Fubotv earnings beat by $0.10, revenue topped estimates
In a recent transaction, Limon Zvi, Chairman of the Board at Taboola.com Ltd. (NASDAQ:TBLA), acquired 250,000 ordinary shares of the company. The shares were purchased at a weighted average price of $2.83 per share, amounting to a total value of $707,500. This acquisition was executed through multiple trades at prices ranging from $2.78 to $2.90. The purchase comes as InvestingPro data shows the stock trading near oversold levels, with management demonstrating confidence through active share buybacks. The company currently maintains a GOOD financial health score, suggesting strong fundamentals despite recent price volatility.
Following this transaction, Zvi holds a total of 3,405,889 shares indirectly, with the shares being held by a trust where his spouse is the beneficiary. Additionally, he owns 187,759 shares directly, which includes 59,172 restricted share units (RSUs) set to vest on May 1, 2025, contingent on continuous service. Each RSU entitles the holder to receive one ordinary share upon vesting and settlement. With a market capitalization of approximately $957 million, InvestingPro analysis suggests the stock is currently undervalued. Discover 12 more exclusive ProTips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, Taboola reported its fourth-quarter earnings for 2024, revealing a slight miss on earnings per share (EPS) expectations, posting $0.10 against a forecast of $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 a 25% increase in Ex TAC Gross Profit, reaching $667.5 million. Despite these misses, the company reported significant growth in adjusted EBITDA and free cash flow, with the latter exceeding expectations at $149.2 million.
Analyst reactions to Taboola’s recent performance have been mixed. Benchmark maintained a Buy rating but lowered the price target to $4.50, citing disappointing growth projections for 2025. B.Riley took a more cautious stance, downgrading Taboola from Buy to Neutral and reducing the price target to $4.00, indicating a longer timeline for the company’s new strategy to take effect. Citizens JMP also downgraded the stock to Market Perform, pointing to a smaller-than-expected market for Taboola’s core native advertising business.
Taboola is shifting its focus to a new product, Realize, aiming to expand into the performance marketing space beyond native advertising. This strategy leverages Taboola’s first-party data and AI tools, though the company’s go-to-market approach for Realize remains in early stages. Despite these challenges, Taboola has announced a $200 million expansion to its stock repurchase program, reflecting confidence in its long-term strategy.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.