Yahoo Finance Taboola.com Ltd. (NASDAQ:TBLA) Has Found A Path To Profitability
We feel now is a pretty good time to analyse Taboola.com Ltd.'s (NASDAQ:TBLA) business as it appears the company may be on the cusp of a considerable accomplishment. Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. On 31 December 2023, the US$1.5b market-cap company posted a loss of US$82m for its most recent financial year. Many investors are wondering about the rate at which Taboola.com will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Taboola.com
Taboola.com is bordering on breakeven, according to the 6 American Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$20m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 56% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Taboola.com's upcoming projects, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 14% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on Taboola.com, so if you are interested in understanding the company at a deeper level, take a look at Taboola.com's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:
Valuation: What is Taboola.com worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Taboola.com is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Taboola.com’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
