Taboola's Q4 2024: Discrepancies in Apple Partnerships, Platform Development, and Market Threats

These are the key contradictions discussed in Taboola's latest 2024Q4 earnings call, specifically including: Apple partnership revenue contributions, Realize platform development timeline, Amazon as a threat, and focus on performance advertising:



Record Financial Performance:
- Taboola reported ex-TAC gross profit of $667 million for the full year 2024, representing 25% growth versus the prior year, and adjusted EBITDA of $201 million, more than double the results from the previous year.
- The growth was driven by strong performance technology and first-party data that enabled value for both advertisers and publishers.

Free Cash Flow and Shareholder Returns:
- Taboola exceeded its free cash flow target, delivering $149 million, a 49% increase over the minimum target and 2.9x compared to the prior year.
- The excess free cash flow was used to announce a $200 million expansion to its buyback authorization, reinforcing commitment to balancing growth and cash generation.

Realize Platform Launch:
- Taboola launched Realize, a new performance advertising platform, to expand beyond native advertising and capture a broader market opportunity estimated at $55 billion.
- The initiative aims to address advertiser demand for broader performance advertising solutions, leveraging first-party data, AI, and publisher relationships.

Yahoo and Enterprise Advertiser Partnerships:
- The integration of Yahoo and onboarding of enterprise advertisers like Samsung and Verizon contributed to Taboola's strong financial performance.
- These partnerships enhanced supply and demand, allowing Taboola to provide a comprehensive solution for performance advertising.