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Apollo Management Holdings GP, LLC, a significant shareholder in Taboola.com Ltd. (NASDAQ:TBLA), recently disclosed the sale of a substantial number of shares in the company. According to a recent SEC filing, Apollo Management Holdings sold 988,296 non-voting ordinary shares at a price of $4.32 per share, totaling approximately $4.3 million. This transaction leaves the firm with 44,210,406 shares in Taboola. The company, currently valued at $1.02 billion, appears undervalued according to InvestingPro analysis, with strong fundamentals including a healthy balance sheet showing more cash than debt.
Additionally, as part of a share repurchase agreement, Taboola repurchased 586,946 non-voting ordinary shares from College Top Holdings, Inc. at a price of $3.25 per share, amounting to a total of about $1.9 million. This agreement includes weekly repurchases under specific conditions and is set to terminate by the end of 2025 or upon certain regulatory approvals. InvestingPro data reveals management’s aggressive share buyback strategy, with the company maintaining a high shareholder yield and impressive 15% free cash flow yield.
These transactions highlight ongoing adjustments in the ownership structure of Taboola, reflecting strategic financial maneuvers by major stakeholders. With revenue of $1.77 billion and a strong liquidity position evidenced by a current ratio of 1.35, the company demonstrates solid financial footing. Discover more insights about TBLA and 1,400+ other stocks through comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Taboola reported its fourth-quarter earnings for 2024, revealing a slight miss on earnings per share, posting $0.10 against the forecasted $0.11. Revenue also fell short, coming in at $410 million compared to the anticipated $476.56 million. For the full year, Taboola achieved revenues of $1.77 billion, with Ex TAC Gross Profit seeing a 25% increase to $667.5 million and Adjusted EBITDA growing 104% to $200.9 million. Despite the earnings miss, Taboola announced a $200 million expansion to its stock repurchase program, which B.Riley analysts noted as a positive development, though they downgraded the stock to Neutral and lowered the price target to $4.00.
Benchmark also adjusted its price target for Taboola, reducing it to $4.50 while maintaining a Buy rating, citing disappointing growth projections for the company’s native advertising business in 2025. Citizens JMP analysts downgraded Taboola to Market Perform, following the company’s admission of a smaller-than-expected market in native advertising, which impacted its 2025 guidance significantly. Taboola’s new performance advertising platform, "Realize," aims to capture a $55 billion market opportunity, shifting focus from native advertising to direct response marketing. The company remains optimistic about leveraging its scalable first-party data and AI tools to drive future growth.
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