- Earnings call transcript Q3 2022

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Operator

Good day and thank you for standing by. Welcome to Taboola's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Johnson] conference with like speaker to now [Renee today, Investor would hand over the your I Relations. Please go ahead.

Unidentified Company Representative

our Thank Investors to it along shareholder Taboola's earnings press Call. everyone, is Walker, our and available XXXX and today section issued and morning, in website. Adam letter Conference our We Founder with I'm you. Earnings QX here before Steve with our CEO; release of our CFO. Third the Good Quarter Singolda, welcome market and

no required except Now statements. undertake differ quickly harbor. also events update currently are statements materially not I'll These and the in discussion statement cover is Certain filings. are Future future and adversely SEC and risks statements duty today, safe by for anticipated. to expectations Today's based earnings from uncertainties periods, available as the including forward-looking the our could described and subject facts subject They our limitations we to them law. material release. are to in press forward-looking information those are on

use defined During we will measures. and non-GAAP terms this release in the refer call, to earnings financial

definitions refer non-GAAP in our to earnings GAAP, to tables the on and that, website. release to the posted I'll with Adam. reconciliations the And turn For over please call

Adam Singolda

end generating to and guidance while QX high strong Thanks, a XXXX the good thank We're our EBITDA holding of million everyone, us metrics beat for flow. all EBITDA. our delivering you million $XXX annual million call. $XX came and third cash million adjusted Renee. ex-TAC of near $XXX at adjusted $XXX quarter was morning, for quarter. Good all guidance for our joining or on We of

strategy market a we're and can in guidance we company. growth by our adjusted We Lastly, as the back to be X% XXXX structure lower X%. and few committed and to tell cautious, due our ex-TAC you revenue a guidance months by profitable I softness to continued executing to cost decided advertising

going track the is that to we're ex-TAC e-commerce. anticipating our that's not quarter historically succeed in on QX record everything versus in high-performing despite a demonstrates world, for in especially last. year decline Our ability this strategy and a

potential but cash Additionally, not of this effect proud counting matters in the I'm on have we're we World our we forecast uncertainties Cup, positive it the and of ability the our than are. More also generate to in year of where given ever, market.

million For $XX of XXXX, $XX flow. we expect million to cash free

of business payments companies in to of to step portion because $XX and an look $XX back, become our an expect as prepayments interest our business a We interest million good like million payments, we back earn will to of investment also publisher this at time none which back prepayments capital cash publisher is way this stronger. I insignificant $XX at decision. become opportunity structure are and over that and for consistently even to another Taking publishers a times million generated cash We add net internally. payments and before cash of cash look interest prepayments $XX are million we

do, We so. do generating world the have need we we're priorities a right we strong the the to team to we EBITDA, what in know best cash, and have

of this help we anticipated, our the if business core years than into churn hundreds been could of wins grows about for had. year-over-year XXXX have for in advertising scaled growth EBITDA initiatives, XX% adjusted top I investment so in wasn't have we've of remember which between time player in web to and bidding to the is Now while open our which before. macroeconomics, XX% supercharge so of of millions normal our cash converts our space, as it in e-commerce, ex-TAC, our growth network Taboola to generate growth that header to performance would ever these a market. of publishers growth a the billion initiatives. of one core effect we're years ability More growth This flow. get including dollars or of free advertising, much before one mentioned lower out and XX% Taboola best display and benefits, us us more $X.X $XX come News. ahead We're Each And there's billion on and still

