Q2 2024 and FY 2024 Key HighlightsQ2 Financials – Beat on Revenues, ex-TAC and Adj. EBITDA; Growth rates accelerate
Q2 2024 Results: Revenues $428M, Gross profit $115M, ex-TAC Gross Profit $150M, Net loss $4M, Non-GAAP Net Income $23M, Adj. EBITDA $37M, Free Cash Flow $26MStrong YoY growth: Revenues +29%, ex-TAC +21%, Adj. EBITDA +138%, FCF +237%Strong Free Cash Flow conversion: 70%+ from Adj. EBITDAReiterating 2024 ex-TAC, Adj EBITDA, FCF Guidance; Growth rates accelerate across all metrics
Initiating Q3 guidance: $431M in Revenues (+20% YoY), $134M Gross profit (+33% YoY), $164M ex-TAC Gross Profit (+28% YoY), $47M Adj. EBITDA (+106% YoY)*Reiterating 2024 guidance: $667M ex-TAC Gross Profit (+25% YoY), $200M+ Adj. EBITDA (2x+ YoY; ~30% margin), $100M+ FCF (~2x YoY)*Updating 2024 Revenue guidance: $1.735-$1.765B range primarily reflects some Yahoo revenue that will now only be reflected in ex-TAC – no change to ex-TAC/key metrics.Share Buyback – Bought back $27M in shares in Q2; $66M remaining under current authorization
Engaging/reaching users – Yahoo advertiser migration complete, ramping spend. Taboola News wins significant exclusive global OEM partnership
Launched “Audience Solution” to help publishers grow trafficApple News & Stocks – onboarding complete, focus on sales enablementTaboola News – exclusive global OEM win in Q2Improving yield – continued focus on our number one goal in 2024
Max Conversion adoption rate approaching 70% of revenue; # of ad campaigns 2x Q1 2024Launch of Taboola Select for brands/agencies looking to drive performance at scaleeCommerce continues to exceed expectations with strong performance in Q2* References midpoints of guidance ranges.
NEW YORK, Aug. 07, 2024 (GLOBE NEWSWIRE) — Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, today announced its results for the quarter ended June 30, 2024.
“2024 is a transformational year for Taboola. We’ve achieved impressive results in the first half of the year and are poised to build on this success,” said Adam Singolda, CEO of Taboola. “Our success is driven by our investment in AI, access to unique data, and focus on driving value to our partners and advertisers. I’m proud to be exactly where we are, validated by partnerships such as Yahoo and Apple as well as having 25% of our revenue coming from top brands and agencies. I believe this market will get to a trillion dollars in size, and we’ll have a chance to be a great partner and friend to many of them as they look to tap into the advertising market.”
Second Quarter 2024 Financial Highlights
The following table summarizes our consolidated financial results for the three months ended June 30, 2024 and 2023:
(dollars in millions, except per share data)Three months endedJune 30, 2024 2023 UnauditedRevenues$428.2 $332.0 Gross profit$114.8 $97.1 Net loss$(4.3) $(31.3)EPS diluted (1)$(0.01) $(0.09)Ratio of net loss to gross profit (3.7%) (32.3%)Cash flow provided by operating activities$38.8 $11.6 Cash, cash equivalents, short-term deposits and investments$182.2 $246.9 Non-GAAP Financial Data * ex-TAC Gross Profit$149.5 $123.1 Adjusted EBITDA$37.2 $15.7 Non-GAAP Net Income (Loss)$23.0 $(1.4)Ratio of Adjusted EBITDA to ex-TAC Gross Profit 24.9% 12.7%Free Cash Flow$26.2 $7.8
1 The weighted-average shares for the three months ended June 30, 2024 and 2023 were 342,566,112 and 351,585,059 shares, respectively. The weighted-average share count for the three months ended June 30, 2024 and 2023 includes 297,660,641 and 306,386,357 Ordinary shares and 44,905,471 and 45,198,702 Non-voting Ordinary shares, respectively.
Second Quarter 2024 Business Highlights
Revenue HighlightsRevenue growth driven by the addition of new publisher partners and Tier 1 advertisers to the Taboola network.Publisher wins that were new and from competitors included Adevinta Global MSA, a360media, Foundry, Mediahuis Ireland, and NESN.Renewed relationships with many well-known publishers including Sky News Australia and Globes IL.Notable product launches and advancementsTaboola for Audience, an AI powered technology for publishers to protect against threats of generative AI search and social traffic volatility; publishers see over 10% traffic growth.Taboola earned Great Place to Work Certification™ and was named a “Best Workplaces in New York in 2024.”
