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NEW YORK - Taboola (NASDAQ:TBLA) reported first-quarter 2025 results that exceeded revenue expectations, driving its shares up 4.5% in after-hours trading. The digital advertising company posted revenue growth and improved profitability, while providing guidance largely in line with analyst estimates.
Taboola’s revenue for the quarter reached $427.5 million, surpassing the analyst consensus of $417.35 million and marking a 3% increase YoY. The company’s adjusted earnings per share came in at -$0.03, above the -$0.05 estimate. Revenue growth was primarily driven by a 9% increase in Scaled Advertisers, partially offset by a 3% decline in Average Revenue per Scaled Advertiser.
"We’re pleased to start the year off strong, coming in above our guidance across all key metrics," said Adam Singolda, CEO of Taboola. "We’re building real momentum — fueled by disciplined execution, traction on our Realize platform, and a deep belief in our long-term opportunity."
The company’s ex-TAC Gross Profit, a key metric, rose 9% to $152 million, including a -0.7% impact from currency fluctuations. Adjusted EBITDA increased 53% to $36 million, with margins expanding to 23.7% from 16.9% in the same quarter last year.
Looking ahead, Taboola provided guidance for the second quarter, projecting revenue between $438 million and $458 million, compared to the analyst consensus of $447.51 million. For the full year 2025, the company expects revenue in the range of $1.838 billion to $1.888 billion, aligning with the $1.86 billion consensus estimate.
The company’s operating loss narrowed to $6 million from $18 million in the year-ago quarter, while free cash flow improved to $36 million from $27 million. Taboola’s focus on cost discipline and improved collections contributed to the enhanced cash flow performance.
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