tech to because us building their great Latin with publishers [Gemini] we of that and the than This revenue, partnerships long-term appreciate bringing publishers expensive editors, very XX in provides years take partnerships it FAZ top a here publishers with revenue, feed front, many beyond decade because Texas matter more, a also generate so We're business. privacy renewed them, We've for to and around a competitive the way. us to go business big We happen the our but partners for but signed in at and more entire HuffingtonPost, market a the and These publishers because U.S. audiences. innovations America. who personalizes a the newsroom in losing a our the of homepage. than a validation very is because relationships our of Taboola us next partner looking and of new our winning partnerships with value in with for renewals investments to garden all more not part portals when powerhouse. choosing switch [indiscernible] which only well-known they which web one Advertisers publishers BuzzFeed, also Germany for [Moneras more technologies. which investment. Time outside We the Especially Group] and we're a we're product one diversify as their audience sometimes pull meaningful open with of five is this us works in three, changes homepage way On using these for are that walled long-term empower considering to are These Italy accommodations years, organization editorial, like is Cyzo, renewals. the like as to to great many each. all news seeing to for with We publishers because to publishers Hamburg Japan's lot spent massive teams addition contextual publisher, it's a you which for of the four, over because with our new publisher core organization; there signed of win and so world partnership and Taboola in can also for is especially competitors power make Out; entire now technology revenue. in Mopo, leading with they're are Taboola of which even in iMedia,

can web of I'm millions for recommending walled is adjusted and not We free look to that's I with advertisers with partners $XXX will growth our gardens things think milestone core and big an huge happy and million opportunity a business about billion million the help of talked $XXX over alternative EBITDA which We and for time our us. reimagine revenue the roughly mentioned of while flow. X% adjusted exciting X% with We're anything I'm down we of walled in investing things investing $X guiding of accomplishing it reaffirming us all us and that encouraged our outside experience flow anywhere. generating next that positive our this with know Investor in cash but in ex-TAC, that ex-TAC, at four and cash gardens. EBITDA implies as truly are Day can our the the us open us we're and

engine answering even the drive anything Taboola Recommend means break of question down. growth. relevant Let's more it and can advertisers other make types to yield our what recommend

business this people Here which main engineering We heavily stands and with dynamic which We've one advertisers, one to Taboola. e-commerce initiatives. well. this can different its X.X big become of is We're DCO, exciting investing time on more help e-commerce to publishers never up. a on upside it's by and the Which Taboola article, to category an and here. Number working and quadrupled a a how of is us around get audience recommending beyond Number e-commerce a we advertisers traditional able intend retailers reach Connexity's essentially Taboola even as pay with give is takes create our impact right audience recommending We we well. of making us. on homepage in altogether, publisher of that make second advertisers publishers' as it Taboola optimization. where as biggest placements. publishers here X/X leads two, advertisers believe mentioned our but our trusted all be us starting yields all retailers types of but is our But called for e-commerce. can to meaningful want day once right advertising, for successful, we're scale have our one, and I focus now long, E-commerce to e-commerce synergies and companies the on our revenue. match growth want sites make Essentially and shareholder our publishers be more and running, day driven. revenue the is letter, and the they over will for of of meaningful DCO our and business scale on demand. performance X/X already up the for build is we're anywhere publishers the publishers supply. can billion to time of much as else two social even for to on good become rely to successful content, get We boundary it us engines it anything creative that seeing well

Here, into initiatives. dollar the allows tap we bidding, Header multibillion to have main us display more which market. two

a on $XX estimate from a publishers header high mean product. generating demand this year live in we're our websites. billion between for bidding to We billion beta. existing and X,XXX demand are and $XX really high to momentum have there's join I We display publishers XX-plus that revenue

and we While more potentially about This intend we're publishers of our and dollars our be stages, over year this this these traffic When will devices, can audio win start part revenue results us the and where allow even of from AI. for we're users' convinced $XX of their trusted wallet, time our last triple this time attention still everywhere scale, the engine of using support anywhere Moreover, devices in Taboola a XX% cost think for Taboola will I'm how kids to SEO. will competitive into that investment to News. seeing like no already become to our generate rates make at will future, share over and is and is million making people discover grows, grow display growing our first-party and days hundreds more automobiles be I will millions at early everyone digits. spend unique and think The business their strong successful our grow recommendation time, X% I advertisers publishers Android them integrating data tracking much as on more. our more send fighting relying This and be Google information. with is we we we're the does news

lot more finish doubt there's future it recommendation no focused is my the I web. energized the to become and as effect ever that, and these Taboola's days an for about I Saying no engine the has personally part, As fun. anyone open feel and a leading our business much as that's world than going on through

of the way the be. change ability discover consumers We outside walled gardens to may anywhere information have they the

single perhaps Our ever the are been. management fundamentals, strongest our every is day metrics they've tracking team the strong,

culture Our is strong.

