Artificial Intelligence

Taboola Reports Q1 2022 Results

Published

2 years ago

May 12, 2022

Beat Q1 guidance on both of the non-GAAP metrics we primarily focus on, ex-TAC Gross Profit and Adjusted EBITDA.
Revenues of $354.7M grew 17% over Q1 2021.
Gross Profit of $112.0M grew 25% and Ex-TAC Gross Profit of $138.2M grew 31% over Q1 2021 and 8.4% pro forma with Connexity**.
Generated net income of $3.9M, Non-GAAP Net Income of $21.9M and Adjusted EBITDA of $34.9M.
Revising 2022 full year guidance ranges to Ex-Tac Gross Profit of $595M to $615M, and Adjusted EBITDA of $152M to $160M.

NEW YORK, May 12, 2022 (GLOBE NEWSWIRE) — Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, helping people discover things they may like, today announced its results for the quarter ended March 31, 2022.

“Q1 was a strong quarter, we beat our ex-TAC Gross Profit and Adjusted EBITDA objectives, growing ex-TAC 31%, while meeting our revenues guidance. We won new deals, expanded relationships with existing clients, launched new products and generated positive free cash flow, despite a challenging business climate. We are adjusting guidance based on a more conservative forward view, driven by two factors. The main factor is the war in Ukraine creating pressure on yields. Europe is more than 30% of our revenue, and many of our European advertisers buy globally. The second factor is our new bidder service, which is off to a good start but still behind.Our fundamentals are strong, we are profitable, generating cash and we win incredible partnerships globally, driven by our technological advantage and differentiation,” said Adam Singolda, Founder and CEO, Taboola.

“Our team is energized, and the pipeline is strong. We’re making good progress in capturing more of the $64B Open Web advertising market, replacing banners with personalized recommendations. I’m focusing Taboola to have a large ambition to make our performance advertisers successful at a much bigger scale, which I believe only walled gardens have ever done (Amazon, Google, Snap, Facebook). There are immense greenfields for us as we expand within e-commerce via our Connexity acquisition, invest in AI, and continue to grow our relationship with key partners, including some of the world’s largest smartphone manufacturers,” continued Singolda.

For more commentary on the quarter, please refer to Taboola’s Q1 2022 Shareholder Letter, which was furnished to the SEC and also posted on Taboola’s website today at https://investors.taboola.com.

First Quarter 2022 Results Summary (unaudited)

	Three Months Ended March 31,
(dollars in millions, except per share data)		2022		2021		% change YoY	Q1 Guidance

Revenues	$	354.7	$	303.0		17.1%	$353 to $359
Gross profit	$	112.0	$	89.5		25.2%	$108 to $112
Net income	$	3.9	$	18.6		-79.1%
EPS diluted (1)	$	0.015	$	0.169		-91.1%
Ratio of net income to gross profit		3.5%		20.8%		-83.3%
Cash flow provided by (used in) operating activities	$	8.1	$	(9.1	)	NM
Cash, cash equivalents and short-term deposits	$	318.0	$	229.3		38.7%

Non-GAAP Financial Data*
ex-TAC Gross Profit	$	138.2	$	105.9		30.5%	$134 to $138
Adjusted EBITDA	$	34.9	$	33.5		3.9%	$32 to $34
Non-GAAP Net Income	$	21.9	$	22.8		-4.0%	$12 to $14
Pro forma Non-GAAP EPS diluted (2)	$	0.085	$	0.088		-3.4%
Ratio of Adjusted EBITDA to ex-TAC Gross Profit		25.2%		31.7%		-20.4%
Free Cash Flow	$	1.2	$	(14.6	)	NM

The weighted-average shares used in this computation for the three months ended March 31, 2022 and 2021 is 260,036,934 and 75,131,828, respectively. Outstanding shares increased significantly year-over-year as a result of the Company going public.
See Appendix for a description and calculation of Pro forma Non-GAAP EPS diluted.

NM = Not Meaningful

Business Highlights

Announced new digital property partner agreements, including with Ciao People, Webedia, Krone.at and Penske Media Corporation (PMC).
Signed significant renewals with Associated Press, Altice News, Insider, Le Point and E! Online, among others.
New digital property partners¹ drove $21.3 million and existing digital property partners² drove $30.4 million of revenue growth. Net dollar retention³ was 110%.
Expanded our Taboola Newsroom offering with the roll-out of Homepage For You that empowers homepage editors to personalize the homepage using AI based on data and insight.
Grew the Taboola Trust portfolio to now include dozens of external partnerships, certifications and accreditations, which add to an already robust internal investment in brand safety and suitability, including with IAB, Newsguard and others.
Held inaugural Investor Day on March 29th where we outlined our strategy and shared a deeper view of our business through presentations by leaders from across Taboola and conversations with clients. Replay and materials available at https://investors.taboola.com.

