Taboola.com Ltd. reported significant financial developments in its quarterly filing for the three and nine months ended September 30, 2024. The company achieved revenues of $433.0 million for the third quarter, marking a 20.2% increase from $360.2 million in the same period of 2023. For the nine months, revenues rose to $1.275 billion, up 25.0% from $1.020 billion year-over-year. This growth was attributed to new digital property partners contributing approximately $268.6 million in revenue, despite a decrease in revenue from existing partners due to lower advertiser rates.

Gross profit for the third quarter was $132.9 million, a 32.0% increase from $100.7 million in Q3 2023. For the nine months, gross profit reached $356.6 million, up from $287.3 million. The company reported an operating income of $4.6 million for Q3 2024, a turnaround from an operating loss of $18.7 million in Q3 2023. However, the net loss for the third quarter narrowed to $6.5 million from $23.1 million a year earlier. For the nine months, the net loss decreased to $36.9 million from $85.8 million in the prior year.

Taboola's cash and cash equivalents increased to $217.2 million as of September 30, 2024, compared to $176.1 million at the end of 2023. The company generated $122.4 million in cash from operating activities for the nine months, a significant increase from $61.6 million in the same period of 2023. Free cash flow also improved, reaching $97.3 million for the nine months, compared to $41.7 million a year prior.

Strategically, Taboola has been focusing on enhancing its partnerships, notably with Yahoo, which has significantly contributed to its revenue. The company reported $44.9 million in revenue from Yahoo for Q3 2024, compared to $12.3 million in Q3 2023. Traffic acquisition costs related to Yahoo also increased substantially, reflecting the growing partnership.

In terms of operational expenses, research and development costs rose by 2.3% in Q3 2024, while sales and marketing expenses increased by 13.6%, driven by higher headcount and related costs. General and administrative expenses saw a slight decrease, attributed to lower credit loss expenses.

The company continues to pursue its share buyback program, having repurchased approximately 15.5 million shares at an average price of $4.14 per share during the nine months ended September 30, 2024. As of the same date, Taboola had remaining authorization to repurchase up to $55.6 million of Ordinary shares.