Taboola Shares Fall in Pre-Market Trading After Lowering Annual Guidance

Taboola shares fell in pre-market trading on Nasdaq after the content recommendation company reported third-quarter net income meeting analyst estimates while lowering its full-year guidance.

Taboola's third-quarter revenue reached approximately 462 million dollars, marking a 6.9 percent decline compared to the same period last year and coming in slightly below analyst expectations. Conversely, net revenue excluding traffic acquisition costs, known as Ex-TAC, grew 6.8 percent to total 189 million dollars. The company's net income jumped 3.5 times to 18.4 million dollars, while on a non-GAAP basis, net profit reached 39.9 million dollars. Adjusted EBITDA climbed 16.1 percent year-over-year to 56 million dollars.

For the full year, Taboola now expects Ex-TAC revenue to range between 595 and 604 million dollars, down from its previous forecast of 605 to 615 million dollars. Adjusted EBITDA is projected to land between 212 and 221 million dollars, compared to an earlier outlook of 228 to 240 million dollars, while non-GAAP net income is forecasted at 151 to 160 million dollars.

Taboola CEO and founder Adam Singolda stated:

"As the open web continues to evolve, we are focused on three areas: onboarding additional top-tier publishers to our platform, increasing the revenue we generate with existing publishers, and investing in complementary growth areas like Taboola News and social commerce."

Prior to the earnings release, Taboola traded on Nasdaq with a market capitalization of 919 million dollars following a minor share price increase over the past year.