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Name | Symbol | Market | Type |
---|---|---|---|
Taboola com Ltd | NASDAQ:TBLAW | NASDAQ | Equity Warrant |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.01612 | -7.42% | 0.2011 | 0.0851 | 0.33 | 0.22 | 0.2011 | 0.22 | 6,425 | 01:00:00 |
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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(Address of principal executive offices)
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(Zip code)
|
(Registrant’s telephone number, including area code)
|
|
|
|
|
|
Title of each class
|
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Trading
Symbol(s)
|
|
Name of each exchange on which registered
|
|
|
|
|
|
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|
|
|
|
Large accelerated filer
|
☐
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|
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☒
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Non-accelerated filer
|
☐
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Smaller reporting company
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|
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Emerging growth company
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Page No.
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||
PART I.
|
4 |
|
Item 1.
|
4 |
|
4 |
||
5 |
||
6 |
||
7 |
||
8 |
||
10 |
||
Item 2.
|
24 |
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Item 3.
|
40 |
|
Item 4.
|
42 |
|
PART II.
|
43 |
|
Item 1.
|
43 |
|
Item 1A.
|
43 |
|
Item 2.
|
43 |
|
Item 3.
|
44 |
|
Item 4.
|
44 |
|
Item 5.
|
44 |
|
Item 6.
|
45 | |
45 |
March 31,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Short-term investments
|
|
|
||||||
Restricted deposits
|
|
|
||||||
Trade receivables (net of allowance for credit losses of $
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
NON-CURRENT ASSETS
|
||||||||
Long-term prepaid expenses
|
|
|
||||||
Commercial agreement asset
|
|
|
||||||
Restricted deposits
|
|
|
||||||
Operating lease right of use assets
|
|
|
||||||
Property and equipment, net
|
|
|
||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Total non-current assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
CURRENT LIABILITIES
|
||||||||
Trade payables (2)
|
$
|
|
$
|
|
||||
Short-term operating lease liabilities
|
|
|
||||||
Accrued expenses and other current liabilities
|
|
|
||||||
Current maturities of long-term loan
|
|
|
||||||
Total current liabilities
|
|
|
||||||
LONG-TERM LIABILITIES
|
||||||||
Long-term loan, net of current maturities
|
|
|
||||||
Long-term operating lease liabilities
|
|
|
||||||
Warrants liability
|
|
|
||||||
Deferred tax liabilities, net
|
|
|
||||||
Other long-term liabilities
|
|
|
||||||
Total long-term liabilities
|
|
|
||||||
COMMITMENTS AND CONTINGENCIES (Note 11)
|
||||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Ordinary shares with
|
|
|
||||||
Non-voting Ordinary shares with
|
|
|
||||||
Treasury Ordinary shares, at cost -
|
( |
) | ( |
) | ||||
Additional paid-in capital
|
|
|
||||||
Accumulated other comprehensive income
|
|
|
||||||
Accumulated deficit
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Revenues (1)
|
$
|
|
$
|
|
||||
Cost of revenues:
|
||||||||
Traffic acquisition cost (2)
|
|
|
||||||
Other cost of revenues
|
|
|
||||||
Total cost of revenues
|
|
|
||||||
Gross profit
|
|
|
||||||
Operating expenses:
|
||||||||
Research and development
|
|
|
||||||
Sales and marketing
|
|
|
||||||
General and administrative
|
|
|
||||||
Total operating expenses
|
|
|
||||||
Operating loss
|
(
|
)
|
(
|
)
|
||||
Finance expenses, net
|
(
|
)
|
(
|
)
|
||||
Loss before income taxes
|
(
|
)
|
(
|
)
|
||||
Income tax benefit (expenses)
|
(
|
)
|
|
|||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted
|
|
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Other comprehensive loss:
|
||||||||
Unrealized gains (losses) on available-for-sale marketable securities, net
|
(
|
)
|
|
|||||
Unrealized losses on derivative instruments, net
|
(
|
)
|
(
|
)
|
||||
Other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Comprehensive loss
|
$
|
(
|
)
|
$
|
(
|
)
|
Non-voting
Ordinary shares
|
Ordinary shares
|
|||||||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Treasury
Ordinary
shares
|
Additional
paid-in
capital
|
Accumulated
deficit
|
Accumulated
other
comprehensive
income (loss)
|
Total
shareholders’
equity
|
||||||||||||||||||||||||||||
Balance as of January 1, 2024
|
|
$
|
|
|
$
|
|
$ | ( |
) |
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||
Share-based compensation expenses
|
—
|
—
|
—
|
—
|
— |
|
—
|
—
|
|
|||||||||||||||||||||||||||
Repurchase of Ordinary shares
|
— | — | ( |
) | — | ( |
) | — | — | — | ( |
) | ||||||||||||||||||||||||
Exercise of options and vested RSUs
|
—
|
—
|
|
—
|
— |
|
—
|
—
|
|
|||||||||||||||||||||||||||
Connexity issuance of Holdback |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Payments of tax withholding for share-based compensation
|
—
|
—
|
—
|
—
|
— |
(
|
)
|
—
|
—
|
(
|
)
|
|||||||||||||||||||||||||
Other comprehensive loss
|
—
|
—
|
—
|
—
|
— |
—
|
—
|
(
|
)
|
(
|
)
|
|||||||||||||||||||||||||
Net loss
|
—
|
—
|
—
|
—
|
— |
—
|
(
|
)
|
—
|
(
|
)
|
|||||||||||||||||||||||||
Balance as of March 31, 2024 (unaudited)
|
|
$
|
|
|
$
|
|
$ | ( |
) |
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Non-voting
Ordinary shares
|
Ordinary shares
|
|||||||||||||||||||||||||||||||
Number
|
Amount
|
Number
|
Amount
|
Additional
paid-in
capital
|
Accumulated
deficit
|
Accumulated
other
comprehensive
loss
|
Total
shareholders’
equity
|
|||||||||||||||||||||||||
Balance as of January 1, 2023
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
||||||||||||||||
Share-based compensation expenses
|
—
|
—
|
—
|
—
|
|
—
|
—
|
|
||||||||||||||||||||||||
Exercise of options and vested RSUs
|
—
|
—
|
|
—
|
|
—
|
—
|
|
||||||||||||||||||||||||
Connexity issuance of Holdback |
— | — | — | — | — | — | ||||||||||||||||||||||||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement
|
— | — | — | — | ||||||||||||||||||||||||||||
Payments of tax withholding for share-based compensation
|
—
|
—
|
—
|
—
|
(
|
)
|
—
|
—
|
(
|
)
|
||||||||||||||||||||||
Other comprehensive loss
|
—
|
—
|
—
|
—
|
—
|
—
|
(
|
)
|
(
|
)
|
||||||||||||||||||||||
Net loss
|
—
|
—
|
—
|
—
|
—
|
(
|
)
|
—
|
(
|
)
|
||||||||||||||||||||||
Balance as of March 31, 2023 (unaudited)
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Cash flows from operating activities
|
||||||||
Net loss
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Adjustments to reconcile net loss to net cash flows provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Share-based compensation expenses
|
|
|
||||||
Net gain from financing expenses
|
(
|
)
|
(
|
)
|
||||
Revaluation of the Warrants liability
|
|
(
|
)
|
|||||
Amortization of loan and credit facility issuance costs
|
|
|
||||||
Amortization of premium and accretion of discount on short-term investments, net
|
|
(
|
)
|
|||||
Change in operating assets and liabilities:
|
||||||||
Decrease in trade receivables, net (1)
|
|
|
||||||
Decrease in prepaid expenses and other current assets and long-term prepaid expenses
|
|
|
||||||
Decrease in trade payables (2)
|
(
|
)
|
(
|
)
|
||||
Decrease in accrued expenses and other current liabilities and other long-term liabilities
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in deferred taxes, net
|
(
|
)
|
|
|||||
Change in operating lease right of use assets
|
|
|
||||||
Change in operating lease liabilities
|
(
|
)
|
(
|
)
|
||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities
|
||||||||
Purchase of property and equipment, including capitalized internal-use software
|
(
|
)
|
(
|
)
|
||||
Proceeds from business acquisition holdback liability
|
|
|
||||||
Investments in restricted deposits
|
|
(
|
)
|
|||||
Proceeds from maturities of short-term investments
|
|
|
||||||
Net cash provided by (used in) investing activities
|
(
|
)
|
|
|||||
Cash flows from financing activities
|
||||||||
Issuance costs
|
( |
) | ||||||
Exercise of options and vested RSUs
|
|
|
||||||
Payment of tax withholding for share-based compensation expenses
|
(
|
)
|
(
|
)
|
||||
Repurchase of Ordinary shares
|
( |
) | ||||||
Payments on account of repurchase of Ordinary shares
|
( |
) | ||||||
Repayment of long-term loan
|
|
(
|
)
|
|||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Exchange rate differences on balances of cash and cash equivalents
|
|
|
||||||
Increase in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents - at the beginning of the period
|
|
|
||||||
Cash and cash equivalents - at end of the period
|
$
|
|
$
|
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Supplemental disclosures of cash flow information:
|
||||||||
Cash paid during the year for:
|
||||||||
Income taxes
|
$
|
|
$
|
|
||||
Interest
|
$
|
|
$
|
|
||||
Non-cash investing and financing activities:
|
||||||||
Purchase of property and equipment, including capitalized internal-use software
|
$
|
|
$
|
|
||||
Share-based compensation included in capitalized internal-use software
|
$
|
|
$
|
|
||||
Creation of operating lease right-of-use assets
|
$
|
|
$
|
|
NOTE 1:- |
GENERAL
|
a. |
Taboola.com Ltd. (together with its subsidiaries, the “Company” or “Taboola”) was incorporated under the laws of the state of Israel on September 3, 2006.
|
b. |
In November 2022, the Company announced it entered into a
|
NOTE 1:- |
GENRAL (Cont.)
