Artificial Intelligence
Taboola Reports Q2 2022 Results
- Beat Q2 across all metrics.
- Gross Profit of $116.4M grew 16.1% and ex-TAC Gross Profit of $143.2M grew 22.5% over Q2 2021 (25.4% on a constant currency basis*) and 4.7% pro forma with Connexity** (7.1% on a constant currency basis*).
- GAAP Net Loss of $5.0M, Non-GAAP Net Income of $15.8M and Adjusted EBITDA of $34.2M.
- Maintaining full year guidance for ex-TAC Gross Profit, Gross Profit, Adjusted EBITDA and Non-GAAP Net Income.
NEW YORK, Aug. 09, 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 June 30, 2022.
“Our second quarter performance exceeded our high end of guidance and included ex-TAC gross profit growth of 22.5%. These impressive results, in a challenging macro environment, reinforce the strength of our model that is centered on long-term exclusive publisher partnerships and performance advertiser success. We are holding our full year 2022 guidance and prioritizing investments and taking actions to ensure solid profitability and free cash flow,” said Adam Singolda, Founder and CEO, Taboola.
“This year we are seeing near record level new publisher signings, including a large number of competitive wins all around the world, exponential growth in Taboola News and the launch of exciting new products like Homepage For You and our new bidder. Our progress in 2022 will drive strong positive momentum into 2023 and beyond as we strive to place Taboola in the same league as successful walled garden companies such as Google, Amazon and Facebook. Our biggest focus areas that will ensure we succeed are in e-commerce, performance advertising and optimizing our bidder,” continued Singolda.
For more commentary on the quarter, please refer to Taboola’s Q2 2022 Shareholder Letter, which was furnished to the SEC and also posted on Taboola’s website today at https://investors.taboola.com.
Second Quarter 2022 Results Summary (unaudited)
| Three Months Ended June 30, |
|||||||||||
| (dollars in millions, except per share data) | 2022 | 2021 | % change YoY |
Q2 Guidance | |||||||
| Unaudited | |||||||||||
| Revenues | $ | 342.7 | $ | 329.1 | 4.1 | % | $325 to $345 | ||||
| Gross profit | $ | 116.4 | $ | 100.2 | 16.1 | % | $104 to $114 | ||||
| Net loss | $ | (5.0 | ) | $ | (61.4 | ) | 91.8 | % | |||
| EPS diluted (1) | $ | (0.02 | ) | $ | (1.39 | ) | 98.6 | % | |||
| Ratio of net loss to gross profit | (4.3 | %) | (61.3 | %) | 93.0 | % | |||||
| Cash flow provided by operating activities | $ | 2.1 | $ | 23.1 | -91.0 | % | |||||
| Cash, cash equivalents and short-term investments | $ | 308.5 | $ | 585.2 | -47.3 | % | |||||
| Non-GAAP Financial Data * | |||||||||||
| ex-TAC Gross Profit | $ | 143.2 | $ | 116.9 | 22.5 | % | $132 to $142 | ||||
| Adjusted EBITDA | $ | 34.2 | $ | 40.8 | -16.3 | % | $23 to $28 | ||||
| Non-GAAP Net Income | $ | 15.8 | $ | 23.0 | -31.2 | % | $6 to $11 | ||||
| IPO Pro forma Non-GAAP EPS diluted (2) | $ | 0.062 | $ | 0.090 | -31.1 | % | |||||
| Ratio of Adjusted EBITDA to ex-TAC Gross Profit | 23.9 | % | 34.9 | % | -31.7 | % | |||||
| Free Cash Flow | $ | (7.3 | ) | $ | 6.9 | -204.6 | % | ||||
1 The weighted-average shares used in this computation for the three months ended June 30, 2022 and 2021 are 250,777,915 and 48,518,124, respectively. Outstanding shares increased significantly year-over-year as a result of the Company going public.
2 See Appendix for a description and calculation of IPO Pro forma Non-GAAP EPS basic and diluted.
Business Highlights
- Announced new digital property partner agreements, including competitive wins with Gray Television, Media News Group, Jagran and Prensa Ibérica.
- Signed key renewals, including with Cox Media Group bringing us to 10 years together and with ABP Network, one of India’s largest multi-language websites who signed on for another 5 years.
- New digital property partners1 drove $21.8 million and existing digital property partners2 decreased by $8.2 million of revenue.
- Taboola News’ growth rate is triple digits and on track to exceed $50 million in revenues this year.
- Received recognition from Kantar, a well-known industry research group, via a commissioned piece of research which looked at video campaigns on our network, and found that native video ads in the open web have a stronger impact on brand favorability and consideration than social or video platforms.
- Announced acquisition of Gravity R&D, a leading personalization technology company, for approximately $7 million.
- Entered into a $90 million five-year senior secured revolving credit facility, with Citibank, N.A., London Branch, as lead arranger and JPMorgan Chase Bank, N.A., as administrative agent.
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).
Third Quarter and Full Year 2022 Guidance
For the Third Quarter 2022, the Company currently expects:
- Revenues of $311 to $331 million
- Gross Profit of $91 to $101 million
- ex-TAC Gross Profit of $120 to $130 million
- Adjusted EBITDA of $11 to $17 million
- Non-GAAP Net Income (loss) of ($8) to ($2) million
For the Full Year 2022, the Company currently expects:
| (dollars in millions) | Guidance (as of 08/09/22) |
Guidance (as of 05/12/22) |
| Revenues | $1,434 – $1,474 | $1,499 – $1,539 |
| Gross profit | $485 – $505 | $485 – $505 |
| ex-TAC Gross Profit | $595 – $615 | $595 – $615 |
| Adjusted EBITDA | $152 – $160 | $152 – $160 |
| Non-GAAP Net Income | $83 – $91 | $83 – $91 |
Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income, we are not able to provide guidance for projected net income (loss), the most directly comparable GAAP measure. Certain elements of net income (loss), 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 (loss) or to reconcile our Adjusted EBITDA and Non-GAAP Net Income guidance without unreasonable efforts. Consequently, no disclosure of projected net income (loss) 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, currency exchange rates and overall macroeconomic weakness, 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, August 10, 2022, at 8:30 AM ET. The call can be accessed via webcast at https://investors.taboola.com. To access the call by phone, please go to this link to register https://register.vevent.com/register/BIfbbc0f5c3a7b404291b567b48574b48b, and you will be provided with dial in details. The webcast will be available for replay for one year, through the close of business on August 10, 2023.
