Richard T. Scanlon, a director at Taboola.com Ltd. (NASDAQ:TBLA), recently sold 250,000 ordinary shares of the company, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $3.16 per share, resulting in a total transaction value of approximately $790,000. Following this transaction, Scanlon holds 70,642 shares directly and maintains indirect ownership of additional shares through various entities.
In other recent news, Taboola, the discovery platform, reported strong Q3 results. The company's revenue rose by 20% to $433 million, while ex-TAC gross profits surged by 30% to $166.4 million. Despite a reported net loss of $6.5 million for the quarter, Taboola's adjusted EBITDA saw a significant 110% increase, reaching $47.9 million, and a notable free cash flow of over $105 million for the year.
In addition to financial results, Taboola continues to execute its growth strategy. The company's CEO, Adam Singolda, highlighted AI adoption, distribution channel expansion, and revenue per user enhancement as key growth opportunities, and partnerships with Microsoft (NASDAQ:MSFT), Yahoo, and Apple (NASDAQ:AAPL) are driving ad spend growth.
Looking ahead, Taboola's annual guidance projects revenues between $1.735 billion and $1.765 billion, with adjusted EBITDA expected to surpass $200 million for the full year. Furthermore, the company expects Q4 revenue to range from $460 million to $490 million, with adjusted EBITDA between $83 million and $99 million.
These recent developments underscore Taboola's robust performance and its strategic focus on technology investments and partnerships to enhance profitability and shareholder value. The company remains optimistic about its continued growth, with an Investor Day scheduled for early 2025.
InvestingPro Insights
While Richard T. Scanlon's recent sale of 250,000 Taboola.com Ltd. (NASDAQ:TBLA) shares may raise eyebrows, a closer look at the company's financials reveals a more nuanced picture. According to InvestingPro data, Taboola's revenue growth remains strong, with a 21.84% increase in the last twelve months as of Q3 2024, reaching $1.69 billion. This robust top-line performance suggests that the company's core business continues to expand despite the director's share sale.
InvestingPro Tips highlight that management has been aggressively buying back shares, indicating confidence in the company's future prospects. This buyback activity could potentially offset the impact of individual insider sales on the stock price. Additionally, Taboola holds more cash than debt on its balance sheet, which provides financial flexibility and reduces risk for investors.
It's worth noting that while the company is not currently profitable, analysts predict that Taboola will turn a profit this year. This expectation aligns with the InvestingPro Tip that net income is expected to grow this year, potentially signaling a turning point for the company's financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Taboola.com Ltd., providing deeper insights into the company's financial health and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.