Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, and thank you for standing by, and welcome to the Taboola fourth 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 note that today's conference is being recorded.

I will now hand the conference over to your speaker host, Rick Hoss, Head of Investor Relations. ahead. go Please

Richard Hoss

CFO. good the quarter and Adam and to and Walker, welcome our today earnings Thank the section before earnings morning, of conference fourth market, our Steve and XXXX and available with issued call. Taboola's our Founder materials in you, they’re CEO; everyone, We Investors I'm Singolda, website. here our

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

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

and GAAP, the website. please in the tables on non-GAAP posted release earnings to definitions reconciliations refer to For our

With the that, to over I'll call Adam. turn

Adam Singolda

and Good us our solid for ahead. on guidance quarter adjusted was all Thanks, morning, while EBITDA for in delivered QX, thank slightly financial middle call. joining We which in our of Rick. fourth performance came everyone, the you in all metrics,

Japan, our the best for new through of to adjusted way the a execute. I'm year challenging positive we've we accomplishments. full we as Media, XXXX and a year Ouest the was Huffington of XX% such and For as and Internet and $XXX.X achieved Grupo EBITDA, XXXX, Taboola significant publisher year able that We million Post, second publishers such new cash We of Buzzfeed with more. us, million BuzzFeed proud Condé United Slate, Kicker, at very of a won partners and our such joined revenue Sports XXXX left the per publisher than us, Godó, also macro Tegna, XXXX XXXX. renewals keep flow. Brazil. NetworkXX, We Dumont. new environment, $XXX.X month down, France, lot. team manage Fox free Nast, key and had signing but back as partnerships, CBSi, had heads over year, higher was Overall, previously Ex-TAC, and won Great signed were PRISA,

may As our you is more. like, commerce, recall, be twofold. apps, shows want We overtime users recommending We Anything. Taboola strategy that to tv and anything content, call

which our devices, as to want called Xiaomi taking but spend of our Anywhere, part like devices technology over time, advertisers audio to example, and more. and an publisher is on automobiles, strategy is Taboola bring home their and content, second Samsung, people The time, OEM content we our anywhere

as the On to when like exceeded million XXXX Taboola version well and has traffic from are it the revenue, News, more Taboola our value We but type as front, digits. in business, of Taboola year getting was Apple Android overall strategic publishers News and devices, $XX the growing Anywhere our growth, triple core it's News. of that annual for more

for of out, Meta. part rolling main which DCO, was eCommerce Taboola Creative Dynamic and gained success Optimization, advertiser As meaningful momentum, Anything with our stories the like strategy, companies Snap

I launching Additionally, new Commerce will later. announced about our Taboola be will TIME.com little Turnkey we which a that talk recently solution,

and XXXX, This Yahoo XXXX new Yahoo. positive is adjusted year guiding and free It powering will ex-TAC gains. contextual for $XX It flow. X% with pre-Yahoo includes XXXX, In to big. contribution assumed be lower with XX-year a to are results. rollout, million, an partnership. year-over-year building for lastly, four we’re buying and weaker reasons advertisers really is the a incredible This for while finished Taboola partnership native users segments, three-way advertising Yahoo million cash have exclusively nearly compared We includes network. XXX XXXX partial is EBITDA There meaningful of month.

and compared and Europe macroeconomics XXXX war due how ended as uniquely to First, US. QX to the of strong we were hitting HX XXXX in the

As part ex-TAC million basis entering rate XXXX than a on of run we’re $XX XXXX. that, with less

to year-over-year comparables expect We return QX growth XXXX in lap and QX we from HX. to hard as

transition, it us in cost this includes investing and which people, we’re Second, a servers, year, infrastructure. $XX successful million will roughly and Yahoo

Like time believe publisher over eCommerce, winning three and pre-payment we fourth, advertising, estimate share double none as investments We growth a more market we’re help continue Taboola launches. and header and this publishers Third, we their more entire triple revenue even to organization. pre-payments net investing us being to to And net $XX will see strategic million to quarter, these performance time become includes over year. Yahoo in bidding. of I last mentioned when insignificant

So, you permanent should assume of this not model. the is part financial a

teams to management step that what future declines guide it's look year, to hard XXXX a it. and accept willing say be very me will in Yahoo revenue, while with will Let this it's know are like for change the that rare ramping.

now an Yahoo and strongly than very generate this now. We investment That's by XXXX, feel assumptions least refer year back, in of we're beat and the on XXXX. in with $XXX looking and for only gains privacy with million least Adjusted in market, $XXX EBITDA, year putting advertisers the with million being Taking hard XX% for no XXXX. scale. being flow We're to of those working live partners ad conservative, and we’re as concerns this advertising contextual and meaningful cash to we at be revenue at expect And is why we year. rise, less step coming be resources sharing in June Obviously, next assumes will beyond. free a of to are Google XXXX you Meta to especially

as have if We billion side Twitter, by of The advertising Yahoo to open put integrated. world in year, mainly had and web would further that largest walled and Pinterest, revenue. with engines one on the Amazon of With XXXX our like and launching, I'm the much the and materializing. growth Yahoo $XX have strong Yahoo becoming that Taboola a directly. the only garden both would I meaningful towards partnership, than network us. our web well that $X.X our And That in TAM, steps with fully step and publishers company knowledge throughout and bigger had going we’re web, is my by estimated fully us goal is Trade Google we size making billion our Meta roughly companies been side we live the to believe our that serving vision, revenue that advertisers long-term at the have we’re convinced Desk, open will were to after company dedicated company the Snap, towards as becoming is open estimate

