Taboola (TBLA) 2026 年第三季法說會：廣告曝光量下滑致下修展望

重點摘要

• 2026 年第三季營收年減 7% 至 4.623 億美元，扣除流量取得成本後毛利（ex-TAC 毛利）則年增 7% 至 1.888 億美元。
• 調整後 EBITDA 成長 16% 至 5,600 萬美元，利潤率為 29.7%。管理層表示，嚴格的費用控制支撐了獲利能力。
• 由於媒體發布商相對穩定的頁面瀏覽量被每頁廣告曝光次數減少所抵銷，Taboola 下修了全年展望。管理層將此壓力歸因於受 AI 摘要和大語言模型（LLM）影響的消費者行為改變。
• 該公司目前預計全年營收為 18.8 億至 19.0 億美元，ex-TAC 毛利為 7.54 億至 7.63 億美元。
• Taboola 的應對措施包括增加發布商合作夥伴、擴大全頁變現與 DeeperDive，並投資於 Taboola News、應用程式及社群電商。
• 該公司在第三季以 3,030 萬美元回購了約 700 萬股股票，並獲得額外 2 億美元的股票回購授權。

核心財務業績

以固定匯率計算，外匯因素使第三季調整後 EBITDA 減少了 340 萬美元。若排除該影響，調整後 EBITDA 約為 5,980 萬美元，利潤率為 31.6%。

截至本季末，Taboola 擁有 1.287 億美元的現金與現金等價物、7,850 萬美元的長期負債，淨現金為 5,020 萬美元。截至 9 月 30 日，其 2.7 億美元旋轉信貸額度下的可用流動資金約為 1.91 億美元。

業務與營運表現

營收受到廣告曝光量減少以及替代 ExploreMore 的 Next Engage 推展速度慢於預期的壓力。管理層指出，發布商平台的頁面瀏覽量保持相對穩定，但使用者在每個頁面瀏覽所產生的廣告曝光次數有所減少。

該公司將福斯新聞 (Fox News)、Fox Local、福斯體育 (Fox Sports) 與 Fox Weather 納入其發布商網絡。此外，該公司亦正尋求與更多發布商建立合作關係，並計劃透過擬議收購 Dianomi 來擴大版圖，該交易預計將於 2026 年底前完成。

NBC News 與 today.com 100% 的廣告版位目前已全面上線全頁變現功能。管理層表示，表現符合 Taboola 與 NBC環球 (NBCUniversal) 的預期。Taboola 認為，將橫幅廣告、直式廣告、原生廣告及其他格式變現，可能使每家發布商的變現能力提高二至三倍，但這仍屬於公司估計，而非整座網絡已實現的業績。

Taboola 的 AI 問答引擎 DeeperDive 已在超過 100 個網站、發布商及 OEM 通路中擁有超過 1,400 萬名使用者。管理層表示，相較於 Taboola 的整體規模，其營收貢獻仍處於早期階段。

Taboola News 在本季對 ex-TAC 成長有所貢獻。該公司亦正加大對應用程式和社群電商的關注，管理層將其描述為受開放網路 (open-web) 中 AI 驅動行為變化影響較小的領域。

管理層財務指引

管理層預計外匯因素在第四季仍將是調整後 EBITDA 的不利因素。針對 2026 全年，該公司預計調整後 EBITDA 的自由現金流轉換率為 60% 至 70%。

管理層拒絕提供 2027 年的指引。管理層表示第四季反映了目前的曝光量趨勢，並重申重返雙位數成長的目標。

風險與觀察重點

• 儘管發布商的頁面瀏覽量保持相對穩定，但每個頁面瀏覽的廣告曝光次數仍在下降。
• 管理層將此趨勢歸因於使用者行為的改變，包括減少滾動頁面，以及對頁面頂部摘要或資訊的期待提高，但表示無法歸咎於單一原因。
• 廣告曝光壓力在不同發布商群體中皆有顯現，程度各有不同，並在第三季變得更為明顯。
• Next Engage 的推展進度慢於預期。
• 規模化廣告主數量以及每位規模化廣告主的平均營收在第三季雙雙下降。
• 主要的反制抵銷措施——包括全頁變現、DeeperDive 和收購 Dianomi——仍處於相對早期階段。