E-commerce, pass EBITDA. advertising and bidding, We and Taboola and months now have the strong that forward generate do header have. have can to engines growth financials. to a question talk upcoming our more We engaging and over cash double I'll earnings answer with CFO, best may to where to News. it our call Steve, performance you any looking I'm Taboola. triple we in about investors upcoming adjusted our the I'll

Steve Walker

everyone. good Thanks, Adam, morning, and

adjusted forma growth X% of in EBITDA measures despite million. we represented or was shared, constant have Connexity, exceeded QX met was guidance X.X% headwinds. and Adam X.X% We Revenue declined on Pro currency a year-over-year gross ex-TAC on on QX $XX.X $XXX.X would a a quarter. currency ex-TAC macro profit year-over-year solid basis. This with was all our million. $XXX.X third basis. ex-TAC As constant had million or

the XX.X%. was macroeconomic margin of adjusted started adjusted of property the The EBITDA Our QX profit decreased to driven of weak was ratio that revenue our EBITDA or of from in decline by QX to of the gross a existing spread and QX $X decline revenues June, digital situation translated in $XX the resulted ex-TAC to Europe pullback much million into advertisers million. partners in around and a the yields weaker world revenue. continued by rest of in and U.S. middle which

for existing XXX%. on retention an unusual dollar net is NDR below was publishers event ex-TAC our extremely business basis. stand-alone our Our in an Taboola XX% which for to a have

positive in side, million revenue. the $XX growth new On partners in gross digital our property drove

As said of supply. on XXXX in previously, of addition new we one record have our be the of years best will terms

growth gross profit revenues We of our Taboola also the ex-TAC saw in our business growth News. as to and addition as Connexity well from in

entering inclusion $XX.X Looking the to included the was driven XXXX. year-over-year. related $XX.X generated related at non-GAAP was driven which our was we million excluding acquisition holdback were approximately guidance but million were of operating expenses loss line million, million, which the labor of above $XX costs, of A of was a $X.X closed with GAAP of EBITDA EBITDA increase of million, which $XX of million million, and net X, year-over-year. of of September largely was restructuring Connexity, XXXX share-based from came by $X.X charges Adjusted which of $XX adjusted up restructuring higher $XX costs. Connexity lower in margin million million We The expenses, they compensation XX.X% and million competitive on the from by $XX.X market intangibles expectations. but down amortization majority year-over-year, $XX remainder excluded income. net of to employee

million guidance of million our of was $X $X non-GAAP $XX.X net above a million. income loss of non-GAAP net Our to

cash to we way add flow our start flow evaluating we of generated are $XX cash the QX our quarter, information to cash of internally, of to free that we in some operating In had million on two another in by are cash our When terms providing cash generation, flow. with cash items free there Starting we analyze cash $XX flow back supplemental flow this going million. provide business.

our add related we to made. paid our First, a flow get back unlevered capital long-term cash we decision the free structuring on have is that cash interest to debt to because

with prepayments these consider to reason cash get prepayments. contract we prepayments cash I prepayments control that actually publishers our investment supply Second, prepayments have we and how consider add publishers in use and publishers. rather make that than we in is We add strategic we these we with note net business. invest the life with back the are an to much secure can credit publisher. used XXXX would we strong of we back we only back use were in these The them exclusive net They and ratings. that prepayments the our of because a long-term source that a over of

free we XXXX, million $XX year to million cash $XX full the For expect generate of to flow.

