Content recommendation platform Taboola Q3 profit beats estimates on scaled advertisers growth

Reuters
Nov 05
Content recommendation platform Taboola Q3 profit beats estimates on scaled advertisers growth 

Overview

  • Taboola Q3 revenue grows 14.7% yr/yr, beating analyst expectations

  • Adjusted EBITDA for Q3 beats estimates, driven by cost discipline and ad spend

  • Company repurchased 14% of shares this year, continuing aggressive buyback strategy

Outlook

  • Taboola expects Q4 2025 revenue between $532 mln and $542 mln

  • Company anticipates FY 2025 revenue of $1,914 mln to $1,932 mln

  • Taboola projects FY 2025 adjusted EBITDA between $209 mln and $214 mln

Result Drivers

  • SCALED ADVERTISERS - Revenue growth driven by a 4.4% increase in scaled advertisers and a 10.9% rise in average revenue per advertiser

  • REALIZE PLATFORM - Momentum in Realize platform contributed significantly to Q3 revenue growth

  • SHARE BUYBACK - Company repurchased 14% of shares this year, continuing aggressive buyback strategy

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$496.80 mln

$466.50 mln (6 Analysts)

Q3 EPS

$0.02

Q3 Adjusted Net Income

Beat

$34.30 mln

$28.10 mln (4 Analysts)

Q3 Net Income

$5.20 mln

Q3 Adjusted EBITDA

Beat

$48.20 mln

$45.40 mln (6 Analysts)

Q3 Free Cash Flow

$46.30 mln

Q3 Gross Profit

$139 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Taboola.com Ltd is $4.25, about 21.6% above its November 4 closing price of $3.33

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNXVHdjj

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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