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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

Oncolytics Biotech® Announces Upcoming Presentations at the American Society of Clinical Oncology Annual Meeting

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SAN DIEGO and CALGARY, AB, April 25, 2024 /PRNewswire/ — Oncolytics Biotech® Inc. (NASDAQ: ONCY) (TSX: ONC), a leading clinical-stage company specializing in immunotherapy for oncology, today announced the acceptance of two abstracts at the 2024 American Society of Clinical Oncology (ASCO) Annual Meeting, which is taking place from May 31 – June 4, 2024, in Chicago, Illinois. Details on the abstracts and poster presentation are shown below.

Title: Phase 1/2 randomized, open-label, multicenter, Simon two-stage study of pelareorep combined with modified FOLFIRINOX +/- atezolizumab in patients with metastatic pancreatic ductal adenocarcinoma.
Presentation Type: PosterAbstract Number: TPS4203Session Title: Gastrointestinal Cancer – Gastroesophageal, Pancreatic, and HepatobiliarySession Date and Time: June 1, 2024, 1:30 – 4:30 p.m. CTTitle: Pelareorep driven blood TIL expansion in patients with pancreatic, breast and colon cancer.Presentation Type: Online abstractAbstract Number: e14625
Abstracts will be published on the ASCO Annual Meeting website at 5:00 p.m. ET on May 23, 2024.
About Oncolytics Biotech Inc.
Oncolytics is a clinical-stage biotechnology company developing pelareorep, an intravenously delivered immunotherapeutic agent. Pelareorep has demonstrated promising results in two randomized Phase 2 studies in metastatic breast cancer and Phase 1 and 2 studies in pancreatic cancer. It acts by inducing anti-cancer immune responses and promotes an inflamed tumor phenotype — turning “cold” tumors “hot” — through innate and adaptive immune responses to treat a variety of cancers.
Pelareorep has demonstrated synergies with multiple approved oncology treatments. Oncolytics is currently conducting and planning combination clinical trials with pelareorep in solid and hematological malignancies as it advances towards registrational studies in metastatic breast cancer and pancreatic cancer, both of which have received Fast Track designation from the FDA. For further information, please visit: www.oncolyticsbiotech.com or follow the company on social media on LinkedIn and on X @oncolytics.
 
Company Contact
Jon Patton
Director of IR & Communication
[email protected]
 
Investor Relations for Oncolytics
Timothy McCarthy
LifeSci Advisors
+1-917-679-9282
[email protected]
 
 

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Internet of Things (IoT) Market to Expand at a Stellar 19.4% CAGR through 2031 | SkyQuest Technology

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WESTFORD, Mass., April 25, 2024 /PRNewswire/ — SkyQuest projects that the Internet of Things (IoT) Market will attain a value of USD 1572.37 billion by 2031, with a CAGR of 19.4% over the forecast period (2024-2031). Internet of Things (IoT) refers to the network of connected devices over the internet that are embedded with sensors and software. Growing adoption of automation around the world and advancements in connected device technologies are forecasted to be key factors driving the Internet of Things (IoT) market growth in the future.

Download a detailed overview:
https://www.skyquestt.com/report/internet-of-things-market
Browse in-depth TOC on “Internet of Things (IoT) Market”
Pages – 197Tables – 69Figures – 75Internet of Things (IoT) Market Overview:
Report Coverage
Details
Market Revenue in 2023
$ 380.6 billion
Estimated Value by 2031
$1572.37 billion
Growth Rate
Poised to grow at a CAGR of 19.4%
Forecast Period
2024–2031
Forecast Units
Value (USD Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
Component Type, Application, and Region
Geographies Covered
North America, Europe, Asia Pacific, and the Rest of the world
Report Highlights
Updated financial information / product portfolio of players
Key Market Opportunities
Rising demand for connected healthcare and growing use of industrial automation solutions
Key Market Drivers
Advancements in connectivity and connected device technologies
 
