Slide 1: Investor Presentation Q4 & FY 2024
Investor Presentation Q4 & FY 2024
Slide 2: Forward-Looking Statements - Disclaimer
Forward-Looking Statements - Disclaimer Certain statements in this presentation are forward-looking statements, including our Q1 2025 and full-year 2025 guidance and our expectations for Realize, our new performance advertising platform. Forward-looking statements generally relate to future events i
Slide 3: Today's Presenters
Today’s Presenters Adam Singolda Stephen Walker Founder & CEO CFO ● Founded Taboola in 2007; Has led the ● Joined Taboola in 2014 when the Company Company as its CEO ever since acquired Perfect Market, which Steve founded ● Previously: Israeli National Security Agency ● Previously: ● Graduated first
Slide 4: Taboola is Performance
Display Ad Vertical Ad Taboola is Paid Performance Using AI to drive performance advertising outcomes beyond search and social Editorial Native Ad Carrousel
Slide 5: Agenda
Agenda Taboola Capturing Share of 1 $55B+ Performance Ad Market* Taboola’s Differentiation 2 and Why We Win 3 Strong Financial Profile Q4 2024 Updates & 4 Momentum * Based on Company estimates outside of search and social
Slide 6: Our Market Through the Advertiser's Lens
Our Market Through the Advertiser’s Lens “Branding” top-of-funnel “Performance” top-mid-funnel ~$170B ~$160B ~$250B * The information provided is based on the Company's estimates
Slide 7: Search, Social, Taboola.
Search, Social, Taboola. “Branding” top-of-funnel ~$55B “Performance” top-mid-funnel 1. *Table cells’ size are not proportionate to spend ** The information provided is based on the Company's estimates
Slide 8: Performance Advertiser Challenges Today
Performance Advertiser Challenges Today AD TECH GENERIC DSPs SOCIAL ADVERTISING Fragmented with sub-optimal Full funnel approach = high cost / Diminishing returns/”Maxing Out” performance inconsistent performance / DIY Lead Generation Lead Nurture 1. Sourced from LUMA Partners LLC Sales
Slide 9: Professional Marketers Need Specialized Solutions
Professional Marketers Need Specialized Solutions All in one product Best of breed products
Slide 10: Taboola Is Well Positioned To Become A Must Buy For Performance Advertisers
Taboola Is Well Positioned To Become A “Must Buy”For Performance Advertisers In The Open Web • Long term exclusive publisher agreements • Scaled, direct advertisers Advertisers • AI technology • ~600M DAU 1st party, contextual data
Slide 11: The Opportunity In Front Of Us
The Opportunity In Front Of Us Performance advertisers are poorly served Outcomes at Scale Distribution + Data + AI Huge advantage = to capture market share
Slide 12: Bombas Increases ROAS by 50% with First-Ever Holiday Slippers Campaigns
“Throughout our long-standing partnership with Taboola, we have seen incredible campaign results, and it’s great to see the recent success of our slippers — a category we’ve been especially focused on. It’s important for us to invest in strategies and partner with companies that drive tangible resul
Slide 13: Re-writing The Performance Advertising Code
Re-writing The Performance Advertising Code CONSIDERATION Intent Prospecting Discover & qualify high intent users based on their interactions with your ads or site PURCHASE Conversion Targeting Close the deal with qualified audiences
Slide 14: Going Beyond Native
Going Beyond Native Display Vertical New Creative Options Native Motion * New placements Advanced AI creative tools that drive performance Home Buyers Are Saving More Than Ever (See Why) Don’t let your dream home feel out of reach. Personalized mortgages make it simpler than ever to take the next st
Slide 15: Finding Audiences At Scale
Finding Audiences At Scale Reach Audiences Beyond Search & Social ~600m Daily Active Users Across ~11k digital properties Up to 1 trillion monthly AI-driven recommendations
Slide 16: Agenda
Agenda Taboola Capturing Share of 1 $55B+ Performance Ad Market* Taboola’s Differentiation 2 and Why We Win 3 Strong Financial Profile Q4 2024 Updates & 4 Momentum * Based on Company estimates outside of search and social