$XX expect sheet expense add on and cash strong to publisher you with interest before positive we net of net position generate million prepayments, of cash QX ended million $XX those a our We of to million million balance items. and cash. $XX debt If back long-term $XX

short-term $XXX.X million of $XXX.X investments balance and million. our above cash balance Our remains of debt

expectations for rest QX the Regarding through and won't XXXX, our numbers our I they press in are the go outlined release. of in as detail all

$XXX full and our While guidance to ex-TAC softness said are to full performed EBITDA we the X%, of advertiser continued by we QX year due the million for XXXX. guidance market, well year lower reaffirming are opting metrics, Having and we million our revenues in against that, $XXX our to adjusted X% XXXX respectively.

we our actions expense guidance XXXX heading the have year. forward-looking QX We environment. This weakening September. in some program first at XXXX. impact but are a announced to we in importantly, continued into will base the well restructuring worsening initiated environment on significant of macro levels, I in expenses, our more cost our current of reduced this should but thanks macroeconomy us reaffirming positions weakness the comfortable further We that when note macro not that assumes this guidance cost-cutting despite

remain reduce we our are for our year, have While the of business to disappointed overall to the strong. fundamentals guidance revenue

to we factor million free a $XX year free we to expect Even interest noted, $XXX for flow. particularly cash cash quarter As continue like generated flow $XX over and on in million adjusted out the healthy QX, of paid if million and debt of EBITDA soft prepayments publishers. over long-term over net our you and

News. We are partnerships from growth near Taboola publisher continued strong record seeing growth from new and

our growth us future in out continue believe this to all that will tightly investments and accelerated We manage with for weakness. while will investing let's this position questions. our of period it economic come still to We that, as drive judicious in be to key will growth. of of open up And the expenses we priorities

Operator

Our Boone Instructions] Securities. [Operator with JMP Andrew from question first comes

Andrew Boone

million the highlighted $XX call. publisher the You prepayments of on

that? quadrupled them? fruit where about that the then, either improving on Given And six or be you talk set or players how environment in more front? advertisers? smaller Gemini, What and the you advertising there there product may we hit are engineers invest performance think appetite the more you to XXXX just RevContent, talk performance still your terms of you Adam, about Can about five see in pointing back. you just take about macro that like tool low-hanging prepayments publisher Can on you're out do guys there out pull share to players may thinking kind for advertising. Is try your focused of in

Steve Walker

Andrew, good questions.

million of we The -- this million question about is about of generated net year cash the and over $XX $XX publisher take expenses. about prepayments I'll first, cash $XX we generate to interest So of expect million prepayments. publisher we view the before way this

prepayments, an we a feel of in because those publisher So cash with flow. it's in publishers. our an investment at locking exclusive that's look level as investment in like business Those long-term supply healthy we

publishers helps to is they're us longer-term the helps them us helps that guarantee really we put money it expect. it in things. us new us it and is come make because do contracts. two to our to it's is where get So that lock money And way going mouth our One one they two

three- publisher to contract, the get cash talking five you towards you're years upping by upfront. move a to amount of get a if about them can they to So five-year

these the to think to expect do of in us agreements. that these new lock one publisher in agreements. investments actually as also so and longer-term continue helps our make we both lock So business we to a We longer-term in win are use to can tool best publishers

a So we good to publisher strategic that to going we we continue these budget is will consider using Having beyond. a our look We at credit rating. we way try and on those. that on XXXX We very to continue for and to do publishers said the that at think so look we win business publishers we for it use also make sure is to into particularly use we this use and where that, that ourself we're have those. expect set impactful them we it use

So kind we've a look have risk. credit of we so lost at we money of as that it's ever something basically used rarely any very this that

those. we speaking, So using have continue to generally an appetite

as always think use I we and a be we'll about make generate positive though free sure that after cash that we even flow we'll tool. judicious it

we'll find even flow win we time. that into generating over because XXXX and that them. budget we're for exclusive day, valuable grow that investment us supply that business sure before getting of so when cash and at the and make we helps cash our So the long-term a But of end advertisers an it's use in business great it's positive our free head these, as we still

