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Taboola Beats Guidance in Q1 On All Metrics; Raises Mid-point for 2023; Announcing Up To $40M Buyback and $50M Debt Repayment

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  • Q1 2023 Revenues of $327.7M, Gross Profit of $89.6M, ex-TAC Gross Profit of $115.7M, Net loss of $31.3M and Adjusted EBITDA of $10.1M, exceeding the high end of all guidance metrics.
  • Net cash provided by operating activities of $17.5M and Free Cash Flow in Q1 2023 of $11.2M after net publisher prepayments of ($3.9M)** and $5.1M in cash interest payments.
  • Announcing share buyback program of up to $40M in 2023. Repaid $30M of long-term debt in April (totaling $91M since Q4 2022) and expect to continue to repay debt up to an additional $50M this year.
  • Updated 2023 guidance raises the mid-point: Revenues of $1,427M – $1,469M, Gross Profit of $418M – $436M, ex-TAC Gross Profit of $529M – $546M, Adjusted EBITDA of $65M – $80M. Positive Free Cash Flow.
  • 2024 guidance assumes investments will begin to pay off: at least $200M Adjusted EBITDA, at least $100M Free Cash Flow.

NEW YORK, May 10, 2023 (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, 2023.

“We had a strong performance in Q1, beating the high end of our guidance across all metrics. This was primarily driven by the core business tracking ahead of our expectations, helped by key publisher partners like Condé Nast, Univision, The Blaze, Kicker in Germany and others along with continued strength from eCommerce. We’re also seeing Taboola News outperforming our internal expectations,” said Adam Singolda, CEO and Founder, Taboola.

“From where we are now, we are hyper focused on what we need to do to execute on our objectives and mission. Once the Yahoo integration is 100% live we expect to be at a $2.5B revenue run-rate. This will still be a small portion of the $70B Open Web market, so there remains a lot of growth for us to capture. To do that we are laser focused on four company priorities – performance advertising, ecommerce, bidding, and Yahoo. We have all we need to execute and generate our financial objectives. These are times to remain focused, stay very close to our partners and customers, and execute – that’s all we care about now,” continued Singolda.

For more commentary on the quarter, please refer to Taboola’s Q1 2023 Shareholder Letter, which was furnished to the SEC and also posted on Taboola’s website today at https://investors.taboola.com.

First Quarter Results Summary

(dollars in millions, except per share data) Three months ended
March 31,
       
    2023     2022          
  Unaudited   % change YoY   Guidance
Revenues $ 327.7     $ 354.7     (7.6 %)   $299 – $325
Gross profit $ 89.6     $ 112.0     (20.0 %)   $76 – $88
Net income (loss) $ (31.3 )   $ 3.9     NM    
EPS diluted (1) $ (0.09 )   $ 0.01     NM    
Ratio of net income (loss) to gross profit   (35.0 %)     3.5 %        
Cash flow provided by operating activities $ 17.5     $ 8.1     115.7 %    
Cash, cash equivalents, short-term deposits and investments $ 274.4     $ 318.0     (13.7 %)    
               
Non-GAAP Financial Data*              
ex-TAC Gross Profit $ 115.7     $ 138.2     (16.3 %)   $103 – $115
Adjusted EBITDA $ 10.1     $ 34.9     (71.0 %)   ($6) – $6
Non-GAAP Net Income (Loss) (2) $ (4.1 )   $ 22.1     (118.6 %)   ($23) – ($11)
Ratio of Adjusted EBITDA to ex-TAC Gross Profit   8.7 %     25.2 %        
Free Cash Flow $ 11.2     $ 1.2     815.2 %    

1 The weighted-average shares used in the computation of the diluted EPS for the three months ended March 31, 2023 and 2022 are 333,424,276 and 260,036,934, respectively.
2 Three months ended March 31, 2022 have been adjusted to exclude the impact of foreign currency exchange rates to be consistent with current period presentation. 

Business Highlights for Q1 2023

  • Revenue from new publisher partners continues to be an area of strength – Publisher wins from competitors included L’Express, Condé Nast, Kicker, Funke, and DuMont.
  • Renewed relationships with many well-known publishers including Sinclair, Advance Local, O Dia, Slate France, and Seven West Media.
  • Received approval from Israeli regulators to finalize the Yahoo deal; transitioned into the next phase of integration, the build and test phase.
  • Launched TIME and Advance Local on Taboola Turnkey Commerce, publishing over 100 finance articles on TIME with subsequent launch of the TIME eCommerce section planned for May.
  • Further deployed AI to enhance our Life Time Value (LTV) vision, a holistic approach that enhances publisher revenue and empowers diversification of channels (eCommerce, subscription, native, bidding and video).
  • Continued to see eCommerce strength in the bottom of funnel channel from key partners such as Walmart, Wayfair, and Macy’s.
  • Rolled out Generative AI in beta form on Taboola Ads which suggests data-driven titles and thumbnails to creatives, accelerating the speed and efficiency of launching campaigns.