*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, ex-TAC Gross Profit growth on a constant currency basis, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income, Non-GAAP EPS basic and diluted and IPO Pro forma Non-GAAP EPS basic and 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 loss, 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.
This quarter the Company is introducing certain constant currency information, which is a non-GAAP metric. The Company believes the inclusion of constant currency information is useful because it permits investors to better understand Taboola’s underlying performance without the effects of currency exchange rate fluctuations. The Company calculates constant currency by using the prior period’s currency exchange rates and applying them to current period results.
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 prioritize investments to improve profitability and free cash flow; 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 | ||||||
| June 30, | December 31, | |||||
| 2022 | 2021 | |||||
| Unaudited | ||||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 233,740 | $ | 319,319 | ||
| Short-term investments | 74,733 | — | ||||
| Restricted deposits | 750 | 1,000 | ||||
| Trade receivables (net of allowance for credit losses of $4,074 and $3,895 as of June 30, 2022, and December 31, 2021, respectively) | 199,619 | 245,235 | ||||
| Prepaid expenses and other current assets | 75,105 | 63,394 | ||||
| Total current assets | 583,947 | 628,948 | ||||
| NON-CURRENT ASSETS | ||||||
| Long-term prepaid expenses | 30,154 | 32,926 | ||||
| Restricted deposits | 4,137 | 3,897 | ||||
| Deferred tax assets | 1,455 | 1,876 | ||||
| Operating lease right of use assets | 60,573 | 65,105 | ||||
| Property and equipment, net | 72,883 | 63,259 | ||||
| Intangible assets, net | 219,315 | 250,923 | ||||
| Goodwill | 550,568 | 550,380 | ||||
| Total non-current assets | 939,085 | 968,366 | ||||
| Total assets | $ | 1,523,032 | $ | 1,597,314 | ||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| U.S. dollars in thousands, except share and per share data | ||||||||
| June 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Unaudited | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Trade payables | $ | 214,487 | $ | 259,941 | ||||
| Short-term operating lease liabilities | 14,351 | 12,958 | ||||||
| Accrued expenses and other current liabilities | 104,402 | 124,662 | ||||||
| Current portion of long-term loan | 3,000 | 3,000 | ||||||
| Total current liabilities | 336,240 | 400,561 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Deferred tax liabilities | 38,130 | 51,027 | ||||||
| Warrants liability | 5,227 | 31,227 | ||||||
| Long-term loan, net of current portion | 284,617 | 285,402 | ||||||
| Long-term operating lease liabilities | 50,978 | 61,526 | ||||||
| Total long-term liabilities | 378,952 | 429,182 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Ordinary shares with no par value- Authorized: 700,000,000 as of June 30, 2022 and December 31, 2021; 240,679,908 and 234,031,749 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively. | — | — | ||||||
| Additional paid-in capital | 869,201 | 824,016 | ||||||
| Accumulated other comprehensive loss | (3,783 | ) | — | |||||
| Accumulated deficit | (57,578 | ) | (56,445 | ) | ||||
| Total shareholders’ equity | 807,840 | 767,571 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,523,032 | $ | 1,597,314 | ||||
| CONSOLIDATED STATEMENTS OF LOSS | ||||||||||||||||
| U.S. dollars in thousands, except share and per share data | ||||||||||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| Revenues | $ | 342,695 | $ | 329,072 | $ | 697,421 | $ | 632,022 | ||||||||
| Cost of revenues: | ||||||||||||||||
| Traffic acquisition cost | 199,486 | 212,202 | 415,984 | 409,238 | ||||||||||||
| Other cost of revenues | 26,848 | 16,625 | 53,046 | 33,040 | ||||||||||||
| Total cost of revenues | 226,334 | 228,827 | 469,030 | 442,278 | ||||||||||||
| Gross profit | 116,361 | 100,245 | 228,391 | 189,744 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 34,079 | 30,050 | 64,491 | 53,943 | ||||||||||||
| Sales and marketing | 66,405 | 69,136 | 127,773 | 103,444 | ||||||||||||
| General and administrative | 25,428 | 54,468 | 53,377 | 64,144 | ||||||||||||
| Total operating expenses | 125,912 | 153,654 | 245,641 | 221,531 | ||||||||||||
| Operating loss | (9,551 | ) | (53,409 | ) | (17,250 | ) | (31,787 | ) | ||||||||
| Finance income (expenses), net | 4,764 | (85 | ) | 15,959 | (883 | ) | ||||||||||
| Loss before income taxes | (4,787 | ) | (53,494 | ) | (1,291 | ) | (32,670 | ) | ||||||||
| Benefit (provision) for income taxes | (234 | ) | (7,922 | ) | 158 | (10,159 | ) | |||||||||
| Net loss | $ | (5,021 | ) | $ | (61,416 | ) | $ | (1,133 | ) | $ | (42,829 | ) | ||||
| Less: Undistributed earnings allocated to participating securities | — | (6,029 | ) | — | (11,944 | ) | ||||||||||
| Net loss attributable to ordinary shares – basic and diluted | (5,021 | ) | (67,445 | ) | (1,133 | ) | (54,773 | ) | ||||||||
| Net loss per share attributable to ordinary shareholders, basic | $ | (0.02 | ) | $ | (1.39 | ) | $ | (0.00 | ) | $ | (1.18 | ) | ||||
| Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic | 250,777,915 | 48,518,124 | 249,095,931 | 46,351,830 | ||||||||||||