engines, gain drive provide on those growth as header advertising, to These to most a brief a company we let and Now, growth update in bidding. years further me where come. performance are the eCommerce, to have

the and with goal performance make want in that to Our choice consumers first investments reach our to advertisers performance web. best open in is Taboola any for advertising the

in We’re key four currently our areas. investments focusing

help had partners. will our successful network. working strategies bidding on we’re how that we goals process SmartBid First, our shared our advertising with the to advertisers Previously, bidding on different automates be for

expense and do the maximize initial or like things to adjust the on working even conversions, set that even enhancements as to network, CPA, algorithm targets. to allow set across rather SmartBid than at the will advertisers we’re allow did target just of SmartBid bid bid, a Now, to the the previously, CPA

very of second, intent Now, working supply. audiences we’re our new way a on nuggets specific finding of in high

Third, with we’re creative and pages. ways advertisers in such formats conversions, help new enhanced investing and drive landing new to clicks as

will advertisers headlines generative and write more currently artificial generate intelligence For working creative images even appealing help from instance, scratch. that we’re on new and

at of ads If you how to this, It’s to we’re from on a trip passionate our I about came X. time and is, Taboola demo tech of about XXX-person see strong you, possible. users, future generative can, I to amazing the match will Yahoo cool just Information during that I with March see on that come how and tell was results really as Israel, Fourth, ensure this Session advertisers how investing in our we be smarter our technology away Deal please technologies I to the stuff. as with back working especially team and blown quickly spent R&D about teams advertising a which have platform. AI

have We much can do. so more that we

the to demand with our see eCommerce bottom continue momentum we're intent eCommerce well. investments progress commerce pages. their has helps to automatically Connexity circulation DCO. significantly drive libraries of on general placements, grow mentioned place such the users I up with retailers to shows traffic seeing us feeds. amount traditional allowed that drive network. Essentially, Taboola in We It pages We publishers product commerce as eCommerce launched as our of pages, the article in high to recently help news to in our which from our widgets good

attractive content with have of Advance our any can know write two to content us do using write the now I our I’ve and announced the stack NJ.com was to publisher. publisher very, get link Publications business service publisher, We traffic Taboola. about. This makes for merchants Every site. And work little call to for other it. know you, talked our tell the providers. has to full the just this but initiative, that retailers, the any their eCommerce, that don't missing sense take content. we’re excited solution eCommerce into also initiative Commerce. behalf level. new to does of and an just of can which the eCommerce what We Turnkey publisher Time in that relationships the monetize drive on Taboola to to with data no Taboola We through do partners or from with it for to exciting that I eCommerce We of very we announced to next wants all got

our about and with bidding still ads heavily least, supply open data, Wirecutter while technology by is enable hundreds XXXX, using our generate future our us for and is traditional you, us that bidding. it. Now, this then, technology and it's beyond to New will continue right. plus their which generating left can able in this this is Times to CPM-based profitable placements, with we revenue the and wants are display bottom launched because a for millions article grow York first tell this our and header but allows publishers dominated not the see likely well, predict we’ll are investing Header our an everyone expand website, ads. still we of partnership. on to perform first-party we’re starting We started publisher Look, XX this this important and of our of calling unique CPC a to us, Last new to is This to demand, which our service web, share of bid. ways dollars additional Since I that of compete technology partner, we’re partners in of we’re beta have Microsoft, April traction. from testing proprietary one

the existing our increases core Taboola time, year relationships. of publishers a partnerships look see wallet, new a as moat starting few on of win to For and from partnership, few to a expand which share millions of dollars we're it our and first our we generating top

I partnership XXXX and is think will accretive big exclusive native partner be our XX-year our for in investment advertising for the of financials. year advertising This the community. be Yahoo. big to us, be for big for very It the will Yahoo, to

and publicly, $XXX shared of have flow live I million multiplied it million of cash $XXX XXXX, in of would north flow, adjusted if add free was free times EBITDA. five As cash this to our

and will a We’re lot it mode, and of full transition. make in on planning successful investment work to XXXX require a

and about Just more. page advertisers many thousands of transitioning, infrastructure, types, think

in three designing Phase We migration phases. we’re X, technology occur in expect plan. the Currently, transition the to

two You can between think plumbing platforms. of the designing this as system phase the

on Taboola's advertisers So, when can advertisers Yahoo's spend completed, on on supply, and Taboola's spend platform Yahoo's supply. on can platform

plumbing to the X pipes of will advertisers move in supply, demand small to amounts test and system and a platforms, transition we will which the we the the Phase of the migration, Soon, some by of flow starting move experience. test to build small of between number

the and Taboola because have to At and trade be be and need expect revenue. and the on every thrive making mostly the want Yahoo begin thoughtful second will we gains experience but to blocking and X Once the Phase we tackling, pipes grow Phase Taboola. platform. migration short-term and will that to plans, still the We the advertisers be in the transition we process supply great transitioning want not to a transition validate involve in XXXX. of X We advertiser point, half from to to do our for completed will long-term

half at be expect We from fully and X second this be the liftoff. which our will year, to rockets XXXX ramped, partnership and building and to have we We're growth Phase XXXX able Yahoo. opportunities point additional with begin be of in will will completed focus we mid-XXXX, our on

We become and I more was company as future. about will we’re excited bigger never and a competitive, as and where our

now I'll to CFO, our over pass to our about more Steve, it talk financials.

