As you might know, Taboola.com Ltd. (NASDAQ:TBLA) recently reported its first-quarter numbers. The business exceeded expectations with revenue of US$414m coming in 2.7% ahead of forecasts. Statutory losses were US$0.08 a share, in line with what the analysts predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Taboola.com after the latest results.

Taking into account the latest results, the most recent consensus for Taboola.com from six analysts is for revenues of US$1.92b in 2024. If met, it would imply a major 26% increase on its revenue over the past 12 months. Earnings are expected to improve, with Taboola.com forecast to report a statutory profit of US$0.026 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.92b and earnings per share (EPS) of US$0.035 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$6.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Taboola.com's growth to accelerate, with the forecast 36% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.4% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Taboola.com to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$6.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Taboola.com going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Taboola.com's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.