relations channels, including reports and webcasts.
About The Author
Contact Hannah Lewis privately here. Or send an email with ATTN: Hannah Lewis as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.