Adam Singolda

e-commerce mentioned just in over you Let I revenue. more for the in to that Taboola that News me more and addition nature, drive that on Andrew, time, in that, letter, to audience drive the publishers the from of [homepage] we things engagement invest add, front, and helping

us more in will suspect more win will and we will more publishers. become have over work traditional that the potentially help invest business, to insignificant nothing. reasons our the that just beyond Taboola prepayment and I So And technology time, diversify with publishers to revenue,

I that's So my something that letter. mentioned in

in insignificant it's a continue I to this technology, now, suspect be nothing. to become Over right So as great will or we bigger investment investment. go time,

Steve Walker

just XXXX, prepayments, source -- if Adam's I'll were That's cash Yes. of pandemic, if of we one look the they which is publisher to good we and in other were at some a in decided cut we net in add on a letter, -- shareholder were point. them of XXXX. you thing, back actually when eye the released numbers those

also they're controllable. So

that we to. control can we something they're So want when

Adam Singolda

Yes.

people that. again, on there investing that's it's on a performance letter, but will it's And advertising, one performance in as four from So base. help publisher right Taboola then and our huge a things which us X.X my reminder, company, drive advertising, the day. number in a upside And now that's yields reaches revenue existing a already as and our are billion because we're

that's big. So

Google XX,XXX have advertisers. We has Facebook million. and each XX

So a huge such there. there's opportunity

display advertising. second bidding and one header is The

The the third News. e-commerce Taboola is fourth one is one and

performance there your can right Specifically about few a things I what's the in low-hanging question of are about just that fruit. context and mention SmartBid, now specifically advertising

on that SmartBid is the is we're our now and able and at change it that one and about Connexity's So our able automatically SmartBid of retailer those about. now to That most synergies Connexity. This of data retail Connexity's makes is X% automatically sense seeing at is publishers' the the to advertisers excited to supply site. We're find is creative one look retailers on revenue. of put first publishers DCO. look the

So pretty big. this is

in advertisers existing we remember, be e-commerce that synergies about talked would Connexity, synergies. top globally, of largest our one you and the probably said and bring we e-commerce the be when the will to supply If to

Connexity traction. now are top the to that. of do that's as So of SmartBid say would ability out retailers part DCO I XXX gaining on XX

the growing way to one the and was they thing go you way, successful. made one that's top Snap, and So gearing Instagram, if And back that of that's performance very up of if lot advertisers by you fast. remember, a momentum getting

that's So one.

those intention traffic that to QX clicks when able and makes And to successful. to able a speed We're then or click I low-hanging something have advertisers placements AI on fruit. right that's And of CPA probably fruit of more quarter, it's without to road we're situations, there source and results short-term QX. we're to on thing continue tend use very second very, and mean still And seeing different in any The is for something which users lower mistake initiative, are again, to the this going a by do I is basically the good more low-hanging things. automatically that's site. now. things. that's and map That's bid mean or and is other midterm the the working either to to that convert work advertiser and because real. target of we [enrollers] on SmartBid predict

performance were So basically because advertising midterm, make something invest there's a much we term, with lot long of successful opportunity walled to I biggest biggest have reason in to is date we Taboola, only gardens that's do. so anyone able the the short, to is the say is which would

ambition. biggest the that's So

We have that will take time.

Operator

our One with please. comes Needham next next Martin Company. Laura question & And moment for question, from our

Laura Martin

me hear Can okay? you

Steve Walker

Yes.

