Taboola.com Ltd.

Good day, and thank you for standing by. Welcome to the Taboola Q1 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Adam Anwar, Head of Investor Relations. Please go ahead.

Thank you, and good morning, everyone, and welcome to Taboola's first quarter of 2026 earnings conference call. I'm here with Adam Singolda, Taboola's founder and CEO, and Steve Walker, Taboola's CFO. The company issued earnings materials today before the market, and they're available in the investor section of Taboola's website. Now I'll quickly cover the safe harbor. Certain statements today, including our expectations for future periods, are forward-looking statements. They are not facts and are subject to material risks and uncertainties described in our SEC filings. These statements are based on currently available information, and we undertake no duty to update them except as required by law. Today's discussion is also subject to forward-looking statement limitations in the earnings press release. Future events could differ materially and adversely from those anticipated. During this call, we will use terms defined in the earnings release and refer to non-GAAP financial measures. For definitions and reconciliations to GAAP, please refer to the non-GAAP tables in the earnings release posted on our website. With that, I'll turn the call over to Adam.

Thanks, Adam. Good morning, everyone, and thank you for joining us today. We're starting the year off strong with our first quarter results exceeding the high end of our guidance across all metrics. We're seeing continued acceleration in our growth, which gives us the confidence to raise our full year guidance across the board. We now expect XTAC's gross profit growth of 8% while maintaining 30% adjusted EBITDA margin and strong free cash flow conversions. As I said last year, we believe we've reached an inflection point with Realize driving advertiser success. I'm confident that this momentum gives us a clear path to double-digit growth over time. We're not there yet, but we're moving in the right direction and I'm proud of the team executing against it. In the first quarter, we repurchased approximately 7 million shares for a total of $23.5 million, while continuing to invest in R&D to support our long-term growth ambition. Including this quarter, we've now bought 19% of Taboola between 2025 and near-to-date 2026, which we're very pleased with. we plan to continue allocating the majority of our free cash flow towards share repurchases, which we view as our most compelling capital allocation opportunity. Before getting into the details, let me remind you who we are and how we compete. Taboola is one of the largest performance advertising companies outside of search and social, referred to as the open web. Similar to how Google and Meta understand intent within their own platform, Taboola understands intent across billions of consumers who read, watch, and engage with trusted OEMs, apps, and publishers across the open web. We then convert these signals into profitable and measurable outcomes for advertisers. That proprietary intent data and the AI-driven conversion machine was built, that is Taboola. In a world where AI is evolving so quickly, I believe the winners will be those with either unique data that LLMs cannot get or access to unique supply and distribution. Taboola has both. To execute on our mission in 2026, we're focused on three priorities. First, investing in our technology to advance Realize. Second, with Krishan Bhatia joining as a chief business officer, further verticalizing our sales organization around our ideal customer profiles, where we're seeing stronger retention and spend growth over time. And third, strengthening our brand. As advertisers see stronger results and realize our ability to expand the budgets we manage continues to grow. In the first quarter, realized growth increases in both scaled advertisers, those who spend more than $100,000 a year with us, and the budgets we manage. Scaled advertisers grew 3.5%, and average revenue per scaled advertiser grew 5%. As we scale, we benefit from more data, which powers our AI systems and drives continued performance improvements, reinforcing our ability to grow budgets over time. This progress comes from our investments we've been making across our technology, strengthening our user graph to better understand users across sites and devices, leveraging unique signals from taboola news, high intent content like product reviews, intent signals driven by a massive amount of people clicking on our ads, along with ongoing improvements to our bidding and core algorithms. Just a few weeks ago, we introduced Realize Plus, our agenting framework for advertisers, something the team has been building towards for a long time. Meta has Advantage Plus. Google has Performance Max. And now we have Realize Plus. The idea is simple. Advertisers who want greater control, such as setting budgets by strategy, defining goals by geo, and managing campaigns more hands-on can continue to use Realize. However, for those We prefer full automation that can simply provide a budget and objective, and Realize Plus will take care of the rest, including audience targeting, creative generation, placements, and continuous optimization. What matters here isn't just simplification, it's performance at scale. By reducing operational complexity and improving outcomes, Realize Plus reacts autonomously to the dynamic marketplace in real time, deciding and executing strategies which drive better performance outcomes. This allows advertisers to confidently shift more budgets into the system over time. That's how we grow. We want to make it really easy to use Realize and succeed. Our second priority is our go-to-market, where we're building a more repeatable engine to grow our share of advertisers' budget. The foundation of this strategy is verticalizing, organizing our sales team by industry and focusing on clearly defined ideal customer profile, what we call ICPs. For Taboola, these ICPs are performance-oriented advertisers who prioritize measurable outcomes. requires scalable customer acquisition and operate in mid to low funnel categories, such as travel, healthcare, auto, personal finance, and more. By aligning our verticalized teams to these ICPs, we develop deeper expertise, execute faster, and stay focused on delivering advertisers' outcome. Lastly, on brand and perception, we're making real progress in how the market sees Taboola. As we invest in products like Realize Plus, onboarding incredible advertisers and partners, we're shaping our brand to be recognized as an AI-driven performance platform. This takes time, but we're building trust and shifting perception. In the end, I measure this by outcomes. Are we bringing more advertisers, driving more demand, and growing faster or not? At the end of the day, companies either accelerate their growth or they don't. And to bring it all together, we feel good about where we are, and even more importantly, about where we're going. We're seeing early signs of what this business can become when technology, data, and execution come together. It's still early, but we're moving in the right direction. It's an exciting time for us at Taboola, and we look forward to updating you all on our progress throughout the year. With that, I'll hand it over to Steve.