_{¹New digital property partners within the first 12 months that were live on our network.}

_{²Net growth of existing digital property partners, including the growth of new digital property partners (beyond the revenue contribution determined based on the run-rate revenue generated by them when they are first on-boarded).}

_{³Net Dollar Retention is the net growth of existing digital property partners for the given period divided by the revenues from the same period in the prior-year.}

Second Quarter and Full Year 2022 Guidance

For the Second Quarter 2022, the Company currently expects:

Revenues of $325 to $345 million
Gross Profit of $104 to $114 million
ex-TAC Gross Profit of $132 to $142 million
Adjusted EBITDA of $23 to $28 million
Non-GAAP Net Income of $6 to $11 million

For the Full Year 2022, the Company currently expects:

(dollars in millions)	Guidance (as of 05/12/22)	Year over Year Growth	Previous Guidance (as of 2/22/22)
Revenues	$1,499 – $1,539	9% – 12%	$1,666 – $1,678
Gross profit	$485 – $505	10% – 15%	$552 – $560
ex-TAC Gross Profit	$595 – $615	15% – 19%	$661 – $669
Adjusted EBITDA	$152 – $160	(15%) – (11%)	$195 – $213
Non-GAAP Net Income	$83 – $91	(24%) – (16%)	$111 – $129

Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income, we are not able to provide guidance for projected net income, the most directly comparable GAAP measure. Certain elements of net income, including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on net income or to reconcile our Adjusted EBITDA and Non-GAAP Net Income guidance without unreasonable efforts. Consequently, no disclosure of projected net income is included. For the same reasons, we are unable to address the probable significance of the unavailable information.

Our guidance assumes continuing headwinds from the war in Ukraine, inflation, and currency exchange rates, which lead us to adopt a conservative stance on guidance. Our guidance assumes that these headwinds do not worsen and cause economic conditions to deteriorate or otherwise significantly reduce advertiser demand.

Webcast Details

Taboola’s senior management team will discuss the Company’s earnings on a call that will take place tomorrow, May 13, 2022, at 8:30 AM ET. The call can be accessed via webcast at https://investors.taboola.com, or by conference call by dialing (877) 312-1874, or (470) 495-9527 for international callers, and entering the conference ID 7816866. The webcast will be available for replay for one year, through the close of business on May 12, 2023.

Q2 Conference Schedule:

Taboola management is scheduled to participate in the following conferences in the second quarter:

Needham Technology & Media Conference on May 16th and 17th
Oppenheimer 23rd Israeli Conference on May 24th
Cowen 50th Annual Technology, Media & Telecom Conference on June 1st

*About Non-GAAP Financial Information

This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income and Non-GAAP EPS diluted, which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly-titled measures used by other companies.

Non-GAAP Net Income and Non-GAAP EPS diluted are presented to provide insight into our Q1 results, and Non-GAAP Net Income is also presented to provide insight into our projected future results, in each case excluding fair value revaluation of warrants liability, share-based compensation expenses, M&A costs, amortization of acquired intangibles and related income tax effects. The type of adjustments made may vary from period to period.

The Company believes non-GAAP financial measures provide useful supplemental information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them, which may vary from period to period. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.

**About Pro Forma With Connexity Information

This press release includes historical and projected pro forma information for ex-TAC Gross Profit. The pro forma information presents the pro forma effect of the Connexity acquisition as if it had been completed on January 1, 2021. The pro forma information is unaudited, is provided as supplemental information only and is subject to the limitations contained under the heading “Unaudited Pro Forma Condensed Combined Financial Information” in our Prospectus forming part of our Registration Statement on Form F-1/A filed on April 13, 2022, as it may be amended from time to time, filed with the Securities and Exchange Commission.

Note Regarding Forward-Looking Statements

Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “guidance”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “target”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company’s future performance and cause results to differ from the forward-looking statements in this press release include, but are not limited to: the ability to recognize the anticipated benefits of the recent acquisition of Connexity and the business combination between the Company and ION Acquisition Corp. 1 Ltd. (together, the “Business Combinations”), which may be affected by, among other things, competition, the ability of the Company to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; the Company’s ability to successfully integrate the Connexity acquisition; costs related to the Business Combinations; changes in applicable laws or regulations; the Company’s estimates of expenses and profitability and underlying assumptions with respect to accounting presentations and purchase price and other adjustments; ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company’s ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to make continued investments in the Company’s AI-powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising; continued engagement by users who interact with the Company’s platform on various digital properties; the impact of the ongoing COVID-19 pandemic; reliance on a limited number of partners for a significant portion of the Company’s revenue; changes in laws and regulations related to privacy, data protection, advertising regulation, competition and other areas related to digital advertising; ability to enforce, protect and maintain intellectual property rights; and risks related to the fact that we are incorporated in Israel and governed by Israeli law; and other risks and uncertainties set forth in the Company’s Annual Report on Form 20-F for the year ended December 31, 2021 under Item 3.D. “Information About the Company – Risk Factors,” the Company’s Registration Statement on Form F-1/A filed on April 13, 2022, as it may be amended or supplemented from time to time, under the sections entitled “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors,” and in the Company’s subsequent filings with the Securities and Exchange Commission.

Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.

About Taboola
Taboola powers recommendations for the open web, helping people discover things they may like.