Adam Singolda

course. Of

Laura Martin

Fantastic.

environments uncertainty. guys this are a of there's much you're following these to environment guarantees XQ question, where just like an next year, so in affect of that that we're building on down lot give because better like very where the get willing deals times up does your in cost So of uncertain them sort and going guarantees, just you taking -- and last into

tempt on free like it have big building engineers on buy to Does workforce talent question But your just that help sort ago. is, so last now of right and laid off of layoff. then Twitter indiscriminately buy know you we this and you XX% last have quarters my you second great couple cut Meta of tightening I'm right that's now we this are cut your try some cash to couldn't belt its announced by getting down employees to these market really And engineering of sort of come day, So wondering, were guys available known and laid that morning I other talented really it half the question. Does a when you off into flow. that coming the tech?

Steve Walker

Thanks, Laura.

So good questions again.

I'll cost the one. of So start guarantees the with

guarantees So kind like I think with two now ways. our macro right economic in times these effect the of tougher

So yields against lower, a significant and guarantees part our those one a news closer bit business. not come on up are The our therefore, hand, we hugely our guarantees. are that the of good is

around were at been This in guarantees. tax we paid XX%. quarter, out we've So of under terms past our XX%

basically So and significantly the we're range, that still not in same has it regard. impact had in a material

better -- is, exactly affecting -- every it's that is And But unto And The about deal of competitive and think you're of say basically which I I competitors up hard a competitors. of sign because situation the to what we at softness, is given bidding more. say I you effect, other we're as at were I Adam year we deals seeing our what getting will of publisher terms -- margins can is, record among a signing macro it's given itself. kind potential while what some it's think where do yield there, new probably in to publishers, with mentioned. talking even has are having our some weakness

years in profitably, publishers do seeing, as more had record the think on way, to record we it of the I by we've seeing more well. churn of We're our lowest also of in that are sign yes, terms year our regard. helps publishers one rate up and us a So

supply right out bit that growing have of So that because -- this, a we're to when really, we're but coming a side signing is the really more, we're of a is we us positioning ourselves losing from coming think less. weakness. The have holding this And out demand before, to said be we back recovers, really nice well. now growth demand only thing the supply path is perspective

So out ourselves coming well we're this. of positioning

weak do think some it's macro is I helping ways. So in the

Adam Singolda

a a in fact to [indiscernible] think technologies also publishers I is of think invested want the that, I well variety follow deal. Yes. up, Taboola big on services and is

three-year, So sign partnership, and now if a about Taboola you're five-year, one, publisher to a you're diversified. five-year very is

the just We clients I XX e-commerce of DCO, and DCO. have of XXX Connexity top revenue. being mentioned X% are using

You that us. is know video for growing

have integration front with audience top News the We OEMs. on Taboola with

now, looking can just right do than especially publishers, revenue. more they're that for partners So

So recover growth. revenue a use players the others. of they cost, also further We're which one, help among lot their and largest stronger that diversified also them have Taboola's own technologies but no than the can drive at and space, is business in

really a proud of which it. I now, partners that those run but your is trying contribute to the Buzzfeed now for and In more stronger other flow, in many, able not in just all year, can very I'm business EBITDA [Terra] publishers other to the level even And who business companies question, think to I you're attracting mean, only generate of last on we're it the might Brazil, things, which of, MOPO that the of have great we'll mean we're to most right? I to mean XX I second think, I years Huffington Post, a be side XXXX, Taboola. many was it talent. especially, why cash incredible strong one that best not, some So And opportunities and million I strong Google leads And amazing than of that Germany, this Taboola Cyzo in in days, chose Japan. momentum. also getting reaffirm ever, us these helps are EBITDA choose think $XXX of

have level, hard different type for companies. seeing great in we're engineers with work the work a of changes. management what other looking people. at make We companies So do already that we're what relationship At

able things opportunities with our come be M&A other hope only mean we'll talent, is different way, things. but -- have I we that my and have might opportunities will that, to smaller not So

cash and having flow of So of EBITDA times is huge a uncertainty in strength. source

Operator

Cowen. One And James our moment question. Kopelman comes next for from our next question with

James Kopelman

looks wins. I the then that will help for investments look key with these offer The to continue are attracting publisher of you a you And And a Taboola? like Adam. that Can what over maybe first or the to you and as are you is to a you're It then these seeing out publishers? lot for areas new biggest Steve. improve ahead, year value-added publishers factors about have of strength two talk follow-up certainly that services the focus

Adam Singolda

Yes.