| Net loss per share attributable to ordinary shareholders, diluted | $ | (0.02 | ) | $ | (1.39 | ) | $ | (0.00 | ) | $ | (1.18 | ) | ||||
| Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted | 250,777,915 | 48,518,124 | 249,095,931 | 46,351,830 | ||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| Net loss | $ | (5,021 | ) | $ | (61,416 | ) | $ | (1,133 | ) | $ | (42,829 | ) | ||||
| Other comprehensive loss: | ||||||||||||||||
| Unrealized losses on available-for-sale marketable securities | (259 | ) | — | (259 | ) | — | ||||||||||
| Unrealized losses on derivative instruments | (3,294 | ) | — | (3,524 | ) | — | ||||||||||
| Other comprehensive loss | (3,553 | ) | — | (3,783 | ) | — | ||||||||||
| Comprehensive loss | $ | (8,574 | ) | $ | (61,416 | ) | $ | (4,916 | ) | $ | (42,829 | ) | ||||
| SHARE BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE | ||||||||||||
| U.S. dollars in thousands | ||||||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Unaudited | ||||||||||||
| (dollars in thousands) | ||||||||||||
| Cost of revenues | $ | 851 | $ | 455 | $ | 1,554 | $ | 580 | ||||
| Research and development | 7,443 | 8,947 | 13,545 | 12,385 | ||||||||
| Sales and marketing | 7,397 | 35,040 | 12,697 | 36,171 | ||||||||
| General and administrative | 4,741 | 34,081 | 12,465 | 34,518 | ||||||||
| Total share-based compensation expenses | $ | 20,432 | $ | 78,523 | $ | 40,261 | $ | 83,654 | ||||
| DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE | |||||||||||||
| U.S. dollars in thousands | |||||||||||||
| Three months ended June 30, |
Six months ended June 30, |
||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||
| Unaudited | |||||||||||||
| (dollars in thousands) | |||||||||||||
| Cost of revenues | $ | 8,419 | $ | 6,075 | $ | 16,520 | $ | 12,051 | |||||
| Research and development | 695 | 1,179 | 1,340 | 2,162 | |||||||||
| Sales and marketing | 13,722 | 1,124 | 27,225 | 2,118 | |||||||||
| General and administrative | (23 | ) | 268 | 404 | 559 | ||||||||
| Total depreciation and amortization expense | $ | 22,813 | $ | 8,646 | $ | 45,489 | $ | 16,890 | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
| U.S. dollars in thousands | ||||||||||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| Cash flows from operating activities | ||||||||||||||||
| Net loss | $ | (5,021 | ) | $ | (61,416 | ) | $ | (1,133 | ) | $ | (42,829 | ) | ||||
| Adjustments to reconcile net loss to net cash flows provided by operating activities: | ||||||||||||||||
| Depreciation and amortization | 22,813 | 8,646 | 45,489 | 16,890 | ||||||||||||
| Share-based compensation expenses | 20,432 | 78,523 | 40,261 | 83,654 | ||||||||||||
| Net loss (gain) from financing expenses | 3,645 | (2,970 | ) | 4,316 | (1,357 | ) | ||||||||||
| Revaluation of the warrants liability | (11,958 | ) | 272 | (26,000 | ) | 272 | ||||||||||
| Amortization of loan issuance cost | 357 | — | 715 | — | ||||||||||||
| Accrued interest, net | (137 | ) | — | (137 | ) | — | ||||||||||
| Change in operating assets and liabilities: | ||||||||||||||||
| Decrease (increase) in trade receivables | (319 | ) | (13,410 | ) | 45,616 | 19,031 | ||||||||||
| Increase in prepaid expenses and other current assets and long-term prepaid expenses | (3,033 | ) | (16,998 | ) | (6,350 | ) | (33,757 | ) | ||||||||
| Increase (decrease) in trade payables | (6,661 | ) | 16,497 | (52,525 | ) | (31,025 | ) | |||||||||
| Increase (decrease) in accrued expenses and other current liabilities | (6,402 | ) | 15,671 | (22,946 | ) | 5,284 | ||||||||||
| Decrease in deferred taxes, net | (8,390 | ) | (1,693 | ) | (12,476 | ) | (917 | ) | ||||||||
| Change in operating lease right of use assets | 4,744 | 3,659 | 7,639 | 7,291 | ||||||||||||
| Change in operating lease liabilities | (7,986 | ) | (3,698 | ) | (12,262 | ) | (8,557 | ) | ||||||||
| Net cash provided by operating activities | 2,084 | 23,083 | 10,207 | 13,980 | ||||||||||||
| Cash flows from investing activities | ||||||||||||||||
| Purchase of property and equipment, including capitalized internal-use software | (9,350 | ) | (16,138 | ) | (16,252 | ) | (21,675 | ) | ||||||||
| Cash paid in connection with acquisitions | — | — | (620 | ) | — | |||||||||||
| Proceeds from (investments in) restricted deposits | 10 | (118 | ) | 10 | 2,536 | |||||||||||
| Proceeds from short-term deposits | 40,026 | — | — | — | ||||||||||||
| Payments of cash in escrow for acquisition of a subsidiary | — | — | (2,100 | ) | — | |||||||||||
| Purchase of short-term investments | (74,855 | ) | — | (74,855 | ) | — | ||||||||||
| Net cash used in investing activities | (44,169 | ) | (16,256 | ) | (93,817 | ) | (19,139 | ) | ||||||||
| Cash flows from financing activities | ||||||||||||||||
| Exercise of options and vested RSUs | 2,633 | 1,368 | 6,032 | 4,919 | ||||||||||||
| Issuance of ordinary shares, net of offering costs | — | 290,908 | — | 287,432 | ||||||||||||
| Payment of tax withholding for share-based compensation expenses | (340 | ) | — | (2,185 | ) | — | ||||||||||
| Repayment of current portion of long-term loan | (750 | ) | — | (1,500 | ) | — | ||||||||||
| Issuance of Warrants | — | 53,883 | — | 53,883 | ||||||||||||
| Net cash provided by financing activities | 1,543 | 346,159 | 2,347 | 346,234 | ||||||||||||
