TBLA - Earnings call transcript Q2 2024

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Operator

Good day, and thank you for standing by. Welcome to the Taboola Second Quarter Earnings 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 Jessica conference Relations. Kourakos, like first to now today, speaker Head would hand over the your I of Investor go ahead. Please

Jessica Kourakos

Second Taboola's company Taboola's they the Founder Thank welcome CEO; market, and Call. morning, and good Taboola's and website. materials here Quarter CFO. Investors today Walker, Taboola's the The I'm Singolda, you, in Conference earnings XXXX section are Adam everyone, with available Steve of Earnings issued and to and before

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

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

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

Adam Singolda

EBITDA Thanks, XX% adjusted conversion EBITDA. on grow only another and everyone, million, versus represent our QX, joining year ex-TAC XXX% with flow strong over flow Jessica. last spent year have With investment on the buybacks, growth in was confidence of commitment for it strong meaningful we a We of both and are in last see. we adjusted was meaningful saw which is growing and EBITDA execution. shareholder Good of cash shaping and Similar laser to a to morning, Not shows us. to our $XX quarter, long-term have our XXXX quarter, XX% strategy. Taboola. access on and accelerating, the over demonstrating first QX returns our a year, half $XX thank clear our year great adjusted XXX%, data is year, AI, growing continued this growth focus free and to all in last you million, This rates transformational share ex-TAC does result and million beating conversion. to from versus strategy to guidance be $XXX representing unique cash for a up was cash free and of the is flow our XXX%

our When One, one is important advertiser be XXXX to project continues and our a for which put of web. strong Yahoo's onwards. free XXXX of we for growth launched As And also for perspective, continues to core of in building is in business, EBITDA versus ex-TAC flow, budgets remainder in last XXXX an foundation is flow, Xx companies X setting ramping migration Xx open a year growing reiterating the we cash $XXX ex-TAC, for main million, XXXX. million. adjusted XXXX as the year. complete. levels. result, at things cash guidance to are over were meaningful and approximately accelerated Apple Adjusted free over looking that we last the and towards to of most also $XXX progress XX% $XXX versus million EBITDA is which XXXX It have areas Select Taboola and us XXXX growing scalable now and year ad focus

by our in clear with and ex-TAC company in and is performance talked premium we've on rates as growth improving on QX advertisers our making is advertising, QX. guidance momentum retention driving about focus results Last had rates focus spend, improving and in driven and The our successful growing which advertising results. the in second here, NDR which yield. while This grow return, is I help by a priority us quarter, reflected driving our growth

the performance focusing of into quality bringing With Select Yahoo, rollout now a open Apple, our in the optimizing Taboola and opportunity on at big see moving we forward across publishers, those scale. launched and our budgets web top

initiatives growth X in brands attract and XX% Our of QX. to and agencies Tier for accounted strong showed year-over-year revenue

major secured services, online multimillions past ad and which this represent advertisers publishers, as wellness quarter, Just we well spend. commitments financial health as from in in

prior has and more region. great China shows our in demand Additionally, than versus the traction year out of doubled

conversions AI-powered significant Maximize AI in of momentum. technology investments with advertiser part revenue, make our points our continues sequential XX MAX from now of drive advertisers in using of massive the saw first bidding of to to we using XX% up adoption are today, conversions, strides success advertiser of our Our a are QX. Thousands a big what campaigns approaching this approximately it increase number over and technology. in XXX% was

known also Our concentrated increasing and enhancing rates as efforts are on budget NDR. allocations, retention

using MAX exciting our see to out. is most to do stick with which around. more to If if and means reported platform it we for continue adopted AI see as who who not, revenue conversions those people advertisers to dine growth performance not not. our transitioning from They use wine advertisers and have NDR more results It's promising to it. those We they the have double-digit technology. compared adopting driven, try And works, our need stop of to it they

the scale. on data advertisers to and with Looking ahead, unique we advertisers advancing performance to our continue AI match at needs. our we're results seeing exactly leveraging users with type our of identify driving models, This focus what industry is

the friction there addressing is we I and coming in for on AI. will at We have happen. about for suspect performance, see call this We impressive. tell in officially Abby's the web, see. focus product by offering point one. making it work key saying third what reach you'll a plan you Abby. success advertisers. can be driving much, quarter, without general laser-focused the More with a soon. you and her tuned no Stay too advertisers' to updates market we This a open that to advertisers very amazed web is introduce for Abby to hard on are AI on And I You scalable and new bridge open

