Taboola delivered a second quarter that exceeded Wall Street’s expectations, prompting a significant positive market reaction. Management credited the results to strong advertiser acquisition and early momentum with the Realize performance advertising platform. CEO Adam Singolda specifically highlighted a 9% increase in scaled advertisers and a 2% rise in average revenue per advertiser as key factors, alongside double-digit growth in Taboola News and improved operational cost management. Singolda described the Realize platform as "helping advertisers drive better performance outcomes at scale on the OpenWeb," which has attracted both new and existing clients to increase their spending.

Is now the time to buy TBLA? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Taboola’s Q2 Earnings Call

• Jason Helfstein (Oppenheimer) pressed for clarity on the path to double-digit growth. CFO Stephen Walker responded that achieving this depends on Realize capturing more social and display budgets, which is not yet included in current guidance.
• Laura Martin (Needham & Company) questioned why average spend per advertiser remained low despite Realize’s launch. Walker clarified that new advertisers tend to start with smaller budgets, which lowers the average, though existing clients are increasing their spend.
• Laura Martin (Needham & Company) also asked about long-term risks from generative AI reshaping web traffic. CEO Adam Singolda explained that Taboola’s low search traffic exposure and unique publisher relationships mitigate this risk, and sees LLM on publisher sites as a future opportunity.
• Zach Cummins (B. Riley Securities) asked about ongoing tariff impacts from China. Walker said China remains a small portion of revenue, and current guidance assumes no significant recovery in that market for the rest of the year.
• James Kopelman (TD Cowen) inquired about future growth for Taboola News and expense trends. Singolda described Taboola News as a strategic priority with momentum, while Walker attributed a quarter-to-quarter expense increase to timing effects, suggesting future expenses would average out.

Catalysts in Upcoming Quarters

In the upcoming quarters, our analyst team will be watching (1) the pace of Realize platform adoption and its effect on advertiser budgets, (2) expansion of Taboola News and other unique supply partnerships, and (3) any material shifts in advertiser demand due to macro or regulatory changes. Execution on integrating new device and publisher partners, as well as demonstrating resilience to evolving search and AI trends, will also be key indicators.

Taboola currently trades at $3.25, up from $3.21 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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