Steve Walker

good everyone. Thanks, morning, Adam, and

XXXX our As ranges. profit, our within All above midpoint. were results guidance, Adam just guidance except came noted, metrics ex-TAC the gross full-year midpoint our our QX and in below which were of

in million EBITDA. million. of had and year, For ex-TAC $XX million billion with we non-GAAP $XXX loss net net $X.X profit, income adjusted in of and gross $XXX revenue, the a finished $XX.X XXXX We full million approximately in

also generated partner in in the positive brought million note revenue XXXX than averaged our I of cash would side XX% flow the in supply a On digital business. over us XXXX, new despite for we more free was per that year macroeconomic property of $XX.X for on and generating average, challenging month the year, We XXXX. conditions. XXXX cash banner we

rates were levels. low partners digital also historically property Our churn at for our

gained in we new in as valuable $XX In from addition, we over business Taboola to XXXX. grew supply News, that revenue million

approximately quarter, were our million. revenues the For QX $XXX

which million, were $XX profit were digital our approximately by net new $XX.X macroeconomic of in drag the approximately in of occurrence Revenues million caused decline net X% gross which $XX.X and decreased declined reductions ex-TAC of partners, income our our unusual very for gross advertising but the foreign by approximately year-over-year, profit of budgets was is Our digital from rate by property X% $XXX partners, a exchange almost property Ex-TAC the headwinds. partners. existing existing non-GAAP currency million. our included advertising $XX a partners. our decline million, million income addition in in The weakness, property and us, many by result global digital aided

full our and the holdback Share-based net million for million excluding loss year. the QX, for that million GAAP the expenses, around of $XX.X the were of $XX quarter This $XX was included expectations. intangibles and the cost cost $XX in program compensation year, around line expenses for of decrease announced and the million year, million and income. for year-over-year. the million $XX continued million excluded We QX. EBITDA reductions started focus adjusted million both for of with on quarter, spending decreased down restructuring our result full Operating related our for acquisition, charges mid-year, with primarily discretionary were $XXX in Connexity to full the the which for in full for the $XX and year, year, $XX the quarter, generated million of approximately $X and net non-GAAP of income which quarter, restructuring of million $XX.X net were for our from GAAP were the with

million approximately and quarter, end income the year, ranges. million full for net high $XX for above non-GAAP the were of approximately the both our of $XX Our guidance

the publisher approximately net and prepayments to at of the would of equivalents, flow as in generation, our rates. full around terms full is in plus for million QX our million in after repay of year. declined $XXX year, QX, of The million flow decided quarter cash investments, on interest million our approximately that $XX and do for quarter, and cash also million combined fully end was million decision our end well year. from approximately $XX decline free interest explained debt. That cash rising full $X the note the million short-term debt operating the $XX than long-term full cash at approximately for to in of cash In payments the long-term because of more million and QX $XX the XXXX. We of for $XX we approximately by as and million $X XXXX, balance $XX of $XX the of the I for had year, our to this in with flow $XXX million million free cash

historically of sheet kept came in balance required on on certain cash a short notice. our that case maintain have in We large of cash operating order amount flexibility opportunities relatively along to large amounts

For instance, the acquisition of a or prepayment. large a distressed necessitate a would large that asset upfront publisher win

You could think of policy this the upside as option value. maintaining of

given we well, rising rates, some maintaining of that debt. now long-term of draw with However, risen we option as pay and upon as fact this have down facility our decided revolving interest the cost a credit to the to has

$XX We in to XXXX. expect the million million to debt retire more of $XX

Now, XXXX, assumes for in continued shift environment. to me of that guidance. macro weakness should the a environment our I of note rest significant macro levels let not forward-looking but worsening our the current at guidance the

almost so As macroeconomic ex-TAC this run I relatively look given had the and a is we end that We seasonality way the see of but not end result mentioned revenues year-over-year QX. that exactly the normal to our than does Historically, calendar of ex-TAC entered and to earlier, at QX softness a and at had the rest to at US XXXX starting the softness mean did XXXX. much it numbers. QX, we of XX% our lower started year. spread in The decline rate at in worsen, QX of XXXX contributes Europe in that QX, most was in our the world of the of

we starting our not billion and entered that good revenues that's $XXX Yahoo. Yahoo After applying of entering of revenue we our This we’re So, we our lower rate to include which rate run have chosen projections. XXXX of or not $XXX guiding $XXX.X year. means expected we of to XXXX, our seeing with for Ex-TAC million, QX currently early if our you multiply it our million because process, our accurately In $X.XX $X.XX We’ve revenues million should or therefore include when run $XXX QX XXXX rate to had four, ex-TAC ex-TAC to the finalized $XX does guidance full-year not a lower the estimate XXXX subsequent of by $XXX numbers. from in ex-TAC, a growth, than from too the start revenues million ex-TAC was of over forecast point planning run billion, is to This full-year partnership. around million guidance million. and

