Taboola.com (TBLA) investor relations material

Business model and platform overview

• Operates a performance advertising platform focused on the open internet, reaching 600 million consumers daily outside of major walled gardens.

• Leverages exclusive, long-term publisher agreements with major brands like Yahoo, ESPN, and CNBC to access first-party data and ad placements.

• Revenue is primarily cost-per-click from advertisers, with about 65% paid to publishers as traffic acquisition cost (TAC); XTAC gross profit is the key internal metric.

• Targets a 30%+ adjusted EBITDA margin on XTAC and aims to convert 60-70% of that to free cash flow.

Product innovation and platform transition

• Launched the Realize platform in February, transitioning all advertisers to a unified system supporting multiple ad formats beyond native, including display and video.

• Introduced features like Predictive Audiences and integrated generative AI tools (Abby) to enhance advertiser success and platform usability.

• The transition required significant investment and risk, but resulted in improved advertiser performance and increased spend.

• The new platform and go-to-market strategy focus on ideal customer profiles and verticals, aiming to drive double-digit growth.

Growth strategy and market outlook

• Growth is expected from increasing advertiser budgets, leveraging new platform features, and expanding into new ad formats.

• The macro environment is stable but cautious; performance advertising is seen as resilient to market instability.

• Sees a $10 billion opportunity in performance budgets currently handled by other ad tech players, positioning itself as a frictionless alternative.

• Focuses on acquiring high-quality, mid-tail and above supply, avoiding the long tail due to quality and fraud concerns.