And think you three are we're there going from where why it's can now now. I I two, reasons tell So years in. three

what and right year most bunch tens in now, if $XXX maybe million low close companies of a in space times. or R&D, a to invest can $XXX at to we you dollars invest of around So million of of millions look publishers millions dollars do, for our

at look we've an just this for five as you on News So years. working example, Taboola been if

Taboola If News. you're a with X% now, XX% of publishers some publisher traffic of from Taboola working our larger get to

that to millions you you if working but Now give free. example, you cost traffic at anyone, dollars, an of traffic you buy with us, could were to the for it from level get

of Now open they we all because know piece that very Google traffic. important able drive a SEO became web the were to

get as and last I for billion things help publishers $X.X important, earnings able billion. not to So about those discover that spend if more control -- traffic That's are people it's already of your revenue. And mentioned to in websites, $XX-plus year. $X.X this XXXX, to Taboola publish revenue million than clicks who and we'll

what imagine a can we're only to grow of when to business to billions You that happens going us year. clicks

one is them. audience So of

because because thing bring AI companies in our any different between to think about advertisers revenue our is diversified so is I other much, in than XX% to types we're second able The we invest believe higher revenue of we're you because that XX% space. when

with make So a that choose if us that's know working with them wrote, someone very try us. with have you work to by more XX-plus just many revenue you you publishers because relationship we they they improve years terms had the or you'll working And always they'll saw by you else, either us. And you, with on are I that the you lose money. money that blog post share, tense a with with when you getting have

way. your You know coming is in money

to month because grow in every and going technology. investment it's of every quarter know You our

XX% have is of because sort companies' in of the revenue, way a we of times lot of buying So our that XXX% revenue. power other

us, almost them That's of we none that's subscription team, engagement. can they the product want Chief coming your together your publishers, can Product, of revenue your see in get I the largest third empower help of Head Audience, one our you that, Editorial the Head now, to money, don't tell reason. And want of are people, of second do the in one team, to drive in to So you with coming the team with weeks editorial working XX person, team, Head Subscription, from you to is even two they're what by and is third just reason. about and all

us, your website So every we engaged, more by content come be more back. make consume to can with and person working visiting

time So that's this recession, choose a time now. even the those especially in three of And why recession. are see rocketship us of in you maybe the momentum reasons people

of Over two, a of it's tell next value I going, can you it's approach. the years, I three think lifetime where type more

So different things do to in different have want they different people times.

to hour, maybe movie, to on a is this to on or a able want this want time So a phone, video. article subscribe. can page in when right what maybe newsletter. might them do now or But they want we're an And send up a person we well, gallery to over want the they to to homepage on on they're you watch click mobile say,

just that help publishers for Amazon. interact more to the value we're with lifetime and lifetime take this about revenue over think they interact user of to kind a they retail web want going of person a our bring versus -- of to the open that think immediate So session. the of Amazon years, next they approach per about think of value with how buyer and time We for

over three where that's think the years. I next it's So two, going

James Kopelman

color out then broader driving as might are deterioration what Great. any macro seeing you spend Steve. color that softness you the what helpful, would perspective? And third regions Any relative especially advertiser think there an of or quick a have changed about verticals be additional for quarter? call think we can from or potentially what demand now maybe terms in may on if just ad to you Steve, additional ad follow-up the seeing could November, into be in you're provide any October, into

Steve Walker

Sure.

