Overview

* Taboola Q2 revenue rises 8.7%, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 grows 21.3%, beating consensus, per LSEG data

* Co raises full-year guidance, continues aggressive share buybacks

Outlook

* Taboola raises full-year revenue guidance to $1,858 mln - $1,888 mln

* Company expects Q3 revenue between $461 mln and $469 mln

* Taboola projects full-year gross profit of $541 mln - $555 mln

* Company sees early traction with new Realize advertising platform

Result Drivers

* SCALED ADVERTISERS - Revenue growth driven by 8.5% increase in scaled advertisers

* HIGHER MARGINS - Gross profit boosted by shift to higher margin digital property partners

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $465.50 $448.70

Revenue mln mln (6

Analysts

)

Q2 EPS -$0.01

Q2 Beat $30.20 $27.30

Adjusted mln mln (5

Net Analysts

Income )

Q2 Net -$4.30

Income mln

Q2 Beat $45.20 $41 mln

Adjusted mln (6

EBITDA Analysts

)

Q2 Free $34.20

Cash mln

Flow

Q2 Gross $135.60

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Taboola.com Ltd ( TBLA ) is $4.00, about 19.8% above its August 5 closing price of $3.21

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)