Taboola shares plunge 9% as FY25 guidance disappoints following mixed Q4 results

Published 26/02/2025, 12:58
Updated 26/02/2025, 15:28
© Rafael Henrique / SOPA Images/Si via Reuters Connect

NEW YORK -On Wednesday, Taboola.com Ltd. (NASDAQ:TBLA), the digital advertising company, reported a fourth-quarter earnings miss, while revenue exceeded analyst estimates. The company also provided weaker-than-expected guidance for 2025.

The company’s shares are trading 9.4% lower in premarket trading at 9:24 A.M ET despite initially jumping 5%.

The company posted revenue of $491 million for the fourth quarter, surpassing the consensus estimate of $476.56 million. However, adjusted earnings per share came in at $0.10, slightly below expectations of $0.11.

For the first quarter of 2025, Taboola forecasts revenue between $407 million and $427 million, falling short of analysts’ projections of $458.2 million. The company’s full-year 2025 revenue outlook of $1.838 billion to $1.888 billion also missed the Street consensus of $2.03 billion.

"2024 proved to be a transformative year for Taboola," said CEO Adam Singolda. "Our team remained focused and dedicated, delivering the strong results we set out to achieve two years ago."

Taboola reported that its ex-TAC gross profit, a key metric, rose to $212.7 million in Q4 from $168.5 million a year earlier. The company’s adjusted EBITDA nearly doubled to $92.3 million from $50.1 million in the prior-year quarter.

The company also announced an expansion of its share repurchase program by up to $200 million, signaling confidence in its future prospects despite the softer outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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