Perion Network Ltd (PERI) 銘柄情報

Nice reversal on daily charts

"Finally, $PERI started moving after a huge dip occurred earlier this month."

PERI .... $23.50....Hivestack has screens all over the world already !! This tells me that Perion does not complete an M&A until everything is in place. The next M&A could already be in place. I'm going to continue to hold as it seems to me this is way undervalued.. Hope I'm correct.
https://www.hivestack.com/news-insights/hivestack-by-perion-launches-the-first-programmatic-digital-out-of-home-dooh/?utm_content=283809129&utm_medium=social&utm_source=linkedin&hss_channel=lcp-15179046&trk=feed_main-feed-card_feed-article-content

PERI .... $23.50....Hivestack has screens all over the world already !! This tells me that Perion does not complete an M&A until everything is in place. The next M&A could already be in place. I'm going to continue to hold as it seems to me this is way undervalued.. Hope I'm correct.
https://www.hivestack.com/news-insights/hivestack-by-perion-launches-the-first-programmatic-digital-out-of-home-dooh/?utm_content=283809129&utm_medium=social&utm_source=linkedin&hss_channel=lcp-15179046&trk=feed_main-feed-card_feed-article-content

i agree price should of been up with excellent earnings. we have election coming up which will drive huge spending.
im buying more price WILL COME BACK

PERI..$24... Something is not right, The market must think it's fraud ??
I don't know what else to think.

2850 and 2k buys over $50000. stock so undervalued beat earnings plus election going to have more sales

BUY BUY BUY I AM $$$$$$$$$$

Perion’s Diversification Strategy Continues to Drive Strong Performance as Company Achieves Quarterly Growth in Search, CTV and Retail Media

PERI.TA
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PERI
-18.59%
Wed, February 7, 2024 at 6:00 AM EST
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Perion Outlook FY Revenue USD 860-880 Mln

PERI
-18.56%


Delivers Annual Year-Over-Year Growth of 16% in Revenue, 18% in GAAP Net Income and 28% in Adjusted EBITDA

NEW YORK & TEL AVIV, Israel, February 07, 2024--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), a technology leader in connecting advertisers to consumers across all major digital channels, today reported its financial results for the fourth quarter and full year ended December 31, 2023.

"Our fourth quarter and annual results showed notable growth in Search, CTV and Retail Media, further demonstrating the positive impact of our business diversification and continued focus on technology and innovation. In 2023, we generated industry-leading adjusted EBITDA to Contribution ex-TAC margins, giving us a solid foundation for 2024," stated Tal Jacobson, Perion’s CEO.

"As advertising budgets shifted between channels, we capitalized on these trends and delivered profitable growth well ahead of the digital advertising market for 2023. We also advanced our growth strategy with the acquisition of Hivestack, a leading innovative full-stack programmatic digital out-of-home (DOOH) company with an extensive global footprint. The acquisition of Hivestack, alongside our existing offering, solidifies Perion’s differentiated offer to our customers. It’s a significant entry into the fast growing DOOH channel, which opens up new synergistic opportunities within our suite of solutions for brands and retailers. By adding critical touch points to the entire consumer journey across channels such as CTV, Audio, Out Of Home, including our products for Near-store and In-Store screens - we are transforming our Retail Media suite into a pure multi-channel, full consumer journey solution."

"Additionally, our strong cash flow from operations of $155 million for the full year of 2023, positions us well to execute additional acquisitions, further expanding our solutions and enhancing shareholder value," Jacobson concluded.

