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NEW YORK - Taboola (NASDAQ:TBLA), a prominent player in the advertising technology sector with a market capitalization of $1.01 billion, has projected that its first-quarter financials for 2025 will likely reach the upper end of its previously stated guidance ranges. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value assessment, with analysts setting price targets between $4.00 and $4.50 per share. The company, renowned for its performance advertising technology, anticipates robust performance across key financial metrics, including Revenues, Gross profit, ex-TAC Gross Profit, and Adjusted EBITDA.
The preliminary and unaudited indications suggest that the results are on track to meet the higher spectrum of the company’s forecasts. Taboola plans to make a comprehensive report of its first-quarter earnings public before the market opens on May 7, 2025. InvestingPro data shows the company maintains strong financial health with a GOOD overall score, and notably holds more cash than debt on its balance sheet. However, it is important to note that these figures are preliminary and may be subject to adjustments.
In addition to the financial update, Taboola is hosting an Investor Day today at 10:00 a.m. ET. The event will be available for live streaming through the company’s investor relations website.
Taboola’s Realize ad platform is utilized by thousands of businesses seeking to extend their advertising reach beyond traditional search and social media channels. The platform reportedly engages around 600 million daily active users, offering advertisers access to premium publishers like NBC News, Yahoo, and partnerships with OEMs such as Samsung and Xiaomi.
The company’s reliance on non-GAAP financial measures such as ex-TAC Gross Profit and Adjusted EBITDA provides supplemental insight into its financial health, although these are not standard GAAP measures. Taboola believes these non-GAAP measures offer valuable perspective on the company’s operational performance and future business trends.
Despite the positive outlook, the company has not provided a preliminary indication for Net income (loss), the most directly comparable GAAP measure, due to unpredictable elements like share-based compensation expenses and warrant valuations. The absence of this information does not permit an accurate forecast of Net income (loss) at this time. However, InvestingPro analysis reveals that net income is expected to grow this year, with analysts projecting profitability. For deeper insights into Taboola’s financial outlook and access to comprehensive Pro Research Reports covering 1,400+ top stocks, consider exploring InvestingPro’s advanced analytics platform.
This news is based on a press release statement from Taboola, and while the forward-looking statements reflect the company’s current expectations for its financial performance, they are subject to risks and uncertainties that could cause actual results to differ materially from these projections.
In other recent news, Taboola has established a $270 million revolving credit facility, which allowed the company to retire its existing term loan. This refinancing move is expected to save the company $3 to $5 million annually in interest and extend debt maturities to 2030. Benchmark and B.Riley have both revised their ratings for Taboola, with Benchmark lowering its price target to $4.50 while maintaining a Buy rating, and B.Riley downgrading the stock to Neutral with a new price target of $4.00. Citizens JMP also downgraded Taboola to Market Perform, citing a smaller-than-expected market for native advertising and disappointing 2025 guidance.
Taboola’s recent earnings report revealed a miss on both earnings per share and revenue expectations for the fourth quarter of 2024. The company reported an EPS of $0.10, below the forecast of $0.11, and revenue of $410 million, falling short of the anticipated $476.56 million. Despite these misses, Taboola achieved strong annual growth in adjusted EBITDA and free cash flow, with revenues reaching $1.77 billion for the full year 2024. The company has launched a new performance advertising platform called "Realize" to expand its market opportunities beyond native advertising. Analysts have noted that while the company’s new strategy may take time to impact its business, Taboola’s strong adjusted EBITDA margins and cash flow generation could provide some downside protection.
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