 
Hardware is Estimated to Dominate the Global Market Share Owing to High Use of Hardware Components in IoT
Hardware components such as sensors and actuators are highly vital to the proper functioning of any kind of Internet of Things (IoT) device. Growing adoption of IoT devices in different industry verticals for various applications is promoting market growth via this segment. The development of new hardware solutions also helps this segment maintain its dominance.
Smart Agriculture is the Fastest-growing Segment Owing to Rising Adoption of Precision Agriculture Practice
Rising emphasis on improving agricultural yield and sustainability has resulted in the growing adoption of smart agriculture and precision agriculture practices. IoT devices play a crucial role in monitoring and controlling different elements of a smart agriculture setup that is mostly automated using different smart devices thereby contributing to the IoT market growth as well.
Growing Adoption of 5G Technology Allowing North America to Dominate the Global Internet of Things (IoT) Market
Rapid adoption of 5G technology and high use of cloud-based platforms are key factors allowing North America to lead the demand for Internet of Things (IoT) around the world. Surging investments in the research and development of advanced technologies and the presence of key tech giants such as Amazon, Google, IBM, and Microsoft also helps the dominance of this region. Canada and the United States remain the most lucrative markets for Internet of Things (IoT) companies in North America through 2031.
Request Free Customization of this report:
https://www.skyquestt.com/speak-with-analyst/internet-of-things-market
Internet of Things (IoT) Market Insights:
Drivers
Advancements in connectivity and connected device technologies.Growing demand for Industrial IoT (IIoT) solutions.Increasing number of smart cities and development of smart infrastructure.Restraints
Lack of standardization of IoT devices and technologies.Privacy and data security issues.Interoperability challenges and complex integration scenarios.Prominent Players in Internet of Things (IoT) Market
MicrosoftCisco SystemsIntelSiemens (Germany)AWS (US)Oracle (US)Qualcomm (UK)SAP (Germany)IBM (US)Google (US)View report summary and Table of Contents (TOC):
https://www.skyquestt.com/report/internet-of-things-market
Key Questions Answered in Internet of Things (IoT) Market Report
What are the top drivers for Internet of Things (IoT) market going forward?Who are the leading Internet of Things (IoT) market players?Where will demand for Internet of Things (IoT) be high?Which component accounts for a dominant revenue share of the global Internet of Things (IoT) market?This report provides the following insights:
Analysis of key drivers (advancements in connectivity and connected device technologies, growing demand for industrial IoT (IIoT), development of smart infrastructure for smart cities, growing use of smart devices ), restraints (lack of standardization, complexities in integration, concerns regarding security and privacy of data), and opportunities (rising popularity of connected healthcare, increasing adoption of Industry 4.0, rising use of industrial automation), influencing the growth of Internet of Things (IoT) market.Market Penetration: All-inclusive analysis of product portfolio of different market players and status of new product launches.Product Development/Innovation: Elaborate assessment of R&D activities, new product development, and upcoming trends of the Internet of Things (IoT) market.Market Development: Detailed analysis of potential regions where the market has potential to grow.Market Diversification: Comprehensive assessment of new product launches, recent developments, and emerging regional markets.Competitive Landscape: Detailed analysis of growth strategies, revenue analysis, and product innovation by new and established market players.Related Reports:
Global Internet of Things in Retail Market
Global Internet of Things (IoT) in Agriculture Market
Global Internet of Things (IoT) Microcontroller Market
Global IOT In Healthcare Market
Global IOT in Manufacturing Market
About Us:
SkyQuest is an IP focused Research and Investment Bank and Accelerator of Technology and assets. We provide access to technologies, markets and finance across sectors viz. Life Sciences, CleanTech, AgriTech, NanoTech and Information & Communication Technology.
We work closely with innovators, inventors, innovation seekers, entrepreneurs, companies and investors alike in leveraging external sources of R&D. Moreover, we help them in optimizing the economic potential of their intellectual assets. Our experiences with innovation management and commercialization has expanded our reach across North America, Europe, ASEAN and Asia Pacific. 
Contact:
Mr. Jagraj Singh Skyquest Technology1 Apache Way,Westford,Massachusetts 01886USA (+1) 351-333-4748Email: [email protected] Our Website: https://www.skyquestt.com/

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Sapiens Unveils Enhanced Reinsurance and Analytics Solution Catering to Evolving Market Demands

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Latest version enhances operational efficiency, regulatory reporting, and strategic decision-making with robust business insights
ROCHELLE PARK, N.J., April 25, 2024 /PRNewswire/ — Sapiens International Corporation, (NASDAQ: SPNS) (TASE: SPNS), a leading global provider of software solutions for the insurance industry, today announced the launch of its latest version of Sapiens ReinsuranceMaster.

