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Dec 31, 2022
Taboola Q4 2022 Earnings Report
Taboola met guidance for Q4 and FY2022, and is guiding for positive free cash flow in 2023 and $100M+ in 2024.
Key Takeaways
Taboola's Q4 2022 financial performance was solid despite a challenging year for advertising spend. Revenues were $371.3 million, gross profit was $133.2 million, net income was $15.2 million, and Non-GAAP Net Income was $43.3 million.
New digital property partners increased by $34.6 million of revenues.
New publisher partnerships revenue added per month was over 90% higher than the average of 2020 and 2021.
Key renewals were signed with partners including CBSi, Tegna, and Fox Sports.
A transformative 30-year partnership with Yahoo was announced.
Forward Guidance
Taboola provided guidance for Q1 2023 and FY 2023, anticipating continued macro-economic challenges and investments related to the Yahoo partnership, but expects positive Free Cash Flow.
Positive Outlook
- Revenues of $299M - $325M for Q1 2023 and $1.419B - $1.469B for FY 2023.
- Gross profit of $76M - $88M for Q1 2023 and $416M - $436M for FY 2023.
- ex-TAC Gross Profit of $103M - $115M for Q1 2023 and $526M - $546M for FY 2023.
- Adjusted EBITDA of ($6M) - $6M for Q1 2023 and $60M - $80M for FY 2023.
- Non-GAAP Net Income (loss) of ($23M) - ($11M) for Q1 2023 and ($10M) - $10M for FY 2023.
Challenges Ahead
- Macro economy continues to be challenged.
- Current softness in the online advertising market continues.
- A substantial ramp in investment related to Yahoo partnership agreement.
- Continued investment in performance advertising, eCommerce and Header Bidding.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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