Second Quarter and Full Year 2023 Guidance

For the Second Quarter and Full Year 2023, the Company currently expects:

  Q2 2023
Guidance
  FY 2023
Guidance
  Unaudited
  (dollars in millions)
Revenues $296 – $322   $1,427 – $1,469
Gross profit $78 – $88   $418 – $436
ex-TAC Gross Profit* $105 – $115   $529 – $546
Adjusted EBITDA* ($4) – $6   $65 – $80
Non-GAAP Net Income (Loss)* ($26) – ($16) ($5) – $10
       

Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income (Loss), 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 (Loss) 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.

Authorization to Buyback Ordinary Shares

On May 9, 2023, the Company’s Board of Directors authorized the buyback of up to $40 million of the Company’s ordinary shares. Any share buybacks under the program may be made from time to time in the open market, including through trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in privately negotiated transactions or otherwise. The timing and amount of any share buybacks will be subject to market conditions and other factors determined by the Company. The Company may suspend, modify or discontinue the program at any time in its sole discretion without prior notice. This press release is neither an offer to purchase nor a solicitation of an offer to buy any securities.

Under Israeli law, the Company’s ability to buyback ordinary shares must be within a maximum dollar amount authorized by the Tel Aviv District Court Economic Department (the “Israeli court”). The maximum amount includes both share buybacks and net issuances to satisfy tax withholding obligations related to equity-based compensation. The Israeli court approval typically expires in six months. The Company previously obtained Israeli court approvals for such activities, and expects to continue to make successive requests for the foreseeable future absent unusual circumstances. In anticipation of the May 16, 2023 expiration of the Company’s most recent $50 million approval, on April 17 2023, the Company requested the Israeli court to provide another $50 million of authority. The Company will announce the Israeli court’s decision promptly once it is obtained. The decision is currently expected by the end of this month or shortly thereafter. 

Webcast Details

Taboola’s senior management team will discuss the Company’s earnings on a call that will take place on May 10, 2023, 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/BI425cebdda8864199aaeeb8bd8ccc5cf2 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 May 10, 2024.

*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 (Loss), 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 (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.

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 Cash Investment in Publisher Prepayments (Net)

We calculate cash investment in publisher prepayments (net) for a specific measurement period as the gross amount of cash publisher prepayments we made in that measurement period minus the amortization of publisher prepayments that were included in traffic acquisition cost during that measurement period, which were the result of cash publisher prepayments made in that measurement period and previous periods.

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 Connexity acquisition 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; the extent to which we will voluntarily prepay additional long-term debt or buyback any of our ordinary shares pursuant to authority granted by the Company’s Board of Directors, which may depend upon market and economic conditions; other business opportunities and priorities; and, with respect to the buyback of our ordinary shares, the availability of sufficient continuing authority being approved and re-approved as necessary by the Tel Aviv District Court Economic Department to permit share buybacks (and our continued use of a net issuance mechanism to satisfy tax withholding obligations related to equity-based compensation on behalf of our directors, officers and other employees) or other factors; the Company’s ability to transition to and fully launch the native advertising service for Yahoo on the currently anticipated schedule or at all; the ability to generate or achieve the increase in Adjusted EBITDA and Free Cash Flow in 2024 or our expected revenue run-rate once Yahoo integration is live, in each case to the levels assumed in this press release or at all; 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; 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 10-K for the year ended December 31, 2022 under Part 1, Item 1A “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.

Approximately 18,000 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:
Rick Hoss Dave Struzzi
[email protected] [email protected]
       
CONSOLIDATED BALANCE SHEETS      
U.S. dollars in thousands, except share and per share data      
  March 31,   December 31,
  2023   2022
  Unaudited    
ASSETS      
CURRENT ASSETS      
Cash and cash equivalents $ 218,849   $ 165,893
Short-term investments   55,582     96,914
Restricted deposits   1,091     750
Trade receivables (net of allowance for credit losses of $9,242 and $6,748 as of March 31, 2023 and December 31, 2022, respectively)   212,346     256,708
Prepaid expenses and other current assets   73,531     73,643
Total current assets   561,399     593,908

NON-CURRENT ASSETS
     
Long-term prepaid expenses   41,262     42,945
Commercial agreement asset   289,451    
Restricted deposits   3,998     4,059
Deferred tax assets, net   3,218     3,821
Operating lease right of use assets   67,740     66,846
Property and equipment, net   71,731     73,019
Intangible assets, net   173,177     189,156
Goodwill   555,931     555,869
Total non-current assets   1,206,508     935,715
Total assets $ 1,767,907   $ 1,529,623
           
CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands, except share and per share data
 
  March 31,   December 31,
    2023       2022  
  Unaudited    
LIABILITIES AND SHAREHOLDERS’ EQUITY      
CURRENT LIABILITIES      
Trade payables $ 223,040     $ 247,504  
Short-term operating lease liabilities   15,663       14,753  
Accrued expenses and other current liabilities   95,182       102,965  
Current maturities of long-term loan   33,000       3,000  
Total current liabilities   366,885       368,222  
LONG-TERM LIABILITIES      
Long-term loan, net of current maturities   192,737       223,049  
Long-term operating lease liabilities   58,223       57,928  
Warrants liability   5,080       6,756  
Deferred tax liabilities, net   31,319       34,133  
Other long-term liabilities   5,000       5,000  
Total long-term liabilities   292,359       326,866  
SHAREHOLDERS’ EQUITY      
Ordinary shares with no par value- Authorized: 700,000,000 as of March 31, 2023 and December 31, 2022; 297,822,375 and 254,133,863 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively.          
Non-voting Ordinary shares with no par value- Authorized: 46,000,000 as of March 31, 2023 and December 31, 2022; 45,198,702 and 0 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively.          
Additional paid-in capital   1,209,559       903,789  
Accumulated other comprehensive loss   (1,163 )     (834 )
Accumulated deficit   (99,733 )     (68,420 )
Total shareholders’ equity   1,108,663       834,535  
Total liabilities and shareholders’ equity $ 1,767,907     $ 1,529,623  
               
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
U.S. dollars in thousands, except share and per share data
 
  Three months ended
March 31,
    2023       2022  
  Unaudited
Revenues $ 327,686     $ 354,726  
Cost of revenues:      
Traffic acquisition cost   211,946       216,498  
Other cost of revenues   26,148       26,198  
Total cost of revenues   238,094       242,696  
Gross profit   89,592       112,030  
Operating expenses:      
Research and development   31,985       30,412  
Sales and marketing   60,569       61,368  
General and administrative   25,836       27,949  
Total operating expenses   118,390       119,729  
Operating loss   (28,798 )     (7,699 )
Finance income (expenses), net   (3,154 )     11,195  
Income (loss) before income taxes   (31,952 )     3,496  
Income tax benefit   639       392  
Net income (loss) $ (31,313 )   $ 3,888  
       
Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic $ (0.09 )   $ 0.02  
Weighted-average shares used in computing net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, basic   333,424,276       247,378,428  
Net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted $ (0.09 )   $ 0.01  
Weighted-average shares used in computing net income (loss) per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted   333,424,276       260,036,934  
               
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
U.S. dollars in thousands
 
  Three months ended
March 31,
    2023       2022  
  Unaudited
Net income (loss) $ (31,313 )   $ 3,888  
Other comprehensive income (loss):      
Unrealized gains (losses) on available-for-sale marketable securities   327        
Unrealized gains (losses) on derivative instruments, net   (656 )     (230 )
Other comprehensive income (loss)   (329 )     (230 )
Comprehensive income (loss) $ (31,642 )   $ 3,658  
               
SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINE
U.S. dollars in thousands
 
  Three months ended
March 31,
  2023   2022
  Unaudited
Cost of revenues $ 1,044   $ 703
Research and development   5,844     6,102
Sales and marketing   4,285     5,300
General and administrative   4,909     7,724
Total share-based compensation expenses $ 16,082   $ 19,829
           
DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINE
U.S. dollars in thousands
  Three months ended
March 31,
  2023   2022
  Unaudited
Cost of revenues $ 8,298   $ 8,101
Research and development   605     645
Sales and marketing   13,526     13,503
General and administrative   172     427
Total depreciation and amortization expense $ 22,601   $ 22,676
           
CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
  Three months ended
March 31,
    2023       2022  
  Unaudited
Cash flows from operating activities      
Net income (loss) $ (31,313 )   $ 3,888  
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:      
Depreciation and amortization   22,601       22,676  
Share-based compensation expenses   16,082       19,829  
Net loss (gain) from financing expenses   (328 )     671  
Revaluation of the Warrants liability   (1,676 )     (14,042 )
Amortization of loan and credit facility issuance costs   500       358  
Amortization of premium and accretion of discount on short-term investments, net   (281 )      
Change in operating assets and liabilities:      
Decrease in trade receivables, net   44,362       45,935  
Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses   721       (3,317 )
Decrease in trade payables   (22,807 )     (45,864 )
Decrease in accrued expenses and other current liabilities and other long-term liabilities   (13,439 )     (16,544 )
Increase (decrease) in deferred taxes, net   2,790       (4,086 )
Change in operating lease right of use assets   4,151       2,895  
Change in operating lease liabilities   (3,839 )     (4,276 )
Net cash provided by operating activities   17,524       8,123  
Cash flows from investing activities      
Purchase of property and equipment, including capitalized internal-use software   (6,350 )     (6,902 )
Cash paid in connection with acquisitions, net of cash acquired         (620 )
Investments in restricted deposits   (280 )      
Investment in short-term deposits         (40,026 )
Proceeds from sales and maturities of short-term investments   41,940        
Payments of cash in escrow for acquisition of a subsidiary         (2,100 )
Net cash provided by (used in) investing activities   35,310       (49,648 )
Cash flows from financing activities      
Exercise of options and vested RSUs   1,335       3,399  
Payment of tax withholding for share-based compensation expenses   (791 )     (1,845 )
Repayment of long-term loan   (750 )     (750 )
Net cash provided by (used in) financing activities   (206 )     804  
Exchange rate differences on balances of cash and cash equivalents   328       (671 )
Increase (decrease) in cash and cash equivalents   52,956       (41,392 )
Cash and cash equivalents – at the beginning of the period   165,893       319,319  
Cash and cash equivalents – at end of the period $ 218,849     $ 277,927  
  Three months ended
March 31,
  2023   2022
  Unaudited
Supplemental disclosures of cash flow information:
Cash paid during the year for:      
Income taxes $ 4,258   $ 2,418
Interest $ 5,067   $ 3,570
Non-cash investing and financing activities:      
Purchase of property and equipment, including capitalized internal-use software $ 36   $ 1,809
Share-based compensation included in capitalized internal-use software $ 652   $ 517
Creation of operating lease right-of-use assets $ 5,045   $
           

APPENDIX A: Non-GAAP Reconciliation

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE MONTHS ENDED MARCH 31, 2023 AND 2022 (Unaudited)

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

  Three months ended
March 31,
  2023   2022
  (dollars in thousands)
Revenues $ 327,686 $ 354,726
Traffic acquisition cost   211,946     216,498
Other cost of revenues   26,148     26,198
Gross profit $ 89,592   $ 112,030
Add back: Other cost of revenues   26,148   26,198
ex-TAC Gross Profit $ 115,740 $ 138,228
           

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

  Three months ended
March 31,
    2023       2022  
  (dollars in thousands)
Net income (loss) $ (31,313 )   $ 3,888  
Adjusted to exclude the following:
Finance (income) expenses, net   3,154       (11,195 )
Income tax benefit   (639 )     (392 )
Depreciation and amortization   22,601     22,676  
Share-based compensation expenses   13,527     17,039  
Holdback compensation expenses (1)   2,555       2,790  
M&A and other costs (2)   237     50  
Adjusted EBITDA $ 10,122   $ 34,856  

1 Represents share-based compensation due to holdback of Taboola Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
2 Includes commercial agreement asset acquisition costs.

We calculate Ratio of net income (loss) to gross profit as net income (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 income (loss) to gross profit and Ratio of Adjusted EBITDA to ex-TAC Gross Profit for the period shown.

  Three months ended
March 31,
    2023       2022  
  (dollars in thousands)
Gross profit $ 89,592     $ 112,030  
Net income (loss) $ (31,313 )   $ 3,888  
Ratio of net income (loss) to gross profit   (35.0 %)     3.5 %
       
ex-TAC Gross Profit $ 115,740   $ 138,228  
Adjusted EBITDA $ 10,122   $ 34,856  
Ratio of Adjusted EBITDA margin to ex-TAC Gross Profit   8.7 %     25.2 %
               

The following table provides a reconciliation of net income (loss) to Non-GAAP Net Income (Loss)*.

  Three months ended
March 31,
    2023       2022  
  (dollars in thousands)
Net income (loss) $ (31,313 )   $ 3,888  
Amortization of acquired intangibles   15,969       15,780  
Share-based compensation expenses   13,527       17,039  
Holdback compensation expenses (1)   2,555       2,790  
M&A and other costs (2)   237       50  
Revaluation of Warrants   (1,676 )     (14,042 )
Foreign currency exchange rate losses (3)   429       216  
Income tax effects   (3,829 )     (3,626 )
Non-GAAP Net Income (Loss) $ (4,101 )   $ 22,095  

* Three months ended March 31, 2022 have been adjusted to exclude the impact of foreign currency exchange rates to be consistent with current period presentation.

1 Represents share-based compensation due to holdback of Taboola Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
2 Includes commercial agreement asset acquisition costs.
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 net cash provided by operating activities to Free Cash Flow.