| Exchange differences on balances of cash and cash equivalents | (3,645 | ) | 2,970 | (4,316 | ) | 1,357 | ||||||||||
| Increase (decrease) in cash and cash equivalents | (44,187 | ) | 355,956 | (85,579 | ) | 342,432 | ||||||||||
| Cash and cash equivalents – at the beginning of the period | 277,927 | 229,287 | 319,319 | 242,811 | ||||||||||||
| Cash and cash equivalents – at end of the period | $ | 233,740 | $ | 585,243 | $ | 233,740 | $ | 585,243 | ||||||||
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Unaudited | ||||||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Cash paid during the year for: | ||||||||||||
| Income taxes | $ | 13,744 | $ | 4,502 | $ | 16,162 | $ | 5,831 | ||||
| Interest | $ | 6,803 | $ | — | $ | 10,373 | $ | — | ||||
| Non-cash investing and financing activities: | ||||||||||||
| Purchase of property, plant and equipment | $ | 7,353 | $ | 966 | $ | 7,353 | $ | 966 | ||||
| Share-based compensation included in capitalized internal-use software | $ | 503 | $ | 143 | $ | 1,020 | $ | 265 | ||||
| Deferred offering costs incurred during the period included in long-term prepaid expenses | $ | — | $ | 2,950 | $ | — | $ | 2,950 | ||||
| Creation of operating lease right-of-use assets | $ | 3,107 | $ | — | $ | 3,107 | $ | — | ||||
APPENDIX A: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2022 AND 2021
(Unaudited)
The following table provides a reconciliation of revenues to ex-TAC Gross profit.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Unaudited | ||||||||||||
| (dollars in thousands) | ||||||||||||
| Revenues | $ | 342,695 | $ | 329,072 | $ | 697,421 | $ | 632,022 | ||||
| Traffic acquisition cost | 199,486 | 212,202 | 415,984 | 409,238 | ||||||||
| Other cost of revenues | 26,848 | 16,625 | 53,046 | 33,040 | ||||||||
| Gross profit | $ | 116,361 | $ | 100,245 | $ | 228,391 | $ | 189,744 | ||||
| Add back: Other cost of revenues | 26,848 | 16,625 | 53,046 | 33,040 | ||||||||
| ex-TAC Gross Profit | $ | 143,209 | $ | 116,870 | $ | 281,437 | $ | 222,784 | ||||
The following table provides a reconciliation of net loss to Adjusted EBITDA.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Net loss | $ | (5,021 | ) | $ | (61,416 | ) | $ | (1,133 | ) | $ | (42,829 | ) | ||||
| Adjusted to exclude the following: | ||||||||||||||||
| Finance income (expenses), net | (4,764 | ) | 85 | (15,959 | ) | 883 | ||||||||||
| Tax expenses (income) | 234 | 7,922 | (158 | ) | 10,159 | |||||||||||
| Depreciation and amortization | 22,813 | 8,646 | 45,489 | 16,890 | ||||||||||||
| Share-based compensation expenses (1) | 17,640 | 78,523 | 34,679 | 83,654 | ||||||||||||
| M&A costs | 474 | 7,042 | 524 | 5,588 | ||||||||||||
| Holdback compensation expenses (2) | 2,792 | — | 5,582 | — | ||||||||||||
| Adjusted EBITDA | $ | 34,168 | $ | 40,802 | $ | 69,024 | $ | 74,345 | ||||||||
1 For the Q2 2021 period, a substantial majority is share-based compensation expenses related to going public.
2 Represents share based compensation due to holdback of Taboola ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
We calculate Ratio of net loss to gross profit as net loss 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 loss to gross profit and Ratio of Adjusted EBITDA to ex-TAC Gross Profit for the period shown.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Gross profit | $ | 116,361 | $ | 100,245 | $ | 228,391 | $ | 189,744 | ||||||||
| Net loss | $ | (5,021 | ) | $ | (61,416 | ) | $ | (1,133 | ) | $ | (42,829 | ) | ||||
| Ratio of net loss to gross profit | (4.3 | %) | (61.3 | %) | (0.5 | %) | (22.6 | %) | ||||||||
| ex-TAC Gross Profit | $ | 143,209 | $ | 116,870 | $ | 281,437 | $ | 222,784 | ||||||||
| Adjusted EBITDA | $ | 34,168 | $ | 40,802 | $ | 69,024 | $ | 74,345 | ||||||||
| Ratio of Adjusted EBITDA margin to ex-TAC Gross Profit | 23.9 | % | 34.9 | % | 24.5 | % | 33.4 | % | ||||||||
The following table provides a reconciliation of net loss to Non-GAAP Net Income.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Net loss | $ | (5,021 | ) | $ | (61,416 | ) | $ | (1,133 | ) | $ | (42,829 | ) | ||||
| Amortization of acquired intangibles | 15,828 | 639 | 31,608 | 1,278 | ||||||||||||
| Share-based compensation expenses (1) | 17,640 | 78,523 | 34,679 | 83,654 | ||||||||||||
| M&A costs | 474 | 7,042 | 524 | 5,588 | ||||||||||||
| Holdback compensation expenses (2) | 2,792 | — | 5,582 | — | ||||||||||||
| Revaluation of Warrants | (11,958 | ) | — | (26,000 | ) | — | ||||||||||
| Exchange rate loss (income), net (3) | 2,490 | (393 | ) | 2,706 | 1,545 | |||||||||||
| Income tax effects | (6,451 | ) | (1,444 | ) | (10,077 | ) | (1,545 | ) | ||||||||
| Non-GAAP Net Income | $ | 15,794 | $ | 22,951 | $ | 37,889 | $ | 47,691 | ||||||||
| Non-GAAP EPS basic | $ | 0.063 | $ | 0.473 | $ | 0.152 | $ | 1.029 | ||||||||
| Non-GAAP EPS diluted | $ | 0.063 | $ | 0.090 | $ | 0.151 | $ | 0.187 | ||||||||
1 For the Q2 2021 period, a substantial majority is share-based compensation expenses related to going public.
2 Represents share based compensation due to holdback of Taboola ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
3 Represents income or loss related to the remeasurement of monetary assets and liabilities to the Company’s functional currency using exchange rates in effect at the end of the reporting period.