relatively we're So seeing normal this at QX seasonality point. all, first of

that So of we're weaker. out kind kind normal QX not knowing we that's entered seeing of anything of the the quarter for

seeing there. we're little kind So bit of more stability a

terms and verticals In the of like, we're diversified. pretty well

vertical. now were we're single very vertical auto weak one much Travel, things it's a or weak, fairly So point now over much the one any was stronger from point go is and shielded stronger obviously, again. We've at of bit the the well course it's and and really year. Cars seen come at again. weaker,

out. area downs of verticals, So kind are out and gets particular there it don't various in in stands we see our business, but and balanced that ups any

I think can't underlying the now are -- way the right the fundamentals our of very at really the we things we're fundamental predict macro, business is, looking but strong.

coming we've at So growth to be point, to continue with obviously, from really few like launched just strong. a like Buzzfeed, and is times demand that a we feel some add And which path back, that's give very mentioned will good supply all we new will, that going us there. us there and of

seeing our less is, just we're demand general, side with they're in keeping I what advertisers, we're the on us. spending think

budgets just up. reduced driving now. softness. at strong, some still advertisers that, particular or and those open there's It's right back we are And are so budgets vertical have think in a fundamentals like bit like that's point, a not general, it's But anything

Operator

Our comes Instructions] Credit final from Suisse. question Ju Stephen [Operator with

Stephen Ju

Okay.

lose the talking is for yield in process, that the for competitors existing Adam, publisher of of RFP I partners, given an what heading about in reason some to terms your mean, lose you the may or all? higher So the business partners be potential what you're event at

Adam Singolda

Yes.

we that's just was to not see to would times. we level good do a and than usually we or event an win lot be responsible -- we not a we of commit time. for me let long able someone lose, be else of more revenue for that lot when partnership a a one, would say So wanted But and not a thought something lose,

back. you're happens that revenue. what of some So would you a commitment might as not we have that And But is reason bad our would T-shirts, here always would tension best come They satisfying find to sign built, And you be partnership. always we being in you a able many it's employees because have, the to time, over I when back. it be one want. revenue partnership, come moment, generate say called from our experience, model

many we break and and come eventually publishers, have and lot pay relationship they You're of T-shirts, to of always a not able [indiscernible] why to back. those that the cases, tend back. revenue that's the companies those come those times

say revenue. So is I'll reason one

could billion $XX it a still is, We're be $X.X small thing billion. company, second only The out of relationship.

in So those works someone a lot times, we of a that the else the relationships at for strong there be that. may and And appreciate times, publisher last relationship. years with XX matter

we So be why lose. another that reason can

happens, hope do is thing build second say when we revenue not irrational win which, those it's and can to win, that's many either And relationships relationship, can some by when someone times. ourselves deal. over But else, would I So lose. it mainly time, decision the happen which the we reason we

Operator

Singolda closing conference this the over I'd time, At remarks. to like Mr. to back for hand Adam

Adam Singolda

Thank you.

There's say people few focused feel on. today. a just more in up morning. ever. just obviously focused to a going mentioned that thanks, wanted I things few how this for I'll I and letter. I [indiscernible] people everyone, a and energized talked say my One, than I joining to people So start lot are. personally,

change way we're consumers and about all outside about the with and the during days especially and that how engine for I'm of become consumers the of garden, are privacy trusted source information discover of the this walled web people open strong. Our seeing. to ability these our recommendation And so the optimistic information I'm news. madness will the Taboola future discover energetic to leading

our are strong, they've management things. We're Those every that tracking e-mail those ever with single is strongest team been. metrics the day. the perhaps fundamentals, Our getting daily

advertising cash Our strong culture have inventory, bidding EBITDA, the strong, header Taboola, Taboola double engines display triple generate is and have can that we advertising we performance e-commerce, and and News. we growth into

joining but the crazy, we're look you. times at Thanks are I things, and those those I to when I'm many forward know focused. I talking of excited today. future, for all to look So about

Operator

concludes participation. call. your for you This today's Thank conference

disconnect. wonderful may Everyone, day. You now have a

Taboola.com (TBLA) 9 Nov 222022 Q3 Earnings call transcript