We update into that. better will year through progress and as visibility we the have

To that Yahoo investment point, cost for did into platform. We supply our factor this related relationships to million advertiser our transition of $XX year support a will be year the significant Yahoo will guidance. These expenditures be to the of onto required and in us. almost

generate addition, initiative an In returns time, significant Turnkey growth partner. Commerce meaningfully as this will initial initiative rate of our Taboola recently We Time over announced called we our initiatives. eCommerce increase the and believe with

$XX header million EBITDA, We our we’re a million will the making $XX are invest $X and in Yahoo bidding, priorities on net non-GAAP investments we’re XXXX. impact $XX that to in company range in After investments million other negative million of to Commerce and income million. and of adjusted Turnkey investments, top $XX these top this million eCommerce advertising, of guiding other the in initiative initiatives. to These positive of $XX of to performance

confidence XXXX, we’re very a continue and picture will is like, is right a Adam because confident the from EBITDA free that will It flow note internally that Deal these business transitioned of agree unique pay Yahoo, you year to adjusted important fully such said partnership. and we’re that over drive partial clear to looks over him. off hear comfortable beyond It be saying very what position more with to investments be XXXX and for many by Let to can not still I will a X a all growth as in it in we’re what our of because also to Information is of that that XXXX $XXX of million that next me come company of rare Yahoo in Please guiding expect have on until for $XXX year. now will mid-XXXX. only cash March that times has million. that finish about Session begin to to future

our sending by on the Investor can or tab website to You register an under events email investors@Taboola.com.

let's it to that, open up And questions. with

Operator

from with Andrew [Operator Boone line And question coming the JMP first Instructions] our of Securities.

open. line is Your

Andrew Boone

going Good morning. The so my of closed for guys. is Thanks Hi, touch and how guide what then yield to the currently excited the Yahoo closure Yahoo? announced Gemini. push for XXXX help do do and Adam, are what XXXX? you the I guide. Steve. can about us need Yahoo's want doing last get on you advertising incorporation deal the Can to and demand understand you just then for most question they've of in questions. to one much clarification What think XXXX we about taking And again? that And the

Just, of debt talk paydown the anything so timing highlight and about there? Thanks can else of you to much. the

Steve Walker

Yes.

me XXXX guide. start the let with So,

think to guidance run we a macroeconomic way the the the even with And think I the year yield. is that had we're entering about basically that's decrease and XXXX. than effect entering our in lower So, rate XXXX

in QX than were our softer and QX were XXXX. So, they

entering much this new of the softness affected supply supply that We that year. rate that added macro, so shock also our we demand with also run year, in had some the the on

but So, base. I going overall year, lower starts starting things think to lower those base at growth to We of be us it's expect grow off do this a that lower basically the point. off due to

cost side, an would I say it's for investment On year the us.

there we've and investing support the what the we obviously, visibility for which, assumed our to else. performance bringing that and going the the good there's will have pipes, But Yahoo, bidding, need for so, to invest to cost investments eCommerce, to that And over, in. put hire we've we when the in chose those short-term. in everything advertisers that in up that because we header until and pay off investing have guidance - exclude systems are yet don't we exactly which to our decided from we'll to start is just guide. connect to we've been supply that revenue will we'll advertising, the point. into assumed because we’re build in migrating now, this people We’ve we've Yahoo, we think So, continue then the

about it's million but cost and associated clear trying just a So, for $XX something have we adding revenue, to. hit, conservative no to that trying be to avoid don't visibility guidance we're with because

that's to very for we So, is, to this and these would free dollars guidance XXXX cash think obviously our how we're over million to about enough guide guide EBITDA of flow. year. of for What that investments million we we XXXX, and plus it's $XXX $XXX a for confident will company that say were in believe adjusted unusual confident

pay I debt thank expect you And that, the we'll for the right was I would be XXXX. of investments question I we're $XX to starting million corner. not in around on to repay million listening now. I'm clarification that is the in talking meant are them which XXXX. from we to as See, off five $XX in XXXX, by These we XXXX. the already that'll see debt. realized that said way, So, - years about things that return I

debt be next $XX So, this so repay million yes, but million to $XX year. year, looking not of we'll and actually to

Adam Singolda

advertising the engineering Andrew, I for the from and the I team. week the And I with and spent came can on front. SmartBid just question say, us I’ll thanks Israel, excites and back drop, about what

to you have specifically this are last summarize people about doing. about And week, about now our I to and We on just GA on side. kind if that good say all XX% to I launched of work building just I strategies. came success, theme the performance XXXX advertisers. people see - we excited XXX back uniquely would something to expect, our that what's one was should It's working advertiser the of

put initial now, So, go call up of kind to an the change could autonomous was the advertisers SmartBid, SmartBid CPC, - like sense and until SmartBid on of car CPC in that we based it more conversion. would

to target As objective lean say, also the CPA. now, achieve, the to what and with an as can go actually of advertisers and trying Taboola they're is example in

just we That's is this product CPA say, past week, optimize will work $XX. how So, AI that’s to a that cost, or expect much out market a my That's advertisers things using $XX that us. ROAS, it year, our And deal. is and brought SmartBid can us big you of for And like specific CPA. should to revenue. later hard this been lot roll to maximize target

much it for So, advertisers use work we'll closely goals, do them. to really with as their relates it to and AI can us

be So, our a that’s of going year. to lot this efforts

Andrew Boone

Thank you.