Now all thinking you of I know Yahoo. are about

I'm than our We performing channel. have to in demonstrated XX% letter, budget case and group who next featured So advantage hotel an give and Yahoo's lower done CPA where CPA second one target goal hard say we're as of best growing half Yahoo in me advertisers you study the took and happy lower from update. year. into work performance migrating let the leading a their and good than XX% of we're the saw Taboola advertisers keep shareholder migrated seeing at

global with to work increase example Another great of when Yahoo similar performance a XXX% is technology lower evident achieves in impressions that company on campaigns. in year-over-year at compared a our our a CPM XX%

brands Select, us prove Tier with agencies Yahoo premium ad Taboola X it for to our and overall. increasingly more, in network we performance experiences as the budgets the a As company allows Apple, with grow and advertisers invest of Taboola addition across

a as advantage which our competitive reminder, profitability. bolsters drives advertisers As yield our as well growth, success

growth our bidder. news, engines, to now our Turning ecommerce and Taboola

will we markets, and featuring users it In innovation all news for and Taboola wins exclusive and our OEM QX, reach touch global signed global partnership. good to shows may in a expand into drive commercial product financial multiple news our new significant to Our momentum like. points continue discover deal results. This they

increase as team time in These focused platform QX spent product resulted Our utilities well weather, enhancements new sports to in XXXX. testing experiences others. video XX% such over is on as the various as news on Taboola new and compared

We to another products We're likes. is success shop the a and us now it passionate e-commerce international success It various amazing ecommerce. desire is early across new to revenue to is platforms review creators also This contributing performance in to strong ahead. This our merchants. our retention call to well advertising into channels our keep years high-growth to driven markets seeing about growth. and growth markets. that in coming and with social by outstanding delivered us advertiser positions they're growing quarter. Moving your potential, We and core with the expansion showing already drive

product, to had direct number is which After and We our partnership to QX. a is we where renewed that for Microsoft AI our relationships emerging are ours. data, bidding with and on supply exclusively collaborating developments not exciting successfully years in that several unique Moving to our of supply we to say now, bidder opportunities. expand happy advertiser capitalize excited I'm bid on our to technology use

transformational apps, to a integrating and XXX. QX on summary, extending across By Our technology with we and and deliver games now Microsoft's to areas, campaigns a even trillion adjusted with XXXX is a EBITDA and advertising new our more to with in into momentum targeted as way, diverse ex-TAC for on and enhance Microsoft ex-TAC, these more world focused shaping efforts bidding XXXX accelerating advertising looking advertising guidance There and streamers, I tap in cash reach will this more the reiterating flow believe in for QX to and years utility and in market of for $X good to free big metrics up casual our high-traffic be Outlook, such a are and our companies In ecosystem. capabilities is the growth lot the adjusted aim strong Taboola come guidance around year. both EBITDA, OEM effective year more. industry. platforms

to sell to top drive would it's a and thousands want tens like advertisers, them and not of want While many advertising build business. of Taboola brands, many would a to access to companies easy, friend meaningful performance

many, with of and pass more them. service, review a next for a With financially us I in advertising as our the tech, good up ready. as great lot support of a that, me financials the There's more or we size, let strategically we over work do call many to can which force partner to companies. advertising experience the have like big of and a Steve ahead lot us. often outlook many the box to detail. are the of step a X years to the and and we It's We think sales XX in this

