Taboola Reports 22.7% Revenue Growth to $1.77 Billion for Fiscal Year 2024

Taboola.com Ltd. reported a significant increase in its financial performance for the fiscal year ending December 31, 2024, with revenues reaching $1.77 billion, a 22.7% increase from $1.44 billion in 2023. The company achieved a gross profit of $534.2 million, up 25.5% from the previous year, while its net loss narrowed to $3.8 million compared to a loss of $82 million in 2023. This improvement in profitability is reflected in the ratio of net loss to gross profit, which decreased from 19.3% in 2023 to 0.7% in 2024. The company also reported a cash flow from operating activities of $184.3 million, a substantial increase from $84.4 million in the prior year.

The growth in revenue was primarily driven by the addition of new digital property partners, particularly from the partnership with Yahoo, which contributed approximately $291.7 million to the revenue. Existing partners also contributed to the revenue growth, albeit at a lower rate due to reduced advertiser rates. The cost of revenues increased by 21.5% to $1.23 billion, largely due to a rise in traffic acquisition costs, which accounted for $1.10 billion. Despite the increase in costs, the gross profit margin improved, indicating better operational efficiency.

Strategically, Taboola has shifted its focus from native advertising to a broader performance advertising model with the launch of its new platform, Realize, on February 26, 2025. This platform aims to enhance performance outcomes beyond traditional search and social media advertising. The company has also been actively managing its costs, implementing a restructuring program that affected approximately 6% of its global workforce, resulting in one-time expenses of $3.4 million.

Operationally, Taboola reported approximately 11,000 digital property partners and 2,100 scaled advertisers as of the end of 2024. The average revenue per scaled advertiser remained stable at around $199,000. The company continues to leverage its proprietary AI technology to optimize ad placements and improve engagement metrics, reaching approximately 600 million daily active users. The company’s employee headcount stood at around 2,000, with a significant portion dedicated to research and development to support ongoing innovation.

Looking ahead, Taboola expressed optimism about its growth trajectory, particularly with the anticipated success of the Realize platform. The company aims to expand its advertiser base and enhance its product offerings while navigating the evolving digital advertising landscape, which is increasingly influenced by privacy regulations and shifts in consumer behavior. The management remains focused on maintaining operational efficiency and exploring strategic acquisitions to bolster its market position.