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
NOTE 2:- |
SIGNIFICANT ACCOUNTING POLICIES (Cont.)
|
NOTE 3:- |
CASH AND CASH EQUIVALENTS
|
March 31,
|
December 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Cash
|
$
|
|
$
|
|
||||
Money market funds
|
|
|
||||||
Time deposits
|
|
|
||||||
Total Cash and cash equivalents
|
$
|
|
$
|
|
NOTE 4:-
|
FAIR VALUE MEASUREMENTS
|
Fair value measurements
as of
|
||||||||||
Description
|
Fair Value
Hierarchy
|
March 31,
2024
|
December 31,
2023
|
|||||||
|
Unaudited
|
|||||||||
Assets:
|
||||||||||
Cash equivalents:
|
||||||||||
Money market funds
|
Level 1
|
$
|
|
$
|
|
|||||
Short-term investments:
|
||||||||||
Corporate debt securities
|
Level 2
|
$
|
|
$
|
|
|||||
Commercial paper
|
Level 2
|
$
|
|
$
|
|
|||||
Derivative instruments asset: | ||||||||||
Derivative instruments designated as cash flow hedging instruments
|
Level 2 | $ |
$ |
|||||||
Liabilities:
|
||||||||||
Warrants liability:
|
||||||||||
Public Warrants
|
Level 1
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Private Warrants
|
Level 3
|
$
|
(
|
)
|
$
|
(
|
)
|
NOTE 4:- | FAIR VALUE MEASUREMENTS (Cont.) |
Input
|
March 31,
2024
|
December 31,
2023
|
||||||
Risk-free interest rate
|
|
%
|
|
%
|
||||
Expected term (years)
|
|
|
||||||
Expected volatility
|
|
%
|
|
%
|
||||
Exercise price
|
$
|
|
$
|
|
||||
Underlying share price
|
$
|
|
$
|
|
● |
The risk-free interest rate assumption was interpolated based on
constant maturity U.S. Treasury rates over a term commensurate with the expected term of the Private Warrants.
|
● |
The expected term was based on the maturity of the Private Warrants of
|
● |
The expected volatility is based on the Company’s share price
volatility. For periods prior January 1, 2024, the expected share volatility assumption was based on the implied volatility from a set of comparable publicly-traded companies as determined based on size and proximity, as the Company did
not have sufficient trading history.
|
Private
|
Public
|
Total
|
||||||||||
Input
|
Warrants
|
Warrants
|
Warrants
|
|||||||||
Fair value as of December 31, 2023
|
$
|
|
$
|
|
$
|
|
||||||
Change from private to public holdings | ( |
) | ||||||||||
Change in fair value
|
|
(
|
)
|
|
||||||||
Fair value as of March 31, 2024 (unaudited)
|
$
|
|
$
|
|
$
|
|
NOTE 5:- |
SHORT-TERM INVESTMENTS
|
March 31, 2024
|
||||||||||||||||
Unaudited
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Corporate debt securities
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
|
|||||||
Commercial paper
|
|
|
(
|
)
|
|
|||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2023
|
||||||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
|||||||||||||
Corporate debt securities
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
||||||||
Commercial paper
|
|
|
(
|
)
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
NOTE 6:- |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
NOTE 6:- |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Cont.)
|
Three months ended
March 31,
|
||||||||
|
2024
|
2023
|
||||||
Unaudited
|
||||||||
|
$
|
|
$
|
(
|
)
|
|||
|
(
|
)
|
||||||
|
|
(
|
)
|
|||||
|
|
(
|
)
|
|||||
|
$
|
|
$
|
(
|
)
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Unrealized gains (losses) on derivative instruments at the beginning of the period
|
$ | $ | ( |
) | ||||
Changes in fair value of derivative instruments
|
( |
) | ( |
) | ||||
Reclassification of losses (gains) recognized in the consolidated interim statements of loss from accumulated other comprehensive income (loss)
|
( |
) | ||||||
Unrealized gains (losses) on derivative instruments at the end of the period (unaudited)
|
$ | $ | ( |
) |
NOTE 7:- |
GOODWILL AND INTANGIBLE ASSETS, NET
|
NOTE 7:- |
GOODWILL AND INTANGIBLE ASSETS, NET (Cont.)
|
March 31, 2024
|
Gross Fair
Value
|
Accumulated
Amortization
|
Net Book
Value
|
|||||||||
Merchant/Network affiliate relationships
|
$ | $ | ( |
) | $ | |||||||
Technology
|
( |
) | ||||||||||
Publisher relationships
|
( |
) | ||||||||||
Tradenames
|
( |
) | ||||||||||
Customer relationship
|
( |
) | ||||||||||
Total (unaudited)
|
$ | $ | ( |
) | $ |
December 31, 2023
|
Gross Fair
Value |
Accumulated
Amortization
|
Net Book
Value
|
|||||||||
Merchant/Network affiliate relationships
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Technology
|
|
(
|
)
|
|
||||||||
Publisher relationships
|
|
(
|
)
|
|
||||||||
Tradenames
|
|
(
|
)
|
|
||||||||
Customer relationships
|
|
(
|
)
|
|
||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
|
Year Ending December 31,
|
||||
2024 (Remainder)
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027
|
|
|||
Total
|
$
|
|
NOTE 8:- |
FINANCING ARRANGEMENTS
|
NOTE 8:- |
FINANCING ARRANGEMENTS (Cont.)
|
NOTE 8:- |
FINANCING ARRANGEMENTS (Cont.)
|
NOTE 9:- |
SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS
|
NOTE 9:- |
SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS (Cont.)
|
a. |
In addition to the Buyback Program detailed above, the Company utilizes a net issuance mechanism to satisfy tax withholding
obligations related to equity-based compensation on behalf of its directors, officers and other employees (the “Net Issuances”). In April 2024, subsequent to the balance sheet date, the Company satisfied the required conditions, as
set forth in the Israeli Companies Law and the Companies Regulations, to conduct future repurchases of its Ordinary shares under the Buyback Program and Net Issuances in an aggregate amount up to $
|
b. |
The following is a summary of share option activity and related information for the three months ended March 31, 2024 (including employees, directors, officers and consultants of the Company):
|
Outstanding
Share
Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
Aggregate
Intrinsic
Value
|
|||||||||||||
Balance as of January 1, 2024
|
|
$
|
|
|
$
|
|
||||||||||
Exercised
|
(
|
)
|
|
— | |
|
||||||||||
Forfeited
|
(
|
)
|
|
— | — | |||||||||||
Balance as of March 31, 2024 (unaudited)
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable as of March 31, 2024 (unaudited)
|
|
$
|
|
|
$
|
|
NOTE 9:- |
SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS (Cont.)
|
c. |
The following is a summary of the RSU activity and related information for the three months ended March 31, 2024:
|
Outstanding
Restricted Shares
Unit
|
Weighted
Average Grant
Date Fair Value
|
|||||||
Balance as of January 1, 2024
|
|
$
|
|
|||||
Granted
|
|
|
||||||
Vested (*)
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Balance as of March 31, 2024 (unaudited)
|
|
$
|
|
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
|
Unaudited
|
|||||||
Cost of revenues
|
$
|
|
$
|
|
||||
Research and development
|
|
|
||||||
Sales and marketing
|
|
|
||||||
General and administrative
|
|
|
||||||
Total share-based compensation expense
|
$
|
|
$
|
|
NOTE 10:- |
INCOME TAXES
|
NOTE 11:- |
COMMITMENTS AND CONTINGENCIES
|
NOTE 12:- |
RELATED PARTY TRANSACTIONS
|
NOTE 13:- |
GEOGRAPHIC INFORMATION
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Israel
|
$
|
|
$
|
|
||||
United States
|
|
|
||||||
Germany
|
|
|
||||||
United Kingdom |
||||||||
Rest of the world
|
|
|
||||||
Total
|
$
|
|
$
|
|
NOTE 14:- |
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS
|
Three months ended
March 31,
|
||||||||||||||||
2024 |
2023 |
|||||||||||||||
Ordinary
shares
|
Non-voting
Ordinary
shares
|
Ordinary
shares
|
Non-voting
Ordinary
shares
|
|||||||||||||
Unaudited |
||||||||||||||||
Numerator:
|
||||||||||||||||
Net loss attributable to Ordinary shareholders, basic and diluted
|
$
|
(
|
)
|
$ | ( |
) |
$
|
(
|
)
|
$
|
(
|
)
|
||||
Denominator:
|
||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic and diluted
|
||||||||||||||||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted
|
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Warrants
|
|
|
||||||
RSUs
|
|
|
||||||
Outstanding share options
|
|
|
||||||
Issuable Ordinary shares related to Business Combination under holdback arrangement
|
|
|
||||||
Total
|
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
(dollars in thousands, except per share data)
|
Three months ended
March 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
414,008
|
$
|
327,686
|
||||
Gross profit
|
$
|
108,953
|
$
|
89,592
|
||||
Net loss
|
$
|
(26,158
|
)
|
$
|
(31,313
|
)
|
||
EPS diluted (1)
|
$
|
(0.08
|
)
|
$
|
(0.09
|
)
|
||
Ratio of net loss to gross profit
|
(24.0
|
%)
|
(35.0
|
%)
|
||||
Cash flow provided by operating activities
|
$
|
32,395
|
$
|
17,524
|
||||
Cash, cash equivalents, short-term deposits and investments
|
$
|
181,019
|
$
|
274,431
|
||||
Non-GAAP Financial Data (2)
|
||||||||
ex-TAC Gross Profit
|
$
|
138,888
|
$
|
115,740
|
||||
Adjusted EBITDA
|
$
|
23,489
|
$
|
10,122
|
||||
Non-GAAP Net Income (Loss)
|
$
|
3,832
|
$
|
(4,101
|
)
|
|||
Ratio of Adjusted EBITDA to ex-TAC Gross Profit
|
16.9
|
%
|
8.7
|
%
|
||||
Free Cash Flow
|
$
|
26,806
|
$
|
11,174
|
|
(1) |
The weighted-average shares used in the computation of the diluted EPS for the three months ended March 31, 2024 and 2023 are 345,502,643 and 333,424,276, respectively. The weighted-average shares for the three months ended March 31, 2024
and 2023 include 45,198,702 Non-voting Ordinary shares.
|
(2) |
Refer to “Non-GAAP Financial Measures” below for an explanation and reconciliation to GAAP metrics.
|
● |
Traffic acquisition cost is a significant component of our cost of revenues but is not the only component; and
|
● |
ex-TAC Gross Profit is not comparable to our gross profit and by definition ex-TAC Gross Profit presented for any period will be higher than our gross profit for that period.
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
(dollars in thousands)
|
||||||||
Revenues
|
$
|
414,008
|
$
|
327,686
|
||||
Traffic acquisition cost
|
275,120
|
211,946
|
||||||
Other cost of revenues
|
29,935
|
26,148
|
||||||
Gross profit
|
$
|
108,953
|
$
|
89,592
|
||||
Add back: Other cost of revenues
|
29,935
|
26,148
|
||||||
ex-TAC Gross Profit
|
$
|
138,888
|
$
|
115,740
|
● |
Although depreciation expense is a non-cash charge, the assets being depreciated may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital
expenditure requirements;
|
● |
Adjusted EBITDA excludes share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy;
|
● |
Adjusted EBITDA does not reflect, to the extent applicable for a period presented: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or if
applicable principal payments on debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us; and
|
● |
The expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results.
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
(dollars in thousands)
|
||||||||
Net loss
|
$
|
(26,158
|
)
|
$
|
(31,313
|
)
|
||
Adjusted to exclude the following:
|
|
|
||||||
Finance expenses, net
|
3,638
|
3,154
|
||||||
Income tax expenses (benefit)
|
4,287
|
(639
|
)
|
|||||
Depreciation and amortization
|
25,321
|
22,601
|
||||||
Share-based compensation expenses
|
13,756
|
13,527
|
||||||
Holdback compensation expenses (1)
|
2,645
|
2,555
|
||||||
Other costs (2)
|
—
|
237
|
||||||
Adjusted EBITDA
|
$
|
23,489
|
$
|
10,122
|
(1) |
Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
|
(2) |
The three months ended March 31, 2023 includes one-time costs related to the Commercial agreement.