Stephen Walker

everyone. good Thanks, and morning, Adam,

of As the Adam strong first half are momentum into a second year well the and continue mentioned, to this had positioned half. we've

the growth were discipline. flat supply growth in our adjusted demonstrating premium limited and EBITDA million. the to projected through the non-GAAP ongoing $XX EBITDA. margin. expenses stronger The year-over-year with at the of XX% net on $XX.X expectations, loss from coming $XXX.X up net intangibles included Adjusted operating advertisers, of was $XXX.X adjusted EBITDA of to benefited Connexity XX% strong and were for for positive our into Headcount million of million for expenses and in and Free of our million margin with growth $XX.X primarily premium compensation of key of adjusted Let's $XX.X EBITDA Net $XX.X of gross share-based was cash areas increase particularly million approach continue XXX% from loss year-over-year. significantly million, $XXX.X profit QX year-ago discipline dive QX across back X million. to strong Revenue increases target the and QX period, $X.X related showed than in ex-TAC growth we the in results million an accelerating cost details and of year-over-year XXXX. Ex-TAC all our amortization GAAP by essentially hold of to $X.X QX primarily $XX.X performance. net GAAP our were QX million QX expense XX% expect XXXX. strong Tier long-term of of business. advertiser XX% With narrowed driven grew grew growth compensation with the metrics. of loss of acquisition quarter spend, expenses million was in platform. focus availability million a XXXX financial million income reflected $X.X flow

exceeded end our the items, those Excluding million guidance $XX income the range quarter. of non-GAAP our of net for high

flow payments million which cash $XX.X In debt, $X.X cash $XX.X QX flow on free cash million in of and million. approximately long-term to we publisher which million. flow This terms prepayments, and our $XX.X generation, of had net in interest contributed used includes cash operating

balance the to Turning sheet.

cash net totaled robust. $XXX.X even Our above repurchases. cash balance ended a $XXX.X equivalents our balance million, after remains cash million, Cash million. of and QX of $XX.X remaining net long-term position loan We with share

QX. repurchase in our share $XX Regarding shares remaining million million announced still $XXX under bought repurchases, of share have we back million plan. $XX.X previously We

down dilution At our outstanding of at by levels. XXXX to issued least share were compared and end compared QX remains offset the to QX count million maintain our of shares QX the to XXXX, and end goal XXXX. X.X shares Our

debt For if consider prioritize future we cash available. current long-term to share we given additional use, valuations, becomes continue buybacks down cash will paying though also

I'm strong in optimistic had team future. year, the accelerated the growth. that the to business confident about Now solid a and the capabilities ongoing and our sustain turning opportunities and our start We've to lie trends within to the of ahead. we're

expectations and Our for guidance remainder the strong QX reflects year. of the

to and for as we optimism annual half expect continue scale. the to XXXX are to advertising success initiatives gross reaffirming due strong spend in non-GAAP increases continued profit, ex-TAC increased to turn gross continue We our With net due we a EBITDA positive ramp and our advertiser guidance growth to contextual income. adjusted year, yield as profit, for first our data and

stated, guidance the between million. million is to $XXX at million a reflects and be $XXX That profit previously million is expected $XXX As gross ex-TAC be increase XX% the and to midpoint. in profit projected range. year-over-year ex-TAC $XXX to gross

to $XXX and expect $XXX metrics net to compared income representing over remains to XXXX. million, free $XXX We both flow exceed of million of for doubling cash guidance million the EBITDA anticipate year. adjusted million, $XX non-GAAP Our a roughly we

expectations of collaboration We our representing growth ongoing billion $X.XXX test our a Yahoo. will we This is to with at midpoint. updating a as are XX% revenue to part $X.XXX to primarily due conducting be the billion,

for some will financial we portion how further we see formats inventory perform Yahoo's generate. of much can Specifically, testing a to new and ad growth how on they be advertisers

revenue recognized same, TAC as will During this reduced. that be our Therefore, than remain period, ex-TAC approximately offset will revenue will rather test be revenue. but the a

this past, be other would not does any and or metric to EBITDA, will of which metrics As that times and a affect I XX% ourselves, ex-TAC measure have this free note the increase there said I change key in our also focus ex-TAC. change many we test. as year-over-year expected cash result is the in flow on adjusted no