The company’s platform, powered by artificial intelligence, is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the top digital properties in the world, including CNBC, BBC, NBC News, Business Insider, The Independent and El Mundo.

More than 15,000 advertisers use Taboola to reach over 500 million daily active users in a brand-safe environment. Following the acquisition of Connexity in 2021, Taboola is a leader in powering e-commerce recommendations, driving more than 1 million monthly transactions each month. Leading brands including Walmart, Macy’s, Wayfair, Skechers and eBay are among key customers.

Learn more at www.taboola.com and follow @taboola on Twitter.

Investor Contact:	Press Contact:
Jennifer Horsley	Dave Struzzi
[email protected]	[email protected]

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data

	March 31,		December 31,
	2022		2021
	Unaudited

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	277,927	$	319,319
Short-term deposits		40,026		–
Restricted deposits		1,000		1,000
Trade receivables, net		199,300		245,235
Prepaid expenses and other current assets		73,165		63,394
Total current assets		591,418		628,948
NON-CURRENT ASSETS
Long-term prepaid expenses		30,017		32,926
Restricted deposits		3,897		3,897
Deferred tax assets		679		1,876
Right of use assets		62,210		65,105
Property and equipment, net		64,471		63,259
Intangible assets, net		235,143		250,923
Goodwill		550,568		550,380
Total non-current assets		946,985		968,366
Total assets	$	1,538,403	$	1,597,314

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data

	March 31,			December 31,
		2022			2021
	Unaudited

LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables	$	215,604		$	259,941
Short-term operating lease liabilities		15,396			12,958
Accrued expenses and other current liabilities		107,738			124,662
Current portion of long-term loan		3,000			3,000
Total current liabilities		341,738			400,561
LONG TERM LIABILITIES
Deferred tax liabilities		45,744			51,027
Warrants liability		17,185			31,227
Long-term loan, net of current portion		285,010			285,402
Long-term operating lease liabilities		54,812			61,526
Total long-term liabilities		402,751			429,182
SHAREHOLDERS’ EQUITY
Ordinary shares with no par value- Authorized: 700,000,000 as of March 31, 2022 and December 31, 2021; 238,816,867 and 234,031,749 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.		–			–
Additional paid-in capital		846,701			824,016
Accumulated other comprehensive loss		(230	)		–
Accumulated deficit		(52,557	)		(56,445	)
Total shareholders’ equity		793,914			767,571
Total liabilities and shareholders’ equity	$	1,538,403		$	1,597,314

CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands, except share and per share data

	Three months ended March 31,
		2022			2021
	Unaudited

Revenues	$	354,726		$	302,950
Cost of revenues:
Traffic acquisition cost		216,498			197,036
Other cost of revenues		26,198			16,415
Total cost of revenues		242,696			213,451
Gross profit		112,030			89,499
Operating expenses:
Research and development expenses		30,412			23,893
Sales and marketing expenses		61,368			34,308
General and administrative expenses		27,949			9,676
Total operating expenses		119,729			67,877
Operating income (loss) before finance expenses		(7,699	)		21,622
Finance income (expenses), net		11,195			(798	)
Income before income taxes		3,496			20,824
Benefit (provision) for income taxes		392			(2,237	)
Net income	$	3,888		$	18,587
Less: Undistributed earnings allocated to participating securities		–			(5,915	)
Net income attributable to ordinary shares – basic and diluted		3,888			12,672
Net income per share attributable to ordinary shareholders, basic	$	0.02		$	0.29
Weighted-average shares used in computing net income per share attributable to ordinary shareholders, basic		247,378,428			44,141,227
Net income per share attributable to ordinary shareholders, diluted	$	0.01		$	0.17
Weighted-average shares used in computing net income per share attributable to ordinary shareholders, diluted		260,036,934			75,131,828

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
U.S. dollars in thousands

	Three months ended March 31,
		2022			2021
	Unaudited

Net income	$	3,888		$	18,587
Other comprehensive loss:
Unrealized gains (losses) on derivative instruments, net		(230	)		–
Other comprehensive income (loss)		(230	)		–
Comprehensive income	$	3,658		$	18,587

SHARE BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE
U.S. dollars in thousands

	Three months ended March 31,
		2022		2021
	Unaudited
Cost of revenues	$	703	$	125
Research and development		6,102		3,438
Sales and marketing		5,300		1,131
General and administrative		7,724		437
Total share based compensation expenses	$	19,829	$	5,131

DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE
U.S. dollars in thousands

	Three months ended March 31,
		2022		2021
	Unaudited
Cost of revenues	$	8,101	$	5,976
Research and development		645		983
Sales and marketing		13,503		994
General and administrative		427		291
Total depreciation and amortization expense	$	22,676	$	8,244

CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands

	Three months ended March 31,
		2022			2021
	Unaudited
Cash flows from operating activities:
Net income	$	3,888		$	18,587
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization		22,676			8,244
Share based compensation expenses		19,829			5,131
Net loss from financing expenses		671			1,613
Revaluation of the warrants liability		(14,042	)		–
Amortization of loan issuance cost		358			–
Change in operating assets and liabilities:
Decrease in trade receivables		45,935			32,441
Increase in prepaid expenses and other current assets and long-term prepaid expenses		(3,317	)		(16,759	)
Decrease in trade payables		(45,864	)		(47,522	)
Decrease in accrued expenses and other current liabilities		(16,544	)		(10,387	)
Increase (decrease) in deferred taxes, net		(4,086	)		776
Change in operating lease right of use assets		2,895			3,632
Change in operating lease liabilities		(4,276	)		(4,859	)
Net cash provided by (used in) operating activities		8,123			(9,103	)
Cash flows from investing activities
Purchase of property and equipment, including capitalized internal-use software		(6,902	)		(5,537	)
Cash paid in connection with acquisitions		(620	)		–
Proceeds from restricted deposits		–			2,654
Investment in short-term deposits		(40,026	)		–
Payments of cash in escrow for acquisition of a subsidiary		(2,100	)		–
Net cash used in investing activities		(49,648	)		(2,883	)
Cash flows from financing activities
Exercise of options and vested RSUs		3,399			3,551
Payment of deferred offering cost		–			(3,476	)
Payments of tax withholding for share based compensation		(1,845	)		–
Repayment of current portion of long-term loan		(750	)		–
Net cash provided by financing activities		804			75
Exchange differences on balances of cash and cash equivalents		(671	)		(1,613	)
Decrease in cash and cash equivalents		(41,392	)		(13,524	)
Cash and cash equivalents – at the beginning of the period		319,319			242,811
Cash and cash equivalents – at end of the period	$	277,927		$	229,287

	Three months ended March 31,
		2022		2021
	Unaudited
Supplemental disclosures of cash flow information:
Cash paid during the year for:
Income taxes	$	2,418	$	1,329
Interest	$	3,570	$	–
Non-cash investing and financing activities:
Purchase of property, plant and equipment	$	1,809	$	10,138
Share based compensation included in capitalized internal-use software	$	517	$	–
Deferred offering costs incurred during the period included in the long-term prepaid expenses	$	–	$	3,674

APPENDIX A: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q1 2022 AND 2021
(Unaudited)

The following table provides a reconciliation of revenues to ex-TAC Gross profit.

	Three months ended March 31,
		2022		2021
	Unaudited
	(dollars in thousands)
Revenues	$	354,726	$	302,950
Traffic acquisition cost		216,498		197,036
Other cost of revenues		26,198		16,415
Gross profit	$	112,030	$	89,499
Add back: Other cost of revenues		26,198		16,415
ex-TAC Gross Profit	$	138,228	$	105,914

The following table provides a reconciliation of net income to Adjusted EBITDA.

	Three months ended March 31,
		2022			2021
	Unaudited
	(dollars in thousands)
Net income	$	3,888		$	18,587
Adjusted to exclude the following:
Financial expenses (income), net		(11,195	)		798
Tax expenses (income)		(392	)		2,237
Depreciation and amortization		22,676			8,244
Share based compensation expenses (1)		17,039			5,131
M&A costs		50			(1,454	)
Holdback compensation expenses (2)		2,790			–
Adjusted EBITDA	$	34,856		$	33,543

_{¹For the Q1 2022 period, a substantial majority relates to equity awards issued in connection with going public.}

_{²Represents share based compensation due to holdback of Taboola ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.}

We calculate Ratio of net income to gross profit as net income divided by gross profit. We calculate the Ratio of Adjusted EBITDA to ex-TAC Gross Profit, a non-GAAP measure, as Adjusted EBITDA divided by ex-TAC Gross Profit. We believe that the Ratio of Adjusted EBITDA to ex-TAC Gross Profit is useful because TAC is what we must pay digital properties to obtain the right to place advertising on their websites, and we believe focusing on ex-TAC Gross Profit better reflects the profitability of our business. The following table reconciles Ratio of net income to gross profit and Ratio of Adjusted EBITDA to ex-TAC Gross Profit for the period shown.

	Three months ended March 31,
		2022			2021
	Unaudited
	(dollars in thousands)
Gross profit	$	112,030		$	89,499
Net income	$	3,888		$	18,587
Ratio of net income to gross profit		3.5	%		20.8	%

ex-TAC Gross Profit	$	138,228		$	105,914
Adjusted EBITDA	$	34,856		$	33,543
Ratio of Adjusted EBITDA margin to ex-TAC Gross Profit		25.2	%		31.7	%

The following table provides a reconciliation of net income to Non-GAAP Net Income.

	Three months ended March 31,
		2022			2021
	Unaudited
	(dollars in thousands)
Net income	$	3,888		$	18,587
Amortization of acquired intangibles		15,780			639
Share based compensation expenses (1)		17,039			5,131
M&A costs		50			(1,454	)
Holdback compensation expenses (2)		2,790			–
Revaluation of Warrants		(14,042	)		–
Income tax effects		(3,626	)		(101	)
Non-GAAP Net Income	$	21,879		$	22,802

_{¹For the Q1 2022 period, a substantial majority relates to equity awards issued in connection with going public.}

_{²Represents share based compensation due to holdback of Taboola ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.}

The following table provides a reconciliation of EPS diluted to Pro forma Non-GAAP EPS diluted.

