NEW YORK - Taboola (NASDAQ:TBLA), a global leader in powering recommendations for the open web, has shared its financial results for the fourth quarter ended December 31, 2023, and provided guidance for the fiscal year 2024.
The company reported a 13% increase in Q4 2023 revenue and a 6% rise in ex-TAC (Traffic Acquisition Costs) Gross Profit, with an Adjusted EBITDA of $50.1 million surpassing the upper range of its guidance.
Looking ahead, Taboola anticipates a significant year-over-year growth for 2024, projecting approximately $2 billion in revenue, which marks a 33% increase. The company also expects a gross profit of around $545 million, up by 28%, and an ex-TAC Gross Profit of approximately $670 million, a 25% increase.
The Adjusted EBITDA is forecasted to exceed $200 million, more than doubling from the previous year, with Free Cash Flow projected to surpass $100 million, nearly doubling as well.
Taboola attributes this growth to several factors, including the performance of Yahoo, which is expected to contribute over $100 million in Q1 2024, and the selection of Taboola as the official advertising partner by another iconic consumer company.
The company's investment in AI technology is also expected to yield positive growth beginning in Q2 2024, with more than half of its advertising revenue benefiting from the adoption of the Maximize Conversion AI tool.
In addition, Taboola has announced a new $100 million buyback authorization, representing about 6% of its current market cap. The company's e-commerce segment experienced double-digit growth in 2023 and, coupled with the Taboola News and Bidder platforms, is positioned well for continued success.
CEO Adam Singolda expressed pride in Taboola's team for their high performance and dedication, which he believes has set the stage for a record year in 2024. The company remains confident in its ability to deliver on its financial targets, reiterating its guidance for a considerable increase in Adjusted EBITDA and Free Cash Flow.
Overall, Taboola's financial outlook for 2024 reflects the company's strategic investments and partnerships, which are expected to drive significant growth and profitability. This information is based on a press release statement from Taboola.
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