issuing guidance. we the For following quarter, the third are

million million, $XX million and $XXX business expand our profit and while are balanced be $XX million $XXX from we non-GAAP spending $XXX strategy. million, million and to million to to ex-TAC million. to confident disciplined gross from ability $XX EBITDA conclusion, profit net $XX expect to In gross scale income We revenues in $XXX our from adhering adjusted between to $XX and a to from million $XXX million,

on which performance financial to benefit our in is that efficiency Our in even improving continue We show profitability will our up benefits for focus publishers shareholders. in and believe and long-term we invest ongoing our investments growth. our advertisers, will technology therefore, as our yield and

to major key momentum This including News. milestones, completion migration, Taboola stronger OEM the to becoming you world is on Operator, let's partnership Yahoo's deal with Our line us please ever advertiser open the advertisers with Q&A. move a progress ongoing of than closer our to new for with around Apple must-buy questions. web. and brings can for And that, the the a for consumers looking engage with open

Operator

first [Operator Laura Needham. Our the from of Instructions] question line comes Martin of

Laura Martin

premium, you're websites. growth cost over growth, premium congratulations, talking first What on that you so My about question, have said revenue was built Adam, guys, your great these business Fabulous. I but news entire X congratulations. numbers on XX% would

publishers you're -- ad so creating I signing up you focus premium the And stuff when saying more is than latest you're somehow you units is you're how premium or sites premium becoming what represent? the that beginning, the old even to had about more premium, new on as you understand -- your don't are premium more publishers you've talking that content -- the new since are historical than used

Adam Singolda

the kind the Yes, question thanks for words. and

ad risk user-generated carries premium campaign Disney adjacent an it, which think definition, of kind about always and to it always the can or the it, social voice, above with on publishers network. such putting carries that's carried think which compared a I NBC as you to your risk. And below on CBS, is is think right There's as a web it element content always the I a advertiser So as and a imagine, premium has and by it. editorial open UGC, to an of

stand-alone big addition for the Taboola Apple It's of advertiser and stand will recently we've launch the So it Yahoo, seeing for kind of test Select that if been unit to I'm it then advertisers of a then of be the publishers, think on units, those of like consumers. to is willing that premium or others, great and of ad create to time. able important of ad with a believer kind you're independent What pay homepage kind are under own. our a community

a that it's of opportunity kind will brands even brands that, a us have of for opportunity that. for to XX% think we attract come lot -- I over will us about big our to an pay an revenue. more bigger not from And And under of of attract there's be So own. just that's we think historically to dollars because who to now

Laura Martin

makes what us of What Apple of different have growth Apple And give the you you about about you specifically the little made advertisers a you terms That the what's when talk dive on getting ramp going could deep the there. rates, Apple, then kind progress a seen progress think about in making the you're on Apple on revenue countries in News. bit you're just sense. with in, terms Apple? News of of in what's you've on like you oldest countries are with Could

Stephen Walker

Sure. address I Laura. can that,

we're and I the and is Australia. active, Canada News think what now all Apple X rolled where So we've out the which are that publicly stocks announced U.S., is countries Apple in U.K.,

everywhere for global in doing we've is rollout per that providing past, we're that se, what So business Apple. And is advertising. not as the is basically said a -- it that while operate it's the they

click There then ads you ads. usually And NBC as the articles you'll as go and there, you'll but ads you find us in if the see provides well Universal article, usually one iPhone swipe us. news is So right us. and that it's your news sometimes you news feed, those the feed that well. That's if of in you on on and back are to see also app

terms or not is sell you that it actually bunch In are, revenue. specifically What the on of will and of have a said specifics ramp turn disclosed get demand haven't a immediately on ramp, we financials. the we have We it a to this. we it's for be where meaning

as over it ultimate kind on only So It's you the in be premium, they advertisers. We're excited it advertise their about the good about time. progress and a is of ramp of because apps get asked Apple premium experience for We're services. to one there. making first question can ways about to and native products the

for one So impact we've advertisers. this over of we can we And what for it's said that -- the say be biggest publishers biggest our Apple exciting time. I'd think can one business, our that's think it level, helps Yahoo of, it not premium us a can we're be and it's advertisers interested in what seeing, premium sell size. good but especially advertisers, supply. our lot more getting a But be

