Fubotv earnings beat by $0.10, revenue topped estimates
Apollo Management Holdings GP, LLC, a significant stakeholder in Taboola.com Ltd. (NASDAQ:TBLA), recently sold a substantial portion of its non-voting ordinary shares in the company. According to a recent filing, Apollo Management disposed of 988,296 shares on June 3, 2024, at a price of $4.32 per share, totaling approximately $4.27 million. The stock, currently trading at $3.03, appears undervalued according to InvestingPro analysis, with a market capitalization of $1.02 billion.
These transactions are part of a broader share repurchase agreement between Taboola and College Top Holdings, Inc., an entity associated with Apollo Management. Under the agreement, Taboola is conducting weekly repurchases of shares from College Holdings at prices determined by a market-based formula. InvestingPro data shows management has been aggressively buying back shares, demonstrating confidence in the company’s future prospects.
Following these transactions, Apollo Management Holdings GP, LLC, still holds a significant position in Taboola, with 44,210,406 shares remaining. This ongoing activity reflects Apollo’s strategic approach to managing its investment in Taboola. The company maintains a healthy balance sheet with a current ratio of 1.35 and trades below book value. Discover more insights about Taboola’s financial health and 12 additional ProTips with a subscription to InvestingPro.
In other recent news, Taboola reported its fourth-quarter earnings for 2024, missing expectations with an earnings per share (EPS) of $0.10 compared to the forecasted $0.11 and revenue of $410 million, which was below the anticipated $476.56 million. Despite the quarterly miss, the company achieved annual revenue of $1.77 billion, with a 25% increase in Ex TAC Gross Profit and a 104% growth in adjusted EBITDA, reaching $200.9 million. Additionally, Taboola expanded its stock repurchase program by $200 million, a move acknowledged by B.Riley analysts as a positive development, though they downgraded the stock to Neutral with a price target of $4.00. Benchmark also revised its outlook, cutting the price target to $4.50 while maintaining a Buy rating, citing a disappointing outlook for Taboola’s core native advertising business. Citizens JMP analysts downgraded the stock to Market Perform, highlighting the company’s admission that the native advertising market is smaller than expected, leading to lower 2025 guidance. Taboola is shifting its strategy towards a new product, Realize, aiming to leverage its data and AI tools for performance marketing, although the initial demand for this new platform remains uncertain.
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