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
(dollars in thousands)
|
||||||||
Gross profit
|
$
|
108,953
|
$
|
89,592
|
||||
Net loss
|
$
|
(26,158
|
)
|
$
|
(31,313
|
)
|
||
Ratio of net loss to gross profit
|
(24.0
|
%)
|
(35.0
|
%)
|
||||
ex-TAC Gross Profit
|
$
|
138,888
|
$
|
115,740
|
||||
Adjusted EBITDA
|
$
|
23,489
|
$
|
10,122
|
||||
Ratio of Adjusted EBITDA margin to ex-TAC Gross Profit
|
16.9
|
%
|
8.7
|
%
|
● |
Non-GAAP Net Income (Loss) excludes share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy;
|
● |
Non-GAAP Net Income (Loss) will generally be more favorable than our net income (loss) for the same period due to the nature of the items being excluded from its calculation; and
|
● |
Non-GAAP Net Income (Loss) is a performance measure and should not be used as a measure of liquidity.
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
(dollars in thousands)
|
||||||||
Net loss
|
$
|
(26,158
|
)
|
$
|
(31,313
|
)
|
||
Amortization of acquired intangibles
|
15,935
|
15,969
|
||||||
Share-based compensation expenses
|
13,756
|
13,527
|
||||||
Holdback compensation expenses (1)
|
2,645
|
2,555
|
||||||
Other costs (2)
|
—
|
237
|
||||||
Revaluation of Warrants
|
39
|
(1,676
|
)
|
|||||
Foreign currency exchange rate losses (3)
|
1,041
|
429
|
||||||
Income tax effects
|
(3,426
|
)
|
(3,829
|
)
|
||||
Non-GAAP Net Income (Loss)
|
$
|
3,832
|
$
|
(4,101
|
)
|
(1) |
Represents share-based compensation due to holdback of Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
|
(2) |
The three months ended March 31, 2023, includes one-time costs related to the Commercial agreement.
|
(3) |
Represents foreign currency exchange rate gains or losses related to the remeasurement of monetary assets and liabilities to the Company’s functional currency using exchange rates in effect at the end of the reporting period.
|
● |
It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. For example, cash is still required to satisfy other working capital needs, including short-term investment policy, restricted
cash, repayment of loan and intangible assets;
|
● |
Free Cash Flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities; and
|
● |
This metric does not reflect our future contractual commitments.
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
(dollars in thousands)
|
||||||||
Net cash provided by operating activities
|
$
|
32,395
|
$
|
17,524
|
||||
Purchases of property and equipment, including capitalized internal-use software
|
(5,589
|
)
|
(6,350
|
)
|
||||
Free Cash Flow
|
$
|
26,806
|
$
|
11,174
|
(dollars in thousands)
|
Three months ended
March 31,
|
|||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Revenues
|
$
|
414,008
|
$
|
327,686
|
||||
Cost of revenues:
|
||||||||
Traffic acquisition cost
|
275,120
|
211,946
|
||||||
Other cost of revenues
|
29,935
|
26,148
|
||||||
Total cost of revenues
|
305,055
|
238,094
|
||||||
Gross profit
|
108,953
|
89,592
|
||||||
Operating expenses:
|
||||||||
Research and development
|
36,249
|
31,985
|
||||||
Sales and marketing
|
67,608
|
60,569
|
||||||
General and administrative
|
23,329
|
25,836
|
||||||
Total operating expenses
|
127,186
|
118,390
|
||||||
Operating loss
|
(18,233
|
)
|
(28,798
|
)
|
||||
Finance expenses, net
|
(3,638
|
)
|
(3,154
|
)
|
||||
Loss before income taxes
|
(21,871
|
)
|
(31,952
|
)
|
||||
Income tax benefit (expenses)
|
(4,287
|
)
|
639
|
|||||
Net loss
|
$
|
(26,158
|
)
|
$
|
(31,313
|
)
|
Three months ended
March 31,
|
||||||||
2024
|
2023
|
|||||||
Unaudited
|
||||||||
Cash Flow Data:
|
||||||||
Net cash provided by operating activities
|
$
|
32,395
|
$
|
17,524
|
||||
Net cash provided by (used in) investing activities
|
(1,605
|
)
|
35,310
|
|||||
Net cash used in financing activities
|
(28,772
|
)
|
(206
|
)
|
||||
Exchange rate differences on balances of cash and cash equivalents
|
408
|
328
|
||||||
Increase in cash and cash equivalents
|
$
|
2,426
|
$
|
52,956
|
Contractual Obligations by Period
|
||||||||||||||||||||||||
2024
|
2025
|
2026
|
2027
|
2028
|
Thereafter
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Debt Obligations (1)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
152,735
|
$
|
—
|
||||||||||||
Operating Leases (2)
|
16,770
|
17,672
|
14,320
|
10,087
|
5,607
|
8,264
|
||||||||||||||||||
Non-cancellable purchase obligations (3)
|
24,814
|
3,465
|
2,025
|
286
|
—
|
—
|
||||||||||||||||||
Total Contractual Obligations
|
$
|
41,584
|
$
|
21,137
|
$
|
16,345
|
$
|
10,373
|
$
|
158,342
|
$
|
8,264
|
(1) |
Due to our voluntary prepayments, we have no remaining obligations to make quarterly amortization payments under our long-term loan.
|
(2) |
Represents future minimum lease commitments under non-cancellable operating lease agreements.
|
(3) |
Primarily represents non-cancelable amounts for contractual commitments in respect of software and information technology.
|
|
Operating loss impact
three months ended
March 31,
|
|||||||||||||||
|
2024
|
2023
|
||||||||||||||
|
(dollars in thousands)
|
|||||||||||||||
|
+10%
|
|
-10%
|
+10%
|
|
-10%
|
||||||||||
NIS/USD
|
$
|
(458
|
)
|
$
|
458
|
$
|
(841
|
)
|
$
|
841
|
||||||
EUR/USD
|
$
|
757
|
$
|
(757
|
)
|
$
|
204
|
$
|
(204
|
) |
||||||
GBP/USD
|
$
|
(461
|
)
|
$
|
461
|
$
|
(481
|
)
|
$
|
481
|
||||||
JPY/USD
|
$
|
306
|
$
|
(306
|
)
|
$
|
354
|
$
|
(354
|
) |
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Period
|
(a) Total Number of Shares Repurchased
|
(b) Average
Price Paid Per
Share (1)
|
(c) Total Number
of Shares
Purchased as Part
of Publicly
Announced Program
|
(d) Approximate Dollar
Value of Shares that May
Yet Be Purchased Under
the Plan or Program (2)
|
||||||||||||
January 1 - January 31, 2024
|
2,530,691
|
$
|
4.24
|
2,530,691
|
$
|
14,120,274
|
||||||||||
February 1 - February 29, 2024
|
1,888,295
|
$
|
4.77
|
1,888,295
|
$
|
100,000,000
|
||||||||||
March 1 - March 31, 2024
|
1,804,185
|
$
|
4.36
|
1,804,185
|
$
|
92,130,860
|
(1) |
Excludes broker and transaction fees.
|
(2) |
Our board of directors authorized a share buyback program of our outstanding Ordinary shares, which commenced in June 2023 and does not have an expiration date (the “Buyback Program”). In 2023, our board of directors authorized up to $80.0
million of buybacks under the Buyback Program. In February 2024, our board of directors authorized up to $100.0 million for use under the Buyback Program, including any remaining authority from the 2023 board of directors authorization,
subject to satisfying required conditions under the Israeli Companies Law and the Companies Regulations (Reliefs for Corporations, Which Securities Are Listed on Foreign Stock Exchanges) 2000. The Buyback Program permits us to purchase our
Ordinary shares from time to time in the open market, including through trading plans intended to comply with Rule 10b5-1 under the Exchange Act, in privately negotiated transactions or otherwise. The timing and amount of any share buybacks
will be subject to market conditions and other factors determined by the Company. The Company may suspend, modify or discontinue the program at any time in its sole discretion without prior notice.
|
Item 3. |
Defaults upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
Exhibit No.
|
Exhibit Description
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|
Section 1350 Certifications
|
|
101.INS
|
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
Inline XBRL Taxonomy Extension Labels Linkbase Document.