Adam Singolda

But Canada. to happy in And shared spent moment to and job happy Yes. as our comment when with We a and in fun was team Apple proud so they sit with time that be just team. see your nice some the be story. you're there's excited also ever if were for we that the and one much they're We together and moment. to how partnership, of

Operator

of Co. comes Helfstein next & Oppenheimer Jason from the line Our of question

Jason Helfstein

million first quarter. has the contribution color outlook of other full you second, to the weakness? areas ] you're the in in kind just any Are just of the some I Maybe exact, revenue of if seeing. give And plus the We're of kind Yelp it versus of you was And companies on the you you areas changed or your then areas for you're Can some provide specific end not pockets year? ex-TAC. mean you're strength any from questions. say that. for -- seeing of Two don't mean then quarter? hearing want seeing? kind contribution changing view the weakness market $XXX specific in be minus can [ I

Adam Singolda

can Stephen kind Sure. can level into I then like high the start and get numbers. with of

the Yelp something performs they Jason, to a in ] to think we're to given overall, partnership, So it's And that's buy, supply, the on side, data. and one [ advertisers very well. I want it happy studies. of terms letter, some the published access in special I case special us access

validates think year That's unique that come. specifically growing relates space, be that But pay supply it about just as consumer that play considering the and is in something I Apple important into this strategy performance to but unique, think an Taboola a are is So others and Yahoo, will Apple. years keep it companies advertisers. our and we tapping also partner. works as I data not role, for to validating -- advertising good can spoke important an and that to will all just only great

I'm as this it growing great perspective, do that benefit migration We're published want we as in sure get I from that partnership. far, is I Stephen, is QX that numbers? laser-focused so from get budgets Again, mentioned we results. advertising to And seeing main speak about HX think to to happy more making finished. advertisers studies. relates you So on We're QX. advertisers the case from and our focus into to some

Stephen Walker

Yes.

We're we've part not So really numbers Yahoo there. think -- breaking now. we're -- of our we're core that Jason, is out I said

into get won't specifics we real So that. on

and about terms we're though, question, In your that of areas strength seeing. second of weakness

to strength continue we So ecommerce. in see

So performance quarters units. we theme multiple that's see our an where kind been in now ongoing ecommerce for of increased continue to

strength. Obviously, area of year of driven Yahoo. particular the growth a ramp our been that's also being this is by So

And high platform. so demand premium on premium on site of we're -- seeing our a our nice demand influx

that out strength in that's downs There's area seeing an specific and premium. of been always that there's that of think ups I areas. many kind areas weakness. just we're particular I So generally call don't

say quite a other we we're area I would it's weakness. performance. certain didn't geographies. we obviously, is, something been really that particular one that as So diversified see given strengths that it's quarter, The in not areas in the thing enough call fortunately, any we see of would I have But some out

in of like. more China been strong and domestically, market spending that's globally supply a terms market for not particularly the instance, for been the but spend, For advertising Chinese us U.S. has on

see weaknesses geographically, that So as weakness the jumps on But some nothing really we well. strengths again and side out.

Operator

of the of comes question from next Cowen. Kopelman Our James line TD

James Kopelman

one Adam first for The is Steve. or either

ramping about us Now growth can help a areas rate core think you is historical or that advertisers ecommerce normalized for are to Taboola nicely, migrated And relative growth and you've core the looking that news I business plus like and over for the say, time? growth have Yahoo XX to ongoing at, normalizing I And the mean, months, as a Steve. framework XX provided. business growth for by what your do combined see you for follow-up then opportunity

Stephen Walker

that business. range, We ad something we advertiser our investments to that. you the I growth consistently can on you? feel core that. James, the to year see of higher XX% think are coming each talked normalized is a kind I based see business our XX% rate of how from of should past I Sure. question and and in said for success right way Sorry lot want our going still the our you. the be I all about we we've this and over and a to of increased want way yields that forward But and spend in growth in that driving address asked like. kind we see with that

to and range. to in growth our bidding more growth So that's kind Taboola bidded ecommerce, -- to supply us get or that XX% news, core then drivers the of want to our add we XX% would business. And we

that's see So how business. of we our kind

we XX%. the got getting core growth us So XX% our adding to XX%, and XX% order see of up our we've that to drivers then on to growing to