分析師問答亮點

流量與廣告曝光壓力：管理層表示，下修第四季展望並非由 Google 轉介流量減少所致。主要問題在於使用者抵達發布商頁面後的廣告曝光次數減少。跡象在 2026 年較早時就已出現，但最初被 ExploreMore 的停用及供應品質的改變所掩蓋。

AI 變現：Taboola 正在 DeeperDive 的對話式介面中投放廣告。管理層亦認為代理商和大廣告主很有潛力運用 AI Agent 與 MCP 整合，直接與廣告供應商進行交易。目前透過 MCP 專案進行的支出據稱達數百萬美元，但規模相對仍小。

管理層可控領域：高層強調爭取新的發布商、收購 Dianomi 的優質發布商網絡、提升現有夥伴的變現能力，以及投資 Taboola News 和社群電商。

Realize+ 採用情況：管理層表示，Realize+ 是 Taboola 推出的新產品中獲採用速度最快的產品之一。截至上一季，已有超過 1,000 家廣告主在使用，不過法說會上未提供最新數字。

完整法說會逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Good day, and thank you for standing by. Welcome to the Taboola Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Aadam Anwar, Head of Investor Relations. Please go ahead.

Aadam Anwar

Thank you, and good morning, everyone. Welcome to Taboola's Third Quarter 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 market opened, and they're available in the Investors 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 press release posted on our website.

With that, I'll turn the call over to Adam.

Adam Singolda

Thanks, Aadam. Good morning, everyone, and thank you for joining us today. In the third quarter, we delivered $189 million in ex-TAC, growing 7% year-over-year and $56 million in adjusted EBITDA, growing 16%. The environment in which we operate is changing. We're seeing shifts in how consumers discover and engage with content across the open web, including the growing influence of AI summaries and LLM. While page views across our publisher base remain relatively steady, we are seeing advertising impressions decline as consumer behavior changes. We believe our publishers had meaningful opportunities to use our products to improve engagement and grow revenue, and I'll discuss those opportunities in more detail later.

In the near term, however, we're incorporating these trends into our outlook and lowering our full year ex-TAC guidance to $758 million, representing 6% growth. To address these dynamics, we're doing 3 things as part of our realized strategy, which is centered around helping advertisers find outcomes at scale beyond search and social. First, we're focused on winning new publisher partnerships. This is evidenced by our recent signing of Fox News, Fox Local, Fox Sports and Fox Weather, which are premium properties that advertisers love.

We have a strong pipeline of additional publishers around the world that we hope to bring on to our platform, creating more opportunities to drive engagement for publishers, revenue for our partners and performance for advertisers. Second, we're focused on growing the revenue we generate with each publisher. Historically, we've monetized mainly through native placements. However, with products like full page monetization, we monetize the entire ad inventory of a publisher, including display, vertical formats, native and more. We believe we can increase that monetization 2 to 3x per publisher. So this is something we're leaning into with our teams and our top publishers.

As an update on full-fledged monetization, last quarter, we announced NBCUniversal as our first full-fledged monetization partner. We're now live across 100% of the advertising inventory on NBC News and today.com, and the performance we're seeing is on par with what NBC and us expected, which is encouraging. For publishers, this creates an opportunity to grow revenue, while working with fewer partners, reducing operational complexity and improving efficiency. For Taboola, it means growing our share of wallet with existing publishers while giving advertisers access to even more premium inventory. Another way we're growing revenue for our existing publishers is through DeeperDive, our AI answer engine, which is now being used by nearly 14 million people across publishers and OEMs, which gives publishers valuable insight into what their audiences care about.

