Taboola.com Ltd. (NASDAQ:TBLA) On The Verge Of Breaking Even

Taboola.com Ltd. (NASDAQ:TBLA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. On 31 December 2024, the US$1.0b market-cap company posted a loss of US$3.8m for its most recent financial year. The most pressing concern for investors is Taboola.com's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 6 of the American Interactive Media and Services analysts is that Taboola.com is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$18m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 39% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Taboola.com given that this is a high-level summary, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Taboola.com

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 11% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Taboola.com which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Taboola.com, take a look at Taboola.com's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Valuation: What is Taboola.com worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Taboola.com is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Taboola.com’s board and the CEO’s background .
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.