James Kopelman

for Great. a also you, then I And follow-up, Steve. guess,

continuing is as second are the your What growth? quarter despite to of driving so ability in these focus. the some You efficiencies the mentioned cost strong factors cost you biggest did well revenue a manage effectively lines

Stephen Walker

Yes.

that's So a question. good

a think things of couple our time. that's efficiency I there's helping So with over

highly supply is one bringing some is now supply. scaled of So on we the that right are new

X,XXX for level the Yahoo much in us past, that instance, required this big said revenue. doesn't would -- I've number being as smaller that one take So to for to get be the publishers the publisher to support as of

some investments -- our our can technology succeed in scale helps. Also, help advertisers supply us more to just of the platform make well. we're efficient more as So efficient help of that be doing

a AI advertisers has creatives So we've Adam of that productivity do more some for the it, less. with advertiser, on support helps demos headlines that to lot we them so of we generative of done do difficult to and things found have the for tools automatically have now create talked and they about own, some the for their instance, helps this, them previously and things

helps So us obviously, that's general, just become whole, helping as more as a in on you I the cost then as with think our scale And well. scale efficiency efficient we business a basis, naturally.

because to even level don't of as baseline certain and business support have scale to it there's a For don't you support our larger gets up. engineers need extra need instance, that core you we that

scale itself helps. the So

without allowing the kind those increasing I that same out of are areas So the call pace. us are grow think I'd X costs to at

Operator

Riley Securities. from question B. of Zach next comes of Our Cummins line the

Zach Cummins

strong results. the on Congrats

First now incremental looking I for through advertisers incremental these any share just tools Adam, to question ask, that or had I are with the the that migration formats maybe going weren't are learnings wanted being incremental, is the there with sort migration. of that mean, guess, really, can expecting I complete. Yahoo you I advertisers you

one any have Steve. on follow-up I front? on curious share then for And incremental you insights that can Just

Adam Singolda

Yes.

work to the focus me of One, the recession, advertisers from that learning the going thoughts learning whatever through, working spend few mid-funnel world the let's great with what performance, I'm all these to advertisers what is pandemic hope is and on make going to industry spend works, size just on So room this the and for just we're it's and that. unbelievable on money sure lower back for see. There it's a really partnership funnel more they and sizes about no to through of have whatever that of best. me,

are days of dinner bottle a gone. RFP. get over Those just and wine Let's some do

and us, is, bridge web You're be you're for teams seeing be great publishers. it this And on very open for I our value of relates performance dedicated understand advertisers of the able seeing the to think spend. to reassuring strategy and to spend all sizes, as this to of sizes for both measure to advertisers

way and that's of it and new ways, helps is of home Taboola's earlier, page new open create us. and In I looking us we're different environments many article that new formats with and bottom and still unique a Yahoo's different and new opportunities performance. that's Two, seeing understand special, and and formats formats, is the placements new most thing. to So business, business for for advertisers to this pre-Yahoo, placements different mentioned one can web, most and opportunity mail reach new in of and was that placements that

as about can to going So this that's unique well unique. that's just advertisers. more very And have where be supply, dynamics we something for we're laser but data focused future, not unique type on as think of that look the perform only I supply,

ever. unique of formats, focus say the me now advertisers is but more types to from mainly of would performance I So than premium, different apparent

Zach Cummins

within of gave revert seems dynamics normalized follow-up ex-TAC outlook? this more revenue one you Is Yahoo. get but is from It to gross testing helpful the we that that about and conversion a gross Understood. something lowering that Steve, phase just some -- can back question my to with kind profit? gross will like will the That's you're revenue much eventually just you script, a helpful. And really talk -- just your that insight

Stephen Walker

Yes.

