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Taboola Taboola Reports Strong Q3 Results and Raises Full Year 2021 Guidance November 9 , 2021 • Company delivers strong growth and profitability to beat Q3 guidance • Increases full year guidance across all key financial measures , expects to grow both Gross Profit and ex - TAC Gross Profit 34 to 35 % for the full year 2021 • Completed acquisition of Connexity on September 1 , 2021 NEW YORK , Nov. 09 , 2021 ( GLOBE NEWSWIRE ) -- Taboola ( Nasdaq : TBLA ) , a global leader in powering recommendations for the open web , helping people discover things they may like , today announced its results for the quarter ended September 30 , 2021 . " The third quarter had some significant milestones for Taboola . It was our first quarter as a public company and we executed well , delivering results above our guidance while also closing our largest acquisition , Connexity , that gives us transformative e - commerce capabilities , growing our yield and revenue to our partners for years to come , " said Adam Singolda , Founder and CEO , Taboola . " We saw great success across our business , with publishers and mobile smartphone manufacturers - we signed significant new partnerships with publications such as LINE Today in APAC to power recommendations within its popular mobile app and a multi - year deal with NBC Sports in the U.S. , which chose Taboola as its exclusive mid - article content recommendation and video provider , enabling us to attract premium demand from brands and agencies . We also announced a groundbreaking partnership for Taboola News with Xiaomi to power recommendations globally across more than 100 million mobile devices in 60 markets . Our focus , execution and having the right strategy towards our goal of recommending anything and anywhere shows in our Q3 results and in our Q4 guidance . I'm excited and optimistic about the future , powering recommendations for the open web , " continued Singolda . Our third quarter results include one month of Connexity's financial results following the close of the acquisition on September 1 , 2021. We also updated our guidance for Revenues to reflect a revised gross versus net accounting change for Connexity as described in Appendix B. For more commentary on the quarter , please refer to Taboola's Q3 2021 Shareholder Letter , which was furnished to the SEC and also posted on Taboola's website today at https://investors.taboola.com . Third Quarter 2021 Results Summary ( unaudited ) ( dollars in thousands ) Revenues Gross Profit Net Income Ratio of Net Income to Gross profit Cash Flow from Operations Cash , cash equivalents and short - term deposits $ A A A $ $ $ EA EA $ $ $ 2021 $ Three Months Ended September 30 , 338,768 $ $ 107,685 17,296 $ 16.1 % 26,573 311,768 $ $ 2020 Non - GAAP Financial Data * ex - TAC Gross Profit Adjusted EBITDA Ratio of Adjusted EBITDA to ex - TAC Gross Profit Free Cash Flow Third Quarter Financial Highlights o Q3 results exceeded guidance across all financial measures . • Revenues of $ 339 million versus adjusted guidance of $ 331 to $ 335 million ( note that our previous guidance was $ 338 to $ 342 million , which was reduced by $ 7 million to reflect the adoption of net revenue accounting for Connexity - see Appendix B ) . 126,869 $ 39,734 31.3 % $ 19,474 $ 290,585 89,596 16,688 • Gross Profit of $ 108 million versus guidance of $ 101 to $ 103 million . • ex - TAC Gross Profit of $ 127 million versus guidance of $ 122 to $ 124 million . • Net Income ( Loss ) of $ 17 million versus guidance of $ ( 7 ) to $ ( 5 ) million , $ 17 million of which was due to a reduction in warrant liability . • Adjusted EBITDA of $ 40 million versus guidance of $ 36 to $ 37 million . 18.6 % 33,777 185,675 104,297 40,055 38.4 % 30,731