Third Quarter & Full Year 2024 Financial Guidance
For the Third Quarter and Full Year 2024, the Company currently expects (dollars in millions):
Q3 2024FY 2024GuidanceGuidance Unaudited (dollars in millions)Revenues$416 – $446 $1,735 – $1,765Gross profit$129 – $139 $535 – $555ex-TAC Gross Profit*$159 – $169 $656 – $679Adjusted EBITDA*$42 – $52 $200+Non-GAAP Net Income (Loss)*$20 – $30 $84 – $104
Although we provide guidance for Adjusted EBITDA and Non-GAAP Net Income (Loss), we are not able to provide guidance for projected net income (loss), the most directly comparable GAAP measure. Certain elements of net income (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on net income (loss) or to reconcile our Adjusted EBITDA and Non-GAAP Net Income (Loss) guidance without unreasonable efforts. Consequently, no disclosure of projected net income (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
For more commentary on the quarter, please refer to Taboola’s Q2 2024 Shareholder Letter and Investor Presentation, both of which are posted on Taboola’s website today at investors.taboola.com
Webcast Details
Taboola’s senior management team will discuss the Company’s earnings on a call that will take place on August 7, 2024, at 8:30 AM ET. The call can be accessed via webcast at https://investors.taboola.com. To access the call by phone, please go to this link to register https://register.vevent.com/register/BI5ce813978f2245a9b765a2c038ed2289 and you will be provided with dial in details. The webcast will be available for replay for one year, through the close of business on August 7, 2025.
*About Non-GAAP Financial Information
This press release includes ex-TAC Gross Profit, Adjusted EBITDA, Ratio of Adjusted EBITDA to ex-TAC Gross Profit, Free Cash Flow, Non-GAAP Net Income (Loss), which are non-GAAP financial measures. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to revenues, gross profit, net income (loss), cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly-titled measures used by other companies.
The Company believes non-GAAP financial measures provide useful supplemental information to management and investors regarding future financial and business trends relating to the Company. The Company believes that the use of these measures provides an additional tool for investors to use in evaluating operating results and trends and in comparing the Company’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors. Non-GAAP financial measures are subject to inherent limitations because they reflect the exercise of judgments by management about which items are excluded or included in calculating them, which may vary from period to period. Please refer to the appendix at the end of this press release for reconciliations to the most directly comparable measures in accordance with GAAP.
Note Regarding Forward-Looking Statements
Certain statements in this press release are forward-looking statements. Forward-looking statements generally relate to future events including future financial or operating performance of Taboola.com Ltd. (the “Company”). In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “guidance”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “target”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.
These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Uncertainties and risk factors that could affect the Company’s future performance and cause results to differ from the forward-looking statements in this press release include, but are not limited to: the Company’s ability to grow and manage growth profitably, maintain relationships with customers and retain its management and key employees; changes in applicable laws or regulations; the Company’s estimates of expenses and profitability and underlying assumptions with respect to accounting presentations and purchase price and other adjustments; the extent to which we will buyback any of our Ordinary shares pursuant to authority granted by the Company’s Board of Directors, which may depend upon market and economic conditions, other business opportunities and priorities, satisfying required conditions under the Israeli Companies Law and the Companies Regulations or other factors; the Company’s ability to transition to and fully launch the native advertising service for Yahoo on the currently anticipated schedule; the ability to generate or achieve the increase in Adjusted EBITDA and Free Cash Flow in 2024 or our expected revenue run-rate once Yahoo integration is live, in each case to the levels assumed in this press release or at all; ability to attract new digital properties and advertisers; ability to meet minimum guarantee requirements in contracts with digital properties; intense competition in the digital advertising space, including with competitors who have significantly more resources; ability to grow and scale the Company’s ad and content platform through new relationships with advertisers and digital properties; ability to secure high quality content from digital properties; ability to maintain relationships with current advertiser and digital property partners; ability to prioritize investments to improve profitability and free cash flow; ability to make continued investments in the Company’s AI-powered technology platform; the need to attract, train and retain highly-skilled technical workforce; changes in the regulation of, or market practice with respect to, “third party cookies” and its impact on digital advertising; continued engagement by users who interact with the Company’s platform on various digital properties; reliance on a limited number of partners for a significant portion of the Company’s revenue; changes in laws and regulations related to privacy, data protection, advertising regulation, competition and other areas related to digital advertising; ability to enforce, protect and maintain intellectual property rights; risks related to the fact that we are incorporated in Israel and governed by Israeli law; the potential impacts of the war in Israel to the Company’s operations; and other risks and uncertainties set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 under Part 1, Item 1A “Risk Factors” and in the Company’s subsequent filings with the Securities and Exchange Commission.
Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on these forward-looking statements, which speak only as of the date they were made. The Company undertakes no duty to update these forward-looking statements except as may be required by law.
About Taboola
Taboola is a market leading technology powering recommendations for the open web.
The Company’s platform, powered by artificial intelligence, is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the top digital properties in the world, including CNBC, BBC, NBC News, Business Insider, The Independent and El Mundo.
Approximately 17,000 advertisers use Taboola to reach nearly 600 million daily active users in a brand-safe environment. Following the acquisition of Connexity in 2021, Taboola is a leader in powering e-commerce recommendations, driving more than 1 million monthly transactions. Leading brands, including Walmart, Macy’s, Wayfair, Skechers and eBay are among key customers.
Learn more at www.taboola.com and follow @taboola on X.
Investor Contact:Press Contact:Jessica KourakosDave Struzziinvestors@taboola.compress@taboola.com CONSOLIDATED BALANCE SHEETSU.S. dollars in thousands, except share and per share data June 30, December 31, 2024 2023 Unaudited ASSETS CURRENT ASSETS Cash and cash equivalents$182,198 $176,108 Short-term investments — 5,725 Restricted deposits 1,334 1,407 Trade receivables (net of allowance for credit losses of $7,416 and $10,207 as of June 30, 2024 and December 31, 2023, respectively) 281,674 306,307 Prepaid expenses and other current assets 69,598 69,865 Total current assets 534,804 559,412 NON-CURRENT ASSETS Long-term prepaid expenses 25,584 39,602 Commercial agreement asset 289,451 289,451 Restricted deposits 4,203 4,247 Operating lease right of use assets 56,138 61,746 Property and equipment, net 71,846 72,155 Intangible assets, net 93,565 125,258 Goodwill 555,931 555,931 Total non-current assets 1,096,718 1,148,390 Total assets$1,631,522 $1,707,802 CONSOLIDATED BALANCE SHEETSU.S. dollars in thousands, except share and per share data June 30, December 31, 2024 2023 Unaudited LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Trade payables$270,406 $282,012 Short-term operating lease liabilities 19,463 20,264 Accrued expenses and other current liabilities 118,664 118,689 Current maturities of long-term loan — 3,000 Total current liabilities 408,533 423,965 LONG-TERM LIABILITIES Long-term loan, net of current maturities 145,778 142,164 Long-term operating lease liabilities 42,721 49,450 Warrants liability 2,242 6,129 Deferred tax liabilities, net 6,914 14,815 Other long-term liabilities 15,101 14,217 Total long-term liabilities 212,756 226,775 SHAREHOLDERS’ EQUITY Ordinary shares with no par value – Authorized: 700,000,000 as of June 30, 2024 and December 31, 2023; 291,715,209 and 295,670,620 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively — — Non-voting Ordinary shares with no par value – Authorized: 46,000,000 as of June 30, 2024 and December 31, 2023; 44,210,406 and 45,198,702 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively — — Treasury Ordinary shares, at cost – 27,775,351 (26,787,055 Ordinary shares and 988,296 Non-voting Ordinary shares) and 15,240,471 Ordinary shares as of June 30, 2024 and December 31, 2023, respectively (109,978) (55,513)Additional paid-in capital 1,301,159 1,262,093 Accumulated other comprehensive income (loss) (39) 942 Accumulated deficit (180,909) (150,460)Total shareholders’ equity 1,010,233 1,057,062 Total liabilities and shareholders’ equity$1,631,522 $1,707,802 CONSOLIDATED STATEMENTS OF LOSSU.S. dollars in thousands, except share and per share data Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 UnauditedRevenues (1)$428,160 $332,004 $842,168 $659,690 Cost of revenues: Traffic acquisition cost (2) 278,620 208,870 553,740 420,816 Other cost of revenues 34,762 26,077 64,697 52,225 Total cost of revenues 313,382 234,947 618,437 473,041 Gross profit 114,778 97,057 223,731 186,649 Operating expenses: Research and development 33,288 34,001 69,537 65,986 Sales and marketing 64,837 61,198 132,445 121,767 General and administrative 24,284 26,858 47,613 52,694 Total operating expenses 122,409 122,057 249,595 240,447 Operating loss (7,631) (25,000) (25,864) (53,798) Finance income (expenses), net 1,004 (3,827) (2,634) (6,981)Loss before income taxes (6,627) (28,827) (28,498) (60,779)Income tax benefit (expenses) 2,336 (2,487) (1,951) (1,848)Net loss$(4,291) $(31,314) $(30,449) $(62,627) Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted$(0.01) $(0.09) $(0.09) $(0.18)Weighted-average shares used in computing net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted 342,566,112 351,585,059 344,003,462 342,491,457 CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSSU.S. dollars in thousands Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 UnauditedNet loss$(4,291) $(31,314) $(30,449) $(62,627)Other comprehensive loss: Unrealized and realized gains on available-for-sale marketable securities, net 7 130 6 457 Unrealized gains (losses) on derivative instruments, net (211) 199 (987) (457)Other comprehensive income (loss) (204) 329 (981) — Comprehensive loss$(4,495) $(30,985) $(31,430) $(62,627)SHARE-BASED COMPENSATION BREAK-DOWN BY EXPENSE LINEU.S. dollars in thousands Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 UnauditedCost of revenues$1,096 $1,039 $2,107 $2,083 Research and development 6,852 6,181 13,230 12,025 Sales and marketing 4,532 4,401 8,855 8,686 General and administrative 5,825 4,914 10,514 9,823 Total share-based compensation expenses$18,305 $16,535 $34,706 $32,617 DEPRECIATION AND AMORTIZATION BREAK-DOWN BY EXPENSE LINEU.S. dollars in thousands Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 UnauditedCost of revenues$9,909 $8,460 $20,626 $16,758 Research and development 1,222 589 2,109 1,194 Sales and marketing 13,410 13,509 26,928 27,035 General and administrative 1,321 234 1,520 406 Total depreciation and amortization expense$25,862 $22,792 $51,183 $45,393 CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 UnauditedCash flows from operating activities Net loss$(4,291) $(31,314) $(30,449) $(62,627)Adjustments to reconcile net loss to net cash flows provided by operating activities: Depreciation and amortization 25,862 22,792 51,183 45,393 Share-based compensation expenses 18,305 16,535 34,706 32,617 Net loss from financing expenses 1,186 564 778 236 Revaluation of the Warrants liability (3,926) 702 (3,887) (974)Amortization of loan and credit facility issuance costs 375 391 729 891 Amortization of premium and accretion of discount on short-term investments, net (59) (249) 83 (530)Change in operating assets and liabilities: Decrease (increase) in trade receivables, net 2,565 (5,091) 24,633 39,271 Decrease in prepaid expenses and other current assets and long-term prepaid expenses 5,791 7,921 14,990 8,642 Decrease in trade payables (3,635) (6,923) (11,897) (29,730)Increase in accrued expenses and other current liabilities and other long-term liabilities 1,616 10,251 1,578 1,812 Decrease in deferred taxes, net (4,216) (4,284) (7,901) (6,494)Change in operating lease right of use assets 4,831 3,924 9,284 8,075 Change in operating lease liabilities (5,613) (3,621) (11,206) (7,460)Net cash provided by operating activities 38,791 11,598 72,624 29,122 Cash flows from investing activities Purchase of property and equipment, including capitalized internal-use software (12,633) (3,828) (18,222) (10,178)Business acquisition deferred payment — — (719) — Investments in restricted deposits — (61) — (341)Proceeds from maturities of short-term investments 2,500 35,696 5,765 77,636 Purchase of short-term investments — (21,991) — (21,991)Net cash provided by (used in) investing activities (10,133) 9,816 (13,176) 45,126 Cash flows from financing activities Issuance costs (239) — (695) — Exercise of options and vested RSUs 2,932 1,121 4,741 2,456 Payment of tax withholding for share-based compensation expenses (978) (1,117) (1,687) (1,908)Repurchase of Ordinary shares (25,049) (4,358) (54,465) (4,358)Payments on account of repurchase of Ordinary shares (474) — (474) — Repayment of long-term loan — (30,750) — (31,500)Net cash used in financing activities (23,808) (35,104) (52,580) (35,310)Exchange rate differences on balances of cash and cash equivalents (1,186) (564) (778) (236)Increase in cash and cash equivalents 3,664 (14,254) 6,090 38,702 Cash and cash equivalents – at the beginning of the period 178,534 218,849 176,108 165,893 Cash and cash equivalents – at end of the period$182,198 $204,595 $182,198 $204,595 CONSOLIDATED STATEMENTS OF CASH FLOWSU.S. dollars in thousands Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 UnauditedSupplemental disclosures of cash flow information:Cash paid during the year for: Income taxes$6,357 $2,575 $9,600 $6,833 Interest$3,684 $4,700 $7,294 $9,767 Non-cash investing and financing activities: Purchase of property and equipment, including capitalized internal-use software$292 $1,705 $292 $1,705 Share-based compensation included in capitalized internal-use software$700 $680 $1,306 $1,332 Creation of operating lease right-of-use assets$3,664 $5,593 $3,676 $5,593
APPENDIX: Non-GAAP Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023 (UNAUDITED)
The following table provides a reconciliation of revenues to ex-TAC Gross Profit.
Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 (dollars in thousands)Revenues$428,160 $332,004 $842,168 $659,690 Traffic acquisition cost 278,620 208,870 553,740 420,816 Other cost of revenues 34,762 26,077 64,697 52,225 Gross profit$114,778 $97,057 $223,731 $186,649 Add back: Other cost of revenues 34,762 26,077 64,697 52,225 ex-TAC Gross Profit$149,540 $123,134 $288,428 $238,874
The following table provides a reconciliation of net income (loss) to Adjusted EBITDA.
Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 (dollars in thousands)Net loss$(4,291) $(31,314) $(30,449) $(62,627)Adjusted to exclude the following:Finance expenses (income), net (1,004) 3,827 2,634 6,981 Income tax expenses (benefit) (2,336) 2,487 1,951 1,848 Depreciation and amortization 25,862 22,792 51,183 45,393 Share-based compensation expenses 15,659 13,890 29,415 27,417 Holdback compensation expenses (1) 2,646 2,645 5,291 5,200 Other costs (2) 695 1,334 695 1,571 Adjusted EBITDA$37,231 $15,661 $60,720 $25,783
1 Represents share-based compensation due to holdback of Taboola Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
2 The three and six months ended June 30, 2024 and June 30, 2023 included one-time professional service costs and one-time costs related to the Commercial agreement, respectively.
The following table provides a reconciliation of net income (loss) to Non-GAAP Net Income (loss).
Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 (dollars in thousands)Net loss$(4,291) $(31,314) $(30,449) $(62,627)Amortization of acquired intangibles 15,754 15,962 31,689 31,931 Share-based compensation expenses 15,659 13,890 29,415 27,417 Holdback compensation expenses (1) 2,646 2,645 5,291 5,200 Other costs (2) 695 1,334 695 1,571 Revaluation of Warrants (3,926) 702 (3,887) (974) Foreign currency exchange rate losses (gains) (3) 347 (663) 1,388 (234)Income tax effects (3,874) (3,962) (7,300) (7,791) Non-GAAP Net Income (Loss)$23,010 $(1,406) $26,842 $(5,507)
1 Represents share-based compensation due to holdback of Taboola Ordinary shares issuable under compensatory arrangements relating to Connexity acquisition.
2 The three and six months ended June 30, 2024 and June 30, 2023 included one-time professional service costs and one-time costs related to the Commercial agreement, respectively.
3 Represents income or loss related to the remeasurement of monetary assets and liabilities to the Company’s functional currency using exchange rates in effect at the end of the reporting period.
The following table provides a reconciliation of net cash provided by operating activities to Free Cash Flow.
Three months ended Six months endedJune 30,June 30, 2024 2023 2024 2023 (dollars in thousands)Net cash provided by operating activities$38,791 $11,598 $72,624 $29,122 Purchases of property and equipment, including capitalized internal-use software (12,633) (3,828) (18,222) (10,178)Free Cash Flow$26,158 $7,770 $54,402 $18,944
APPENDIX: Non-GAAP Guidance Reconciliation
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES FOR Q3 2024 AND FULL YEAR 2024 GUIDANCE
(Unaudited)
The following table provides a reconciliation of projected Gross profit to ex-TAC Gross Profit.
Q3 2024FY 2024GuidanceGuidance Unaudited (dollars in millions) Revenues$416 – $446 $1,735 – $1,765Traffic acquisition cost($257) – ($277) ($1,079) – ($1,086)Other cost of revenues($30) – ($30) ($121) – ($124)Gross profit$129 – $139 $535 – $555Add back: Other cost of revenues($30) – ($30)($121) – ($124)ex-TAC Gross Profit$159 – $169$656 – $679
Although we provide a projection for Free Cash Flow, we are not able to provide a projection for net cash provided by operating activities, the most directly comparable GAAP measure. Certain elements of net cash provided by operating activities, including taxes and timing of collections and payments, are not predictable therefore projecting an accurate forecast is difficult. As a result, it is impractical for us to provide projections on net cash provided by operating activities or to reconcile our Free Cash Flow projections without unreasonable efforts. Consequently, no disclosure of projected net cash provided by operating activities is included. For the same reasons, we are unable to address the probable significance of the unavailable information.