The new release of Version 9 brings a multitude of enhancements and technology stack updates, designed to empower insurers and reinsurers with robust, enriched functionality to support business requirements. This includes automating global inter-company retrocession, facilitating U.S. NAIC statutory reporting (Schedule F), and real-time reinsurance allocation support (‘reinsurance as a service’).
The latest release offers a multitude of enhancements, with one of the standout features being the seamless integration of Sapiens Intelligence with Sapiens ReinsuranceMaster. This integration empowers users with advanced data capabilities and actionable insights through out-of-the-box reinsurance reports and analytics of the reinsurance portfolio’s performance.
In addition, the new release brings significant improvements to the user experience, with a revamped user interface, enhancements in processing performance through improvements and parallel processing mechanisms, improved scalability and operability. 
“With the growing significance of reinsurance in today’s volatile environment, our latest version of Sapiens ReinsuranceMaster with Sapiens Intelligence offers even greater value to insurers and reinsurers, catering to the ever-changing demands of this dynamic market,” said Roni Al-Dor, Sapiens President & CEO. “Leveraging the shared experience from our other products as well as requirements from our global client base, the solution is now very well-positioned to support global automation of complex reinsurance programs and provide management with insights into reinsurance performance as well as statutory reporting.”  
Sapiens ReinsuranceMaster is a comprehensive, single platform for large and multi-national reinsurance programs, providing full financial control and flexibility across all lines of business. The solution supports the entire range of reinsurance contracts, providing full support for all auditing requirements and a consolidated view of liabilities and risks, as well as helping prevent financial leakage.
Sapiens Intelligence, now a fully integrated component of Sapiens ReinsuranceMaster v.9, produces actionable insights to maximize the value of data and KPIs for smarter decision making, improving reinsurance business management.
About Sapiens  
Sapiens International Corporation (NASDAQ and TASE: SPNS) empowers the financial sector, with a focus on insurance, to transform and become digital, innovative, and agile. With more than 40 years of industry expertise, Sapiens’ cloud-based SaaS insurance platform offers pre-integrated, low-code capabilities across core, data, and digital domains to accelerate our customers’ digital transformation. Serving over 600 customers in more than 30 countries, Sapiens offers insurers across property and casualty, workers’ compensation, and life insurance markets the most comprehensive set of solutions, from core to complementary, including Reinsurance, Financial & Compliance, Data & Analytics, Digital, and Decision Management. For more information visit https://sapiens.com or follow us on LinkedIn  
Investor and Media Contact : Yaffa Cohen-Ifrah Sapiens Chief Marketing Officer and Head of Investor Relations Email: [email protected] 
Forward Looking Statements
Certain matters discussed in this press release that are incorporated herein and therein by reference are forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our beliefs, assumptions and expectations, as well as information currently available to us. Such forward-looking statements may be identified by the use of the words “anticipate,” “believe,” “estimate,” “expect,” “may,” “will,” “plan” and similar expressions. Such statements reflect our current views with respect to future events and are subject to certain risks and uncertainties. There are important factors that could cause our actual results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to:  the degree of our success in our plans to leverage our global footprint to grow our sales; the degree of our success in integrating the companies that we have acquired through the implementation of our M&A growth strategy; the lengthy development cycles for our solutions, which may frustrate our ability to realize revenues and/or profits from our potential new solutions; our lengthy and complex sales cycles, which do not always result in the realization of revenues; the degree of our success in retaining our existing customers or competing effectively for greater market share; the global macroeconomic environment, including headwinds caused by inflation, relatively high interest rates, potentially unfavorable currency exchange rate movements, and uncertain economic conditions, and their impact on our revenues, profitability and cash flows; difficulties in successfully planning and managing changes in the size of our operations; the frequency of the long-term, large, complex projects that we perform that involve complex estimates of project costs and profit margins, which sometimes change mid-stream; the challenges and potential liability that heightened privacy laws and regulations pose to our business; occasional disputes with clients, which may adversely impact our results of operations and our reputation; various intellectual property issues related to our business; potential unanticipated product vulnerabilities or cybersecurity breaches of our or our customers’ systems; risks related to the insurance industry in which our clients operate; risks associated with our global sales and operations, such as changes in regulatory requirements, wide-spread viruses and epidemics like the coronavirus epidemic,  and fluctuations in currency exchange rates; and risks related to our principal location in Israel and our status as a Cayman Islands company.
While we believe such forward-looking statements are based on reasonable assumptions, should one or more of the underlying assumptions prove incorrect, or these risks or uncertainties materialize, our actual results may differ materially from those expressed or implied by the forward-looking statements. Please read the risks discussed under the heading “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2023, to be filed in the near future, in order to review conditions that we believe could cause actual results to differ materially from those contemplated by the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason, to conform these statements to actual results or to changes in our expectations.
 
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