The cuts also reach Tabula, which deals with content recommendations: the company is reorganizing in order to reduce costs, in order to focus on this period of slowdown. As part of the move, the company is laying off 6% of all its employees. At the end of 2021, Tabula employed about 1,800 workers.
The company’s goal is to save expenses totaling approximately $38 million in 2023, including expenses related to events and marketing.
Tabula, under the management of founder Adam Singolda, developed a platform for content recommendations on news sites for Internet surfers. The company went public in June 2021 when it completed a merger with a SPAC company at a value of 2.6 billion dollars, and like many technology companies that came to the public market in this way, has lost a significant part of its value since then. Today its value is 590 million dollars.
Tabula recently reduced its annual forecast, but unlike a previous reduction in the first quarter, this time it left the profit forecast unchanged and reduced only the revenue forecast.
It is about expected annual revenues of 1.434-1.474 billion dollars in 2022, compared to a previous forecast of 1.499-1.539 billion dollars. There is no change in the other parameters: the company expects a gross profit of 485-505 million dollars, revenues after neutralizing traffic acquisition expenses (ex-TAC) of 595-615 million dollars, adjusted EBITDA (profit after neutralizing interest, tax, depreciation and amortization) in the amount of 152-160 million dollars and Non-GAAP net profit of 83-91 million dollars. This means higher profit margins compared to the previous forecast.
The reduction in forecasts was explained by the war in Ukraine, exchange rate fluctuations, weakness in the macro environment and a high level of inflation. However, the company then expressed optimism regarding the recovery in the advertising industry ahead of the November exams in the US and the Christian holiday period.
About two months ago it became known that Taboola’s Israeli competitor, Outbrain under the management of Yaron Galai and David Kostman, fired 38 employees out of approximately 1,100 worldwide, most of them not in Israel, that is, a total of 3% of all employees.
***Full disclosure: Globes has a commercial relationship with Tabula