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
|
By: /s/ Stephen C. Walker
|
|
Name: Stephen C. Walker
|
|
Title: Chief Financial Officer
|
Date: May 8, 2024
|
By:
|
/s/ Adam Singolda
|
Adam Singolda
|
||
Chief Executive Officer
|
||
(Principal Executive Officer)
|
Date: May 8, 2024
|
By:
|
/s/ Stephen C. Walker
|
Stephen C. Walker
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
By:
|
/s/ Adam Singolda
|
|
Adam Singolda
|
||
Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
By:
|
/s/ Stephen C. Walker
|
|
Stephen C. Walker
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
CONSOLIDATED INTERIM BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
CURRENT ASSETS | ||
Trade receivables, allowance for credit losses | $ 9,412 | $ 10,207 |
SHAREHOLDERS' EQUITY | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Ordinary shares, shares issued (in shares) | 293,413,305 | 295,670,620 |
Ordinary shares, shares outstanding (in shares) | 293,413,305 | 295,670,620 |
Treasury ordinary shares (in shares) | 21,463,642 | 15,240,471 |
Related Party [Member] | ||
CURRENT ASSETS | ||
Trade receivables | $ 41,992 | $ 12,297 |
CURRENT LIABILITIES | ||
Trade payables | $ 61,137 | $ 38,657 |
Non-Voting Ordinary Shares [Member] | ||
SHAREHOLDERS' EQUITY | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, shares authorized (in shares) | 46,000,000 | 46,000,000 |
Ordinary shares, shares issued (in shares) | 45,198,702 | 45,198,702 |
Ordinary shares, shares outstanding (in shares) | 45,198,702 | 45,198,702 |
CONSOLIDATED INTERIM STATEMENTS OF LOSS - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||||
CONSOLIDATED INTERIM STATEMENTS OF LOSS [Abstract] | ||||||
Revenues | [1] | $ 414,008 | $ 327,686 | |||
Cost of revenues: | ||||||
Traffic acquisition cost | [2] | 275,120 | 211,946 | |||
Other cost of revenues | 29,935 | 26,148 | ||||
Total cost of revenues | 305,055 | 238,094 | ||||
Gross profit | 108,953 | 89,592 | ||||
Operating expenses: | ||||||
Research and development | 36,249 | 31,985 | ||||
Sales and marketing | 67,608 | 60,569 | ||||
General and administrative | 23,329 | 25,836 | ||||
Total operating expenses | 127,186 | 118,390 | ||||
Operating loss | (18,233) | (28,798) | ||||
Finance expenses, net | (3,638) | (3,154) | ||||
Loss before income taxes | (21,871) | (31,952) | ||||
Income tax benefit (expenses) | (4,287) | 639 | ||||
Net loss | $ (26,158) | $ (31,313) | ||||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.08) | $ (0.09) | ||||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.08) | $ (0.09) | ||||
Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in shares) | 345,502,643 | 333,424,276 | ||||
Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in shares) | 345,502,643 | 333,424,276 | ||||
|
CONSOLIDATED INTERIM STATEMENTS OF LOSS (Parenthetical) - Related Party [Member] - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
CONSOLIDATED INTERIM STATEMENTS OF LOSS [Abstract] | ||
Revenue | $ 52,124 | $ 7,114 |
Cost of revenues: | ||
Traffic acquisition costs | $ 73,611 | $ 0 |
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | ||
Net loss | $ (26,158) | $ (31,313) |
Other comprehensive loss: | ||
Unrealized gains (losses) on available-for-sale marketable securities, net | (1) | 327 |
Unrealized losses on derivative instruments, net | (776) | (656) |
Other comprehensive loss | (777) | (329) |
Comprehensive loss | $ (26,935) | $ (31,642) |
CONSOLIDATED INTERIM STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Ordinary Shares [Member] |
Ordinary Shares [Member]
Non-Voting Ordinary Shares [Member]
|
Treasury Ordinary Shares [Member] |
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Total |
---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2022 | $ 0 | $ 0 | $ 903,789 | $ (68,420) | $ (834) | $ 834,535 | |
Beginning balance (in shares) at Dec. 31, 2022 | 254,133,863 | 0 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expenses | 16,734 | 16,734 | |||||
Exercise of options and vested RSUs | 1,764 | 1,764 | |||||
Exercise of options and vested RSUs (in shares) | 3,581,421 | ||||||
Connexity issuance of Holdback | 0 | ||||||
Connexity issuance of Holdback (in shares) | 581,400 | ||||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement | 288,063 | 288,063 | |||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement (in shares) | 39,525,691 | 45,198,702 | |||||
Payments of tax withholding for share-based compensation | (791) | (791) | |||||
Other comprehensive loss | (329) | (329) | |||||
Net loss | (31,313) | (31,313) | |||||
Ending balance at Mar. 31, 2023 | $ 0 | $ 0 | 1,209,559 | (99,733) | (1,163) | 1,108,663 | |
Ending balance (in shares) at Mar. 31, 2023 | 297,822,375 | 45,198,702 | |||||
Beginning balance at Dec. 31, 2023 | $ 0 | $ 0 | $ (55,513) | 1,262,093 | (150,460) | 942 | 1,057,062 |
Beginning balance (in shares) at Dec. 31, 2023 | 295,670,620 | 45,198,702 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expenses | 17,007 | 17,007 | |||||
Repurchase of Ordinary shares | $ (27,758) | (27,758) | |||||
Repurchase of Ordinary shares (in shares) | (6,223,171) | ||||||
Exercise of options and vested RSUs | 2,324 | 2,324 | |||||
Exercise of options and vested RSUs (in shares) | 3,384,456 | ||||||
Connexity issuance of Holdback | 0 | ||||||
Connexity issuance of Holdback (in shares) | 581,400 | ||||||
Payments of tax withholding for share-based compensation | (709) | (709) | |||||
Other comprehensive loss | (777) | (777) | |||||
Net loss | (26,158) | (26,158) | |||||
Ending balance at Mar. 31, 2024 | $ 0 | $ 0 | $ (83,271) | $ 1,280,715 | $ (176,618) | $ 165 | $ 1,020,991 |
Ending balance (in shares) at Mar. 31, 2024 | 293,413,305 | 45,198,702 |
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||||
Cash flows from operating activities | ||||||
Net loss | $ (26,158) | $ (31,313) | ||||
Adjustments to reconcile net loss to net cash flows provided by operating activities: | ||||||
Depreciation and amortization | 25,321 | 22,601 | ||||
Share-based compensation expenses | 16,401 | 16,082 | ||||
Net gain from financing expenses | (408) | (328) | ||||
Revaluation of the Warrants liability | 39 | (1,676) | ||||
Amortization of loan and credit facility issuance costs | 354 | 500 | ||||
Amortization of premium and accretion of discount on short-term investments, net | 142 | (281) | ||||
Change in operating assets and liabilities: | ||||||
Decrease in trade receivables, net | [1] | 22,068 | 44,362 | |||
Decrease in prepaid expenses and other current assets and long-term prepaid expenses | 9,199 | 721 | ||||
Decrease in trade payables | [2] | (8,262) | (22,807) | |||
Decrease in accrued expenses and other current liabilities and other long-term liabilities | (1,476) | (13,439) | ||||
Increase (decrease) in deferred taxes, net | (3,685) | 2,790 | ||||
Change in operating lease right of use assets | 4,453 | 4,151 | ||||
Change in operating lease liabilities | (5,593) | (3,839) | ||||
Net cash provided by operating activities | 32,395 | 17,524 | ||||
Cash flows from investing activities | ||||||
Purchase of property and equipment, including capitalized internal-use software | (5,589) | (6,350) | ||||
Proceeds from business acquisition holdback liability | 719 | 0 | ||||
Investments in restricted deposits | 0 | (280) | ||||
Proceeds from maturities of short-term investments | 3,265 | 41,940 | ||||
Net cash provided by (used in) investing activities | (1,605) | 35,310 | ||||
Cash flows from financing activities | ||||||
Issuance costs | (456) | 0 | ||||
Exercise of options and vested RSUs | 1,809 | 1,335 | ||||
Payment of tax withholding for share-based compensation expenses | (709) | (791) | ||||
Repurchase of Ordinary shares | (27,758) | 0 | ||||
Payments on account of repurchase of Ordinary shares | (1,658) | 0 | ||||
Repayment of long-term loan | 0 | (750) | ||||
Net cash used in financing activities | (28,772) | (206) | ||||
Exchange rate differences on balances of cash and cash equivalents | 408 | 328 | ||||
Increase in cash and cash equivalents | 2,426 | 52,956 | ||||
Cash and cash equivalents - at the beginning of the period | 176,108 | 165,893 | ||||
Cash and cash equivalents - at end of the period | 178,534 | 218,849 | ||||
Cash paid during the year for: | ||||||
Income taxes | 3,243 | 4,258 | ||||
Interest | 3,610 | 5,067 | ||||
Non-cash investing and financing activities: | ||||||
Purchase of property and equipment, including capitalized internal-use software | 4,262 | 36 | ||||
Share-based compensation included in capitalized internal-use software | 606 | 652 | ||||
Creation of operating lease right-of-use assets | $ 12 | $ 5,045 | ||||
|
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Change in operating assets and liabilities: | ||
Increase in related party trade receivables | $ 29,694 | $ 617 |
Decrease (increase) in related party trade receivables | $ 22,480 | $ (4,628) |
GENERAL |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||
GENERAL [Abstract] | |||||||||
GENERAL |
Taboola is a technology company that powers
recommendations across the Open Web with an artificial intelligence-based, algorithmic engine developed since the Company began operations in 2007. Taboola partners with websites, devices, and mobile apps (collectively referred to as “digital
properties”), to recommend editorial content and advertisements on the Open Web. Digital properties use Taboola’s technology platforms to achieve their business goals, such as driving new audiences to their sites and apps or increasing
engagement with existing audiences. Taboola also provides monetization opportunities to digital properties by surfacing paid recommendations by advertisers. Taboola is a business-to-business company with no competing consumer interests. Taboola
empowers advertisers to leverage its proprietary AI-powered recommendation platform to reach targeted audiences utilizing effective, native ad-formats across digital properties. As part of the Company e-Commerce offerings, it also syndicates
its retailer advertisers’ monetized product listings and links (clickable advertisements) into commerce content-oriented consumer experiences on both the Open Web and within the dominant traditional ad platforms. Taboola generates revenues when
people (consumers) click on, purchase from or, in some cases, view the ads that appear within its recommendation platform. The Company’s customers are the advertisers, merchants and affiliate networks that advertise on the Company’s platform
(“Advertisers”). Advertisers pay Taboola for those clicks, purchases or impressions, and Taboola shares a portion of the resulting revenue with the digital properties who display those ads.
The Non-voting Ordinary shares are not entitled to vote on or receive notices with respect to any matter pursuant to our Articles and are not entitled to vote or to be counted for purposes of determining whether any vote required under
the Articles has been approved by the requisite percentage of voting securities or to be counted towards any quorum required pursuant to the Articles. Except with respect to the voting rights and to the rights to receive notice of meetings of
the shareholders, the Non-voting Ordinary shares have rights identical to the rights of Ordinary shares. In connection with the transaction, the Company and Yahoo entered into an Investor Rights Agreement, under which, inter alia, Yahoo is
entitled, in certain circumstances, to cause the Company to register the Ordinary shares issued to Yahoo for resale under the Securities Act of 1933, as amended.
The Company accounts for the consideration paid to
Yahoo (the “Commercial agreement asset”) as an up-front payment for traffic acquisition costs paid to the digital property partner, which is amortized over the shorter of respective contractual terms and the economic benefit period of the digital
property arrangement.
The Company and Yahoo are still in the Commercial agreement transition period (as defined in the Commercial agreement), consequently, the exclusivity period has not begun. For the three months ended March 31, 2024 and 2023, the Company
did not record amortization expenses of the Commercial agreement asset.
|
SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 | |||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||
SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation
The accompanying unaudited consolidated interim financial statements have been prepared in
accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts of
Taboola.com Ltd. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The consolidated balance sheet as of December 31, 2023, included herein, was derived from
the audited consolidated financial statements as of that date, but does not include all of the disclosures, including certain notes required by GAAP on an annual reporting basis. Certain information and note disclosures normally included in the
financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
Therefore, these unaudited consolidated interim financial statements should be read in
conjunction with the audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2023, filed with the SEC on February 28, 2024.
In the opinion of the Company’s management, the unaudited consolidated interim financial
statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s unaudited
interim consolidated financial statements. The results of operations for the three months ended March 31, 2024, are not necessarily indicative of the results to be expected for the full year ending December 31, 2024, or any other future interim
or annual period.
Use of Estimates
The preparation of the interim consolidated financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the interim consolidated financial statements, and the
reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ from those estimates.
The Company’s management regularly evaluates its estimates, primarily those related to:
(1) revenue recognition criteria, including the determination of revenue reporting as gross versus net in the Company’s revenue arrangements, (2) allowances for credit losses, (3) operating lease assets and liabilities, including the
incremental borrowing rate and terms and provisions of each lease (4) the useful lives of its Commercial agreement asset, property and equipment and capitalized software development costs, (5) income taxes, (6) assumptions used in the option
pricing models to determine the fair value of share-based compensation (7) the fair value of financial assets and liabilities, including the fair value of marketable securities, Private Warrants and derivative instruments (8) the fair value
of acquired intangible assets and goodwill annual impairment test, and (9) the recognition and disclosure of contingent liabilities.
These estimates are based on historical data and experience, as well as various other
factors that management believes to be reasonable under the circumstances; the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
As of March 31, 2024, the impacts to the Company’s business due to geopolitical
developments, such as the wars in Israel and Ukraine and other active or possible hostilities, and macroeconomic factors, such as rising interest rates, inflation and
changes in foreign currency exchange rates, continue to evolve. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods.
Concentrations of Credit Risk
The Company’s trade receivables are geographically diversified and derived mainly from sales in the United States, Israel, Germany and
United Kingdom. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its accounts
receivables and establishes an allowance for expected losses as necessary.
As of March 31, 2024, the Company had a
customer representing 14.8% of the trade receivables balance. For the three months ended March 31, 2024, the same customer
accounted for 12.6% of total revenues (see Note 12).As of December 31, 2023, no
single customer represented 10% or more of trade receivables. No single customer accounted for more than 10% of total revenue for the
three months ended March 31, 2023.