As consumers increasingly turn into AI to discover information, DeeperDive positions Taboola to help publishers adopt while creating another way to grow revenue from our existing relationships. We're also expanding our publishers' relationships and the revenue we can generate with them through our proposed acquisition of Dianomi. This is an opportunity to broaden our publisher base and further strengthen our position in business, finance and lifestyle verticals, areas we already have strong presence and where advertisers value access to high-intent audiences. Dianomi brings a highly specialized network of hundreds of premium publishers, including Reuters, CNN Business and the Wall Street Journal, alongside blue-chip financial advertisers.

By combining our companies, we believe there's a monetization growth opportunity across Dianomi premium publishers driven by realized AI and advertisers as well as Taboola given Dianomi expertise in high-intent verticals and premium advertisers. We expect to complete the acquisition before the end of 2026, and we will continue to provide updates. These are all examples of ways we're doing more with our existing publishers to grow revenue.

Thirdly, we're investing in diversified areas of our business that are growing and not impacted by AI, such as Taboola News, apps and social commerce. These markets give us access to new audiences while allowing us to leverage the assets we've built over the last decade, including our technology, unique first-party data, publishers relationships and global distribution. Our goal is to build multiple growth engines that complement our core business and increase Taboola's competitive advantage across the broader digital ecosystem. In times of change, I'm convinced that publishers and advertisers now more than ever before, would want to innovate, move even faster and look for revenue-generating opportunities. Much like in social and search, the OpenWeb is the opportunity to have one company that can be the monetization infrastructure for everything, and I believe it can be Taboola.

To wrap up, our focus is on our partners and clients working with them closely on using our wide array of products offering to grow revenue, especially during times of change in our industry. We were never more aligned than we are now.

And with that, I'll hand it over to Steve.

Stephen Walker

Thanks, Adam, and good morning, everyone. Q3 results were in line with our guidance. As Adam mentioned, the environment in which we operate continues to change and the way consumers interact with our partners' web properties is being affected by the influence of AI and LLMs. While page views remain relatively steady, what we have seen has been a reduction in the number of impressions available for our advertisers and a headwind on revenue. As a result, we are adjusting our Q4 guidance, which I will share in more detail shortly. But first, let me talk about our Q3 results.

In the third quarter, revenues were $462.3 million. Our revenue was primarily impacted by the impression volume headwinds and by a slower-than-expected rollout of Next Engage, which is the product we introduced to replace ExploreMore. When looking at these numbers on a year-over-year basis, revenue was down 7%. Last quarter, we discussed our efforts to optimize the quality of our supply and the deprecation of the ExploreMore product. These factors, along with some headwinds from the decline in impressions due to consumer behavior changes drove the decline.

In Q3, the number of scaled advertisers declined 4% year-over-year and average revenue per scaled advertiser declined 5%. Scaled advertisers represent approximately 85% of revenues. So when we see declining revenue as we did this quarter, we would expect to see a decline in these metrics. Ex-TAC gross profit increased 7% year-over-year to $188.8 million, and gross profit for the quarter was $152.3 million, up 10% year-over-year. Ex-TAC gross profit benefited from a couple of factors. First, as the volume of our supply declines, we see higher ad rates on our network because a similar amount of demand is spread over less supply. Higher ad rates drive higher ex-TAC margins.

Second, we saw strong growth in Taboola News, which contributed to the growth in ex-TAC. Net income for the quarter was $18.4 million with non-GAAP net income coming in at $39.9 million. Adjusted EBITDA for the quarter was $56 million, which represented a margin of 29.7%. This reflects our ongoing discipline in expense management as operating cash expenses remained broadly stable, excluding foreign exchange impacts. Foreign exchange continues to be a headwind in 2026 on a year-over-year basis.

