Content discovery platform Taboola (NASDAQ: TBLA) will be announcing earnings results tomorrow morning. Here’s what you need to know.
Taboola missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $212.7 million, up 26.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Taboola a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Taboola’s revenue to grow 3.9% year on year to $144.3 million, slowing from the 20% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Taboola has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Taboola’s peers in the media & entertainment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Interpublic Group’s revenues decreased 8.5% year on year, meeting analysts’ expectations, and Omnicom Group reported revenues up 1.6%, falling short of estimates by 0.6%. Interpublic Group traded up 2.7% following the results while Omnicom Group was down 7.3%.
Read our full analysis of Interpublic Group’s results here and Omnicom Group’s results here.
There has been positive sentiment among investors in the media & entertainment segment, with share prices up 11.2% on average over the last month. Taboola is up 18% during the same time and is heading into earnings with an average analyst price target of $3.96 (compared to the current share price of $3.08).
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