Significant Accounting Policies
The Company’s significant accounting policies are discussed in
Note 2, Summary of Significant Accounting Policies, in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2023, as filed with the SEC on February 28,2024. There have been no significant changes to
these policies during the three months ended March 31, 2024, except as noted below.
Reclassification
Certain amounts in the corresponding prior periods have been reclassified to conform with the current period presentation. Such reclassifications did not affect net loss, changes in the shareholders’ equity or cash flows.
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topics 740): Improvements to Income Tax Disclosures, which expands the disclosure requirements for income taxes,
primarily related to the rate reconciliation and income taxes paid. This ASU is effective for the fiscal years beginning after December 15, 2024. Early adoption permitted. The Company does not expect the adoption of this guidance will have a
significant impact on its consolidated financial statement and related disclosures and will adopt the guidance effective January 1, 2025.
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the annual and interim
disclosure requirements for public company reportable segments, primarily through enhanced information about the significant expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods
within fiscal years beginning after December 15, 2024. Early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures.
|
CASH AND CASH EQUIVALENTS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS |
The following table presents for each reported period, the
breakdown of cash and cash equivalents:
|
FAIR VALUE MEASUREMENTS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
The Company evaluates assets
and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. The Company did not have any transfers between fair value measurements levels during the
three months ended March 31, 2024.
The following table sets
forth the Company’s assets and liabilities that were measured at fair value as of March 31, 2024 and December 31, 2023, by level within the fair value hierarchy:
The Company classifies its money market funds as Level 1
based on quoted market prices in active markets.
The Company classifies its short-term investments and
derivative instruments within Level 2 as they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may
not be actively traded.
The Company measures the fair value for Warrants by using a
quoted price for the Public Warrants, which are classified as Level 1, and a Black-Scholes simulation model for the Private Warrants, which are classified as Level 3, due to the use of unobservable inputs.
The key inputs into the Black-Scholes model for the
Private Warrants were as follows:
The Company’s use of a
Black-Scholes model required the use of subjective assumptions:
The following table presents the changes in the fair value of Warrants
liability:
|
SHORT-TERM INVESTMENTS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS |
The following is a summary of available-for-sale marketable securities:
As of March 31, 2024, the Company had no significant unrealized losses related to marketable securities (which were accumulated in a
period of less than 12 months) and determined the unrealized losses are not due to credit related losses, therefore, the Company did not record an allowance for credit losses for its available-for-sale marketable securities.
As of March 31, 2024, all of the Company’s available-for-sale marketable securities were due within one year.
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES |
The Company enters into foreign currency forward contracts and put and call options with financial institutions to protect itself against the foreign exchange risks, mainly exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S dollar that are associated with forecasted future cash flows for up to
twelve months. The Company’s risk management strategy includes the use of derivative financial instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates; these derivative
instruments are designated as cash flow hedges. The Company does not enter into derivative transactions for trading or speculative purposes.
As of March 31, 2024 and December 31, 2023, the notional amounts of the Company’s derivative instruments designated as cash flow hedging
instruments outstanding in U.S. dollars amounted to $0 and $39,347, respectively.
Gross notional amounts do not quantify risk or represent assets or liabilities of the Company but are used in the calculation of
settlements under the contracts.
The Company records all cash flow hedging instruments on the consolidated balance sheets at fair value. The fair
value of cash flow hedging instruments recorded as assets were $172 and $948, as of March 31, 2024 and December 31, 2023, respectively, which were recorded in prepaid expenses and other current assets in the consolidated interim balance sheet.
The gains (losses) related to cash flow hedging instruments, recorded in the consolidated interim statements of loss, for the three months ended March 31,
2024 and 2023, were as follows:
Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income
(Loss)
Net unrealized gains (losses) of foreign currency contracts designated as cash flow hedging instruments are recorded in accumulated other comprehensive income (loss). The changes in unrealized gains
(losses) on the Company’s derivative instruments recorded in accumulated other comprehensive income (loss) were as follows:
All net deferred gains (losses) in accumulated other comprehensive income (loss) as of March 31, 2024, are expected to be recognized
over the next twelve months as operating expenses in the same financial statement line item in the consolidated interim statements of loss to which the derivative relates.
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GOODWILL AND INTANGIBLE ASSETS, NET |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET |
Goodwill
There was no impairment or additions to
goodwill during the three months ended March 31, 2024.
Intangible Assets, Net
Definite-lived intangible assets, net consist of the following:
Amortization expenses for intangible assets were $15,935 and $15,969, for the three months ended March 31, 2024 and 2023,
respectively.
The estimated future amortization expense of definite-lived intangible assets as of March 31, 2024,
is as follows (unaudited):
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FINANCING ARRANGEMENTS |
3 Months Ended | ||
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Mar. 31, 2024 | |||
FINANCING ARRANGEMENTS [Abstract] | |||
FINANCING ARRANGEMENTS |
Long-term loan
Concurrently with the closing of the Connexity Acquisition, on September 1, 2021, the Company entered into a $300,000 senior secured term loan credit agreement (the “Credit Agreement”), among the Company, Taboola Inc., a wholly-owned Company’s subsidiary
(the “Borrower”), the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement provides for borrowings in an aggregate principal amount of up to $300,000 (the “Facility”).
The Facility was fully drawn at closing, net of issuance expenses of $11,250, and the proceeds were used by the Company to finance a portion of the Connexity Acquisition.
The Facility is subject to customary borrowing conditions. In accordance with the terms of the Credit Agreement, the Credit Agreement
was amended on June 12, 2023, to replace LIBOR with SOFR and accordingly the Facility bears interest at a variable annual rate based on Term SOFR or Base Rate plus a fixed margin. The Facility will mature on the
th anniversary of the closing date with the remaining principal amount due at maturity. Due to the Company’s voluntary prepayments, the Company
has satisfied in full and has no remaining obligations to make quarterly amortization payments under the Facility at a rate of 1.00% per annum. The Facility is mandatorily prepayable with a portion of the net cash proceeds of certain dispositions of assets, a portion of
Taboola’s excess cash flow and the proceeds of incurrences of indebtedness not permitted under the Credit Agreement. The Credit Agreement also contains customary representations, covenants and events of default. Failure to meet the covenants beyond
applicable grace periods could result in acceleration of outstanding borrowings and/or termination of the Facility. As of March 31, 2024, the Company was in compliance with the Facility covenants.
As of March 31, 2024, the Company’s outstanding principal amount of debt under the Credit Agreement was $152,735. The Facility is guaranteed by the Company and all of its wholly-owned material subsidiaries, subject to certain exceptions set forth
in the Credit Agreement (collectively, the “Guarantors”). The obligations of the Borrower and the Guarantors are secured by substantially all the assets of the Borrower and the Guarantors including shares of subsidiaries, subject to certain
exceptions set forth in the Credit Agreement.
The total interest expenses, including issuance costs amortization, recognized in connection with the long-term loan were $3,941 and $5,473, for the three
months ended March 31, 2024 and 2023, respectively. The long-term loan interest and issuance costs amortization, included as interest expenses, are recognized through the remaining term of the Credit agreement using the effective interest rate.
Revolving Credit Agreement On August 9, 2022, the Company amended its Credit Agreement to provide for a five-year senior secured revolving credit facility (the “Revolving Credit Agreement”), among the Company, Taboola Inc., a wholly-owned Company’s subsidiary (the “Borrower”), and the lenders party thereto, with Citibank N.A., as lead arranger and JPMorgan Chase Bank, N.A., as administrative agent. The Revolving Credit Agreement provides for revolving loans in an aggregate committed principal amount of up to $90,000 (the “Revolving Loans”). Certain representations, events of default and covenants of the Revolving Credit Agreement are substantially the same as those in the
Credit Agreement. However, the Revolving Credit Agreement contains a financial covenant requiring the Company to maintain a Total Net Leverage Ratio (as defined in the Revolving Credit Agreement) as at the last day of each fiscal quarter.
Borrowings under the Revolving Credit Agreement are subject to customary conditions and will bear interest at a variable annual rate based on Term SOFR or Base Rate plus a fixed margin. The lenders under the Credit Agreement and the lenders
under the Revolving Credit Agreement are secured by the same collateral, including substantially all the assets of the Borrower and the Guarantors (as defined in the Credit Agreement) including shares of subsidiaries, subject to certain
exceptions in the governing documents.
The proceeds of any Revolving Loans may be used for the working capital, capital expenditures and other general corporate purposes of
Taboola and its subsidiaries and may also be used for Restricted Payments, Investments (including permitted acquisitions) and Restricted Debt Payments (each, as defined in the Credit Agreement) to the extent permitted under the Credit
Agreement.
As of March 31, 2024, the Company was in compliance with the financial covenants and had no outstanding borrowings under the Revolving Credit Agreement.
As of March 31, 2024 and December 31, 2023, deferred financing costs associated with entering into the Revolving Credit Agreement in
the total amount of $830 and $893,
respectively, were included in short-term and long-term prepaid expenses in the Company’s consolidated balance sheets.
The deferred financing costs are amortized on a straight-line basis over the term of the Revolving Credit Agreement. Deferred
financing costs amortization amounted to $63 and $62, for the three months ended March 31, 2024 and 2023, respectively.
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SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS |
Share Capital
Holders of Ordinary shares have the right to receive notice of, and to participate in, all general
meetings of the Company, where each Ordinary share shall have one vote. Each holder has the right to receive dividends, if any, in
proportion to their respective Ordinary share holdings. In the event of Taboola’s liquidation, after satisfaction of liabilities to creditors, Company assets will be distributed to the holders of its Ordinary shares in proportion to their
shareholdings.
On December 30, 2022, in connection with the Yahoo transaction, the Company’s shareholders approved an amendment and restatement to the
Articles to include a Non-voting Ordinary share class with an authorized share capital of 46,000,000. In January 2023 the Company
issued 45,198,702 Non-voting Ordinary shares to Yahoo. The Non-voting Ordinary shares are not entitled to vote, except in limited
circumstances as provided in the Articles. Other than the voting rights, the rights to receive notice of meetings of shareholders and limited circumstances as described in the Company’s Articles, the Non-voting Ordinary shares will have rights
identical to the rights of Ordinary shares as described above (see Note 1b).
Share Buyback Program
The Company’s board of directors authorized a share buyback program of the Company’s outstanding Ordinary shares, which commenced in
June 2023 and does not have an expiration date (the “Buyback Program”). In 2023, the Company’s board of directors authorized up to $80,000
of buybacks under the Buyback Program. In February 2024, the Company’s board of directors authorized up to $100,000 for use under
the Buyback Program, including any remaining authority from the 2023 board of directors authorization, subject to satisfying required conditions under the Israeli Companies Law and the Companies Regulations (Reliefs for Corporations, Which
Securities Are Listed on Foreign Stock Exchanges) 2000. As permitted by the Buyback Program, share repurchases may be made from time to time, in privately negotiated transactions or in the open market, including through trading plans, at the
discretion of the Company’s management and as permitted by securities laws and other legal requirements. The Buyback Program does not obligate the Company to repurchase any specific number of shares and the number of shares repurchased may
depend upon market and economic conditions and other factors. The Buyback Program may be discontinued, modified or suspended at any time.