	Three months ended March 31,
		2022			2021
	Unaudited
EPS diluted (1)	$	0.015		$	0.169
Add (Subtract):
Amortization of acquired intangibles		0.061			0.002
Share based compensation expenses (2)		0.066			0.020
M&A costs		0.000			(0.006	)
Holdback compensation expenses (3)		0.011			0.000
Revaluation of Warrants		(0.054	)		0.000
Income tax effects		(0.014	)		0.000
Pro forma adjustment (4)		—			(0.097	)
Pro forma Non-GAAP EPS diluted (5)	$	0.085		$	0.088

_{¹The weighted-average shares used in this computation for the three months ended March 31, 2022 and 2021 is 260,036,934 and 75,131,828, respectively. Outstanding shares increased significantly year-over-year as a result of the Company going public.}

_{²For the Q1 2022 period, a substantial majority relates to equity awards issued in connection with going public.}

_{³Represents share based compensation due to holdback of Taboola ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.}

_{⁴Pro forma net income for the three months ended March 31, 2021, includes an adjustment to add $5,915 of undistributed earnings previously allocated to participating securities assuming these securities converted to ordinary shares as of January 1, 2021.}

_{⁵The Pro Forma Non-GAAP EPS is presented only for the three months ended March 31, 2021 assuming Taboola went public and consummated the related transactions as of January 1, 2021. The weighted-average shares used to calculate Pro Forma Non-GAAP EPS diluted for the three months ended March 31, 2021 is 259,307,085, and includes giving effect to 121,472,152 Taboola legacy preferred shares, 30,471,516 shares issues to ION Public shareholders, 13,500,000 shares issued to PIPE investors, 8,419,608 shares and equity grants in connection with going public and 10,311,981 from options and restricted shares units by application of treasury stock method.}

The following table provides a reconciliation of net cash provided by (used in) operating activities to Free Cash Flow.

	Three months ended March 31,
		2022			2021
	Unaudited
	(dollars in thousands)
Net cash provided by (used in) operating activities	$	8,123		$	(9,103	)
Purchases of property and equipment, including capitalized internal-use software		(6,902	)		(5,537	)
Free Cash Flow	$	1,221		$	(14,640	)

APPENDIX A: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q2 2022 AND FULL YEAR 2022 GUIDANCE
(Unaudited)

The following table provides a reconciliation of gross profit to ex-TAC Gross Profit guidance.

	Q2 2022	FY 2022
	Unaudited
	(dollars in millions)
Revenues	$325 – $345	$1,499 – $1,539
Traffic acquisition cost	($193 – $203)	($904 – $924)
Other cost of revenues	($27 – $29)	($110 – $116)
Gross profit	$104 – $114	$485 – $505
Add back: Other cost of revenues	$27 – $29	$110 – $116
ex-TAC Gross Profit	$132 – $142	$595 – $615

Related Topics:AI Artificial Intelligence Machine learning

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Artificial Intelligence

AI Supercomputing Market Growing at +21% CAGR as Industries Evolve Data Analysis

Published

3 hours ago

April 23, 2024

CISION (PR Newswire)

USA News Group News Commentary
VANCOUVER, BC, April 23, 2024 /PRNewswire/ — USA News Group News Commentary – Numerous industries are making the shift towards using Artificial Intelligence (AI) supercomputers in leveraging powerful computing systems to address complex challenges, and analyze massive datasets. According to analysts at Markets and Markets the AI supercomputer market is projected to grow at a CAGR of 22% through 2028 to a value of US$3.3 billion. This high level of growth is echoed by analysts at Technavio, who are projecting nearly 21% growth through 2027, however, they are seeing the overall supercomputer market much higher, growing by US$17.6 billion along the way. Several international groups are with massive investments in the billions to evolve their operations to include AI supercomputing, including in Denmark, the UK, Japan, the UAE and the USA. Powering this shift behind the scenes are several tech developers, who this week have been updating the market with their current developments, including: Avant Technologies Inc. (OTC: AVAI), NVIDIA Corporation (NASDAQ: NVDA) (NEO: NVDA), Microsoft Corporation (NASDAQ: MSFT) (NEO: MSFT), D-Wave Quantum Inc. (NYSE: QBTS), and Rigetti Computing, Inc. (NASDAQ: RGTI, RGITW).

