Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025 May 2025
Slide 2: Forward-Looking Statements - Disclaimer
Forward-Looking Statements - Disclaimer Certain statements in this presentation are forward-looking statements, including our Q2 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: Business & Financial Highlights
Business & Financial Highlights
Slide 5: Actuals Vs Guidance
Actuals Vs Guidance Results Exceed High End of Guidance Range Across All Metrics Q1 2025 Actuals Q1 2025 Guidance Revenues $427.5M $407 to $427M (+3% YoY) Gross profit $119.3M $109 to $115M (+10% YoY) ex-TAC Gross Profit1 $151.7M $142 to $148M (+9% YoY) Adj. EBITDA1 $35.9M $22 to $26M (+53% YoY) 1.
Slide 6: Q1 2025 Business Highlights
Q1 2025 Business Highlights Total Scaled Advertisers Highlights from the Quarter 9% YoY Growth ● Official launch of Realize, our new performance advertising platform 1,996 ● Scaled Advertisers growth benefiting from onboarding of unique supply and sales focus on ICPs and key industry verticals ● Ent
Slide 7: Revenue Growth Driven by Scaled Advertisers & Spend
Revenue Growth Driven by Scaled Advertisers & Spend Growing # of Scaled Advertisers As we look at growing our advertiser client #of Scaled Adv 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 cu
Slide 8: Guidance Summary
Guidance Summary Q2 2025 Guidance (3) FY 2025 Guidance (3) $438 to $458M $1,838 to $1,888M Revenues (+5% YoY) (+5% YoY) Gross profit $124 to $134M $536 to $552M (+14% YoY) (+2% YoY) $156 to $166M $674 to $690M ex-TAC Gross Profit1 (+8% YoY) (+2% YoY) $38 to $44M $201 to 209M Adj. EBITDA1 (+10% YoY)
Slide 9: Appendix
Appendix
Slide 10: 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 11: 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) ($0.0
Slide 12: Growth Driven by User Engagement & Yield
Growth Driven by User Engagement & Yield New Publisher ex-TAC Gross Profit¹ User Engagement Growth Driven ex-TAC Gross Profit Growth % 1 Primarily By New Publisher Supply ● Historically ~10% new supply growth 1 ● Projecting similar range going forward over the long term Yield Is Primary Driver Of Gr
Slide 13: Historical Revenues & ex-TAC Gross Profit (Reported Basis)
Historical Revenues & ex-TAC Gross Profit1 (Reported Basis) Revenues ex-TAC Gross Profit YoY Growth 8.7% 15.9% 1.6% 2.8% 22.7% 5.5% YoY Growth 29.2% 35.7% 9.8% -5.9% 24.6% 2.2% 1. Non-GAAP measure, see appendix for reconciliation to GAAP
Slide 14: Selected GAAP And Non-GAAP Metrics
Selected GAAP And Non-GAAP Metrics ($ in millions, FYE) 2019A 2020A 2021A 2022A 2023A 2024A 2025E Revenues $1,094 $1,189 $1,378 $1,401 $1,440 $1,766 $1,863 % YoY Growth 20.3% 8.7% 15.9% 1.7% 2.8% 22.7% 5.5% Gross Profit $232 $319 $441 $464 $426 $534 $544 % YoY Growth -0.9% 37.5% 38.2% 5.3% -8.3% 25.