first So yes, revert all, back. it will of

test, revenue. And revenue of offset affect of on And affected accounting. And that's not but recognizing even my a better short-term affected, ad to new way the we're yields advertiser that see their as Yahoo. it's a doesn't obviously, else. that the we be tech inventory ex-TAC drive as EBITDA adjusted some remarks, are gross therefore, we test formats just anything up the can we that testing in doing test, set should prepared if better and mentioned of basically we're even fun So with because our I it during the or And performance. it

to revert the And it related set thing way back. accounting technical will up yes, a test we just really this it's with So Yahoo.

should guess, I haven't disclosed well, early next revert -- We say year. I back can exactly it

Operator

comes Condon JMP. of of Matt Our from question Citizens next the line

Matthew Condon

mass conversions. My first one just on is

You guys XX% of approaching are revenue.

priority, I this you on, priority what key my that guys for? what's over are driving are ramp And a can product you then maybe guys with on time the know this are better adopted, from one guys improved quarter. What next Or is hoping As the product cover focused areas? from we yields? areas financial are the what on in expanding you becomes renewed to widely expect perspective? key second partnership Just the just there? Microsoft

Adam Singolda

Sure. I can start.

unique believe advertiser years so So from our given next main initiative, as already. growth success much the and for know, our that's we focus as there's access supply this company to of you us year

So one, we're That's up happy the QX. going from to see significant adoption that a the keeps XX% XX%. from step-up to

it, using that only second has The but conversion advertisers thing I more amount MAX are which the is that impressive not campaigns mentioned is are doubled. that using letter, of the in

now seeing with basically clients. So more you're engagements

is initiative retention driven engagement is basis. things. up seeing a rates going all see NDR And investment. want I client. this and And versus did very going up, QX, spend rising after QX see our AI we as double-digit relates on that of done. we're not to And up what which a did we seeing by friction advertisers to ecosystem We all, become believe mention your it's is Taboola per a we in point to with in here first X I You're time. for us the more to what's to like GenAI what essentially is Abby, want in means general. relates to successful in was encouraging. big that advertiser as we're or a was And going over mention letter. see NDR the coming easier last -- which It campaign that's piece my a over that it

Taboola iPhone, So for QX, a new exciting an Abby. Apple launching we should tuned not launching stay

all on to This and with later, sell. So multiple allow this that revenue, introducing coming be variety then up, which we're will to revenue help will they products is of pixel to come may of advertisers GenAI kind advertisers working have across initiatives. maximize will want a MAX after. And basically successful

We're And to really So we're to next Abby keep cool. hard very QX. going come roll after conversion. tuned. rolling that. be It's the out in next will really, going at work, out revenue Stay

and what retention those track So rates on of things, all see is to we want NDRs.

Stephen Walker

And to areas then to opportunities on so we to actually Outlook, bid are such our as renewal new your have XXX. games, new yes, before, that second question partnership interesting them. casual The comes with we that renewed supply didn't about Microsoft, Microsoft happy to some we access with say

opportunity. So is a we great think this

this I we basically growth these were to It's back with we are. where a Microsoft areas. past quarters we bit teased in said thought opportunities That's what with do expanding there think new what Microsoft. we little some half

that's looking to inventory. having we that and So think access forward exciting, new we're to

Operator

would CEO, This like remarks. for you. Adam it to Thank to back I question-and-answer closing concludes now Singolda, turn the session.

Adam Singolda

support. Thank you, for us this joining and everyone, your morning for

us very half strong excited another growth to opportunity our you the while for ahead, quarter look close a results advertisers rate scale to in journalism. I premium the a results market first and as accelerating. such for year can we're for growth with gap at and of As sense, web open big there's for out And the with as driving drive there's reach

something we I happen. can significant So it on I laser-focused that in are and gap you believe is there's a the market, tell making

sharing you of being we of many part our meeting Thanks look journey. forward and our to progress. So for

Operator

today's in program. participation does your for conference. This you the Thank conclude

disconnect. now may You

Taboola.com (TBLA) 7 Aug 242024 Q2 Earnings call transcript