On a constant currency basis, FX represented a $3.4 million headwind to third quarter adjusted EBITDA. Excluding this impact, adjusted EBITDA would have been approximately $59.8 million, which would have represented an adjusted EBITDA margin of 31.6%. We expect FX to remain a headwind in Q4. In terms of cash generation, we had $35.6 million in operating cash flow in the third quarter and free cash flow of $20.4 million. We expect our free cash flow to convert from adjusted EBITDA at a 60% to 70% rate this year.

Turning to the balance sheet. We remain in a strong financial position. We ended the third quarter with a net cash balance of $50.2 million. Cash and cash equivalents totaled $128.7 million, which more than offset our long-term debt of $78.5 million. As of September 30, we had approximately $191 million of available liquidity under our $270 million revolving credit facility. In the third quarter, we repurchased approximately 7 million shares at an average price of $4.37 for a total consideration of $30.3 million. We have approximately $90 million remaining under our authorization.

We also received an additional $200 million in authorization for share repurchases. This provides us with flexibility to return capital to shareholders when we believe it is appropriate. As you've seen this quarter, we continuously evaluate capital allocation opportunities, including share repurchases, investments in our business and strategic acquisitions such as Dianomi with the goal of allocating capital where we believe it can generate the greatest long-term value.

Moving to guidance. For the fourth quarter, we expect revenues to be between $477 million and $493 million, gross profit to be between $174 million and $183 million, ex-TAC gross profit to be $204.5 million to $213.5 million, adjusted EBITDA to range from $73.5 million to $82.5 million and non-GAAP GAAP net income to be $53 million to $62 million.

For the full year, we are updating our guidance as well. We now expect revenues to be between $1.88 billion and $1.9 billion, gross profit to be between $595.5 million and $604.5 million, ex-TAC gross profit to be $754 million to $763 million, adjusted EBITDA to range from $212 million to $221 million and non-GAAP net income to be $151.5 million to $160.5 million. In summary, we're seeing changes in consumer behavior, but are working to offset these changes by bringing on new publishers organically, such as with FOX News and via acquisition, such as through the proposed acquisition of Dianomi and by doing more with our existing publishers through full page monetization.

While we're still in the early stages of many of these initiatives, we're focused on executing, building on our competitive advantages and delivering long-term growth and value for our shareholders.

With that, let's move to Q&A. Operator, can you please open the line for questions?

Operator

[Operator Instructions] Our first question comes from Naved Khan at B. Riley Securities.

分析師問答

Naved Khan

Just a couple of questions for me. Maybe first on the dynamics you just described, Adam, about page views being stable, but impressions being lower. Is that just a factor of sort of visitors to the site scrolling less and looking more at summaries? Or is there something deeper than that, that's going on? So that's part one of my question. The second part is about the DeeperDive. Are you seeing more distribution across more publishers for this offering? Just talk about that and also how the monetization is progressing on DeeperDive.

Adam Singolda

Yes. Steve, do you want to take the pages?

Stephen Walker

Sure. Yes, I can start with what Adam was talking about on the page view and impression side of things. So what we're seeing is basically what we think is a shift in consumer behavior. It created a headwind on our impression volume. So while page views are relatively stable, we're seeing a decline in -- or fewer impressions per page view. We think this probably has to do with consumer behavior, maybe not scrolling as much or something along those lines. But generally speaking that, for us, the important thing is that it's fewer impressions, fewer ad impressions that we have to fill. And that's why we're now focused on, as we've talked about in the past and what Adam talked about, winning more new publishers organically and through acquisition like with Dianomi, doing more with our pubs. So explore more -- sorry, full page monetization, DeeperDive, that all gives us more impressions and then also investing in areas that are less impacted by those consumer shifts. So for instance, Taboola News and social commerce are 2 areas we're leaning into. So generally speaking, that's what we're seeing and kind of what we're doing about it.