Operator

Thank you. One our moment please for next question.

question next with coming James from the Cowen. line Kopelman of Our

is open. line Your

James Kopelman

how soft in region Adam. follow-up into with case up were XXXX. stronger could ad any maybe versus the Hi. have question. Good you provide trends outlook morning, a some you on XQ finally, guys. into your market baked on economy? quick is landing weaker much region in which color Thanks about ad we And you end And verticals a for you're Also, and I into can Then in for provide by the talk taking basis. conservatism Could additional February? particularly what seeing a on color

Steve Walker

and let advertising conservatism So, the market guide. the me start with in the trends

terms with bit of the heard of of is companies saw normal So, a of kind middle but I’ve first the similar. market, of saw so of all, we we this, lot - talk what a saw We I think about in a advertising what for range, seasonality guidance fourth why a soft right quarter think in we were us, of in which relatively December. I our is and terms

saw similar goals of and actually seemed back then the they Connexity made that. like to to their December. in for advertisers It's exception us, pairing So, started Interestingly, kind the year. it last was year, almost what things we

to year. strong of So, end the eCommerce revenues continue through be the

it's of year. the we've year, this that's we relatively been end kind seasonality Heading So, normal - of generally again, it's at saw last what into as started.

other normal So, or that or we haven't region lower be year. particular Everything looking or particularly Regionally, by seen a again, sort Like was softness off thing. budgets to us, cuts or kind significant seen changes like different any than is we of there. of the of the Europe haven't any but EMEA any same acceleration of set earlier last others. up base the seasonality in US

kind that's what So, of seeing. we're

right of we're is terms continued guide and in guide, conservatism In trend. what that our assuming now the

significantly but things don't also get don't worse, recovery. we a see So,

the as is, is macroeconomy normal catches the recovery recovery. see repeat earlier as think kind - budgets case we overcome bringing is period of demand for the not us growth growth the we We But I we of been. you we'll missed on I think on generally Can that not still for in a and that? supply much a of in kind case that enough referenced an supply for in that because are great bull what we cut what with third that advertising soft, I see I too a as as the outsized be again. Obviously, brought believe worse which and XXXX, to supply apologize, gets question. recovery, as stay now, than And the a of your would definitely faster the, demand that it. supply we're should we've assumed able happens, bear having up things shock, but rate significantly and it's

James Kopelman

in Yes, into was versus any XXXX? if out sure. as stronger being you had I would call verticals either and you weaker that XQ just curious advertising

Adam Singolda

on eCommerce. vertical that stronger I was think was one

December core which Steven being year specifically we've eCommerce of their network. traditional able the with think to were momentum usual, Taboola types conversion on the than Taboola publishers That that the the to with content able stronger throughout find that good were of towards specifically, has seen that retailers supply. means other find mentioned I DCO, news even and So, good and year, been our a Connexity on on products end success

So, intent my that's nj.com, source And and as for review with that been publishers want. with out in the eCommerce increases the retailers then a turnkey more that rolling supply launch we're content strength. quality actually announced product we letter, which of and time.com of recent content high was

we growing to attached continue be to content have of to for grow So, this and want another has that retailers as the momentum to. been publishers that source expect be I strengths, Taboola this a

James Kopelman

up, wondered, very And at the you at be Great. there Taboola still just XX should think out? much. Will size of the all could the you if News. business Thank right, that's And progress Is any call talk partners just to about XXX%? we now? from follow how it I new if to months Adam, then growing XX to about

Adam Singolda

Yes.

which Taboola reviews we’re social is I've very some publishers in us if about of where to SEO on unbelievable So, XX% of to about excited publishers been different quarterly in you showed is power traffic becoming business rely that it. X% and the regions, think how that. their traffic much News QX and

business. our So, News synergy to core that between great was Taboola

that's great news. So,

with have great partnership and We Xiaomi Samsung and others.

new we're should for some that launching. formats tuned You stay

video OEMs. that imagine commerce our other we can with doing we've and You things that and be do publishers yet traditional on to

that RPU them can So, there's of a and vertical increase the more that existing we I growth lot our for suspect with consumer. we generate do with OEMs

Also, to right? $XX million it in still excited. it's I we be while expect I'm business startup, a small last a this at announced crossed started to We business. Taboola, similar year, business. the revenue a it's startup, organic - margins And it overall triple-digit overall, our So,

the become specific business this within say We comfortable haven't feel numbers, $XXX but future. I of foreseen did saying given that north million will

Operator

Laura coming And question Thank the line from Company. our Martin next & Needham you. with of

open/ is line Your

Laura Martin

units because you've And the give there. Hi ad couple and with been going upmarket, update on revenue? A what's also, like Adam, to things. you us you on video page talk move up an your and trying then in I'm cost that ad about tasks we keep the of just and struck really by spending, impact Adam, just - new new of centers. that's adding I how sort And fact terms going. could high units

So, now eCommerce, we're adding. we had news eCommerce Yahoo, doing we're and doing and now and we're

there's complexity. So, we engineers feel and just I costs of adding like a keep of sort lot just and