Slide 17: Why Taboola
Why Taboola Bringing walled garden performance experiences to an $55B+ Performance market* 1 Specialized for performance advertisers 2 Long-term, exclusive access to supply and direct relationships with advertisers 3 AI driven tech platform that is best-in-class 4 Our data advantage Positioned for c
Slide 18: Specialized For Performance Advertisers
1 Specialized For Performance Advertisers Taboola’s powerful performance ad platform Delivering outcomes at scale for advertisers beyond search and social
Slide 19: Long-term, Exclusive Access To Supply And Direct Relationships With Advertisers
2 Long-term, Exclusive Access To Supply And Direct Relationships With Advertisers Highly predictable supply base with 98%+ of supply consistent from quarter to quarter Long-term, exclusive partnerships and Direct relationships with blue-chip, native integrations with the world’s brand name global ad
Slide 20: AI-driven Tech Platform That Is Best-in-class
3 AI-driven Tech Platform That Is Best-in-class Our unified tech stack offers comprehensive platforms for publishers and advertisers underpinned by AI ENGAGEMENT AUDIENCE MONETIZATION Comprehensiv e publisher Organic Recs Taboola News Feed platform Homepage For You Newsroom Video Reel & Slider Deep
Slide 21: Our Data Advantage
4 Our Data Advantage AI + Data that Drive Results At Scale Publisher Tech Unique 1st party data Sophisticated Matchmaking AI that powers organic and paid signals from our deep built over 17 years, trained on recommendations publisher integration unique data Engaging audiences with highly-targeted, r
Slide 22: Our Scale Drives Network Effect That Creates Competitive Advantage
5 Our Scale Drives Network Effect That Creates Competitive Advantage Our predictable access to scale creates strong network effects that drive higher yield More Users Reached More Data Our Scale Drives Higher More Frequently Generated Yield Through: ~600M daily 1 trillion monthly active users recomm
Slide 23: Taboola News
6 Taboola News Bringing Premium Content To People Everywhere & Driving Audience For Our Publisher Partners Taboola News delivers relevant It creates new opportunities content from our premium for engagement and publisher partners, integrated revenue for mobile carriers, into mobile phones and other
Slide 24: Proven, Founder-led Management Team
7 Proven, Founder-led Management Team Adam Singolda Stephen Walker Eldad Maniv Lior Golan Kristy Sundjaja 17 years at Taboola 10 years at Taboola 13 years at Taboola 16 years at Taboola 5 years at Taboola Founder & CEO CFO President & COO CTO CPO Tal Sliwowicz Ehud Furman Bill Glass Blythe Holden To
Slide 25: Agenda
Agenda Taboola Capturing Share of 1 $55B+ Performance Ad Market* Taboola’s Differentiation 2 and Why We Win 3 Strong Financial Profile Q4 2024 Updates & 4 Momentum * Based on Company estimates outside of search and social
Slide 26: Strong Financial Profile
8 Strong Financial Profile STRONG BALANCE GENERATING CASH FAST GROWING HIGH PROFITABILITY SHEET FLOW $667M $201M $104M $149M 2024 2024 2024 Net Cash Position ex-TAC Gross Profit(1) Adj. EBITDA(1) Free Cash Flow(1) 18% 30% $227M 50-60% Seven Year Compounded 2024 Adjusted EBITDA Cash Balance at End Av
Slide 27: Financial Highlights
Financial Highlights Tabla
Slide 28: Taboola Focuses on Profitable Growth
Taboola Focuses on Profitable Growth ex-TAC Gross Profit1 Adjusted EBITDA1 ($ in millions) ($ in millions) CAGR ‘17A - ‘24A: CAGR ‘17A - ‘24A: 15.4% 20.1% YoY Growth 5.1% 29.2% 35.7% 9.8% -5.9% 24.6% Ratio* 11.5% 27.8% 34.5% 27.5% 18.4% 30.0% *Ratio is of Adj.EBITDA to ex-TAC Gross Profit1 1. Non-GA
Slide 29: Revenue Model Drives High Incremental Margins
Revenue Model Drives High Incremental Margins Engagement Number of Frequency of Depth of (Page views / ad impressions) unique users engagement engagement x Yield Depth / breadth AI technology Quality of data (RPM / CPM) of advertisers (ability to target) = ● Revenue paid by Advertisers, before traff
Slide 30: Guidance Summary