During the three months ended March 31, 2024, the Company repurchased 6,223,171 Ordinary shares at an average price of $4.44 per
share (excluding broker and transaction fees of $156). As of March 31, 2024, the Company had remaining authorization under the
Buyback Program to repurchase Ordinary shares up to an aggregate amount of $92,131, subject to satisfying required conditions under
the Companies Law and Companies Regulations.
As of March 31, 2024, the Company repurchased an additional 181,585 Ordinary shares, not yet settled, in the amount of $800.
Share Incentive Plans
For the three months ended March 31, 2024 and 2023, the Company utilized the net issuance mechanism in connection with equity-based compensation for certain Office Holders, which resulted in a tax
withholding payment by the Company of $709 and $791, respectively, which were recorded as a reduction of additional paid-in capital.
During the three months ended March 31, 2024, the Company did not grant options.
The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the
option holders had all option holders exercised their options on the last date of the period.
As of March 31, 2024, unrecognized share-based compensation cost related to unvested share options was $11,227, which is expected to be recognized over a weighted-average period of 1.3 years.
(*) A portion of the shares that vested were netted out to satisfy the tax
obligations of the recipients. During the three months ended March 31, 2024, a total of 152,349
RSUs were canceled to satisfy tax obligations, resulting in net issuance of 152,347 shares.
The total release date fair value of RSUs was $9,722, during the three months ended March 31, 2024.
As of March 31, 2024, unrecognized share-based compensation cost related to unvested RSUs was $146,030,
which is expected to be recognized over a weighted-average period of 2.9 years.
The total share-based compensation expense related to all of the Company’s share-based awards recognized for the three months ended March 31, 2024 and 2023, was comprised as
follows:
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INCOME TAXES |
3 Months Ended | ||
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Mar. 31, 2024 | |||
INCOME TAXES [Abstract] | |||
INCOME TAXES |
The Company’s effective tax rate is highly dependent upon the geographic distribution of its worldwide earnings or losses and tax regulations. The Company’s effective tax rates were (19.0%) and 2.0% for the three months ended March 31, 2024
and 2023, respectively. The negative effective tax rate for the three months ended March 31, 2024, results primarily from valuation allowance as well as, tax expenses in foreign jurisdictions, partially offset by tax benefits associated with
acquired intangible assets mainly in the US.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended | ||
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Mar. 31, 2024 | |||
COMMITMENTS AND CONTINGENCIES [Abstract] | |||
COMMITMENTS AND CONTINGENCIES |
Commercial Commitments
In the ordinary course of the business, the Company enters into agreements with certain digital properties, under which,
in some cases it agrees to pay them a guaranteed amount, generally per thousand page views on a monthly basis. These agreements could cause a gross loss on digital property accounts in which the guarantee is higher than the actual revenue
generated. These contracts generally range in duration from 2 to 5 years, though some can be shorter or longer.
Non-cancelable Purchase Obligations
In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties
to purchase primarily software and IT related-based services. As of March 31, 2024, the Company had outstanding non-cancelable purchase obligations in the amount of $30,590.
Legal Proceedings
In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims.
The Company investigates these claims as they arise and records a provision, as necessary. Provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other
information and events pertaining to a particular matter. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, it believes would individually or taken together, have a material adverse effect
on its business, financial position, results of operations, or cash flows.
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RELATED PARTY TRANSACTIONS |
3 Months Ended | ||
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Mar. 31, 2024 | |||
RELATED PARTY TRANSACTIONS [Abstract] | |||
RELATED PARTY TRANSACTIONS |
The Company is a party to certain transaction-related agreements with Yahoo, pursuant to which the Company issued 39,525,691 Ordinary shares and 45,198,702
Non-voting Ordinary shares to Yahoo, and granting Yahoo the right to appoint one representative to the Company’s board of
directors, resulting in Yahoo to become a principal shareholder effective the Transaction closing on January 17, 2023 (see Note 1b).
The Company and its affiliates are parties to several agreements in the ordinary course of business with Yahoo and its affiliates. Revenues
from the related party are derived from Yahoo’s advertiser spend on our network, for which Yahoo is the billing entity. Traffic acquisition cost to the related party is compensation for placing Taboola’s platform on Yahoo’s digital property. In
connection with these agreements, for the three months ended March 31, 2024 and 2023, the Company recorded revenues from Yahoo in the amount of $52,124
and $7,114, respectively. In addition, the Company recorded traffic acquisition costs related to Yahoo for the three months ended
March 31, 2024 and 2023, in the amount of $73,611 and $0, respectively. Certain traffic acquisition costs for the three months ended March 31, 2024, noted herein, are unaffiliated with the Yahoo revenues recognized during the three months ended March 31, 2024.
As of March 31, 2024, in regards to Yahoo, the Company’s balances of trade receivables were $41,992, and its balances of trade payables were $61,137,
associated with the revenues presented on both a gross and net basis.
The Company and Yahoo, pursuant to the Omnibus Agreement entered into on November 28, 2022, each agreed to pay certain expenses in
connection with the transaction and each party agreed to reimburse the other for some or all of these expenses. Under these arrangements, the Company recognized expenses of $522 and $0, net during the three months ended March 31,
2024 and 2023, respectively.
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GEOGRAPHIC INFORMATION |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHIC INFORMATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHIC INFORMATION |
The following table represents total revenue by geographic area based on the Advertisers’ billing address:
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NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS |
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NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS |
The potential shares of Ordinary shares that were excluded from the computation of diluted net loss per share attributable to Ordinary
shareholders for the periods presented because including them would have been anti-dilutive are as follows:
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INSIDER TRADING ARRANGEMENTS |
3 Months Ended |
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Mar. 31, 2024
shares
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Eldad Maniv [Member] | |
Trading Arrangements, by Individual [Table] | |
Material Terms of Trading Arrangement |
On March 12, 2024 the trustee on behalf of a family trust established by Eldad Maniv, President and Chief Operating Officer,
adopted a 10b5-1
trading plan providing for the potential sale of up to 2,000,000 Ordinary shares of the Company. The duration of the plan is until the
earlier of
or the completion of all transactions subject to the plan. |
Trading Arrangement, Individual Name | Eldad Maniv |
Trading Arrangement, Individual Title | President and Chief Operating Officer |
Rule 10b5-1 Arrangement Adopted [Flag] | true |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Trading Arrangement Adoption Date | March 12, 2024 |
Trading Arrangement Duration | 276 days |
Trading Arrangement, Securities Aggregate Available Amount | 2,000,000 |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
Kristy Sundjaja [Member] | |
Trading Arrangements, by Individual [Table] | |
Material Terms of Trading Arrangement |
On March 14, 2024 Kristy Sundjaja, Chief People Officer, adopted a 10b5-1 trading plan providing for the potential sale
of up to 120,000 Ordinary shares of the Company. The duration of the plan is until the earlier of
or the completion of all transactions subject to the plan. |
Trading Arrangement, Individual Name | Kristy Sundjaja |
Trading Arrangement, Individual Title | Chief People Officer |
Rule 10b5-1 Arrangement Adopted [Flag] | true |
Non-Rule 10b5-1 Arrangement Adopted [Flag] | false |
Trading Arrangement Adoption Date | March 14, 2024 |
Trading Arrangement Duration | 504 days |
Trading Arrangement, Securities Aggregate Available Amount | 120,000 |
Rule 10b5-1 Arrangement Terminated [Flag] | false |
Non-Rule 10b5-1 Arrangement Terminated [Flag] | false |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation |
Basis of Presentation
The accompanying unaudited consolidated interim financial statements have been prepared in
accordance with Generally Accepted Accounting Principles in the United States (“GAAP”), and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts of
Taboola.com Ltd. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The consolidated balance sheet as of December 31, 2023, included herein, was derived from
the audited consolidated financial statements as of that date, but does not include all of the disclosures, including certain notes required by GAAP on an annual reporting basis. Certain information and note disclosures normally included in the
financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations.
Therefore, these unaudited consolidated interim financial statements should be read in
conjunction with the audited consolidated financial statements and the related notes thereto included in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2023, filed with the SEC on February 28, 2024.
In the opinion of the Company’s management, the unaudited consolidated interim financial
statements have been prepared on a basis consistent with the annual consolidated financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair presentation of the Company’s unaudited
interim consolidated financial statements. The results of operations for the three months ended March 31, 2024, are not necessarily indicative of the results to be expected for the full year ending December 31, 2024, or any other future interim
or annual period.
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Use of Estimates |
Use of Estimates
The preparation of the interim consolidated financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the interim consolidated financial statements, and the
reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ from those estimates.
The Company’s management regularly evaluates its estimates, primarily those related to:
(1) revenue recognition criteria, including the determination of revenue reporting as gross versus net in the Company’s revenue arrangements, (2) allowances for credit losses, (3) operating lease assets and liabilities, including the
incremental borrowing rate and terms and provisions of each lease (4) the useful lives of its Commercial agreement asset, property and equipment and capitalized software development costs, (5) income taxes, (6) assumptions used in the option
pricing models to determine the fair value of share-based compensation (7) the fair value of financial assets and liabilities, including the fair value of marketable securities, Private Warrants and derivative instruments (8) the fair value
of acquired intangible assets and goodwill annual impairment test, and (9) the recognition and disclosure of contingent liabilities.
These estimates are based on historical data and experience, as well as various other
factors that management believes to be reasonable under the circumstances; the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.
As of March 31, 2024, the impacts to the Company’s business due to geopolitical
developments, such as the wars in Israel and Ukraine and other active or possible hostilities, and macroeconomic factors, such as rising interest rates, inflation and
changes in foreign currency exchange rates, continue to evolve. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods.
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Concentrations of Credit Risk |
Concentrations of Credit Risk
The Company’s trade receivables are geographically diversified and derived mainly from sales in the United States, Israel, Germany and
United Kingdom. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its accounts
receivables and establishes an allowance for expected losses as necessary.