Because to Over feels these in like the terms be some allocated it managing and about these. last cutting like accomplish. XX those some and about of feel you're initiatives, sort on how invested the of of various you return Could of maybe trying has think capital? off would you more of better all months, talk complexity things I or that, doubled all tripled

that for Thanks. just us? So, talk can you about

Adam Singolda

Hey, good These good morning, are very Laura. questions. two

one. the as from lifetime of drive the them we've or over six with part value because amount So, value What site, coming some publishers approach the kind me of consumers of like video doing their love start let months been last to with three help videos. maximum to consumers

don't. Some

like eCommerce. Some

don't. Some

think optimized really more, And because publishers the lifetime don't. while but whereby about plays publisher our and value relationships we're long big more So, that some different and it, amazon.com, have different a video have people in to for with people users. part like others like partnerships holistically trying an as

call is which So, we've reels, consolidated videos we could we've in done, it recommendation sort them. to recommendation what of kind of - units include our

publishers our now to Homepage in homepage, especially of You, the recommendations. gained on a their momentum, with on put growth such with of AI many amazing I the your mean, which it's video product homepages mid-article, an of lot it So, comes For

been it us. strength has So, a very source for of good

XXXX, with I to and supply performance brand more publishers specifically future back. it's and traditional video we going see and more that's of think, softer But our homepages more mid-article in into integrate on the units being our come obviously, advertising feeds. do where opportunity advertising a

engine Taboola. these buy video, And like to unit buy value an is placement. but it, users, a from and what most lifetime into like a all I recommendation. as versus recommendation how we're single what widget to of holistic could, that's So, as appear I that consolidating They some publishers the people of or formats it personalization other the sort a eCommerce appear

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question, it second our few when the About relates policy, things. say to let me just investment a

think which important flow for for to healthy us. and cash Taboola companies be free free - I it's very is to one, flow, cash positive So,

and or lot of team whether a upmarket, as something management a down-market So, we it's to. a in that's as a board, attention pay

in So, other healthy flow Yahoo cash see which investor XXXX, in XXXX, a a will we're investing as in while dividend ourselves free huge EBITDA. can that's with things positive and - and pay community for you significantly

millions momentum the us. publisher of express for or I if great Each network turn about or dollars think billion I or make revenue $X and we our XXXX. investment, opportunity we into amazing hundreds more what Taboola, way them in mean, this that a can't can I see over a specifically an I us performance will of in lot even get Now, to be succeed bidding. one eCommerce advertising header think happen grown an to of has of for will we is stronger. and have stronger amazing upside.

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revenue, bigger turnkey, retail about we we're I make the we will this feel and wish or and but to don't in this that eCommerce in content. become everything because love eCommerce came specifically partners So, which to is said, us have adding the missing many was to piece it here, become, they publisher

they and Times get to at have look but the USA don't editorial at They the don't they have they data, Today the They So, review.com, ability don't in the with have look York with team. business. New Wirecutter. the

want So, can't they they but there's to it. this cross, do chasm

we So, the have we data. said

a mentioned the publishers, I'm SEO our can that and where with the big tell make what turnkey XXx business. and the by and seeing way, for to that big, consumers, eCommerce, eCommerce so from getting have core model the build Taboola I Xx are business the relevant it's Let's authority they content create team, for business. you, this I into overall, far, for them, is for time.com publishers them, enjoy

and Taboola, feeds get how fight business, article very much started very, wallets. can advertising, share I of if then to of Taboola, to eCommerce even look It'll better at will I publishers margins. time, relationship harder grow over that I compare the that better it's and bigger who with And be significantly. bottom into So, we a margins

feel it's I what on worth think side we're of and XXXX, guide other you to it. the So, fairly think comfortable And we being saw conservative. I

grow beat So, and this hopefully, to we'll it. able be

Laura Martin

much. very you Thank

Operator

line question next our And Ju you. from the of coming Credit Thank with Stephen Suisse.

is line open. Your

Stephen Ju

Okay. Thank you.

remarks, your what you prepared in time. So, like algorithm front at right the ad the about user Adam sounds to of think I stick right the right improved on an matching talked

the terms driving of Thanks. it's there? but there in early, accuracy share testing is So, I may the any greater guess can color of you some you be in

Adam Singolda

Yes.

one I And four on mentioned them. tracks of mentioned has our I bidding letter. this earlier my strategies. call So, been about in That

bidding the increase lot target faster of the between AI advertisers make a creative So, to first and spending success that get for time matching we're the advertisers’ trying achieve. around our to conversion easier to they're strategies, it

predisposed basically consumers that that landing that can Specifically our try and to able consumers generative we've images, - achieve. our better can pages, and AI, help see that performance seen with ads creative are match with AI, things to able are of advertisers, help us past what to that are they may you have may driven also whereby by creatives now are beta, it's announced in now advertisers get

the if do have one thing have I compare we advertising, will XX,XXX that the that company. have what gardens I wall which the that’s at that's or all If hundreds in one or thousands think to thing I do, is about. like biggest is Taboola, mentioned, of So, performance - about here it's Taboola, could has And I I millions, we massive. upside because advertisers just so, bigger the investment

revenue, with Taboola there's now, benefit of So, billion biggest, here, looking for pages AI, landing leapfrog you that by lot of think we're companies. can storytelling especially cold a we we when right, that really revenue side Yahoo, data start smaller company, and make Pinterest, have the And so have and also, kind we advertisers. in right a at the Snap, much specifically companies investing about you're they to $X.X the size, is to right? side advertising have being advertisers generative our At AI, around Twitter, sure in companies others. also help with that

So, successful. make launch and about we're about that even more scale Yahoo I'm excited the have advertisers we to as

Stephen Ju

Thank you.