Slide 15: Historical FY Actuals & FY 2025 Guidance
Historical FY Actuals & FY 2025 Guidance Actual Actual Actual Actual Guidance ($ in millions) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 YoY% $1,838 to Revenues $1,378 $1,401 $1,440 $1,766 4% to 7% $1,888 Gross Profit $441 $464 $426 $534 $536 to $552 0% to 3% ex-TAC Gross Profit¹ $519 $570 $536 $667 $6
Slide 16: Additional Modeling Assumptions
Additional Modeling Assumptions • Interest payments: $14.3M in 2024 • CapEx (includes investments in property and associated with $122.7M term loan related to equipment, leasehold improvements and the Connexity acquisition and ~$7M in 2025; capitalized software): $35M in 2024 and approximately $1.8M
Slide 17: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ in millions) 2019A 2020A 2021A 2022A 2023A 2024A Net income (loss) ($28.0) $8.5 ($24.9) ($12.0) ($82.0) ($3.8) Adjustments: Financial expenses (income), net $3.4 $2.7 ($11.3) ($9.2) $12.8 $12.0 Tax expenses $5.0 $14.9 $23.0 $7.5 $5.5 $17.7 (1) Depreciation and amort
Slide 18: Quarterly Results: Adjusted EBITDA Reconciliation
Quarterly Results: Adjusted EBITDA Reconciliation ($ in millions) FY 2023 Q1-24A Q2-24A Q3-24A Q4-24A FY 2024 Q1-25A Net income (loss) ($82.0) ($26.2) ($4.3) ($6.4) $33.1 ($3.8) ($8.7) Adjustments: Financials expenses (income), net $12.8 $3.6 ($1.0) $1.1 $8.2 $11.9 $4.5 Tax expenses (income) $5.6 $4
Slide 19: Ratio Of Adjusted EBITDA To ex-TAC Gross Profit Reconciliation
Ratio Of Adjusted EBITDA To ex-TAC Gross Profit Reconciliation ($ in millions) 2019A 2020A 2021A 2022A 2023A 2024A Gross Profit $232 $319 $441 $464 $426 $534 Net Income (loss) ($28) $8 ($25) ($12) ($82) ($4) Ratio of Net income (loss) to Gross profit (12%) 3% (6%) (3%) (19%) (1%) ex-TAC Gross Profit
Slide 20: ex-TAC Gross Profit Margin Reconciliation
ex-TAC Gross Profit Margin Reconciliation ($ in millions) 2019A 2020A 2021A 2022A 2023A 2024A 2025E Revenues $1,094 $1,189 $1,378 $1,401 $1,440 $1,766 $1,863 Gross Profit $232 $319 $441 $464 $426 $534 $544 Gross Profit Margin 21% 27% 1 32% 33% 30% 30% 29% Revenues $1,094 $1,189 $1,378 $1,401 $1,440
Slide 21: Historical Adj. Gross Profit Margin Reconciliation
Historical Adj. Gross Profit Margin Reconciliation ($ in millions) 2019A 2020A 2021A 2022A 2023A 2024A 2025E Revenues $1,094 $1,189 $1,378 $1,401 $1,440 $1,766 $1,863 Traffic Acquisition Cost (TAC) ($798) ($807) ($859) ($832) ($904) ($1,102) ($1,197) Amortization of non-cash based - - - - - $3 $16 C
Slide 22: Historical Free Cash Flow Reconciliation
Historical Free Cash Flow Reconciliation ($ in millions) 2020A 2021A 2022A 2023A 2024A Q1-25A Net cash from operating activities $139 $64 $53 $84 $184 $48 Net cash used in the following investing ($18) ($39) ($35) ($32) ($35) ($12) activities Intangible assets ($9) ($14) ($13) ($12) ($13) ($4) Purch
Slide 23: Supplemental Cash Flow Information
Supplemental Cash Flow Information 2020A 2021A 2022A 2023A 2024A Q1-25A Free Cash Flow $121.3 $24.5 $18.6 $52.2 $149.2 $36.1 Add back: Cash investment in publisher prepayments (net)¹ ($4.5) $7.3 $15.3 ($19.6) ($22.5) ($5.3) Cash interest expense for money borrowed $0.0 $1.1 $20.7 $18.5 $14.3 $2.2 To
Slide 24: Non-GAAP Net Income Reconciliation
Non-GAAP Net Income Reconciliation ($ in millions) 2021A 2022A 2023A 2024A Q1-25A Net income (loss) ($24.9) ($12.0) ($82.0) ($3.8) ($8.8) Adjustments: Amortization of acquired intangibles $23.0 $63.6 $63.9 $65.1 $17.8 Share-based compensation expenses (1) $63.8 $53.7 $60.0 $15.5 $124.2 Restructuring
Slide 25: 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 $3,000
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet As of Dec As of Dec As of Dec As of Dec As of Dec ($ 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 $1,719 Total Liabilities & Convertible
Slide 27: Q2 2025 and 2025 Full Year Guidance: ex-TAC Gross Profit Reconciliation
Q2 2025 and 2025 Full Year Guidance: ex-TAC Gross Profit Reconciliation Guidance Guidance ($ in millions) Q2-25 FY 2025 Revenues $438 to $458 $1,838 to $1,888 Traffic Acquisition Cost (TAC) ($282 - $292) ($1,164 - $1,198) Other Cost of Revenues ($32 - $32) ($138 - $138) Gross Profit $124 to $134 $53
Slide 28: 2025 Guidance: Supplemental Information
2025 Guidance: Supplemental Information Split Guidance ($ in millions) Q3 2025E Q4 2025E FY 2025 Revenues ~25% ~28% $1,838 to $1,888 ex-TAC Gross Profit ~24% ~30% $674 to $690 Adjusted EBITDA ~21% ~41% $201 to $209 Q3 and Q4 percentages are estimated quarterly percentages based on the midpoint of ou
Slide 29: Non-GAAP Financial Measures Note Regarding Adjusted EBITDA Guidance
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 30: Thank You
TabOela Thank You