  Three months ended
March 31,
    2023       2022  
  (dollars in thousands)
Net cash provided by operating activities $ 17,524     $ 8,123  
Purchases of property and equipment, including capitalized internal-use software   (6,350 )     (6,902 )
Free Cash Flows $ 11,174     $ 1,221  
               

APPENDIX A: Non-GAAP Guidance Reconciliation

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q2 2023 AND FULL YEAR 2023 GUIDANCE

(Unaudited)

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

  Q2 2023
Guidance
FY 2023
Guidance
  Unaudited
  (dollars in millions)
Revenues $296 – $322   $1,427 – $1,469
Traffic acquisition cost ($191) – ($207)   ($898) – ($923)
Other cost of revenues ($27) – ($27)   ($110) – ($111)
Gross profit $78 – $88   $418 – $436
Add back: Other cost of revenues $27 – $27 $110 – $111
ex-TAC Gross Profit $105 – $115 $529 – $546
       

Although we provide a projection for Free Cash Flow, we are not able to provide a projection for net cash provided by operating activities, the most directly comparable GAAP measure. Certain elements of net cash provided by operating activities, including taxes and timing of collections and payments, are not predictable therefore projecting an accurate forecast is difficult. As a result, it is impractical for us to provide projections on net cash provided by operating activities or to reconcile our Free Cash Flow projections without unreasonable efforts. Consequently, no disclosure of projected net cash provided by operating activities is included. For the same reasons, we are unable to address the probable significance of the unavailable information.

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Artificial Intelligence

Transmission Electron Microscope Market Projected to Reach $3.92 billion by 2030 – Exclusive Report by 360iResearch

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PUNE, India, March 27, 2024 /PRNewswire/ — The report titled “Transmission Electron Microscope Market by Mode (Bright Field, Dark Field), Type (Aberration corrected TEM, Cryo-TEM, Environmental/In-situ TEM), Product Type, Application, End Users – Global Forecast 2024-2030” is now available on 360iResearch.com’s offering, presents an analysis indicating that the market projected to grow from a size of $2.05 billion in 2023 to reach $3.92 billion by 2030, at a CAGR of 9.71% over the forecast period. 