The following table provides a reconciliation of the number of shares used to calculate GAAP EPS to IPO Pro forma Non-GAAP EPS basic and diluted.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Unaudited | ||||||||||||
| GAAP weighted-average shares used to compute net loss per share, basic | 250,777,915 | 48,518,124 | 249,095,931 | 46,351,830 | ||||||||
| Add: Non-GAAP adjustment for ordinary shares issued in connection with going public | — | 172,271,362 | — | 172,992,588 | ||||||||
| IPO Pro forma Non-GAAP weighted-average shares used to compute net income per share, basic | 250,777,915 | 220,789,486 | 249,095,931 | 219,344,418 | ||||||||
| GAAP weighted-average shares used to compute net loss per share, diluted | 250,777,915 | 48,518,124 | 249,095,931 | 46,351,830 | ||||||||
| Add: Non-GAAP adjustment for ordinary shares issued in connection with going public | — | 172,271,362 | — | 172,992,588 | ||||||||
| Add: Dilutive ordinary share equivalents | 443,063 | 35,592,019 | 1,562,609 | 35,562,170 | ||||||||
| IPO Pro forma Non-GAAP weighted-average shares used to compute net income per share, diluted | 251,220,978 | 256,381,505 | 250,658,540 | 254,906,588 | ||||||||
| IPO Pro forma Non-GAAP EPS, basic (1)(2) | $ | 0.063 | $ | 0.104 | $ | 0.152 | $ | 0.217 | ||||
| IPO Pro forma Non-GAAP EPS, diluted (1)(2) | $ | 0.063 | $ | 0.090 | $ | 0.151 | $ | 0.187 | ||||
1 IPO Pro forma net income for the three and six months ended June 30, 2021, includes an adjustment to add $6,029 and $11,944, respectively, of undistributed earnings previously allocated to participating securities, assuming these securities converted to ordinary shares, in each case, as of January 1, 2021.
2 IPO Pro forma Non-GAAP EPS basic and diluted is presented only for the three and six months ended June 30, 2021 assuming Taboola went public and consummated the related transactions, in each case, as of January 1, 2021.
The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow.
| Three months ended June 30, |
Six months ended June 30, |
|||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Unaudited | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Net cash provided by operating activities | $ | 2,084 | $ | 23,083 | $ | 10,207 | $ | 13,980 | ||||||||
| Purchases of property and equipment, including capitalized internal-use software | (9,350 | ) | (16,138 | ) | (16,252 | ) | (21,675 | ) | ||||||||
| Free Cash Flow | $ | (7,266 | ) | $ | 6,945 | $ | (6,045 | ) | $ | (7,695 | ) | |||||
APPENDIX A: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2022 AND FULL YEAR 2022 GUIDANCE
(Unaudited)
The following table provides a reconciliation of gross profit to ex-TAC Gross Profit guidance.
| Q3 2022 | FY 2022 | |||
| Unaudited | ||||
| (dollars in millions) | ||||
| Revenues | $311 – $331 | $1,434 – $1,474 | ||
| Traffic acquisition cost | ($191 – $201) | ($839 – $859) | ||
| Other cost of revenues | ($29 – $31) | ($110 – $116) | ||
| Gross profit | $91 – $101 | $485 – $505 | ||
| Add back: Other cost of revenues | $29 – $31 | $110 – $116 | ||
| ex-TAC Gross Profit | $120 – $130 | $595 – $615 | ||
HANGZHOU, China, May 16, 2024 /PRNewswire/ — On May 13, Unitree Robotics introduced its latest masterpiece — Unitree G1 Humanoid agent, AI avatar! It immediately caused a sensation in the global AI and robotics fields.
The robot is about 127 centimeters tall and weighs about 35 kilograms. It has flexibility beyond ordinary people and unlocks unlimited movement potential. The walking speed of G1 is about 2m/s. It has a large joint movement space, with 23-43 joints, and the maximum joint torque can reach 120N.m. It can perform high-load dynamic movements, such as dynamic stand-up, seat folding, dance stick, etc. At the same time, G1 is based on deep reinforcement learning and simulation training, and uses the accelerated development of AI to continuously upgrade and evolve.
G1 can be equipped with the optional Dex3-1 force-controlled dexterous hand. Through force-position hybrid control, G1 can simulate the precise operation ability of the human hand and accurately control various objects. Whether it is smashing walnuts, carrying heavy objects, or picking up fragile objects such as eggs, the G1 can demonstrate extremely high accuracy and stability. What’s more worth mentioning is that the G1 robot can also easily handle delicate operations such as opening soda bottles and welding. These tasks that were considered difficult for machines in the past have now become a piece of cake under the dexterous control of the G1.
The G1 is equipped with Intel RealSense D435 and LIVOX-MID360 3D lidar, which can achieve 360° detection and perception. These sensors provide a powerful perception hardware foundation, allowing G1 to better understand the surrounding environment. In addition, the G1 power supply module supports two hours of battery life and quick disassembly.
There are two versions of the G1 humanoid robot released this time, namely G1 and G1 EDU. The price of G1 is $16k. As an advanced version, G1 EDU provides a combination of different module solutions, and the price is customized according to different customer needs. Compared with G1, G1 EDU supports Dex3-1 force-controlled dexterous hand installation, optional tactile sensor arrays, greater knee joint torque and arm load, and optional NVIDIA Jetson Orin high computing power module to support secondary development.
Unitree also released the robot world model, providing a co-creation platform: UnifoLM (Unitree Robot Unified Large Model), allowing everyone to jointly create a new era of intelligent agents and explore unlimited innovation possibilities.
Introduction: https://www.unitree.com/g1
Website: www.unitree.com
Contact: [email protected]
Photo – https://mma.prnewswire.com/media/2413301/Unitree_G1.jpg
View original content:https://www.prnewswire.co.uk/news-releases/unitree-robotics-issues-g1-humanoid-agent-ai-avatar-302146425.html
Qiskit now refined as a comprehensive quantum software stack, focused on performance and stability to fully harness the power of utility-scale quantum hardware, and enable users to run increasingly more complex quantum circuits in the search for quantum advantage. YORKTOWN HEIGHTS, N.Y., May 15, 2024 /PRNewswire/ — IBM (NYSE: IBM) today announced the evolution and expansion of Qiskit, its globally adopted quantum software. Launched in 2017, Qiskit, as a software development kit (SDK) is an open-source tool that has allowed over 550,000 users to build and run quantum circuits on IBM’s quantum hardware systems, resulting in the execution of over 3 trillion quantum circuits to date.
The latest version of Qiskit has been expanded to a comprehensive software stack to deliver even more performance. It has evolved from its beginnings as a popular quantum software development kit used to explore and run quantum computing experiments and into a stable SDK and portfolio of services, built to enable users to extract improved performance while running complex quantum circuits on 100+ qubit IBM quantum computers.