Adam Singolda

And then on the second question on DeeperDive. So if this was a startup, it would be a very, very fast-growing start-up. It's still early in terms of revenue impact for Taboola given our size. But what we're seeing is essentially a very accelerated growth of publishers integrating DeeperDive. It's been around for about a year now or so, and we just crossed a few interesting milestones. More than 100 sites are using DeeperDive. More than 14 million people are interacting with DeeperDive which is fast growing. And I have no doubt that as I look into kind of the future, any company, even right now, Motorola, which we announced a few weeks ago, which is a device manufacturer, a big one, has integrated DeeperDive. So what you're seeing is that publishers, device manufacturers, I think over time, apps, even TV, I suspect any kind of digital canvas will offer a conversation on there. And there's an opportunity for us here to bring kind of our AI expertise, first-party data and experience with DeeperDive to all of those touch points. So I just think that's going to be a growing trend over the next 2, 3 years that consumers will expect it. And that's also going to help alleviate some of the, I think, the ad impression pressure that we're seeing with more touch points with consumers. So the answer is that we're seeing good growth, a very fast one. If this was a startup, it would be one of the fastest growing startup.

Operator

Our next question comes from Laura Martin at Needham.

Laura Martin

So let's start with traffic. The guidance you gave for the fourth quarter is coming down a lot from our prior estimates. And Reddit had said on their call that Google had made another change in its search algorithms and that traffic had gotten much worse in October. Is that the cause of bringing the guidance down in the fourth quarter for you guys as well as Google search monetization and referral traffic shifts? And then my other question, Adam, is, could you give us an update on how you guys are using AI in the business to drive business results? Because I know you had done an agentic tie-in with Anthropic, and I'm interested in what's happening with some of your AI products and what kind of luck you've had in driving monetization upside from AI.

Stephen Walker

Thanks, Laura. So I'll answer the first one. So the simple answer to your question is, no, it's not less referral traffic from Google that we're seeing. It's really about the fewer impressions per page view. So it's really something about consumer behavior when they're on our pages. So it's not fewer page views. It's less engagement once they're on the page or at least seeing fewer of our ads.

Adam Singolda

Yes. So a few things. There's a lot at I think at Taboola that we're focusing on as it relates to AI. Internally, our President and COO is getting a big project of how to empower our people to do even more as it relates to our clients and internally and drive kind of productivity and revenue through that. So that's a big one for us. And then externally, DeeperDive, obviously, is a big AI initiative for us. We're -- I think we're one of the only companies that I'm aware of that actually is showing ads in an LLM conversational layer. And we did mention that we're seeing very good results from those ads. We announced a quarter plus ago our integration with Cloud, which essentially allows through an MCP with Cloud any kind of company, anyone to use their own cloud on their computer and launch a campaign with Taboola. I just published a video that I'm interviewing one of our VPs about that.

And I think the biggest -- to me, the biggest area where I see kind of revenue opportunity about that, Laura, is with agencies. I think agencies, the big holdcos are spending a lot of time with us at a very senior kind of level, imagine in a new version of themselves, whereby they don't have to go through the traditional ad tech. And with us, they can build agents, agentic agents that can reach out directly to Taboola and negotiate directly with us and our publishers and distribution based on whatever the client needs. So I do think that the way it's going is that big clients will basically have agents that will negotiate with suppliers directly as it relates to their own goal, whether that's subscription or purchases or whatever they may need. And by doing so, we'll bypass the whole kind of ecosystem. And that's maybe where the biggest kind of upside from a revenue perspective. And it takes good attention from me, Krishan, our Chief Business Officer and the team as we're looking into the future with kind of advertisers.

Operator

Our next question comes from Tyler DiMatteo at BTIG.

Tyler DiMatteo

I wanted to come back to the impressions and the page views here. I understand page views have been steady. But I guess at the highest level guys, when did you start to see that those impressions come down? I guess, like what's the visibility into that? And then has that accelerated? Obviously, you're reflecting it in the 4Q guide. But I'm just curious, like we're sitting here in November, like what does that look like? And when did you start to see those impressions go down? And then secondarily, my next question here, operationally, when you just kind of take a step back here and you're looking at all the different products and things that you could do in adding incremental premium publishers, what do you feel you have the most control of now in this environment?