The article continued: Moving forward, new regulations and safeguards are being put into place, as seen in the USA when the Biden Administration enacted an AI Executive Order to create new standards for AI safety and security. As well, the Council of the European Union filed a proposal for the regulation of harmonized rules on AI in the EU.
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions
Avant Technologies, Inc. (OTCQB: AVAI) (“Avant” or the “Company”), an artificial intelligence technology (AI) company specializing in the development of advanced AI and data center infrastructure solutions, announced today that it’s introducing a state-of-the-art supercomputing network and comprehensive licensable dataset. Avant will be collaborating with its technology partner, Wired4Tech, to launch these pivotal developments, which are engineered to accelerate AI adoption and innovation across a broad spectrum of industries.
“Avant’s supercomputing network and our expansive licensable dataset will facilitate significant advancements in AI- driven solutions,” said Danny Rittman, Chief Information Officer of Avant of the launch. “By providing robust computational resources and a rich dataset, Avant is set to eliminate many of the technical and financial barriers that have traditionally hampered AI development. This initiative aims to empower developers with the tools necessary to create more sophisticated and efficient AI models, driving progress and innovation in innumerable fields.”
Highlights of Avant’s Offerings:
Versatile AI Dataset: Available from Q3, this dataset will be regularly updated to support a wide array of AI projects, providing a solid foundation for development, and reducing the time to market for AI solutions.Dynamic Resource Scaling: The network dynamically adjusts computing resources to meet real-time demands, maximizing efficiency and minimizing costs.Accelerated AI Processing: Utilizes cutting-edge distributed computing to dramatically reduce data processing times, enabling rapid iteration and deployment of AI models.Robust Security Measures: Top-tier security protocols are in place to ensure data integrity and compliance with stringent regulatory standards.Seamless Integration: Designed to integrate smoothly with existing AI development environments, minimizing disruptions and simplifying technology adoption.Avant is committed to advancing the AI landscape by providing scalable solutions that will benefit diverse sectors looking to harness the power of artificial intelligence.
CONTINUED… Read this and more news for Avant Technologies at: https://usanewsgroup.com/2023/10/26/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
In other industry developments and happenings in the market this week include:
NVIDIA Corporation (NASDAQ: NVDA) (NEO: NVDA), a global leader in providing graphics and compute and networking solutions, recently received an investment of ~US$960 million from Japanese telecommunications company Softbank to enhance its supercomputing power and to support an ambitious generative AI (GenAI) strategy.
Generative AI is increasingly being incorporated into products and services across multiple sectors. A recent projection by Statista, a research firm based in Germany, predicts that the market for generative AI in Japan will expand to approximately $13 billion by 2030, representing a 17x increase from its size in 2023.
Microsoft Corporation (NASDAQ: MSFT) (NEO: MSFT), a global leader in developing and supporting software, services, devises and solutions recently announced it would be investing $1.5 billion into Abu Dhabi’s G42, the leading UAE-based AI tech holding company, to accelerate AI development and global expansion.
“Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations,” said H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42. “This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally.”
G42 will operate its AI applications and services on Microsoft Azure, collaborating to offer advanced AI solutions to global public sector clients and large enterprises. Together, G42 and Microsoft aim to enhance AI and digital infrastructure across the Middle East, Central Asia, and Africa. This collaboration will help these regions gain fair access to services that address key government and business issues, while upholding the highest standards of security and privacy.
D-Wave Quantum Inc. (NYSE: QBTS), a leader in quantum computing systems, software, and services and the world’s first commercial supplier of quantum computers recently announced the launch the first fast-anneal feature, available now on all of D-Wave’s quantum processing units (QPUs) in the LeapTM real-time quantum cloud service. The fast-anneal feature has been central to D-Wave’s key research achievements, as highlighted in publications in Nature Physics and Nature, showing how annealing quantum computing outperforms traditional algorithms in tackling complex optimization problems.
“Providing direct access to Fast Anneal, which has been at the heart of D-Wave’s recent advancements, represents a significant step forward in our mission to provide customers with the resources they need to drive innovation and achieve extraordinary results,” said Dr. Alan Baratz, CEO of D-Wave. “We believe it will further empower them to build industry-shaping applications with the most powerful quantum computing environment available today.”
With enhanced control allowing for notably quicker annealing times than before, this feature enables customers to replicate and expand upon D-Wave’s significant optimization results. Now widely available, this feature allows users to execute quantum computations at unprecedented speeds, significantly mitigating issues like thermal fluctuations and noise that typically disrupt quantum calculations.
Rigetti Computing, Inc. (NASDAQ: RGTI, RGITW), a pioneer in full-stack quantum-classical computing, recently announced the successful completion of its Innovate UK project with Oxford Instruments to launch one of the first UK-based quantum computers. The consortium also included the Quantum Software Lab at the University of Edinburgh, Phasecraft, and Standard Chartered Bank, with financial backing from the UK government’s Quantum Technologies Challenge, led by UK Research & Innovation (UKRI).
“Completing this project, with the end result being a useful 32-qubit quantum computer, is an exceptional achievement for all of the project partners,” said Dr. Subodh Kulkarni, CEO of Rigetti. “It takes a world-class team to build and deploy a quantum computer. The UK has become a world leader in quantum computing technologies, and we are excited to continue to contribute to its quantum computing capabilities. Additionally, Rigetti plans to leverage this experience to continue to develop our UK quantum computing leadership as we embark on deploying a 24-qubit Ankaa-class quantum computer at the NQCC’s Harwell campus.”
Source: https://usanewsgroup.com/2023/10/26/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
CONTACT:USA NEWS [email protected] (604) 265-2873
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Avant Technologies Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares Avant Technologies Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Avant Technologies Inc. which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Avant Technologies Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

