NEW YORK—Maniv Eldad, President and COO of Taboola.com Ltd. (NASDAQ:TBLA), has sold 8,305 ordinary shares of the company, according to a recent SEC filing. The shares were sold at a weighted average price of $4.05, totaling approximately $33,635. The transaction was conducted under a Rule 10b5-1 trading plan, which Eldad adopted on March 13, 2024. Despite this insider sale, InvestingPro data shows the stock has demonstrated strong momentum, posting an 11.8% gain over the past week. The company maintains a "GOOD" financial health score, supported by management's aggressive share buyback program.
Following this sale, Eldad retains ownership of 9,784,704 shares. This includes a mix of ordinary shares and restricted stock units (RSUs) that are set to vest in installments through 2028, contingent upon continued service to the company. Some of these shares have been conveyed to a trust for which Eldad's spouse is the sole beneficiary. According to InvestingPro analysis, Taboola appears undervalued at its current market cap of $1.32 billion. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.
The sales were primarily made to meet Eldad's tax obligations, as there are significant differences in tax treatment between the United States and Israel regarding equity compensation.
In other recent news, Taboola, a prominent discovery platform, reported an impressive performance in its third quarter of 2024 financial results. The company's revenue saw a 20% increase, reaching $433 million, and ex-TAC gross profits surged 30% to $166.4 million. Taboola's adjusted EBITDA also experienced a significant 110% rise, hitting $47.9 million with a margin of 29%.
The company's free cash flow exceeded $105 million for the year, more than doubling the previous year's figure. Despite a reported net loss of $6.5 million for the quarter, Taboola maintains a robust net cash position of $64.5 million. The company continues its share repurchase program, with $56 million remaining under the buyback program.
In terms of future expectations, the company reaffirmed its annual guidance, projecting revenues between $1.735 billion and $1.765 billion, and expects the adjusted EBITDA to surpass $200 million for the full year. The company's partnership with Apple (NASDAQ:AAPL) and the adoption of the Max Conversion tool are considered key growth drivers. These recent developments reflect Taboola's strategic investment in technology to enhance profitability and shareholder value.
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