Stephen Walker

Yes. So let me -- I'll start with the first part of your question. So I think in terms of timing of this, we saw signs of it earlier this year, but it was frankly overshadowed by the Explore More deprecation and some of the network cleanup that we were doing. So it wasn't as noticeable. And frankly, it was being offset mostly by higher ad rates that we were able to achieve. So it didn't impact revenue as much. It became pretty clear in Q3, which is obviously why we're talking about it now because we had a relatively clean quarter. Explore More obviously, was in our past. And so we were able to see this much more clearly. So while we saw indications earlier, Q3 is when we really saw it. In terms of thinking about going forward on this, it's obviously baked into our Q4 guide. So we've seen it. We recognize that we've baked it in. I think, though, looking to next year, we'll obviously talk about that when we get to February and going forward.

I think to your second part of your question about what do we really have control of, I think Adam talked about this in his prepared remarks. We have control of winning new publishers. So we're out working on controlling or winning new publishers. We're also obviously acquiring a really good high-quality publisher base by acquiring Dianomi. We also can control doing more with new publishers. So that's why we're out there selling full page monetization and working with more publishers on expanding what we do, selling them DeeperDive and doing more there. And we can obviously also control investment areas in areas that are less impacted by AI. So Taboola News, social commerce.

So I think those are the things that we feel are in our control. We obviously can't control what consumers are going to do day-to-day, but we still can grow our supply by leaning into all those other things.

Adam Singolda

Right. And I do think that now more than ever, when you talk to publishers and spend time with them as well as advertisers, everyone is looking for revenue growth, these times of change are also -- as I've seen in the past also with Taboola, it's always the biggest opportunity to talk to your partners, deepening the relationship, spend time about the future and to be able to be in a position where publishers can hand to Taboola the entire ad inventory with full page monetization as an example, is a big deal. So we'll continue to update. I'm personally involved with many of our bigger publishers kind of talking to us about it into the future, and it's quite exciting. We'll see how that progresses. But again, I look at this period in a period of people want to do a lot more with the partners they trust in the relationship with.

Operator

Our next question comes from Barton Crockett at Rosenblatt.

Barton Crockett

I wanted to maybe see if you could explain why we have this change. So I understand that people are apparently seeing fewer impressions, which I guess suggests they're not spending as much time browsing or reading the open web. But why? Why would that be happening? I think is this in any way tied to AI overviews -- because I know you guys have said in the past, your AI overview exposure is single digits. So some clarity would be great.

Adam Singolda

Yes. It's a good question. And it is -- we're very fortunate that most of our publishers are big, which means they have a lot of direct traffic and our search exposure is fairly small. And that's why the page view kind of change is fairly small. It's fairly steady. I do think though that consumers now that come to our publisher site behave differently. They expect things to be at the top, maybe a summary in the article or in the home page. And it's hard to really narrow down the reverse engineer exactly why they do that. But I think the traffic that comes to the publishers versus the traffic that stays on Google when they see the summary is affecting kind of the type of ad impressions that we're seeing. And I think it's a variety of scrolling, it's a variety of the type of articles they come to read versus stay on Google, things of that nature. And I also suspect this will plateau at some point because it's going to be mature enough at some point. But right now, we have seen this change, and that's why we wanted to put this in the guidance for Q4. But I do think to your question, it's a combination of the type of articles people do read versus stay on the search page as well as kind of expectation to get things at the top of the page versus scrolling to the bottom. And that's also why DeeperDive, which is at the top of the page as well as full page monetization, which is all inventory matters to us because we basically want to see consumers wherever they may be on our publisher site. And like I said, I'm encouraged by the fact that people really want to be in relationship with the big publishers that we work with, and that's why the pages are steady, but there is a change in behavior.

