Business
Taboola Announces Cost Restructuring To Ensure Continued Profitable Growth and Free Cash Flow
Realigning and restructuring teams to focus on three top priorities: performance advertising, e-Commerce and header biddingExpect to reduce 2023 Operating
About this update from Taboola.com Ltd.
[{"type":"text","content":"Realigning and restructuring teams to focus on three top priorities: performance advertising, e-Commerce and header biddingExpect to reduce 2023 Operating Expenses by $50M, further improving Adjusted EBITDA* and Free Cash Flow*, two non-GAAP metrics we focus onCost savings achieved via a workforce reduction of approximately 6%, as well as $23M reduction in discretionary expenses and $15M reduction in capital expenditures in 2023Reaffirming Q3 Guidance and expects to generate over $152M in Adjusted EBITDA in 2022 NEW YORK, Sept. 13, 2022 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, helping people discover things they may like, today announced a cost restructuring program that will allow the company to continue focusing on top priorities, and ensuring profitable growth and Free Cash Flow in 2023 and beyond. This plan will enable investment where Taboola sees opportunities for growth, with resources focused on the company’s top three priorities: improving its performance advertising business, driving further growth in e-Commerce, and growing its recently launched header bidding business. The company expects this cost restructuring to result in $50M of savings in operating expenses in 2023, with a significant portion translating to improved Adjusted EBITDA and Free Cash Flow. The savings will be achieved by restructuring teams across geographies primarily in lower priority activities, resulting in an overall reduction of global headcount by approximately 6%. The company will also trim an additional $23M from 2023 discretionary expense budgets and reduce capital expenditures by an additional $15M in 2023. Taboola expects this program to be largely completed by year-end with a majority of the changes taking place in 2022. The company reaffirmed guidance for Q3 2022 and has stated it expects to generate over $152M in Adjusted EBITDA for FY 2022. “The investments we’ve made in our business to-date assumed a higher rate of revenue growth based on our decade-long track record of execution. We now need to adapt to the current market environment, and our growth rates in 2022, which are not meeting our original expectations. We are setting ourselves up for the long term success of Taboola and investing in areas related to our winning aspirations, having our teams be even more focus...