Taboola.com Ltd. (NASDAQ:TBLA) Q2 2024 Earnings Conference Call August 7, 2024 8:30 AM ET

Company Participants

Jessica Kourakos – Head-Investor Relations
Adam Singolda – Founder and Chief Executive Officer
Steve Walker – Chief Financial Officer

Conference Call Participants

Laura Martin – Needham
Jason Helfstein – Oppenheimer & Co.
James Kopelman – TD Cowen
Zach Cummins – B. Riley Securities
Matt Condon – Citizens JMP

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.

I would now like to hand the conference over to your first speaker today, Jessica Kourakos, Head of Investor Relations. Please go ahead.

Jessica Kourakos

Thank you, and good morning, everyone. And welcome to Taboola's second quarter 2024 earnings conference call. I'm here with Adam Singolda, Taboola’s Founder and CEO, and Steve Walker, Taboola’s CFO. The company issued earnings materials today before the market and they are available in the Investors section of Taboola’s website.

Now, I'll quickly cover the safe harbor. Certain statements today, including our expectations for future periods are forward-looking statements. They are not facts and are subject to material risks and uncertainties described in our SEC filings. These statements are based on currently available information and we undertake no duty to update them, except as required by law.

Today's discussion is also subject to the forward-looking statement limitations in the earnings press release. Future events could differ materially and adversely from those anticipated. During this call, we will use terms defined in the earnings release and refer to non-GAAP financial measures. For definitions and reconciliations to GAAP, please refer to the non-GAAP tables in the earnings release posted on our website.

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

Adam Singolda

Thanks, Jessica. Good morning, everyone and thank you all for joining us. Q2 was another strong quarter, beating guidance on both ex-TAC and adjusted EBITDA and with meaningful cash flow conversion.

We saw ex-TAC grow 21% versus last year to $150 million. Adjusted EBITDA of $37 million, growing 138% and free cash flow was over $26 million in Q2, growing 237% and demonstrating 70% conversion from adjusted EBITDA. Not only does this year represent meaningful growth versus last year, it shows our growth rates are accelerating, which is great to see. This is a clear result of our investment in AI, the unique data we have access to, and the laser-focus we have on our strategy and execution.