Taboola To Double Revenues After Yahoo Integration: Analyst's Positive Outlook For 2024 And 2025
Portfolio Pulse from Anusuya Lahiri
Needham analyst Laura Martin reiterated a Buy rating and a $5 price target for Taboola.com Ltd (TBLA). The integration of Yahoo's ad units and new buy-side clients is expected to nearly double TBLA's revenues from $1.5 billion to $2.5 billion, starting in 3Q24. TBLA's revenues from Microsoft Corp (MSFT) have stopped falling and are expected to increase. The Yahoo integration is expected to start generating revenues in 4Q23 and increase TBLA's EBITDA margins. TBLA's financial targets include 20%+ revenue growth, a 30%+ EBITDA margin, and a 50% FCF conversion rate from EBITDA, which Martin expects TBLA to exceed in 2024 and 2025.
June 29, 2023 | 4:26 pm
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NEUTRAL IMPACT
TBLA's revenues from Microsoft Corp (MSFT) have stopped falling and are expected to increase.
While the news mentions that TBLA's revenues from MSFT have stopped falling and are expected to increase, it does not provide enough information to determine the potential impact on MSFT's stock price.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
After integrating Yahoo, TBLA's $3 billion gross revenues will be second only to TTD's $8 billion.
The news mentions that TBLA's gross revenues will be second only to TTD's after the Yahoo integration. However, it does not provide enough information to determine the potential impact on TTD's stock price.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
The integration of Yahoo's ad units and new buy-side clients is expected to nearly double TBLA's revenues from $1.5 billion to $2.5 billion, starting in 3Q24. TBLA's financial targets include 20%+ revenue growth, a 30%+ EBITDA margin, and a 50% FCF conversion rate from EBITDA, which Martin expects TBLA to exceed in 2024 and 2025.
The integration of Yahoo's ad units and new buy-side clients is a significant development for TBLA, which is expected to nearly double its revenues. This, along with the positive outlook from the analyst, could lead to a positive impact on TBLA's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100