View original content:https://www.prnewswire.co.uk/news-releases/ai-supercomputing-market-growing-at-21-cagr-as-industries-evolve-data-analysis-302124990.html

Artificial Intelligence

Artificial Intelligence Investment Soars to Trillions, Sparking Regulatory Interest

Published

3 hours ago

April 23, 2024

CISION (PR Newswire)

USA News Group Commentary
VANCOUVER, BC, April 23, 2024 /PRNewswire/ — USA News Group – In just a few years, the potential generated by the rise of Artificial Intelligence (AI) continues to entice investment to the tune of many trillions, with McKinsey & Company projecting generative AI to generate up to $7.9 trillion alone annually. It’s a sector that’s still in its early stages, and with that comes plenty of scrutiny, including the recent actions by US regulators regarding whether or not investors of OpenAI were misled, through an SEC inquiry launched in February. All the while, corporate AI investment is surging, with several companies benefitting including NVIDIA Corporation (NASDAQ:NVDA) (NEO:NVDA), Meta Platforms Inc. (NASDAQ:META) (NEO:META), Apple Inc. (NASDAQ:AAPL) (NEO:AAPL), C3.ai, Inc. (NYSE:AI), and Avant Technologies Inc. (OTC:AVAI).

Looking to help unlock the full potential of AI, Avant Technologies Inc. (OTC:AVAI) is pursuing its stated mission to build the nation’s first supercomputing network to provide big data and AI software companies with a faster, more powerful, and more cost-effective compute infrastructure. Recently Avant signed a co-development agreement with Wired4Tech, Inc. to create high-density compute infrastructure and supercomputer network software to move the company closer to achieving this mission.
“The technological innovations that we expect this collaboration to yield will help to usher in a new era of performance, cost efficiency and environmental sustainability for AI and Big Data,” said Timothy Lantz, CEO of Avant. “We have made exciting progress in the past several months, and we believe this partnership will further help to accelerate speed-to-market of our next generation solutions.”
The Wired4Tech collaboration aims to assist in the final stages of development and testing for Avant’s new high-density private cloud infrastructure solution. Additionally, it will start to establish the groundwork for Avant’s proposed AI supercomputing network. Avant expects to launch its next-generation infrastructure solution sometime in the first half of 2024.
“We’re at an inflection point where accelerated computing and generative AI have come together to speed innovation at an unprecedented pace,” said Paul Averill, Founder and CEO of Wired4Tech. “Our partnership with Avant Technologies will help AI companies accelerate their work with infrastructure, software and services that drive efficiency and reduce costs. There is no AI without the right infrastructure and Avant will lead the way with its unique and innovative and cost-effective AI platform.”
The collaboration was a follow-up to Avant’s announcement that the company is set to leverage its proprietary AI to drive proactive, next-generation data center security, through its enhancements to Avant! AI™, that seamlessly integrates with industry-standard data science tools and algorithms, enabling organizations to harness the power of data for deeper insights and informed decision-making.
“The rapid advancements in AI are unlocking tremendous opportunities and potential across almost every facet of our lives, but those same advancements can also pose an increased threat when used by those with an intent to harm,” said Lantz. “In today’s digital world cybersecurity is of paramount importance and Avant is committed to providing our customers with the necessary tools to ensure the safety and security of their information and that of their end-users.”
The planned improvements in Avant’s proprietary gen AI are designed to achieve two main goals: to provide early detection of potential security vulnerabilities and to offer recommendations for proactive measures to strengthen cybersecurity baselines, reduce risks, and ensure compliance in the ever-changing digital environment.
Under the hood of many of the biggest AI setups today are products from NVIDIA Corporation (NASDAQ:NVDA) (NEO:NVDA), which has seen its market cap surge to more than $2 trillion based upon an insatiable AI chip demand. This includes mega investments from some of the largest tech companies on the planet, including Meta Platforms Inc. (NASDAQ:META) (NEO:META) which is spending billions of dollars on Nvidia’s AI chips.
Shared through an Instagram Reels post by CEO Mark Zuckerberg, Meta’s “future roadmap” for AI requires the construction of “an absolutely massive amount of infrastructure.” By the end of 2024, Zuckerberg mentioned that this infrastructure will comprise 350,000 H100 graphics cards from Nvidia—which were being sold for more than $40,000 on eBay as recently as last April.
The ramp up of GPUs for Meta is projected to cost as much as $18 billion by the end of 2024. The ambitious loading up of infrastructure is similar to Meta’s $13 billion spent on Reality Labs, its metaverse division in 2022.
Competition for computing power will be ramping up, as Apple Inc. (NASDAQ:AAPL) (NEO:AAPL) has signalled the company will be investing significantly in generative AI, as it moves away from its self-driving electric car project. So far, Apple CEO Tim Cook hasn’t launched any competing products to models like OpenAI’s GPT or Google’s Gemini, but he has already teased a major announcement that the company will “break new ground” in GenAI coming later this year.
“AI is woven into our users’ lives for all sorts of tasks, from the everyday to the essential,” said Tim Cook. “AI allows Apple Watch to help you track your workouts, automatically detecting whether you’re taking a walk or going for a swim. It enables your iPhone to call for help if you’re in a car accident.”
While Cook’s sentiments hint towards Apple moving more towards AI investment, the company’s investors have grown impatient with the tech giant after lagging behind its mega-tech peers who have shared much clearer AI strategies.
Enterprise AI application software company C3.ai, Inc. (NYSE:AI) is coming off of a healthy Q3 2024 financial results announcement, where they saw total revenue grow 18% year-over-year to $78.4 million, exceeding their guidance range. Perhaps more importantly, C3 AI saw its customer engagement grow 80% year-over-year, and a 23% increase in subscription revenue.
“Generative AI use cases continue to influence customer engagement, with 17 of 29 total pilots signed in the quarter driven by generative AI,” said Kingsley Crane, analyst at Canaccord Genuity, about C3 AI in a report. “So far, the company has been converting pilots into full-time customers roughly near the assumed spend levels of $210,000 per quarter, even if some pilots have pushed a bit beyond the initially planned six months and started a bit lower than $500,000 contribution over two quarters. If C3 can continue the sequential growth in product revenue we’ve seen over the past three quarters, the firm is on track to grow over 30%.”
Among the customer base that C3 AI has been working with is biotech giant Genentech, to improve the complex biologics manufacturing process with AI. Genentech began using the AI application in 2021 to ensure centrifuges in their facility remained operational, with patients benefitting by receiving their medicines on time. In 2022, the biotech developer would go on to expand its use of C3’s assets beyond centrifuges, to around 200 pieces of equipment in total. Now Genentech has nearly 200 users including data scientists and facility managers who are trained to use the C3 AI platform, and regularly use the AI application to evaluate equipment health and maintain manufacturing operations.
Source: https://usanewsgroup.com/2023/10/26/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
CONTACT:
USA News Group
[email protected]
DISCLAIMER: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Avant Technologies Inc. advertising and digital media from the company directly. There may be 3rd parties who may have shares Avant Technologies Inc., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. The owner/operator of MIQ own shares of Avant Technologies Inc. which were purchased as a part of a private placement. MIQ reserves the right to buy and sell, and will buy and sell shares of Avant Technologies Inc. at any time thereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company that we will sell, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