As of March 31, 2024, the Company had a
customer representing 14.8% of the trade receivables balance. For the three months ended March 31, 2024, the same customer
accounted for 12.6% of total revenues (see Note 12).As of December 31, 2023, no
single customer represented 10% or more of trade receivables. No single customer accounted for more than 10% of total revenue for the
three months ended March 31, 2023.
|
Reclassification |
Reclassification
Certain amounts in the corresponding prior periods have been reclassified to conform with the current period presentation. Such reclassifications did not affect net loss, changes in the shareholders’ equity or cash flows.
|
Recently Issued Accounting Pronouncements |
Recently Issued Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topics 740): Improvements to Income Tax Disclosures, which expands the disclosure requirements for income taxes,
primarily related to the rate reconciliation and income taxes paid. This ASU is effective for the fiscal years beginning after December 15, 2024. Early adoption permitted. The Company does not expect the adoption of this guidance will have a
significant impact on its consolidated financial statement and related disclosures and will adopt the guidance effective January 1, 2025.
|
CASH AND CASH EQUIVALENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CASH AND CASH EQUIVALENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Breakdown of Cash and Cash Equivalents |
The following table presents for each reported period, the
breakdown of cash and cash equivalents:
|
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value |
The following table sets
forth the Company’s assets and liabilities that were measured at fair value as of March 31, 2024 and December 31, 2023, by level within the fair value hierarchy:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Key Inputs into Black-Scholes Model |
The key inputs into the Black-Scholes model for the
Private Warrants were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Fair Value of Warrants Liability |
The following table presents the changes in the fair value of Warrants
liability:
|
SHORT-TERM INVESTMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHORT-TERM INVESTMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Available-for-Sale Marketable Securities |
The following is a summary of available-for-sale marketable securities:
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains (Losses) Related to Cash Flow Hedging Instruments, Recorded in Consolidated Statements of Loss |
The gains (losses) related to cash flow hedging instruments, recorded in the consolidated interim statements of loss, for the three months ended March 31,
2024 and 2023, were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Unrealized Gains (Losses) on Derivative Instruments Recorded in Accumulated Other Comprehensive Income (Loss) |
The changes in unrealized gains
(losses) on the Company’s derivative instruments recorded in accumulated other comprehensive income (loss) were as follows:
|
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Definite-Lived Intangible Assets |
Definite-lived intangible assets, net consist of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Amortization Expense of Other Intangible Assets |
The estimated future amortization expense of definite-lived intangible assets as of March 31, 2024,
is as follows (unaudited):
|
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Option Activity |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of RSU activity |
(*) A portion of the shares that vested were netted out to satisfy the tax
obligations of the recipients. During the three months ended March 31, 2024, a total of 152,349
RSUs were canceled to satisfy tax obligations, resulting in net issuance of 152,347 shares.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Based Compensation Expense |
The total share-based compensation expense related to all of the Company’s share-based awards recognized for the three months ended March 31, 2024 and 2023, was comprised as
follows:
|
GEOGRAPHIC INFORMATION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHIC INFORMATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue by Geographic Area Based on Advertisers' Billing Address |
The following table represents total revenue by geographic area based on the Advertisers’ billing address:
|
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Net Loss Per Share |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share |
The potential shares of Ordinary shares that were excluded from the computation of diluted net loss per share attributable to Ordinary
shareholders for the periods presented because including them would have been anti-dilutive are as follows:
|
GENERAL (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Jan. 17, 2023 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 30, 2022 |
|
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Period of commercial agreement | 30 years | ||||
Authorized share capital (in shares) | 700,000,000 | 700,000,000 | 46,000,000 | ||
Closing share price (in dollars per share) | $ 3.4 | ||||
Fair value of shares issued | $ 288,063 | $ 288,063 | |||
Issuance expenses | $ 1,388 | ||||
Amortization expenses of commercial agreement asset | $ 0 | $ 0 | |||
Non-Voting Ordinary Shares [Member] | |||||
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Authorized share capital (in shares) | 46,000,000 | 46,000,000 | |||
Issuance of shares (in shares) | 45,198,702 | ||||
Ordinary Shares [Member] | |||||
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Issuance of shares (in shares) | 39,525,691 | 39,525,691 | |||
Ordinary Shares [Member] | Non-Voting Ordinary Shares [Member] | |||||
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Issuance of shares (in shares) | 45,198,702 | 45,198,702 |
SIGNIFICANT ACCOUNTING POLICIES (Details) - Customer |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Trade Receivable [Member] | |||
Concentrations of Credit Risks [Abstract] | |||
Number of major customers | 1 | 0 | |
Trade Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentrations of Credit Risks [Abstract] | |||
Concentration risk threshold percentage | 14.80% | 10.00% | |
Revenue [Member] | |||
Concentrations of Credit Risks [Abstract] | |||
Number of major customers | 1 | 0 | |
Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentrations of Credit Risks [Abstract] | |||
Concentration risk threshold percentage | 12.60% | 10.00% |
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Breakdown of Cash and Cash Equivalents [Abstract] | ||
Cash | $ 97,730 | $ 99,811 |
Money market funds | 75,666 | 72,510 |
Time deposits | 5,138 | 3,787 |
Total Cash and cash equivalents | $ 178,534 | $ 176,108 |
FAIR VALUE MEASUREMENTS, Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Level 1 [Member] | Public Warrants [Member] | ||
Liabilities [Abstract] | ||
Warrants liability | $ (4,082) | $ (4,253) |
Level 1 [Member] | Money Market Funds [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 75,666 | 72,510 |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Short-term investments | 1,493 | 3,651 |
Level 2 [Member] | Commercial Paper [Member] | ||
Assets [Abstract] | ||
Short-term investments | 992 | 2,074 |
Level 2 [Member] | Derivative Instruments Asset [Member] | ||
Assets [Abstract] | ||
Derivative instruments designated as cash flow hedging instruments | 172 | 948 |
Level 3 [Member] | Private Warrants [Member] | ||
Liabilities [Abstract] | ||
Warrants liability | $ (2,086) | $ (1,876) |
FAIR VALUE MEASUREMENTS, Key Inputs to Warrants (Details) |
Mar. 31, 2024
$ / shares
|
Dec. 31, 2023
$ / shares
|
---|---|---|
Private Warrants [Member] | Risk Free Interest Rate [Member] | Minimum [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.0444 | 0.0404 |
Private Warrants [Member] | Risk Free Interest Rate [Member] | Maximum [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.047 | 0.0428 |
Private Warrants [Member] | Expected Term [Member] | Minimum [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Warrants maturity period | 1 year 6 months | 1 year 9 months |
Private Warrants [Member] | Expected Term [Member] | Maximum [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Warrants maturity period | 2 years 3 months | 2 years 6 months |
Private Warrants [Member] | Expected Volatility [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.691 | |
Private Warrants [Member] | Expected Volatility [Member] | Minimum [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.611 | |
Private Warrants [Member] | Expected Volatility [Member] | Maximum [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.639 | |
Private Warrants [Member] | Exercise Price [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 11.5 | 11.5 |
Private Warrants [Member] | Underlying Share Price [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 4.44 | 4.33 |
Certain Private Warrants [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Warrants maturity period | 5 years |
FAIR VALUE MEASUREMENTS, Changes in Fair Value of Warrants Liability (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Warrants [Member] | |
Changes in Fair Value of Warrants Liability [Roll Forward] | |
Fair value, beginning balance | $ 6,129 |
Change from private to public holdings | 0 |
Change in fair value | 39 |
Fair value, ending balance | 6,168 |
Private Warrants [Member] | |
Changes in Fair Value of Warrants Liability [Roll Forward] | |
Fair value, beginning balance | 1,876 |
Change from private to public holdings | (21) |
Change in fair value | 231 |
Fair value, ending balance | 2,086 |
Public Warrants [Member] | |
Changes in Fair Value of Warrants Liability [Roll Forward] | |
Fair value, beginning balance | 4,253 |
Change from private to public holdings | 21 |
Change in fair value | (192) |
Fair value, ending balance | $ 4,082 |
SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | $ 2,492 | $ 5,731 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (7) | (6) |
Fair Value | 2,485 | 5,725 |
Corporate Debt Securities [Member] | ||
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | 1,499 | 3,654 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (3) |
Fair Value | 1,493 | 3,651 |
Commercial Paper [Member] | ||
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | 993 | 2,077 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (3) |
Fair Value | $ 992 | $ 2,074 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Summary (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Derivative Instrument [Abstract] | ||
Derivative notional amount | $ 0 | $ 39,347 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instrument [Abstract] | ||
Fair value of cash flow hedging instruments recorded as assets | $ 172 | $ 948 |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Changes Related to Cash Flow Hedging Instruments, Recorded in Consolidated Statements of Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Changes Related to Cash Flow Hedging Instruments, Recorded in Consolidated Interim Statements of Loss [Abstract] | ||
Total gains (losses) recognized in the consolidated statements of loss, net | $ 267 | $ (448) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Income (Loss) | Operating Income (Loss) |
Cost of Revenues [Member] | ||
Changes Related to Cash Flow Hedging Instruments, Recorded in Consolidated Interim Statements of Loss [Abstract] | ||
Total gains (losses) recognized in the consolidated statements of loss, net | $ 15 | $ (28) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue |
Research and Development [Member] | ||
Changes Related to Cash Flow Hedging Instruments, Recorded in Consolidated Interim Statements of Loss [Abstract] | ||
Total gains (losses) recognized in the consolidated statements of loss, net | $ 174 | $ (315) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and Development Expense | Research and Development Expense |
Sales and Marketing [Member] | ||
Changes Related to Cash Flow Hedging Instruments, Recorded in Consolidated Interim Statements of Loss [Abstract] | ||
Total gains (losses) recognized in the consolidated statements of loss, net | $ 43 | $ (56) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Sales and marketing | Sales and marketing |
General and Administrative [Member] | ||
Changes Related to Cash Flow Hedging Instruments, Recorded in Consolidated Interim Statements of Loss [Abstract] | ||
Total gains (losses) recognized in the consolidated statements of loss, net | $ 35 | $ (49) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | General and administrative | General and administrative |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Changes in Unrealized Gains (Losses) on Derivative Instruments Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Summary of Derivative Instruments by Hedge Designation [Abstract] | ||
Unrealized gains (losses) on derivative instruments at the beginning of the period | $ 948 | $ (313) |
Changes in fair value of derivative instruments | (509) | (1,104) |
Reclassification of losses (gains) recognized in the consolidated interim statements of loss from accumulated other comprehensive income (loss) | (267) | 448 |
Unrealized gains (losses) on derivative instruments at the end of the period (unaudited) | $ 172 | $ (969) |
GOODWILL AND INTANGIBLE ASSETS, NET, Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