This expansion will equip members of the IBM Quantum Network with the most performant Qiskit capabilities available to discover the next generation of quantum algorithms in their respective domains: which will play an important role in their discovery of quantum advantage.
To reach quantum advantage, users need a toolset which can map their problems in a way which leverages both advanced classical and quantum computation; optimizes the problem for efficient execution with quantum; and then effectively executes the quantum circuits on real quantum hardware. IBM has spent the last seven years developing these tools, which are now coming together to comprise the Qiskit software stack.
This expansion of Qiskit includes over 100 releases from its origins as a pioneering research tool built to study the inner workings of quantum computers. Today, Qiskit has matured as a software stack on which enterprises, government organizations, research institutions, and universities are running large-scale quantum experiments.
The expanded software stack of Qiskit includes:
The stable release of Qiskit SDK v1.x for building, optimizing, and visualizing quantum circuits.AI-powered optimization of quantum circuits for quantum hardware, embedded in the Qiskit Transpiler Service. Simplified execution modes for the Qiskit Runtime Service which can be tailored for performant execution of quantum circuits on quantum hardware.The Qiskit Code Assistant, powered by watsonx-based generative AI models, to automate the development of quantum codeThe Qiskit Serverless open-source tool to run quantum-centric supercomputing workloads across quantum hardware and classical clusters.The deployment of new capabilities and improvements within Qiskit SDK are enabling users to optimize circuits for quantum hardware at a rate 39 times faster than Qiskit 0.331. Qiskit also is engineered to reduce the overhead and shrink the footprint of circuits, demonstrating an average of 3 times reduction in memory usage compared to Qiskit 0.43.2
And using the Qiskit Transpiler Service, users can reduce circuit depth by combining AI and heuristic passes, compared to using the Qiskit SDK without AI optimization.
“The global adoption of quantum computing — and the discovery of quantum advantage — will require a combination of leading quantum hardware alongside a robust and performant software stack to run workloads,” said Jay Gambetta, IBM Fellow and Vice President, IBM Quantum. “These two pillars are fundamental to the algorithm discovery that has begun on utility-scale quantum hardware. As a growing quantum ecosystem maps their most difficult problems to quantum circuits, the Qiskit stack will be the cornerstone to exploring the computational spaces in which quantum computing excels.”
IBM first demonstrated the utility-scale capabilities of its quantum hardware in 2023. This signaled the start of an era in which quantum hardware can run quantum circuits faster and more accurately than a classical computer simulating a quantum computer can. Now built to maximize the performance of advanced quantum hardware, the Qiskit software stack aims to help a global ecosystem of users discover new quantum algorithms that explore where quantum computers could be the best way to solve challenges over any classical method.
“Qiskit provides an important collection of tools for E.ON as we explore how quantum computing could help us navigate the financial and operational complexities of the energy industry,” said Giorgio Cortiana, Head of Data and AI – Energy Intelligence, E.ON. “As a performant foundation to build and discover quantum algorithms that can be applied to business use cases, Qiskit enables our team to advance utility-scale prototypes, with the goal of finding new solutions to challenges in the European energy sector.”
“We started using Qiskit for our quantum computing efforts several years ago as part of an effort to help develop a quantum-ready workforce,” said Stephan Eidenbenz, senior scientist at Los Alamos National Laboratory. “Laboratory researchers use Qiskit daily to interact with IBM’s quantum hardware backends and to test new algorithmic ideas. The open nature of Qiskit also offers our team the ability to add compiler optimization passes and allows pulse-level access.”
“At Brookhaven, we have used Qiskit to execute circuits on IBM’s quantum hardware, which has resulted in almost 20 published papers to date, including exploring the frontiers of physics, dynamic systems, condensed matter systems, and more. Qiskit has also enabled our teams to develop extensions that push forward our exploration of bosonic and hybrid qubit-bosonic circuits, and how they could advance fundamental quantum algorithm development and error correction,” said James Misewich, Associate Laboratory Director for Energy and Photon Sciences, Brookhaven National Laboratory. “As we advance the scientific applications of quantum computing, we have incorporated IBM’s Qiskit resources and tutorials into our educational programs through Brookhaven’s Co-design Center for Quantum Advantage, where we partner with academic institutions like Stony Brook University to prepare the quantum workforce of the future.”
“For our Quantum Computing User Program here at Oak Ridge National Laboratory, advances in quantum computing software can help support the innovation and rapid growth of our user community and their developing technologies,” said Travis Humble, director of the Department of Energy’s Quantum Science Center at Oak Ridge National Laboratory. “Improvements in software performance will significantly impact how users test and evaluate the potential of today’s quantum computing systems.”
“The team at Q-CTRL is enthusiastic about building with Qiskit,” said Michael J. Biercuk, CEO and Founder of Q-CTRL. “Its flexible new interfaces and enhanced stability are enabling us to efficiently build simple abstractions on top of our powerful performance-management software at utility scale, so end users can explore their toughest problems with a single command.”
Built for the Era of Quantum Utility and Beyond
Through its support of rapidly advancing quantum hardware, including vendor-agnostic flexibility, the Qiskit software stack is designed to run the breakthrough quantum circuits to progress the era of quantum utility. This is achieved by replacing performance-critical code with the Rust programming language, alongside a full portfolio of tools to enable the efficient execution of quantum circuits.
As IBM continues to build milestones along its IBM Quantum Development and Innovation Roadmap towards error-corrected systems, the company expects that Qiskit will continue to deliver a framework for open, iterative, and collaborative development of new quantum algorithms and applications, done in conjunction with a growing global ecosystem of clients across industries and domain expertise areas.
Additionally, these advancing capabilities will aim to help users weave together classical and quantum computing resources into a new paradigm of high-performance computing defined by quantum-centric supercomputing that integrates QPUs, GPUs, and CPUs. Orchestrated through the performant software layer of Qiskit, this next evolution of high-performance computing aims to open up new, large, and powerful spaces for industries globally.
