Taboola.com Ltd (TBLA) shares plummeted 5.18% in intraday trading, despite the company reporting strong first-quarter results that exceeded expectations. The digital advertising company posted revenues of $427.5 million, surpassing analysts' estimates of $419 million, and adjusted earnings per share of $0.07, beating the expected $0.05.

Despite the positive Q1 performance, investors appear to be focusing on potential concerns regarding the company's future outlook. Taboola.com provided Q2 revenue guidance of $438-$458 million, which is largely in line with analysts' expectations of $445.9 million. The full-year revenue outlook of $1,838-$1,888 million also aligns with the market consensus of $1.86 billion.

The sharp decline in stock price, despite beating Q1 estimates, suggests that market participants may be reacting to other factors not immediately apparent in the financial results. These could include concerns about the sustainability of growth, competitive pressures in the digital advertising space, or broader market trends affecting the tech sector. As the trading session progresses, investors will be closely monitoring any additional insights or commentary from Taboola.com's management regarding their future strategies and market positioning.