“The Rising Importance of Transmission Electron Microscopes in Global Research and Development”
Transmission electron microscopy (TEM) is a pivotal analytical tool across various scientific disciplines, including nanotechnology, materials science, and biology. This advanced technology operates by channeling a high-energy beam of electrons through ultra-thin samples, rendering images that unveil structures at the atomic level. The increasing investments in research and development, coupled with the growing demand for intricate analysis in sectors such as electronics, semiconductors, and healthcare, have significantly amplified the need for TEM. Challenges include high costs, the necessity for specialized training, and complex sample preparation. Advancements are underway, including integrating AI and ML to address these hurdles. Regionally, the Americas, particularly the U.S. and Canada, are at the forefront of TEM adoption, owing to their robust investment in cutting-edge research fields. The APAC region, led by China, Japan, and India, is making swift advances, supported by governmental research funding and a keen focus on innovation. Europe’s strong R&D ecosystem, supported by governmental and EU funding, further complements the global outreach of TEM technology. The role of TEM in nanoworld is increasingly indispensable, highlighting its significance in propelling scientific and technological advancements globally.
Download Sample Report @ https://www.360iresearch.com/library/intelligence/transmission-electron-microscope
“Revolutionizing Semiconductor Production with Advanced Imaging; the Critical Role of Transmission Electron Microscopy”
In the rapidly advancing world of semiconductor manufacturing, the advent of transmission electron microscopy (TEM) marks a transformative step in producing and inspecting semiconductor devices. As the industry moves toward creating devices with finer details on the nanometer scale, the unparalleled resolution of TEM emerges as a vital tool. This advanced imaging technique provides an in-depth analysis of semiconductor materials, revealing critical insights into their structure and composition at an atomic level. TEM is essential in refining the manufacturing process, ensuring devices are high-performing and reliable by precisely identifying minuscule defects and material inconsistencies. Its ability to visualize the smallest details of device architecture assists in inspecting each manufacturing stage, preventing potential structural failures. The integration of TEM into the semiconductor manufacturing process highlights a commitment to excellence, paving the way for innovations that meet the growing demands for more powerful and efficient electronic devices. Through its contribution to material science and fabrication, TEM ensures the industry’s stride toward miniaturization and complexity in semiconductor devices remains steady and informed.
“The Power of Dark Field TEM in Unveiling Microscopic Defects”
Bright-field transmission electron microscopy (TEM) stands out for its ability to produce high-contrast images that reveal the intricate structures and dimensions of materials at the nano level, making it an indispensable tool for understanding the morphology of biological specimens, thin films, and nanoparticles. However, when investigating the hidden internal structures and defects of crystalline materials, Dark Field TEM emerges as a superior technique. Dark field TEM can visualize minute structural defects and dislocations that often go unnoticed, offering invaluable insights for materials science and engineering professionals. This method provides a detailed view of the material’s inner architecture, making it a go-to choice for those looking to delve deeper into the complexities of crystal structures and nanoparticles, contributing significantly to future advancements.
Request Analyst Support @ https://www.360iresearch.com/library/intelligence/transmission-electron-microscope
“Hitachi Ltd. at the Forefront of Transmission Electron Microscope Market with a Strong 15.12% Market Share”
The key players in the Transmission Electron Microscope Market include Thermo Fisher Scientific Inc., Carl Zeiss AG, AMETEK, Inc, Bruker Corporation, Hitachi Ltd., and others. These prominent players focus on strategies such as expansions, acquisitions, joint ventures, and developing new products to strengthen their market positions.
“Introducing ThinkMi: Revolutionizing Market Intelligence with AI-Powered Insights for the Transmission Electron Microscope Market”
We proudly unveil ThinkMi, a cutting-edge AI product designed to transform how businesses interact with the Transmission Electron Microscope Market. ThinkMi stands out as your premier market intelligence partner, delivering unparalleled insights with the power of artificial intelligence. Whether deciphering market trends or offering actionable intelligence, ThinkMi is engineered to provide precise, relevant answers to your most critical business questions. This revolutionary tool is more than just an information source; it’s a strategic asset that empowers your decision-making with up-to-the-minute data, ensuring you stay ahead in the fiercely competitive Transmission Electron Microscope Market. Embrace the future of market analysis with ThinkMi, where informed decisions lead to remarkable growth.
Ask Question to ThinkMi @ https://app.360iresearch.com/library/intelligence/transmission-electron-microscope
“Dive into the Transmission Electron Microscope Market Landscape: Explore 183 Pages of Insights, 574 Tables, and 26 Figures”
PrefaceResearch MethodologyExecutive SummaryMarket OverviewMarket InsightsTransmission Electron Microscope Market, by ModeTransmission Electron Microscope Market, by TypeTransmission Electron Microscope Market, by Product TypeTransmission Electron Microscope Market, by ApplicationTransmission Electron Microscope Market, by End UsersAmericas Transmission Electron Microscope MarketAsia-Pacific Transmission Electron Microscope MarketEurope, Middle East & Africa Transmission Electron Microscope MarketCompetitive LandscapeCompetitive PortfolioInquire Before Buying @ https://www.360iresearch.com/library/intelligence/transmission-electron-microscope
Related Reports:
Electron Microscopy & Sample Preparation Market – Global Forecast 2024-2030Cryo-electron Microscopy Market – Global Forecast 2024-2030Scanning Electron Microscopes Market – Global Forecast 2024-2030About 360iResearch
Founded in 2017, 360iResearch is a market research and business consulting company headquartered in India, with clients and focus markets spanning the globe.
We are a dynamic, nimble company that believes in carving ambitious, purposeful goals and achieving them with the backing of our greatest asset — our people.
Quick on our feet, we have our ear to the ground when it comes to market intelligence and volatility. Our market intelligence is diligent, real-time and tailored to your needs, and arms you with all the insight that empowers strategic decision-making.
Our clientele encompasses about 80% of the Fortune Global 500, and leading consulting and research companies and academic institutions that rely on our expertise in compiling data in niche markets. Our meta-insights are intelligent, impactful and infinite, and translate into actionable data that support your quest for enhanced profitability, tapping into niche markets, and exploring new revenue opportunities.
Contact 360iResearch
Mr. Ketan Rohom 360iResearch Private Limited,Office No. 519, Nyati Empress,Opposite Phoenix Market City,Vimannagar, Pune, Maharashtra,India – 411014.Email: [email protected]: +1-530-264-8485India: +91-922-607-7550To learn more, visit 360iresearch.com or follow us on LinkedIn, Twitter, and Facebook.
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XtalPi to Present the Latest Progress of Its AI Cancer Vaccine Design Platform at AACR 2024

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BEIJING and HONG KONG, March 28, 2024 /PRNewswire/ — XtalPi, a leading global technology company in integrating artificial intelligence (AI) and robotics to advance the discovery of groundbreaking medicine and innovative materials, today announced it will present a poster showcasing the latest accomplishments of its AI-powered platform for designing cancer vaccines at the 2024 American Association for Cancer Research (AACR) Annual Meeting. The meeting will take place from 5th – 10th April 2024 in San Diego, California, and XtalPi’s poster will be included in the online Proceedings of the AACR.