Barton Crockett

And then could you talk a little bit about the breadth? I mean, is this just a few particular publishers of a particular kind of nature or is it everyone? Are you seeing it on Taboola clients and people who aren't Taboola clients? And do you have any documentation to kind of support your view of the breadth of this?

Adam Singolda

So first of all, it is kind of across the board. I think some a bit more, some a bit less. Again, most of our publishers are similar in the sense that their search traffic is fairly small and their direct traffic is fairly high. So we don't have a lot of kind of like very high search traffic sites that probably would have seen different behavior. So it kind of impacts everyone to some degree, some a bit less, some a bit more. And I don't know if we have something that we publish also, we don't -- we want to be kind of sensitive to our partners and not share things that we're not want to share, but we can look into see if there's any insights we can share on this.

Stephen Walker

Maybe we can do a block post or something share what we're seeing.

Barton Crockett

Okay. And then if I could just ask one other thing, just to clarify, the implied kind of year-over-year trajectory in the fourth quarter guide, is there any reason why we shouldn't presume that, that's a base case for '27?

Stephen Walker

Yes. So we don't want to obviously guide for 2027 right now. But I think, obviously, we updated our Q4 guide to reflect what we're seeing. So I think you can use it as an indication. We'll obviously provide more guidance in February. In the meantime, I think our ambition as a management team is to get back to double-digit growth, and that's where our focus is.

Operator

Our next question comes from Alex Lavigne at StoneX.

Alex Lavigne

Just on Realize+, curious what percentage of advertiser spend is leveraging Realize+ today and what the incremental ROAS compared to legacy campaigns has been? And then related, how meaningful is the spend coming through the Quad MCP integration? And is this largely new budget or existing, acknowledging you mentioned Holdco as an opportunity?

Stephen Walker

Yes. So on the Realize+, I don't have those figures in front of me, to be honest with you. I know that the adoption rate on Realize+ have been significant, and it was one of our fastest adopted products in our release history. So I know it was being adopted by a significant number. I don't have the exact number in front of me. I think we talked last quarter about it being over 1,000 advertisers utilizing it, but I don't have an updated number on that.

You want to talk about the MCP?

Adam Singolda

Yes, the MCP is still -- it's millions of dollars, but -- so fairly small. But I would say with 0 investment or any promotion of that, this is money that's kind of like just coming our way, people experimenting with it. So again, I think the biggest growth on that one, my suspicion will be from agencies and very large clients who will see an opportunity to kind of collapse ad tech and buy directly through an agent from suppliers, not only Taboola, by the way, I expect this will be the behavior across the board. They will build agents that will negotiate with big suppliers on search, social and beyond search and social, where Taboola is obviously big. So we're worth negotiating with. So that's the biggest upside from that kind of initiative I'm seeing with Cloud, at least in my opinion.

Operator

This concludes the question-and-answer session. I would now like to turn it back to Adam Singolda for closing remarks.

Adam Singolda

Thanks, everyone, for joining us this morning. So as I said, the AI and reshape how consumers discover content, we're focused on 3 main priorities. The first one is expanding our publisher base. You've seen wins like Fox News, and there's a very strong pipeline ahead of us, and we'll continue to update, and that's going to help us grow more supply and more impressions, which is a focus of us. The second one is deepening our relationship with existing publishers through initiatives like full page monetization, DeeperDive, newsroom and many other things that can grow engagement and increase supply we have on our existing publishers. And the third one is investing in diversified areas of our business where AI is not impacting those, things like Taboola News and e-commerce where we're seeing faster growth than the rest of the business. I'm convinced that now more than ever, the OpenWeb and everything outside of search and social deserves a platform that can drive revenue through advertising and through AI initiatives, and Taboola can be that company. Thank you for the support, and we look forward to speaking with all of you over the next few weeks.

Operator

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.