Slide 1: Taboola Investor Presentation
CONFIDENTIAL Taboola Investor Presentation March 2024 CONFIDENTIAL
Slide 2: Forward-Looking Statements
Forward-Looking Statements Disclaimer Certain statements in this presentation are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). In some cases, you can identify forward-
Slide 3: Presenters and Senior Leadership
PRESENTERS AND SENIOR LEADERSHIP 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: ● G
Slide 4: We Power Recommendations for the Open Web
We Power Recommendations for the Open Web Driving Consumer Action with AI CONFIDENTIAL 4
Slide 5: The Open Web Is a Large and Growing Market
THE OPEN WEB IS A LARGE AND GROWING MARKET $80B+ 66% …but only 30% digital ad spend on the Open Web of web/mobile time is spent of total digital ad spend is growing at ~10% per year (1) on the Open Web (2)… spent on the Open Web (2) Open Web consists of iconic digital properties outside walled garde
Slide 6: Open Web Challenges / Opportunities
OPEN WEB CHALLENGES / OPPORTUNITIES BAD USER EXPERIENCE BAD ADVERTISER EXPERIENCE INFERIOR AD PERFORMANCE Open Web uses the same Open Web highly No “walled garden” level of AI ad format as 30 years ago fragmented and complex(1) and data in the Open Web Sharing Data / Social Ad Networks Tools Agency
Slide 7: Taboola Is Best Positioned to Build the First Must Buy Company in the Open Web
TABOOLA IS THE BEST POSITIONED TO BUILD THE FIRST “MUST BUY” COMPANY IN THE OPEN WEB ADVERTISERS Long term exclusive publisher agreements Scaled, direct advertisers AI technology ~600M DAU 1st party, contextual data CONFIDENTIAL 7
Slide 8: Taboola Revolution
Paid TABOOLA REVOLUTION Brings power of walled gardens to Open Web with tens of billions of clicks a year Editorial CONFIDENTIAL
Slide 9: Bombas Case Study
COMPANY CHALLENGE SOLUTION RESULTS Bombas is a comfort-focused Drive holiday sales for its revamped Use Taboola native ads, Attentive With Taboola, Bombas achieved a apparel brand with a mission to help and expanded line of slippers, and Audiences, and site retargeting to 50% increase in ROAS, those
Slide 10: Big Momentum
BIG MOMENTUM E-COMMERCE GROWTH ICONIC PARTNERSHIPS RAPID AI ADOPTION FOR ADVERTISERS FOR PUBLISHERS CONFIDENTIAL 10
Slide 11: Why Taboola
WHY TABOOLA Bringing walled garden experiences to an $80B+ Open Web market 1 Integrated native advertising experience 2 Long-term, exclusive access to supply and direct relationships with advertisers 3 AI driven tech platform that is best-in-class 4 Taboola tech & code on page built for a cookie-les
Slide 12: Integrated Native Advertising Experience
1 INTEGRATED NATIVE ADVERTISING EXPERIENCE More integrated Paid ad experience Easy access to Organic Paid scale Organic Better user data and Paid AI for more accurate ad targeting CONFIDENTIAL 12
Slide 13: 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 native Direct relationships with blue-chip, brand integrations with the world’s top publishers
Slide 14: 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 Comprehensive publisher platform Organic Recs Taboola News Feed Homepage For You Newsroom Video Reel & Slider Deep L
Slide 15: Taboola Tech & Code on Page Built for a Cookie-less World
4 TABOOLA TECH & CODE ON PAGE BUILT FOR A COOKIE-LESS WORLD Taboola has its own Unique readership People click on 1st party cookie thanks to context Taboola “code on page” integrations deep access to the recommendations with publishers context of the page, tens of billions of recommending personaliz
Slide 16: Our Scale Drives Network Effect That Creates Competitive Advantage
2 5 OUR SCALE DRIVES NETWORK EFFECT THAT CREATES COMPETITIVE ADVANTAGE Our predictable access to scale creates strong network effects that drive higher yield OUR SCALE DRIVES HIGHER YIELD THROUGH: More Users Reached More Data More Frequently Generated ~600M daily 1 trillion monthly CPC active users
Slide 17: Significant Growth Opportunities
6 SIGNIFICANT GROWTH OPPORTUNITIES 20% - 30% Growth ps Ap | C PU es TCV am TV R R G /A | ea | Ta ic ch d b at oo el m in la Yi m g N ra ew og us s pr 10% - 15% Growth er o/ | de s H vi ea | de ce rB 2024 - 2025 outsized growth er id m di CORE om ng - Yahoo ramping eC | | Pu I - Yield growth through
Slide 18: Proven, Founder-Led Management Team
7 PROVEN, FOUNDER-LED MANAGEMENT TEAM Adam Singolda Stephen Walker Eldad Maniv Lior Golan Kristy Sundjaja Tal Sliwowicz 17 years at Taboola 10 years at Taboola 12 years at Taboola 15 years at Taboola 4 years at Taboola 11 years at Taboola Founder & CEO CFO President & COO CTO CPO SVP, R&D Ran Buck E
Slide 19: Strong Financial Profile
8 STRONG FINANCIAL PROFILE FAST GROWING HIGH PROFITABILITY STRONG BALANCE SHEET GENERATING CASH FLOW $100M+ $667M $200M+ $37M 2024 2024 2024 Net Cash Position Free Cash ex-TAC Gross Profit(1) Adj. EBITDA(1) Flow(1) 18% 30% $182M 50%+ Seven Year Cash Balance 2024 Adjusted Free Cash Flow Compounded at
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS CONFIDENTIAL
Slide 21: Taboola Focuses on Profitable Growth
TABOOLA FOCUSES ON PROFITABLE GROWTH LONG-TERM MODEL 20% ex-TAC Gross Profit Growth 30%+ Ratio of Adjusted EBITDA to ex-TAC Gross Profit 50%+ FCF conversion from Adjusted EBITDA long-term (1),(2),(3) Non-GAAP measure, see appendix for CONFIDENTIAL reconciliation to GAAP
Slide 22: 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 of Quality of data AI technology (RPM / CPM) advertisers (ability to target) = ▪ Revenue paid by Advertisers, before traff
Slide 23: Why Taboola
WHY TABOOLA Bringing walled garden experience to an $80B+ Open Web market 1 Integrated native advertising experience 2 Long-term, exclusive access to supply and direct relationships with advertisers 3 AI driven tech platform that is best-in-class 4 Taboola tech & code on page built for a cookie-less
Slide 24: Why Taboola
WHY TABOOLA Bringing walled garden experiences to an $80B+ Open Web market 1 Integrated native advertising experience 2 Long-term, exclusive access to supply and direct relationships with advertisers 3 AI driven tech platform that is best-in-class 4 Taboola tech & code on page built for a cookie-les
Slide 25: Thank You
Thank You CONFIDENTIAL