“We are excited to share the progress from our joint research initiative with CK Life Sciences, which leverages the innovative approach from our peptide R&D platform to design cancer vaccines with enhanced efficacy. Together, we are committed to overcoming conventional limitations in creating new therapeutics and deploying cutting-edge technologies to benefit patients worldwide,” said Dr. Lipeng Lai, Co-founder and Chief Innovation Officer at XtalPi.
POSTER PRESENTATION DETAILS
Abstract 3525: Towards the efficient design of shared neoantigen peptide cancer vaccines using artificial intelligence
Authors: Genwei Zhang, Jiewen Du, Xiangrui Gao, Tianyuan Wang, Zhenghui Wang, Qingxia Zhang, Tongren Liu, Dong Chen, Ruohan Zhu, Yalong Zhao, Samson Li, Melvin Toh, Lipeng Lai
Session Date and Time: Monday, April 8(th), 1:30 PM – 5:00 PM Pacific Standard Time
The accurate prediction of immunogenicity of cancer vaccines remains elusive. We developed new models that predict the probability of a given peptide derived from the protein of interest to be presented by MHC-I or MHC-II.
For MHC-I antigen presentation model development, over 17 million entries in the dataset were collected from published literature and available databases, such as IEDB, with peptide lengths ranging from 8 to 11. The peptides were restricted to 150 unique MHC-I alleles. Similarly, ~4 million entries with peptide lengths ranging from 13 to 21 were collected for MHC-II antigen presentation model development, and the peptides were restricted to 19 unique MHC-II alleles. To develop advanced antigen presentation models, a language model was chosen as the backbone network, and contrastive learning was used to better discriminate the peptide-MHC match versus mismatch. Overall, both MHC-I and MHC-II presentation models were constructed with about 30 million parameters.
To validate algorithm prediction accuracy and peptide immunogenicity, 28 predicted patentable peptides derived from mutated TP53 protein were synthesized and their binding to respective common HLA alleles was validated using surface plasmon resonance. We found that over 80% of the peptides displayed binding affinities stronger than the positive control, suggesting that AI significantly improves the design of neoantigen peptide vaccines. Our developed AI models surpassed the performance of state-of-the-art prediction algorithms, the latest versions of NetMHCpan and MixMHCpred, for both MHC-I and MHC-II antigen presentation.
DETAILS ON XTALPI PEPTIDE R&D PLATFORM
XtalPi Innovation Center based in Beijing has established a fully integrated peptide R&D platform that combines dry-lab design with wet-lab validation and optimization to advance the rapid development of peptides for nutraceuticals, cosmetics, and pharmaceuticals.
The peptide R&D platform can carry out high-precision AI peptide design and has successfully built data-driven design processes for both linear and cyclic peptides. It is also equipped for automated synthesis, automated cleavage, and purification of peptides, as well as high-resolution mass spectrometry analysis and sequence identification.
In addition, XtalPi has established high-throughput one-bead-one-compound (OBOC)-based screening workflows for peptide and mRNA-encoded peptide libraries, which provide one-pot molecule screening of millions and trillions of molecules respectively. Its library screening enables rapid identification and improvement of peptide candidates’ affinities. The seamless integration of dry and wet lab capabilities significantly shortens the peptide discovery and optimization cycles, leading to a higher experimental success rate.
About XtalPi
XtalPi is an innovative technology company powered by artificial intelligence (AI) and robotics. Founded in 2015 on the MIT campus, XtalPi is dedicated to driving intelligent and digital transformation in the life science and new materials industries. With tightly interwoven quantum physics, AI, cloud computing, and large-scale clusters of robotic workstations, XtalPi offers a range of technology solutions, services, and products to accelerate and empower innovation for biopharmaceutical and new materials companies worldwide.
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Major shift in global IPO market share from the past five years

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Q1 2024 global IPO volumes fell 7%, but proceeds were up 7% YOYThe US picked up after a 20-year low in proceeds in 2022AI is experiencing significant growth in private domainLONDON, March 28, 2024 /PRNewswire/ — The year kicked off on a cautiously optimistic note, marked by a selective thaw following a quieter period. The Americas and EMEIA IPO markets had a bright start in 2024, increasing global proceeds. However, the Asia-Pacific region started on a weak note, weighing down the overall global volume. For Q1 2024, the global IPO market saw 287 deals raise US$23.7b, a 7% decrease but a 7% increase year-over-year (YOY), respectively. These and other findings are available in the EY Global IPO Trends Q1 2024.

