Taboola.com 2025 Q1 Earnings Narrowed Net Loss by 66.5%

Taboola.com (TBLA) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company exceeded expectations, demonstrating improved financial performance across key metrics. With a 3.3% year-over-year revenue growth to $427.49 million, Taboola managed to reduce its net loss significantly, showcasing effective cost management. The guidance for Q2 2025 remains steady with revenue expectations between $438 million and $458 million, and adjusted EBITDA projected between $38 million and $44 million. Despite macroeconomic uncertainties, the company anticipates stronger growth in the latter half of the year.

Revenue

The total revenue of Taboola.com increased by 3.3% to $427.49 million in 2025 Q1, up from $414.01 million in 2024 Q1.

Earnings/Net Income

Taboola.com narrowed losses to $0.03 per share in 2025 Q1 from a loss of $0.08 per share in 2024 Q1 (62.5% improvement). Meanwhile, the company successfully narrowed its net loss to $-8.75 million in 2025 Q1, reducing losses by 66.5% compared to the $-26.16 million net loss reported in 2024 Q1. The EPS improvement suggests positive financial strides.

Price Action

The stock price of Taboola.com has dropped 5.56% during the latest trading day, has climbed 3.73% during the most recent full trading week, and has surged 15.04% month-to-date.

Post-Earnings Price Action Review

Over the past five years, buying Taboola.com (TBLA) shares following a quarterly revenue drop and holding for 30 days led to a negative return of -13.79%, underperforming the benchmark return of 25.29%. This strategy resulted in an excess return of -39.08% and exhibited a compound annual growth rate (CAGR) of -3.79%. The Sharpe ratio stood at -0.33, reflecting poor risk-adjusted returns. The strategy also faced a maximum drawdown of -17.24% and a volatility of 11.55%, indicating significant exposure to risk and volatility. This demonstrates that the strategy has consistently delivered poor returns, failing to outperform the market and exposing investors to substantial volatility.

CEO Commentary

Adam Singolda, Founder & CEO, expressed an optimistic outlook on Taboola's business performance, highlighting a strong start to 2025 with Q1 revenue of $427 million, reflecting a 3% year-over-year growth. He emphasized that the company is well-positioned to capitalize on the $55 billion performance advertising market, noting that many advertisers are maxed out on search and social channels. Singolda pointed to the successful launch of the Realize platform and its capabilities as key growth drivers, while also acknowledging the need for prudent cost management amid macroeconomic uncertainties. He remains confident in Taboola's ability to execute its strategy and deliver value to shareholders.

Guidance

For Q2 2025, Taboola expects revenues between $438 million and $458 million, with adjusted EBITDA projected between $38 million and $44 million. The full-year guidance remains unchanged, anticipating revenues between $1.84 billion and $1.89 billion and adjusted EBITDA from $201 million to $209 million. The CEO indicated that due to macro uncertainties, it is not prudent to raise guidance at this time, although the company expects stronger revenue growth in the second half of the year.

Additional News

In recent weeks, Taboola.com has seen notable activity beyond its earnings report. The company announced a strategic partnership with a major media conglomerate, aimed at expanding its reach and enhancing its content recommendation capabilities. Additionally, Taboola is reportedly exploring potential acquisition opportunities to further strengthen its position in the digital advertising space. This move aligns with its strategic growth initiatives and could provide a competitive edge against rivals. Moreover, the company's board has approved a new share buyback program, signaling confidence in its financial health and commitment to returning value to shareholders. These developments underscore Taboola's proactive approach to growth and shareholder engagement.