Disclaimer: IBM’s statements regarding Qiskit’s performance compares the current iteration of the software against its performance from applicable previous version when comparable features were available to users. Qiskit 0.33 total speed time equaled 430.89 seconds at IBM Quantum Summit 2021. Qiskit 1.0 total speed time equaled 10.9 seconds upon release in February, 2024.Disclaimer: IBM’s statements regarding Qiskit’s performance compares the current iteration of the software against its performance from applicable previous version when comparable features were available to users. Qiskit 0.43 memory usage equaled 1,750 MiB in May, 2023. Qiskit 1.0 memory usage equaled 580 MiB upon release in February, 2024.IBM’s statements regarding its plans, directions, and intent are subject to change or withdrawal without notice at IBM’s sole discretion. The development, release, and timing of any future features or functionality described for our products remain at our sole discretion.
About IBM
IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. More than 4,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and consulting deliver open and flexible options to our clients. All of this is backed by IBM’s long-standing commitment to trust, transparency, responsibility, inclusivity and service.
MEDIA CONTACTS
Erin AngeliniIBM [email protected]
Chris NayIBM [email protected]
Video – https://www.youtube.com/watch?v=I8Tw_ptO9DI
Photo – https://mma.prnewswire.com/media/2413995/IBM_Leadspace_Qiskit_social.jpg
Logo – https://mma.prnewswire.com/media/95470/ibm_logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/ibm-expands-qiskit-worlds-most-performant-quantum-software-302146893.html
Artificial Intelligence
Southeast Asia Data Center Construction Market Investment to Reach $5.29 Billion by 2029 – Exclusive Research Report by Arizton
CHICAGO, May 15, 2024 /PRNewswire/ — According to Arizton’s latest research report, the Southeast Asia data center construction market is growing at a CAGR of 11.69% during 2023-2029.
To Know More, Click: https://www.arizton.com/market-reports/southeast-asia-data-center-construction-market
Browse in-depth TOC on the Southeast Asia Data Center Construction Market
36 – Tables 116 – Figures 352 – Pages
Southeast Asia Data Center Construction Market Report Scope
Report Attributes
Details
Market Size – Investment (2029)
USD 5.29 Billion
Market Size – Investment (2023)
USD 2.80 Billion
CAGR – Investment (2023-2029)
11.18 %
Market Size – Area (2029)
3,079 Thousand Square Feet
Power Capacity (2029)
578 MW
Historic Year
2020-2022
Base Year
2023
Forecast Year
2024-2029
Regional Analysis
Southeast Asia (Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, and Other Southeast Asia Countries)
The Southeast Asia data center construction market is one of the fastest-developing markets globally, driven by the increase in cloud adoption, the advent of 5G services, and the adoption of AI, Big data, and IoT technology. Singapore, Malaysia, Indonesia, and Thailand have robust connectivity and are among the most connected countries in Southeast Asia. Singapore is the gateway and an integral interconnection point to several APAC countries, including Japan, South Korea, Vietnam, and Pakistan. The adoption of cloud-based services will likely be a significant driver of the data center market over the next few years.
Moreover, Singapore boasts the largest existing capacity in the region, and countries such as Malaysia, Indonesia, and the Philippines are outpacing it in terms of new investments, collectively capturing over 50% of the market share for new investments. This trend can be attributed to several factors, including lower energy costs, increased renewable energy sources, and inexpensive labor and land availability. These factors are influencing companies’ decisions to invest in these emerging markets.
Watch Out for How Advancing in Adoption of AI Boosting the Market Growth
In June 2023, Run ai, a company that manages computing resources for AI tasks, announced a strategic partnership with AI Singapore. AI Singapore, a national R&D initiative led by the National Research Foundation, Singapore, aims to establish strong AI capabilities in the country. This collaboration aims to provide scalable infrastructure solutions for various AI projects and assist AI Singapore in its mission to expedite AI adoption across industries.AI Singapore, as the country’s AI initiative, holds a pivotal position in aiding organizations in adopting AI solutions. It has made significant strides through its notable 100 Experiments Programme (100E) and the acclaimed AI Apprenticeship Programme (AIAP). Collaborating with over 60 companies, they’ve trained over 200 Singaporean AI engineers to create, assess, and implement numerous AI models that tackle real-world challenges.While AI investments primarily focus on Singapore, nine out of the top 10 deals involved start-ups based in Singapore that cater to various businesses and use cases throughout the region. For instance, Biofourmis, a health analytics platform analyzing physiological data from clinical-grade wearables, operates in both Singapore and Indonesia. Similarly, Tookitaki, a sophisticated decision-support system for compliance programs in the financial services sector, extends its operations across the six major Southeast Asian countries.The Southeast Asia Colocation Data Center Market by Investment to Reach $4 Billion by 2029
In Southeast Asia, colocation investments in Singapore declined significantly over the last few years owing to the lack of space for new builds. This has led to the spill over demand toward Indonesia and Malaysia. The upcoming capacity of under-construction announced and planned data center campuses across these two countries will overtake Singapore’s existing colocation capacity. In the same year, BDx Indonesia, Chindata Group, EdgeConneX, Equinix, Keppel Data Centres, GDS Services, Princeton Digital Group, and others invested in developing colocation data center facilities in the region.
The Southeast Asia Data Center Construction Market Report Encompasses Crucial Data, Including: CAGR (Compound Annual Growth Rate) during the forecast period: This metric provides insights into the annual growth rate of the Southeast Asia data center construction market over the specified time frame. Detailed information on growth drivers: The report offers in-depth information on the factors that will propel the Southeast Asia data center construction market growth from 2023 to 2029. This includes an analysis of various market influences. Precise estimation of market size: Accurate assessments of the Southeast Asia data center construction market size and its contribution and focusing on key market segments. Predictions about upcoming trends and changes in consumer behavior: The report offers insights into anticipated trends and shifts in consumer behavior that are likely to impact the Southeast Asia data center construction market helping businesses prepare for future market dynamics. Geographical market growth: The report covers the development of the data center construction market across Southeast Asia.Competitive landscape analysis: A thorough examination of the market’s competitive landscape is presented, including detailed information about companies operating in the Southeast Asia data center construction market. This includes an overview of key players, their market share, strategies, and key developments. Analysis of growth challenges: The report includes a comprehensive analysis of factors that may pose challenges to the growth of companies in the Southeast Asia data center construction market, providing a well-rounded view of the market dynamics.