Guidance Summary Q1 2025 Guidance (3) FY 2025 Guidance (3) $407 to $427M $1,838 to $1,888M Revenues (+1% YoY) (+6% YoY) Gross profit $109 to $115M $536 to $552M (+3% YoY) (+2% YoY) $142 to $148M $674 to $690M ex-TAC Gross Profit1 (+4% YoY) (+2% YoY) $22 to $26M $201 to 209M Adj. EBITDA1 (+3% YoY) (+
Slide 31: Revenue Growth Driven by Advertisers & Spend
Revenue Growth Driven by Advertisers & Spend Growing # of Scaled Advertisers #of Scaled Adv As we look at growing our advertiser client base, we want to grow the number of advertisers that spend with us at scale. We define a Scaled Advertiser as an Advertiser that has more than $100,000 of cumulativ
Slide 32: Growth Driven by User Engagement & Yield
Growth Driven by User Engagement & Yield New Publisher ex-TAC Gross Profit¹ User Engagement Growth Driven ex-TAC Gross Profit Growth % 1 Primarily By New Publisher Supply ● Historically ~10% new supply growth 1 ● Projecting similar range going forward over the long term Yield Is Primary Driver Of Gr
Slide 33: Why Taboola
Why Taboola Bringing walled garden performance experiences to an $55B+ Performance Ad Market* 1 Specialized for performance advertisers 2 Long-term, exclusive access to supply and direct relationships with advertisers 3 AI driven tech platform that is best-in-class 4 Our data advantage Positioned fo
Slide 34: Agenda
Agenda Taboola Capturing Share of 1 $55B+ Performance Ad Market* Taboola’s Differentiation 2 and Why We Win 3 Strong Financial Profile Q4 2024 Updates & 4 Momentum * Based on Company estimates outside of search and social
Slide 35: Q4 2024 Business Highlights
Q4 2024 Business Highlights Scaled Advertiser # Avg Revenue Per Scaled Advertiser ~19% YoY Growth ~1% YoY Growth 2,100 ~$199,000 Scaled Advertiser # Avg Revenue per Scaled Advertiser Highlights & Initiatives Highlights & Initiatives ● +6% QoQ, Q4 seasonality ● +6% QoQ, Q4 seasonality ● Record # of S
Slide 36: Q4 2024 Actuals Vs Guidance
Q4 2024 Actuals Vs Guidance Q4 2024 Actuals Q4 2024 Guidance Revenues $491.0M $460 to $490M Gross profit $177.6M $180 to $196M ex-TAC Gross Profit1 $212.7M $205 to $221M Adj. EBITDA1 $92.3M $83 to $99M 1. Non-GAAP measures, see appendix for reconciliation to GAAP
Slide 37: FY 2024 Actuals Vs Guidance
FY 2024 Actuals Vs Guidance FY 2024 Actuals FY 2024 Guidance Revenues $1,766.2 $1,735 to $1,765M (+23% YoY) (+22% YoY) Gross profit $534.2M $535 to $555M (+26% YoY) (+28% YoY) ex-TAC Gross Profit1 $667.5M $656 to $679M (+25% YoY) (+25% YoY) $200.9M $200M+ Adj. EBITDA1 (+104% YoY) (+2x YoY) 1. Non-GA
Slide 38: Appendix
Appendix Tab@la
Slide 39: Our Model In A Nutshell
Our Model In Model components: Sample inputs / financials: Illustrative Taboola economics: Revenues(1) $909 $1.00 (100%) A Nutshell Traffic Acq Cost (Value to publishers) - ($627) ($0.69) = ex-TAC Gross Profit(2) $282 $0.31 - Cost of Revenues ($48) ($0.05) = Gross profit $234 $0.26 - R&D ($73) ($0.0
Slide 40: Historical Revenues & ex-TAC Gross Profit (Reported Basis)
Historical Revenues & ex-TAC Gross Profit1 (Reported Basis) Revenues ex-TAC Gross Profit YoY Growth 20.3% 8.7% 15.9% 1.6% 2.8% 22.7% YoY Growth 5.1% 29.2% 35.7% 9.8% -5.9% 24.6% 1. Non-GAAP measure, see appendix for reconciliation to GAAP
Slide 41: Selected GAAP And Non-GAAP Metrics
Selected GAAP And Non-GAAP Metrics ($ in millions, FYE) 2018 2019 2020 2021 2022 2023 2024 Revenues $909 $1,094 $1,189 1,378 1,401 1,440 1,766 % Yoy Growth 20.0% 20.3% 8.7% 15.9% 1.7% 2.8% 22.7% Gross Profit $234 $232 $319 $441 $464 $426 $534 % Yoy Growth 31.1% -0.9% 37.5% 38.2% 5.3% -8.3% 25.5% ex-
Slide 42: FY Actuals
FY 24 Actuals Actual Actual Actual Actual ($ in millions) FY 2021 FY 2022 FY 2023 FY 2024 YoY% Revenues $1,378 $1,471 $1,440 1,766 23% Gross Profit $441 $464 $426 $534 25% ex-TAC Gross Profit1 $519 $570 $536 $667 24% Adjusted EBITDA1 $179 $157 $99 $201 104% Non-GAAP Net Income1 $14 $91 $33 $122 274%
Slide 43: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net income (loss) ($2.7) $2.8 $10.7 ($28.0) $8.5 ($24.9) ($12.0) ($82.0) ($3.8) Adjustments Financial expenses (income), net 0.8 (0.3) 1.3 3.4 2.7 (11.3) (9.2) 12.8 12.0 Tax expenses 4.3 5.1 5.3 5.0 14.9 23.0
Slide 44: Quarterly Results: Adjusted EBITDA Reconciliation