Operator

from with coming the next for question please question. our next our moment, of And line Jason Oppenheimer. One you. Thank Helfstein

open. line Your is

Steve Walker

Did we Jason? lose

Operator

next your coming with of check for Justin question button. our mute from Please and One the moment line Patterson question. right. next our KeyBanc. All please

Your line is open.

Justin Patterson

on publishers and Adam, And down or publishers then there tech you the and impacting talked of the you've past? seen secondarily, about in large letter. more of opportunity we divisions, We're you. great years? more the versus morning. And ad Would materially hear existing and parties, Great. over Good what you. think add few the expand example Thank generative least to a the you internal prepared set at opportunity would characterize that new the relationship rolling business love shutting just landscape. leaning threat? Is you cutting publisher starting how more third headcount to see Yahoo this ones do with stories into How that. the Thank that next how remarks AI potentially a think the about within to bit about the or

Adam Singolda

the question. for Sure. Good Thanks morning.

start. can I So,

I a that a from units, their perspective. do unique a think So, down very different things can it's big of terms they because very in publishers and is shutting they have variety of internal company Yahoo

a partner there's to fewer I for huge publishers with opportunity think I partners. think as an industry,

and a is deep opportunity So, we'll some some want of partners, less over lot video, few from want see see could what and advertising, publishers revenue is publishers. more they revenue. some eCommerce, maybe the go that next have with have about revenue vendors them. years revenue that some to right, native in more I'm to partners header Publishers So, think think in Homepage and The with is perhaps, which I hearing eCommerce less diversity AI what I in so we to the be right? to our Taboola bidding. diverse in have in value also revenue, they They at subscription, publishers no of and right? some For a single needs drive subscription that's You. that's to, to much so less and where provide, advertising to give we help exposed want - wants So, invest I cost to want bucket

innovate term have lean the companies those And can they I other. truly to less sign going each with. in think they all will trend. They're work longer challenged things, more them bundle types that's kind agreements and advertising of companies of more hard be mixes. very of So, different Publishers product, so of fight to single it'll kind I think for that the are because over on of with will be time

that about And a now seeing. think everyone I - right growth, that, I'm excited and that's see more is of So, when especially trend looking right? stuff. for I'm we're to we'll that, my think that's So, thing. opinion investing partner right in becoming the for I why Also, right back in going investing a that's now question, in publishers, Laura's good is

my think over don't pages? what because to kind be right How should they are and just know I'm Where questions, that title? advertise. they will, to or start, generative a to those going should of kind don't advertisers interesting on as about But becomes If advertisers, the I all thing actually of GPT buttons? know if you and they AI gap start, huge how those to a an things, like be whereby for fantastic for I said, second begin. The I one, an IP think how of know for begin. advertiser, be a time how insurance chasm my there's it's those advertisers, All landing cold should

So, a you're advertiser, advertiser. you're especially if or a if small self-service

engine up be new really to think can prompt to great that's companies for advertiser have successful. data with that GPT-type be going to a who I that come So, help scale and into creatives then

interesting. that's And be to so, going

to side, can I I now we'll in subscription see that a different publishers and and will read. engagement chance publisher suspect see missing users to revenue content what growth is That think and create want writers, journalism the have mix. because for

So, AI. invest content in my driven by high quality, in trusted they'll opinion,

consumers, the but to know and insights not what's drive So, missing they'll also only of the use GPT-type kind of engines missing, revenue. what's engage to to

we as know, publishers, a is good we'll I think see I and growth, productivity see all that's but and this think - advertising growth, and I that stuff, in think course, So, we'll thing. for of all

Operator

coming the our One Larkin our of from you. question. next question for Oppenheimer. final moment Thank And Chad please line of

open. is line Your

JasonHelfstein

hear guys, Hey you Can Jason. me? it's

Steve Walker

Yes.

Adam Singolda

Yes.

JasonHelfstein

PIN. don't I Yes, apologize. I issues technical with totally so had why, this some know

Okay.

you little Yahoo were thinking in have So, want obviously understand, pushed first, forward. half, the and to an been would that's second a originally I impact

just but talk about DR, about a that that some comments on And maybe grow, maybe it then why more from income just moving prepayment, because And says a can So, talk mix it Thanks. publisher of just about percent you of fast - environment. just just maybe then competitive talk the affect what post-tax? statement that did what kind lastly, the about about is obviously, kind of how the away is. doesn't the prepayments, it’s revenue,

Steve Walker

talk addressing by and of the Yahoo Yahoo start I'll and me let publisher on prepayments. the also So, impact the about guidance,

the still that Yahoo don't but second So, show - how yet. we to to expect I think the problem some is half, know to in revenue Yahoo forecast the it start I

