Taboola Reports 3.3% Revenue Growth to $427.5 Million in Q1 2025

Taboola.com Ltd. reported its financial results for the first quarter of 2025, revealing a revenue increase of 3.3% to $427.5 million, compared to $414.0 million in the same period last year. The company's gross profit also rose by 9.5% to $119.3 million, up from $109.0 million. Despite these gains, Taboola recorded a net loss of $8.8 million, a significant improvement from the $26.2 million loss reported in the first quarter of 2024. The loss per share attributable to ordinary and non-voting ordinary shareholders was $0.03, compared to $0.08 in the prior year.

The increase in revenue was primarily driven by a rise in the number of scaled advertisers, which reached approximately 2,000, up from 1,800 in the previous year. However, revenue per scaled advertiser decreased, as the growth was attributed to newer advertisers who typically take longer to scale. The company also noted that new digital property partners contributed approximately $25.7 million in revenue on a 12-month run rate basis, while existing partners saw a decrease of about $12.2 million.

In terms of operational metrics, Taboola's cash and cash equivalents stood at $216.2 million as of March 31, 2025, down from $226.6 million at the end of 2024. The company generated $48.1 million in cash from operating activities during the quarter, an increase from $32.4 million in the same period last year. Additionally, Taboola repurchased 16.2 million shares during the quarter as part of its ongoing buyback program, which has a remaining authorization of $196.4 million.

Strategically, Taboola has continued to expand its partnerships and enhance its product offerings. The company launched its Realize performance platform on February 26, 2025, which is expected to increase its inventory tied to ad placements. The company also entered into a new revolving credit facility in March 2025, allowing for borrowings of up to $270 million to support working capital and general corporate purposes. As of March 31, 2025, Taboola had $126.5 million outstanding under this facility.

Looking ahead, Taboola's management remains cautious about macroeconomic conditions, including inflation and geopolitical factors, which could impact its business. The company plans to continue investing in research and development to enhance its technology platform and maintain its competitive edge. Despite the challenges, Taboola's leadership is optimistic about its growth trajectory, supported by a diverse network of digital property partners and a growing base of scaled advertisers.