Slide 1: Q2 2025 Highlights & Supplemental Information
Q2 2025 Highlights & Supplemental Information August 6, 2025
Slide 2: Forward-Looking Statements - Disclaimer
Forward-Looking Statements - Disclaimer Certain statements in this presentation are forward-looking statements, including our Q3 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 Key Metrics Q2 2025 Actuals Q2 2025 Guidance Revenues $465.5M $438 to $458M (+9% YoY) Gross profit $135.6M $124 to $134M (+18% YoY) ex-TAC Gross Profit1 $172.1M $156 to $166M (+15% YoY) Adj. EBITDA1 $45.2M $33 to $44M (+21% YoY
Slide 6: Revenue Growth Driven by Scaled Advertisers & Spend
Revenue Growth Driven by Scaled Advertisers & Spend #of Scaled Adv Q2 2025 Highlights ● Revenue from Scaled Advertisers 1 accounted for 86% of Total Revenue ● # of Scaled Advertisers grew 8.5% YoY to 2,046 ● Average Revenue Per Scaled Advertiser Revenue Per Scaled Advertiser grew 1.8% to ~$196k ● Gr
Slide 7: Guidance Summary
Guidance Summary Q3 2025 Guidance (3) FY 2025 Guidance (3) $461 to $469M $1,858 to $1,888M Revenues (+5% YoY) (+6% YoY) Gross profit $127 to $133M $541 to $555M (-2% YoY) (+3% YoY) $166 to $172M $689 to $703M ex-TAC Gross Profit1 (+1% YoY) (+3% YoY) $43 to $48M $208 to $214M Adj. EBITDA1 (-5% YoY) (
Slide 8: 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. ~$7M in 2025; capitalized software): $35M in 2024 and approximately $1.3M pe
Slide 9: 2025 Guidance: Supplemental Information
2025 Guidance: Supplemental Information Quarterly Split Guidance ($ in millions) Q1 2025A Q2 2025A Q3 2025E Q4 2025E FY 2025 Revenues 23% 25% ~25% ~27% $1,858 to $1,888 ex-TAC Gross Profit 22% 25% ~24% ~29% $689 to $703 Adjusted EBITDA 17% 21% ~22% ~40% $208 to $214 Q3 and Q4 percentages are estimat
Slide 10: Appendix
Appendix
Slide 11: 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 12: 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) ($0.0
Slide 13: Growth Driven by User Engagement & Yield
Growth Driven by User Engagement & Yield New Publisher ex-TAC Gross Profit¹ User Engagement Growth Driven ex-TAC Gross Profit Growth % 1 Primarily By New Publisher Supply ● Historically ~10% new supply growth 1 ● Projecting similar range going forward over the long term Yield Is Primary Driver Of Gr
Slide 14: Historical Revenues & ex-TAC Gross Profit (Reported Basis)
Historical Revenues & ex-TAC Gross Profit1 (Reported Basis) Revenues ex-TAC Gross Profit YoY Growth 8.7% 15.9% 1.6% 2.8% 22.7% 6.06% YoY Growth 29.2% 35.7% 9.8% -5.9% 24.6% 4.3% 4 1. Non-GAAP measure, see appendix for reconciliation to GAAP
Slide 15: Selected GAAP And Non-GAAP Metrics
Selected GAAP And Non-GAAP Metrics ($ in millions, FYE) 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025E Revenues 909 1,094 1,189 1,378 1,401 1,440 1,766 1,873 % YoY Growth 20.0% 20.3% 8.7% 15.9% 1.7% 2.8% 22.7% 6.0% Gross Profit 234 232 319 441 464 426 534 548 % YoY Growth 31.1% -0.9% 37.5% 38.2% 5.
Slide 16: Selected GAAP And Non-GAAP Metrics
Selected GAAP And Non-GAAP Metrics ($ in millions, FYE) 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025E Revenues 909 1,094 1,189 1,378 1,401 1,440 1,766 1,873 % YoY Growth 20.0% 20.3% 8.7% 15.9% 1.7% 2.8% 22.7% 6.0% Gross Profit 234 232 319 441 464 426 534 551 % YoY Growth 31.1% -0.9% 37.5% 38.2% 5.