Buy this Research @ https://www.arizton.com/market-reports/southeast-asia-data-center-construction-market
Post-Purchase Benefit
1hr of free analyst discussion10% off on customizationThe Report Includes the Investment in the Following Areas:
Facility Type
Colocation Data CentersHyperscale Data CentersEnterprise Data CentersInfrastructure
Electrical InfrastructureMechanical InfrastructureGeneral ConstructionElectrical Infrastructure
UPS SystemsGeneratorsTransfer Switches & SwitchgearPDUsOther Electrical InfrastructureMechanical Infrastructure
Cooling SystemsRacksOther Mechanical InfrastructureCooling Systems
CRAC & CRAH UnitsChiller UnitsCooling Towers, Condensers & Dry CoolersOther Cooling UnitsCooling Techniques
Air-based CoolingLiquid-based CoolingGeneral Construction
Core & Shell DevelopmentInstallation & Commissioning ServicesEngineering & Building DesignFire Detection & SuppressionPhysical SecurityDCIM/BMS SolutionsTier Standard
Tier I & IITier IIITier IVGeography
Southeast Asia
SingaporeIndonesiaMalaysiaThailandPhilippinesVietnamOther Southeast Asia CountriesVendors
Key Construction Contractors
ArupAurecon GroupCSF GroupDSCO GroupGammon ConstructionNTT FacilitiesPM GroupStudio One DesignOther Prominent Construction Contractors
AtkinsRéalisAWP ArchitectsCorganDPR ConstructionFirst BalfourFortis ConstructionISGKienta Engineering ConstructionLinesightLSK EngineeringM+W GroupNakano CorporationObayashi CorporationPowerware SystemsSato KogyoRed EngineeringProminent Support Infrastructure Vendors
ABBCaterpillarCisco SystemsCumminsDell TechnologiesEatonRittalSchneider ElectricSTULZVertivOther Prominent Support Infrastructure Vendors
AiredaleAlfa LavalCanovateCyber Power SystemsDelta ElectronicsEAEFuji ElectricFujitsuGreen Revolution CoolingHewlett Packard EnterpriseHITEC Power ProtectionHuawei TechnologiesKOHLER PowerLegrandLenovoMitsubishi ElectricNaradaNortek Air SolutionsPiller Power SystemsRolls-RoyceShenzhen Envicool TechnologySiemensSocomecTraneProminent Data Center Investors
Amazon Web ServicesChindata Group (Bridge Data Centres)DCI IndonesiaDigital RealtyePLDTEquinixGDS ServicesKeppel Data CentresNTT DATAST Telemedia Global Data CentresTelkom IndonesiaVADS (Telekom Malaysia)Viettel IDCOther Prominent Data Center Investors
AirTrunkBeeinfotechBig Data Exchange (BDx)Converge ICT SolutionsDigital Edge DCMeta (Facebook)FPT TelecomGoogleMettaDCMicrosoftOneAsia NetworkOpen DCPrinceton Digital GroupSingtelVantage Data CentersNew Entrants
CtrlS DatacentersDigital HaloEdgeConneXEvolution Data CentresFlow Digital InfrastructureFutureData (Cyclect Group + TSG Group)Gaw CapitalI-BerhadInfinaxis Data CentreInfracrowd CapitalK2 Data CentresMinoro Energi IndonesiaNautilus Data TechnologiesPure Data Centres GroupYCO CloudYTL Data CenterYondrKey Questions Answered in the Report:
How big is the Southeast Asia data center construction market?What is the estimated market size in terms of area in the Southeast Asia data center construction market by 2029?What is the growth rate of the Southeast Asia data center construction market?What are the key trends in the Southeast Asia data center construction market?How many MW of power capacity is expected to reach the Southeast Asia data center construction market by 2029?
Get Detailed TOC @ https://www.arizton.com/market-reports/southeast-asia-data-center-construction-market
Check Out Some of the Top Selling Research Reports:
U.S. Data Center Construction Market – Industry Outlook & Forecast 2024-2029
https://www.arizton.com/market-reports/united-states-data-center-construction-market-2024
Latin America Data Center Construction Market – Industry Outlook & Forecast 2024-2029
https://www.arizton.com/market-reports/latin-america-data-center-construction-market-size-and-analysis-2024
Southeast Asia Data Center Market Landscape 2023-2028
https://www.arizton.com/market-reports/southeast-asia-data-center-market
Why Arizton?
100% Customer Satisfaction 24×7 availability – we are always there when you need us 200+ Fortune 500 Companies trust Arizton’s report 80% of our reports are exclusive and first in the industry 100% more data and analysis 1500+ reports published till date
About Us:
Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
Contact Us
Call: +1-312-235-2040 +1 302 469 0707 Mail: [email protected] Contact Us: https://www.arizton.com/contact-us Blog: https://www.arizton.com/blog Website: https://www.arizton.com/
Photo: https://mma.prnewswire.com/media/2413471/Aritzon_Data_Center_Infographic.jpgLogo: https://mma.prnewswire.com/media/818553/Arizton_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/southeast-asia-data-center-construction-market-investment-to-reach-5-29-billion-by-2029–exclusive-research-report-by-arizton-302146261.html
-
Artificial Intelligence6 days agoSanad Announces Strategic Sale Transaction with CFM Materials, Further Fostering Aviation Industry Collaborations
-
Artificial Intelligence6 days agoNorthern Data Group’s Peak Mining announces new partnership for 28MW of mining, powered by 100% renewable energy
-
Artificial Intelligence5 days agoIdentity Threat Detection and Response (ITDR) Market worth $35.6 billion by 2029- Exclusive Report by MarketsandMarkets™
-
Artificial Intelligence6 days ago
atNorth Shortlisted for Datacloud Global Awards, The Energy Awards and The Women in Green Business Awards
-
Artificial Intelligence5 days agoWIO Taps Gracenote to Revolutionize Television Broadcast Reporting
-
Artificial Intelligence6 days ago
Linnovate Partners Announces Close of USD 40 Million Funding Commitment Led by SeaTown
-
Artificial Intelligence6 days ago
CoreWeave Invests £1 Billion in UK; Opens New European Headquarters and Data Centres in London to Bring Cloud Infrastructure to Power the AI Revolution
-
Artificial Intelligence6 days agoProofID wins Judges’ Award for Global Ambition at the 2024 Northern Tech Awards