Quarterly Results: Adjusted EBITDA Reconciliation ($ in millions) Q1-23 Q2-23 Q3-23 Q4-23 FY 2023 Q1-24 Q2-24 Q3-24 Q4-24 FY 2024 Net income (loss) ($31.3) ($31.3) ($23.1) $3.7 ($82.0) ($26.2) ($4.3) ($6.4) $33.1 ($3.8) Adjustments Financial expenses (income), net 3.2 3.8 4.4 1.4 12.8 3.6 (1.0) 1.1
Slide 45: Ratio Of Adjusted EBITDA To ex-TAC Gross Profit Reconciliation
Ratio Of Adjusted EBITDA To ex-TAC Gross Profit Reconciliation ($ in millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Gross Profit $101 $179 $234 $232 $319 $441 $464 $426 $534 Net Income (loss) (3) 3 11 (28) 8 (25) (12) (82) (3.8) Ratio of Net income (loss) to Gross profit -3% 2% 5% -12% 3% -6
Slide 46: ex-TAC Gross Profit Margin Reconciliation
ex-TAC Gross Profit Margin Reconciliation ($ in millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues $552 $578 $909 $1,094 $1,189 $1,378 $1,401 $1,440 $1,766 Gross Profit 101 179 234 232 319 440 464 426 534 Gross Profit Margin 18% 24% 26% 21% 27% 32% 33% 30% 30% Revenues $552 $578 $909 $1
Slide 47: Historical Adj. Gross Profit Margin Reconciliation
Historical Adj. Gross Profit Margin Reconciliation ($ in millions) 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues $552 $757 $909 $1,094 $1,189 $1,378 $1,401 $1,440 $1,766 Traffic Acquisition Cost (TAC) 428 554 628 798 807 859 832 904 1,102 Amortization of non-cash based - - - - - - - - 3 Comm
Slide 48: Historical Free Cash Flow Reconciliation
Historical Free Cash Flow Reconciliation ($ in millions) 2020 2021 2022 2023 2024 Net cash from Operating activities 1 $139 $64 $53 $84 $184 Net cash used in the following investing activities ($18) ($39) ($35) ($32) ($35) Other Cost of Revenues (9) (14) (13) (12) (13) Purchase of IT equipment & Lea
Slide 49: Supplemental Cash Flow Information
Supplemental Cash Flow Information 2020 2021 2022 2023 2024 Free Cash Flow $121.3 $24.5 $18.6 $52.2 $149.2 Add Back: Cash Investment in Publisher prepayments (net) 1 (4.5) 7.3 15.3 (19.6) (22.5) Cash interest expense for money borrowed 0.0 1.1 20.7 18.5 14.3 Total – Cash generated before cash intere
Slide 50: Non-GAAP Net Income Reconciliation
Non-GAAP Net Income Reconciliation ($ in millions) 2021 2022 2023 2024 Net income (los) ($24.9) ($12.0) ($82.0) ($3.8) Adjustments Amortization of acquired intangibles 23.0 63.6 63.9 65.1 Share-based compensation expenses 1 124.2 63.8 53.7 60.0 Restructuring expenses - 3.4 - - Holdback compensation
Slide 51: Example Of Publisher Prepayments
Example Of Publisher Prepayments $3,000 50% 5 $6,000 Assumptions: Prepayment ($M) Revenue Share Year Term Annual Revenue ($M) Accrual Accounting Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Revenue $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 Traffic Acquisition cost (TAC): Rev Share $3,000 $3,000 $3,000
Slide 52: Consolidated Balance Sheet
Consolidated Balance Sheet As of Dec As of Dec As of Dec As of Dec As of Dec ($ in millions) 31, 2020 31, 2021 31, 2022 31, 2023 31, 2024 Cash, cash equivalents, short-term deposits $243 $319 $263 $183 $231 and investments Total Assets $580 $1,598 $1,530 $1,708 $1,719 Total Liabilities & Convertible
Slide 53: Q1 2025 and 2025 Full Year Guidance: ex-TAC Gross Profit Reconciliation
Q1 2025 and 2025 Full Year Guidance: ex-TAC Gross Profit Reconciliation Guidance Guidance ($ in millions) Q1-25 FY 2025 Revenues $407 to $427 $1,838 to $1,888 Traffic Acquisition Cost (TAC) ($265 to $279) ($1,164 to $1,198) Other Cost of Revenues ($33 to $33) ($138 to $138) Gross Profit $109 to $115
Slide 54: Q1 2025 and 2025 Full Year Guidance: Supplemental Information
Q1 2025 and 2025 Full Year Guidance: Supplemental Information Split Guidance ($ in millions) First Half Second Half FY 2025 Revenues 47% 53% $1,838 to $1,888 ex-TAC Gross Profit 45% 55% $674 to $690 Adjusted EBITDA 32% 68% $201 to $209
Slide 55: Non-GAAP Financial Measures
Non-GAAP Financial Measures This Presentation includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow and Non-GAAP Net Income (Loss), which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performa
Slide 56: Thank You
TabOela Thank You