Slide 17: 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% Revenues $1,378 $1,401 $1,440 $1,766 $1,858 to $1,888 5% to 7% Gross Profit $441 $464 $426 $534 $541 to $555 1% to 4% ex-TAC Gross Profit¹ $519 $570 $536 $667 $6
Slide 18: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ($ 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 Depreciation and amortization¹ 39.4 34.0 53.
Slide 19: 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 Q2-25A Net income (loss) (82.0) (26.2) (4.3) (6.4) 33.1 (3.8) (8.7) (4.3) Adjustments: Financials expenses 12.8 3.6 (1.0) 1.1 8.2 11.9 4.5 2.5 (income),net Tax expenses (income) 5.6 4
Slide 20: 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) ($4) Ratio of Net income (loss) to Gross profit (12%) 3% (6%) (3%) (19%) (1%) ex-TAC Gross Profit
Slide 21: ex-TAC Gross Profit Margin Reconciliation
ex-TAC Gross Profit Margin Reconciliation ($ in millions) 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024A 2025E Revenues 552 758 909 1,094 1,189 1,378 1,401 1,440 1,766 1,873 Gross Profit 101 179 234 232 319 441 464 426 534 548 Gross Profit Margin 18% 24% 26% 121% 27% 32% 33% 30% 30% 29% Reven
Slide 22: 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 1,873 Traffic Acquisition Cost (TAC) (798) (807) (859) (832) (904) (1,102) (1,193) Amortization of non-cash based 0 0 0 0 0 3 16 Commercial agreem
Slide 23: Historical Free Cash Flow Reconciliation
Historical Free Cash Flow Reconciliation ($ in millions) 2020A 2021A 2022A 2023A 2024A Q1-25A Q2-25A Net cash from operating activities¹ $139 $64 $53 $84 $184 $48 $47 Net cash used in the following investing -$18 -$39 -$35 -$32 -$35 -$12 -$13 activities Intangible assets -$9 -$14 -$13 -$12 -$13 -$4
Slide 24: Supplemental Cash Flow Information
Supplemental Cash Flow Information 2020A 2021A 2022A 2023A Q1-24A Q2-24A Q3-24A Q4-24A 2024A Q1-25A Q2-25A Free Cash Flow 121.3 24.5 18.6 52.2 26.8 27.6 42.9 51.9 149.2 36.1 34.2 Add back: Cash investment in publisher (4.5) 7.3 15.3 (19.6) (4.9) (4.5) (6.3) (6.8) (22.5) (5.3) (1.8) prepayments (net)
Slide 25: Non-GAAP Net Income Reconciliation
Non-GAAP Net Income Reconciliation ($ in millions) 2021A 2022A 2023A 2024A Q1-25A Q2-25A Net income (loss) (24.9) (12.0) (82.0) (3.8) (8.8) (4.3) Adjustments: Amortization of acquired intangibles 23.0 63.6 63.9 65.1 17.8 17.8 Share-based compensation expenses¹ 124.2 63.8 53.7 60.0 15.5 16.6 Restruct
Slide 26: 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 $3,000
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet As of Dec As of Dec As of Dec As of Dec As of Dec ($ in millions) 31, 2020 31, 2021 31, 2022 31, 2023 31, 2024 Cash, cash equivalents, short-term deposits and 243 319 263 183 231 investments Total Assets 580 1,598 1,530 1,708 1,719 Total Liabilities & Convertible Shares 53
Slide 28: Q3 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) Q3-25 FY 2025 Revenues $461 to $469 $1,858 to $1,888 Traffic Acquisition Cost (TAC) ($295 - $297) ($1,169 - $1,185) Other Cost of Revenues ($39 - $39) ($148 - $148) Gross Profit $127 to $133 $54
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