View original content:https://www.prnewswire.co.uk/news-releases/artificial-intelligence-investment-soars-to-trillions-sparking-regulatory-interest-302124950.html

Artificial Intelligence

SCHNEIDER ELECTRIC, LEADER IN THE DIGITAL TRANSFORMATION OF ENERGY, ANNOUNCED AS FOUNDING PARTNER OF 3RD PLATFORM GLOBAL 2024

Published

3 hours ago

April 23, 2024

CISION (PR Newswire)

Keynote by Ms Gwénaelle Avice Huet, Executive Vice President of Europe Operations – and Member of the Executive Committee at Schneider Electric
LONDON, ANTIBES, France and GRENOBLE, France, April 23, 2024 /PRNewswire/ — Platform Global, the region’s foremost networking and business deal making forum for datacenter and digital infrastructure players and investors is delighted to again announce Schneider Electric, the leader in the digital transformation of energy management and automation as Founding Partner of the event.

It is also announced that Ms Gwénaelle Avice Huet, Executive Vice President of Europe Operations – and Member of the Executive Committee at Schneider Electric will keynote at the event.
Platform Global is the annual transactional marketplace for investors in datacenters and digital infrastructure and a premium C level international meeting. Its curated content remains the strongest and foremost among events in Europe and the MEA region.
Hosted at the Palais des Congrès Antibes 10-12 September, the event will generate influential content through the discussion and ideas of more than 100 experts and top thought leaders and offer effective high-end networking in a year of transition, shifting the industry from cloud into the AI era.
“AI, sustainable energy transformation and ESG will be top of the agenda in 2024. The opportunity to bring Schneider Electric’s impressive market understanding across these key drivers to an influential audience amplifies our global role in these important debates,” commented Vincent Barro, Vice-President Datacenter & Secure Power and Board Member DACH, Schneider Electric.
Schneider Electric was also recently included in the Dow Jones Sustainability World Index for the 13th consecutive year. With an ESG score of 88 out of 100 awarded by rating company S&P Global in their 2023 Corporate Sustainability Assessment, Schneider Electric ranked #1 in its industry and secured its place in the Europe index (score date: October 27, 2023).
Platform in Antibes attracts C level executives (55% in 2023) investment principals (30%) and the leadership of colo and hyperscale businesses (19%) primarily from the EMEA region who form the majority of delegates and supports its reputation for value with remarkable high-end networking.
“We are delighted once again to include Schneider Electric as our Founding Partner,” commented Gregory Gerot, Managing Director, Platform Markets Group. “This year’s programme focuses on the sustained investment in digital infrastructure, land, power and decarbonization in the year ahead.”
Media contact: [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/schneider-electric-leader-in-the-digital-transformation-of-energy-announced-as-founding-partner-of-3rd-platform-global-2024-302124942.html