In Q1 2024, a majority of key IPO markets witnessed a significant number of newly issued IPOs whose current share prices surpassed their offer prices. This trend could indicate an improvement in valuations and pricing levels, reflecting growing confidence among issuers and investors.
An IPO is one of the pinnacle achievements for private equity (PE) firms, serving as a public showcase of their acumen and a defining milestone in their growth journey. In Q1 2024, approximately 10 PE-backed IPOs came to the market, five of which were featured among the top 10 global IPOs, a testament to their significant market presence.
The promise and reach of the artificial intelligence (AI) vertical is currently experiencing significant growth within the private realm, with the majority of AI and AI-associated businesses still in the seed or early stage of venture capital (VC) rounds. This suggests there could be a surge in IPOs in future years as these companies mature in the private domain before making a public debut.
Overall regional performance: Americas and EMEIA recovering and Asia-Pacific plunging
The global IPO market has experienced significant shifts in geographical composition, driven by ongoing macroeconomic and geopolitical dynamics.
The Americas continued to exhibit strong performance in IPO activity compared with both the previous quarter and Q1 2023, with 52 deals and US$8.4b in proceeds, up 21% and up a whopping 178%, respectively, YOY. Each of the top seven deals in Q1 2024 raised over US$500m, versus just one in Q1 2023. The US, after experiencing a 20-year low in proceeds in 2022, has finally witnessed a noticeable recovery in the first quarter of the year, riding on the wave of the market rally from last year.
Driven by a subdued IPO market sentiment across the region, Asia-Pacific IPO activity in Q1 recorded 119 deals and US$5.8b in proceeds, down 34% and 56% YOY, respectively. This decline was especially sharp in Mainland China and Hong Kong, with the number of deals decreasing more than half and deal size falling by nearly two-thirds. Both markets have experienced a consistent decline in IPO activity over the past few years. There have been only 10 IPOs so far this year in Hong Kong, with two exceeding US$100m in deal size, marking a historic low since 2010 by proceeds. Japan was the only market in Asia-Pacific to see a slight increase in deal count in the first quarter, with the Nikkei Index hitting an all-time high in February.
The EMEIA IPO market witnessed an impressive growth at the start of the year, launching 116 IPOs totaling US$9.5b in the first quarter, up 40% and 58% YOY, respectively. This surge was attributed to larger average deal sizes from IPOs in Europe and India, which enabled EMEIA to maintain first place in global IPO market share by proceeds since Q4 2023. Since 2019, India has rapidly gained prominence, particularly in the number of IPOs, and has now emerged as a standout performer.
Q2 2024 outlook: capitalizing on fleeting windows amid heightened uncertainties
George Chan, EY Global IPO Leader, says:
“As 2024 unfolds, participants in the IPO market are entering uncharted territory. IPO candidates are influenced by the recent pivot in investors’ preference toward proven profitability in an altered interest rate landscape, and are doing this while facing the intricate dynamics of an intensified geopolitical climate and the buzz around AI. To succeed in this shifting environment, IPO prospects must remain flexible and prepared to seize the right moment for their public debuts.”
The IPO market thus far in 2024 has shown signs of vigor, with an upswing in IPO activity. Despite the restrained overall market activity in previous years, there’s an uptick in enthusiasm from both IPO issuers and investors, hinting at shifting market dynamics and a more welcoming landscape for public listings.
The global economy will remain on a soft growth trajectory in 2024, with developed markets likely to see modest growth while emerging markets stay on a firmer growth path. Stock markets have already priced in the expectation of rate cuts in various major economies.
Just as investors and IPO candidates adapt to the new norm of higher interest rates and reduced liquidity, they will also need to navigate through additional layers of complexity in the geopolitical and global election landscape in the IPO market. As elections this year amplify uncertainty, IPO candidates will need to closely monitor election outcomes and assess how specific policies could affect stakeholder interests and re-evaluate IPO strategies and timing as necessary. 
Notes to editors
About EY
EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.
Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. 
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com. 
This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients. 
About EY Private
As Advisors to the ambitious™, EY Private professionals possess the experience and passion to support private businesses and their owners in unlocking the full potential of their ambitions. EY Private teams offer distinct insights born from the long EY history of working with business owners and entrepreneurs. These teams support the full spectrum of private enterprises including private capital managers and investors and the portfolio businesses they fund, business owners, family businesses, family offices and entrepreneurs. Visit ey.com/private.
About EY IPO services
Going public is a transformative milestone in an organization’s journey. As the industry-leading advisor in initial public offering (IPO) services, EY teams advise ambitious organizations around the world and helps equip them for IPO success. EY teams serve as trusted business advisors guiding companies from start to completion, strategically positioning businesses to help achieve their goals over short windows of opportunity and preparing companies for their next chapter in the public eye. ey.com/ipo
About the data
The data presented here is available on ey.com/ipo/trends. Q1 2024 refers to the first quarter of 2024 and covers completed IPOs from 1 January to 18 March 2024, plus expected IPOs by 31 March 2024 (forecasted as of 18 March 2024). All data contained in this document is sourced from Dealogic, Mergermarket, Pitchbook, Capital IQ and EY analysis unless otherwise noted. The Dealogic data in this report are under license by ION. ION retains and reserves all rights in such data. SPAC data are excluded from all data in this report, except where indicated.
Lauren MoseryEY Global Media Relations+1 732 977 [email protected]
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