Impairment to goodwill | $ 0 |
Additions to goodwill | $ 0 |
GOODWILL AND INTANGIBLE ASSETS, NET, Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Intangible Assets [Abstract] | |||
Gross fair value | $ 300,916 | $ 300,916 | |
Accumulated amortization | (191,593) | (175,658) | |
Net book value | 109,323 | 125,258 | |
Amortization expenses related to intangible assets | 15,935 | $ 15,969 | |
Merchant/Network Affiliate Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Gross fair value | 146,547 | 146,547 | |
Accumulated amortization | (84,129) | (75,987) | |
Net book value | 62,418 | 70,560 | |
Technology [Member] | |||
Intangible Assets [Abstract] | |||
Gross fair value | 74,193 | 74,193 | |
Accumulated amortization | (46,412) | (43,535) | |
Net book value | 27,781 | 30,658 | |
Publisher Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Gross fair value | 42,933 | 42,933 | |
Accumulated amortization | (27,728) | (25,044) | |
Net book value | 15,205 | 17,889 | |
Tradenames [Member] | |||
Intangible Assets [Abstract] | |||
Gross fair value | 24,097 | 24,097 | |
Accumulated amortization | (20,752) | (18,739) | |
Net book value | 3,345 | 5,358 | |
Customer Relationships [Member] | |||
Intangible Assets [Abstract] | |||
Gross fair value | 13,146 | 13,146 | |
Accumulated amortization | (12,572) | (12,353) | |
Net book value | $ 574 | $ 793 |
GOODWILL AND INTANGIBLE ASSETS, NET, Estimated Future Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Estimated Future Amortization Expense of Other Intangible Assets [Abstract] | ||
2024 (Remainder) | $ 44,583 | |
2025 | 51,407 | |
2026 | 13,244 | |
2027 | 89 | |
Net book value | $ 109,323 | $ 125,258 |
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Aug. 09, 2022 |
Sep. 01, 2021 |
|
Debt Instruments [Abstract] | ||||
Interest expenses recognized with the long-term loan | $ 3,941 | $ 5,473 | ||
Revolving Credit Agreement [Member] | ||||
Debt Instruments [Abstract] | ||||
Long term debt | 0 | |||
Deferred financing costs | $ 830 | 893 | ||
Long-term loan term | 5 years | |||
Deferred financing costs amortization | $ 63 | $ 62 | ||
Revolving Credit Agreement [Member] | Maximum [Member] | ||||
Debt Instruments [Abstract] | ||||
Aggregate committed principal amount | $ 90,000 | |||
Credit Agreement [Member] | ||||
Debt Instruments [Abstract] | ||||
Senior secured term loan credit agreement | $ 300,000 | |||
Issuance expenses | $ 11,250 | |||
Long-term loan maturity | 7 years | |||
Facility amortization rate | 1.00% | |||
Frequency of periodic payment | quarterly | |||
Long term debt | $ 152,735 |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Capital (Details) |
3 Months Ended | |||
---|---|---|---|---|
Jan. 17, 2023
shares
|
Mar. 31, 2024
Vote
shares
|
Dec. 31, 2023
shares
|
Dec. 30, 2022
shares
|
|
Share Capital [Abstract] | ||||
Vote per share | Vote | 1 | |||
Authorized share capital (in shares) | 700,000,000 | 700,000,000 | 46,000,000 | |
Non-Voting Ordinary Shares [Member] | ||||
Share Capital [Abstract] | ||||
Authorized share capital (in shares) | 46,000,000 | 46,000,000 | ||
Net issuance of shares (in shares) | 45,198,702 |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Buyback Program (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Feb. 29, 2024 |
Dec. 31, 2023 |
|
Share Buyback Program [Abstract] | |||
Number of additional shares repurchased (in shares) | 181,585 | ||
Value of repurchased shares | $ 800,000 | ||
Broker and transaction fees | $ 156,000 | ||
Share Buyback Program [Member] | |||
Share Buyback Program [Abstract] | |||
Share buyback program, authorized amount | $ 100,000 | $ 80,000 | |
Number of shares repurchased (in shares) | 6,223,171 | ||
Average price paid per share (in dollars per share) | $ 4.44 | ||
Share Buyback Program [Member] | Maximum [Member] | |||
Share Buyback Program [Abstract] | |||
Remaining authorized repurchase of common stock | $ 92,131 |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Apr. 30, 2024 |
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Stock Option Plan [Abstract] | ||||
Additional equity-based compensation plan | $ 17,007 | $ 16,734 | ||
Payments of tax withholding for share based compensation | $ 709 | 791 | ||
Maximum [Member] | Subsequent Event [Member] | ||||
Stock Option Plan [Abstract] | ||||
Additional equity-based compensation plan | $ 100,000 | |||
Share Options [Member] | ||||
Outstanding Share Options [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 27,640,171 | 29,291,285 | ||
Granted (in shares) | 0 | |||
Exercised (in shares) | (1,312,222) | |||
Forfeited (in shares) | (338,892) | |||
Outstanding, end of period (in shares) | 27,640,171 | 29,291,285 | ||
Exercisable (in shares) | 23,742,117 | |||
Weighted-Average Exercise Price Per Share [Roll Forward] | ||||
Outstanding, beginning of period (in dollars per share) | $ 3.43 | $ 3.35 | ||
Exercised (in dollars per share) | 1.81 | |||
Forfeited (in dollars per share) | 2.77 | |||
Outstanding, end of period (in dollars per share) | 3.43 | $ 3.35 | ||
Exercisable (in dollars per share) | $ 2.93 | |||
Weighted Average Remaining Contractual Term [Abstract] | ||||
Weighted-average remaining contractual life | 5 years 3 months 3 days | 5 years 3 months 7 days | ||
Weighted-average remaining contractual life, exercisable | 4 years 11 months 15 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Aggregate intrinsic value, outstanding | $ 55,360 | $ 57,118 | ||
Aggregate intrinsic value, exercised | 3,260 | |||
Aggregate intrinsic value, exercisable | 51,989 | |||
Additional Paid-in Capital [Member] | ||||
Stock Option Plan [Abstract] | ||||
Additional equity-based compensation plan | 17,007 | 16,734 | ||
Payments of tax withholding for share based compensation | $ 709 | $ 791 |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Option Plan and Related Information (Details) - Share Options [Member] $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Stock-based compensation [Abstract] | |
Unrecognized share based compensation cost | $ 11,227 |
Weighted-average period expected to be recognized | 1 year 3 months 18 days |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, RSU Activity (Details) - Restricted Share Units [Member] $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
$ / shares
shares
| ||||
Outstanding Restricted Share Unit [Roll Forward] | ||||
Outstanding, beginning of period (in shares) | 23,479,308 | |||
Granted (in shares) | 12,783,639 | |||
Vested (in shares) | (2,072,234) | [1] | ||
Forfeited (in shares) | (388,211) | |||
Outstanding, end of period (in shares) | 33,802,502 | |||
Vested shares netted out to satisfy tax obligations (in shares) | 152,349 | |||
Net issuance of shares (in shares) | 152,347 | |||
Fair value of RSUs | $ | $ 9,722 | |||
Unrecognized share based compensation cost related to unvested RSUs | $ | $ 146,030 | |||
Weighted-average period to be recognized | 2 years 10 months 24 days | |||
Weighted-Average Grant Date Fair Value Per Share [Roll Forward] | ||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 5.13 | |||
Granted (in dollars per share) | $ / shares | 4.74 | |||
Vested (in dollars per share) | $ / shares | 5.48 | |||
Forfeited (in dollars per share) | $ / shares | 4.99 | |||
Outstanding, end of period (in dollars per share) | $ / shares | $ 4.96 | |||
|
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Equity-based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Equity Based Compensation Expense [Abstract] | ||
Total share-based compensation expense | $ 16,401 | $ 16,082 |
Cost of Revenues [Member] | ||
Equity Based Compensation Expense [Abstract] | ||
Total share-based compensation expense | 1,011 | 1,044 |
Research and Development [Member] | ||
Equity Based Compensation Expense [Abstract] | ||
Total share-based compensation expense | 6,378 | 5,844 |
Sales and Marketing [Member] | ||
Equity Based Compensation Expense [Abstract] | ||
Total share-based compensation expense | 4,323 | 4,285 |
General and Administrative [Member] | ||
Equity Based Compensation Expense [Abstract] | ||
Total share-based compensation expense | $ 4,689 | $ 4,909 |
INCOME TAXES (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Rate [Abstract] | ||
Effective tax rate | (19.00%) | 2.00% |
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Non-cancelable Purchase Obligations [Abstract] | |
Purchase obligation | $ 30,590 |
Minimum [Member] | |
Commercial Commitments [Abstract] | |
Period of contract | 2 years |
Maximum [Member] | |
Commercial Commitments [Abstract] | |
Period of contract | 5 years |
RELATED PARTY TRANSACTIONS (Details) $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 17, 2023
shares
|
Mar. 31, 2024
USD ($)
Respresentative
|
Mar. 31, 2023
USD ($)
shares
|
Dec. 31, 2023
USD ($)
|
|||||||||
Related Party Transaction [Abstract] | ||||||||||||
Revenues | [1] | $ 414,008 | $ 327,686 | |||||||||
Traffic acquisition cost | [2] | 275,120 | 211,946 | |||||||||
Trade receivable balance | [3] | 284,239 | $ 306,307 | |||||||||
Trade payable balance | [4] | 279,373 | $ 282,012 | |||||||||
Expenses from transaction | $ 127,186 | $ 118,390 | ||||||||||
Non-Voting Ordinary Shares [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Issuance of shares (in shares) | shares | 45,198,702 | |||||||||||
Ordinary Shares [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Issuance of shares (in shares) | shares | 39,525,691 | 39,525,691 | ||||||||||
Ordinary Shares [Member] | Non-Voting Ordinary Shares [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Issuance of shares (in shares) | shares | 45,198,702 | 45,198,702 | ||||||||||
Related Party [Member] | Yahoo [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Number of representatives that can be appointed to Board of Directors | Respresentative | 1 | |||||||||||
Revenues | $ 52,124 | $ 7,114 | ||||||||||
Traffic acquisition cost | 73,611 | 0 | ||||||||||
Trade receivable balance | 41,992 | |||||||||||
Trade payable balance | 61,137 | |||||||||||
Expenses from transaction | $ 522 | $ 0 | ||||||||||
Related Party [Member] | Yahoo [Member] | Non-Voting Ordinary Shares [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Issuance of shares (in shares) | shares | 45,198,702 | |||||||||||
Related Party [Member] | Yahoo [Member] | Ordinary Shares [Member] | ||||||||||||
Related Party Transaction [Abstract] | ||||||||||||
Issuance of shares (in shares) | shares | 39,525,691 | |||||||||||
|
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|||
Segments, Geographical Areas [Abstract] | ||||
Revenues | [1] | $ 414,008 | $ 327,686 | |
Israel [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenues | 31,465 | 45,498 | ||
United States [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenues | 193,362 | 114,775 | ||
Germany [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenues | 35,697 | 31,375 | ||
United Kingdom [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenues | 20,074 | 17,948 | ||
Rest of the World [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenues | $ 133,410 | $ 118,090 | ||
|
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Denominator: [Abstract] | ||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic (in shares) | 345,502,643 | 333,424,276 |
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, diluted (in shares) | 345,502,643 | 333,424,276 |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.08) | $ (0.09) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.08) | $ (0.09) |
Antidilutive Securities [Abstract] | ||
Antidilutive securities (in shares) | 61,892,850 | 71,054,709 |
Non-Voting Ordinary Shares [Member] | ||
Numerator: [Abstract] | ||
Net loss attributable to Ordinary shareholders, basic | $ (3,422) | $ (3,443) |
Net loss attributable to Ordinary shareholders, diluted | $ (3,422) | $ (3,443) |
Denominator: [Abstract] | ||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic (in shares) | 45,198,702 | 36,661,169 |
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, diluted (in shares) | 45,198,702 | 36,661,169 |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.08) | $ (0.09) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.08) | $ (0.09) |
Ordinary Shares [Member] | ||
Numerator: [Abstract] | ||
Net loss attributable to Ordinary shareholders, basic | $ (22,736) | $ (27,870) |
Net loss attributable to Ordinary shareholders, diluted | $ (22,736) | $ (27,870) |
Denominator: [Abstract] | ||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic (in shares) | 300,303,941 | 296,763,107 |
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, diluted (in shares) | 300,303,941 | 296,763,107 |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.08) | $ (0.09) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.08) | $ (0.09) |
Warrants [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive securities (in shares) | 12,349,990 | 12,349,990 |
RSUs [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive securities (in shares) | 26,734,790 | 28,550,688 |
Outstanding Share Options [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive securities (in shares) | 21,839,078 | 28,449,625 |
Issuable Ordinary Shares Related to Business Combination Under Holdback Arrangement [Member] | ||
Antidilutive Securities [Abstract] | ||
Antidilutive securities (in shares) | 968,992 | 1,704,406 |
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1 Month Taboola com Chart |
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