I forecast the of degree stages right to revenue. don't know So, of that now. start in I exactly because the when don't it'll planning know we're kind deep the

we'll So, and we'll time guidance to it year, that reasons, much exclude that view for update we call. just get we by on and obviously have a as decided from we better have of now, the next - next conservative through the our earnings our for go

excluded a Information where and shameless we about get much the so timing the to the to everyone And our it. we has that mostly the what some a and in was just is have our that I to know we do we I little of fact bit it, the Wednesday, more it plug, Session have to revenue. ideas come where anything next didn't point reason generating Deal invite on would work way you'll talk we're think are, forecast we get It's how So, that guiding why timelines. Yahoo we'll do, we're to changed to the to not

help. So, that'll probably

On I business model prepayments of - years. prepayments, has question part publisher - the about so publisher for been your don't our think

something not new or that's it's So, different.

to than it publisher in we very say, rate who them prepayments that less publisher do history can need believe was In don't two specific it's have it use historically. use and to kind do straight our perspective, do. what we a them we if competitive a like win One, that with, specifically put make our when to going we're tell to situations. money retention do are we up anything, fact, I would is we of a from we But just rate important it where mouth of publishers us

their do frankly, we new use in they can a in that's not rarer it now what it win terms in rarer rarer other publishers publishers. still that anything hear But where of to to to situation prove to we market confidence. we and - because And because general, use and do use of becoming, So, that to rarer using it rarer that sign and rarer in in them talk from it's case can but do. those and publishers tool they

faster. that other to where us get also we're think get like want, deals to do I with starting it to more use is more to longer duration or things we publishers

expand to to five-year cash or full-feed upfront a conservative from put then five-year instead a rather deal them of do deal, and a initially XX-year of more later. outset, a look the get deal or something three-year do sometimes to we'll instead deal, So, to than and mid-article sign a sign to

of well. to So, to our And we the want that much do balance do have that, use to it some get smaller an we is especially we relative competitors. things as it sheet advantage

think think that's way I the about we publisher So, prepayments.

about seeing question we're on that. around, that you there? us think I was give not whether progress Your is Can about or a little last what said wondering DR it more and you bit you're

JasonHelfstein

much just the are DR - imagine your growing ads I than to faster Yes, tried DR-related brand. the

a just of is basis much then sense if can us and So, the mix today? a you it on post-revenue, of post-tax what faster how give percent

Steve Walker

Yes.

think don't mix much. has the I interestingly, So, changed overall that

speaking, because upsells our especially placements generally for a doing supply, think, I brand of advertisers. we’re with advertising our business publishers, is actually that a good of do new brand growing lot well job new

of lot Homepage units So, our of for lot well supply, a are a things driving homepage mid-article, with we're placements, high For getting actually these works that inventory brand. a You, now that impact

making So, the the of due grow to part business that faster supply side. that's

our performing growing, that is well response business our and or a performance similar think more DR really I rate. definitely it's direct but advertising at

that terms there's in Adam whole earlier, we're we're and asked that the I performance we with inning advertising optimism can do. DR think, more on as you if us of Like, so second ballgame, right inning. is in said our what much now

business things we're think releasing, about in the the to going of that some forward. accelerate of And new technologies, terms targeting going that Adam talked we that's features new

a So, I big think similar they're feel our advertising that as we of growing still now, rates, but at of future. performance part is

Adam Singolda

I right now fragmented. biggest in as with buying add in advertisers just live the frustrating the it buying me find technology, that that Facebook. - we’re small Yahoo, easily versus easily every company has XXXX, would Google, to fully different thing excites is companies different with that very very open a work It's It's web. dashboard very

easy revenue not dollars So, rely billions there of contextual, the things. it generates safe, to a be those all that for needs risk, in cookie make can to on web company in that open advertisers

a from strategy, significant brand year strategy, Taboola advertisers and mover a to point getting the So, that's advertisers, truly away going the both well strategy, Facebook we're my opinion, that agencies in a needle that biggest as and is so can as we say, Google the advertisers. be, for have performance scale to

JasonHelfstein

Thank you.

Operator

for to turn you. remarks. will over closing call any now Thank I management back the

Adam Singolda

right. All

and all thanks, today, So, we to time spending for forward a you. everyone, with of look us joining of lot

that momentum publishers Taboola excited us, ones who Taboola. back. have the of us about very Like and said, about trust future I'm I excited left even I'm the came winning So, choose and and incredible

that's and have that of we know, engines mentioned a side Yahoo that. billion launches become Taboola our I'm this can revenue always growth last basis you full-year it T-shirt like on that year. come To and when I proud we the of other double on $X.X back As

just them with to journey. this And new Yahoo performance double the uniquely becoming very, because can and on year, shining and business. markets, one more also next and the we excited company must-buy about have these I'm as I rare it's make header Each continue the advertising, it's XXXX competitive to management bidding. said, very huge win mentioned, for investing bear going XX one We like supply We're companies and the and advertising a for like and team us light eCommerce, are of just big working care seen Yahoo years. feels have that like future. I our advertisers, new

join New in host My Wednesday us team going And Jim please for CFO, excited. our and CEO, if a be you excited. to So, is team. Yahoo and Monica, I'm Yahoo’s again. can our It’s next Information York thanks great, and We're super Yahoo Lanzone, newborn Session. executive going member to

Operator

Ladies you the Thank and for gentlemen, conclude for conference that does your today. participation.

may disconnect. You now

Taboola.com (TBLA) 24 Feb 232022 Q4 Earnings call transcript