Taboola.com(TBLA) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for Q1 2025 were $427.5 million, a 3.6$414.0 million in Q1 2024[106] - Gross profit for Q1 2025 was $119.3 million, compared to$109.0 million in Q1 2024, reflecting a growth of 9.9%[106] - The net loss for Q1 2025 was $8.8 million, significantly improved from a net loss of$26.2 million in Q1 2024[106] - Adjusted EBITDA for Q1 2025 was $35.9 million, compared to$23.5 million in Q1 2024, marking a 52.7% increase[106] - Non-GAAP Net Income for Q1 2025 was $25,000,000, significantly higher than$3,832,000 in Q1 2024[124] - Operating loss for the three months ended March 31, 2025, was $6.3 million, a significant improvement from a loss of$18.2 million in the same period of 2024[142] Client and Revenue Metrics - The number of Scaled Advertiser clients increased to approximately 2,000 in Q1 2025, up from 1,800 in Q1 2024[101] - Average Revenue per Scaled Advertiser was approximately $184,000 in Q1 2025, slightly down from$190,000 in Q1 2024[101] - Revenue contribution from Scaled Advertisers represented 86% of total revenues in Q1 2025, compared to 84% in Q1 2024[101] - Revenues for the three months ended March 31, 2025, increased by $13.5 million, or 3.3$427.5 million compared to $414.0 million for the same period in 2024, driven by an increase in the number of Scaled Advertisers[142][143] Cash Flow and Investments - Cash flow from operating activities was$48.1 million in Q1 2025, an increase from $32.4 million in Q1 2024[106] - Free Cash Flow for Q1 2025 was$36.1 million, up from $26.8 million in Q1 2024[106] - Net cash provided by operating activities was$48.1 million for the three months ended March 31, 2025, an increase of $15.7 million compared to$32.4 million for the same period in 2024[163] - Net cash used in investing activities for Q1 2025 was $8.3 million, an increase of$6.7 million from $1.6 million in Q1 2024, primarily due to a$12.0 million purchase of property and equipment[169][170] - Net cash used in financing activities for Q1 2025 was $51.2 million, an increase of$22.4 million from $28.8 million in Q1 2024, mainly due to$122.7 million repayment of a long-term loan and $49.3 million repurchase of ordinary shares[171][172] Expenses and Costs - Total cost of revenues increased by$3.1 million, or 1.0%, with traffic acquisition costs rising by $4.7 million, or 1.7$279,797,000, slightly up from $275,120,000 in Q1 2024[113] Tax and Financial Obligations - Tax expenses decreased by$6.3 million, resulting in a tax benefit of $2.0 million for the three months ended March 31, 2025[153] - Total contractual obligations as of March 31, 2025, amounted to$140.5 million, with $51.3 million due in 2025 and$35.0 million in 2026[174] - As of March 31, 2025, the company had $126.5 million of outstanding borrowings under the 2025 Revolving Credit Facility with a variable interest rate[185] Market and Risk Factors - A 10$1.6 million, while a 10% decrease would have the opposite effect[182] - The company has established a hedging program using foreign currency forward contracts to manage exposure to foreign currency risks[182] - Inflation has resulted in higher equipment and labor costs, which could adversely affect the company's financial condition if not effectively mitigated[188] - The company does not hold short-term investments as of March 31, 2025, and seeks to mitigate credit risk by limiting counterparties to major financial institutions[192] Shareholder Actions - The company repurchased 16.2 million shares at an average price of $3.03 per share during the three months ended March 31, 2025, with remaining authorization for buybacks totaling$196.4 million[161] - The company plans to continue significant investments in research and development and technology platform, and may consider future acquisitions[155] Cash and Equivalents - The company had $216.2 million in cash and cash equivalents as of March 31, 2025, down from$226.6 million at the end of 2024[156] - The company generated cash from operations of $48.1 million for the three months ended March 31, 2025, primarily due to a net loss of$8.8 million adjusted by non-cash charges of $44.5 million[163] Customer Concentration - No single customer accounted for 10% or more of accounts receivable or total revenue as of March 31, 2025[190]