Fourth Quarter 2023 Business Highlights

Retail Media1 revenue increased 196% year-over-year to $20.2 million, representing 17% of Display Advertising revenue compared to 6% last year

CTV revenue2 increased 69% year-over-year to $14.4 million, representing 12% of Display Advertising revenue compared to 7% last year

Video revenue decreased 33% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 29% of Display Advertising revenue, compared to 42% last year

The number of Average Daily Searches increased by 37% year-over-year to 30.2 million. The number of Search Advertising publishers increased by 4% year-over-year to 162

Full-Year 2023 Business Highlights

Retail Media1 revenue increased 114% year-over-year to $49.7 million, representing 12% of Display Advertising revenue compared to 6% last year

CTV revenue2 increased 56% year-over-year to $33.5 million, representing 8% of Display Advertising revenue compared to 6% last year

Video revenue decreased 7% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 36% of Display Advertising revenue, compared to 43% last year

The number of Average Daily Searches increased by 57% year-over-year to 29.1 million. The annual average number of Search Advertising publishers increased by 18% year-over-year to 160

1
Retail Media revenue include all media channels, such as, CTV, video and others

2
Starting in the second quarter of 2023, we changed our methodology for measuring our CTV activity. We moved from measuring CTV campaigns to measuring CTV channels. The CTV growth trend under both methodologies remains in the same trajectory. Under our updated methodology, revenue generated from CTV in the fourth quarter of 2022 was $8.6 million vs. $12.5 million under the previous methodology
Fourth Quarter 2023 Financial Highlight

In millions,
except per share data
Three months ended

Year ended


December 31,

December 31,


2023

2022

%

2023

2022

%

Display Advertising Revenue
$
119.8

$
123.8

-3%

$
398.2

$
360.7

+10%

Search Advertising Revenue
$
114.4

$
85.9

+33%

$
344.9

$
279.6

+23%

Total Revenue
$
234.2

$
209.7

+12%

$
743.2

$
640.3

+16%

Contribution ex-TAC1
$
90.6

$
87.6

+3%

$
310.2

$
267.7

+16%

GAAP Net Income
$
39.4

$
38.7

+2%

$
117.4

$
99.2

+18%

Non-GAAP Net Income1
$
52.9

$
44.7

+19%

$
167.4

$
119.8

+40%

Adjusted EBITDA1
$
53.9

$
48.2

+12%

$
169.1

$
132.4

+28%

Adjusted EBITDA to Contribution ex-TAC1

59%


55%




55%


49%



Net Cash from Operations
$
50.2

$
38.2

+32%

$
155.5

$
122.1

+27%

GAAP Diluted EPS
$
0.78

$
0.79

-1%

$
2.34

$
2.06

+14%

Non-GAAP Diluted EPS1
$
1.04

$
0.90

+16%

$
3.33

$
2.47

+35%


















Outlook for 20242

"Our expectations for 2024 reflect increased investments in technology and innovation to enhance our advanced multi-channel solutions, that combined with the acquisition of Hivestack will help Perion deliver strong double-digit revenue and adjusted EBITDA growth in the coming years," commented Tal Jacobson, Perion’s CEO.

In millions
2023
2024 Guidance
YoY Growth %3
YoY proforma Growth %3
Revenue
$743.2
$860-$880
17%
10%
Adjusted EBITDA1
$169.1
$178-$182
6%
10%
Adjusted EBITDA to Revenue1
23%
21%3


Adjusted EBITDA to Contribution ex-TAC1
55%
51%3


1
Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.

2
We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.

3
Calculated at revenue and adjusted EBITDA guidance midpoint.
Financial Comparison for the Fourth Quarter of 2023

Revenue: Revenue increased by 12% to $234.2 million in the fourth quarter of 2023 from $209.7 million in the fourth quarter of 2022. Display Advertising revenue decreased 3%, accounting for 51% of total revenue, primarily due to 33% decrease in Video revenue to $35.2 million due to shifting inventory from video to display to gain higher profit, partially offset by 196% increase in Retail revenue to $20.2 million and a 69% increase in CTV revenue to $14.4 million. Search Advertising revenue increased by 33%, accounting for 49% of revenue, primarily due to 37% increase in Average Daily Searches and 4% increase in the number of publishers to 162.

Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $143.6 million, or 61% of revenue, in the fourth quarter of 2023, compared with $122.0 million, or 58% of revenue, in the fourth quarter of 2022. The margin contraction was primarily due to product mix, partially offset by media buying optimization, which is enabled by leveraging data and buying power.

GAAP Net Income: GAAP net income increased by 2% to $39.4 million in the fourth quarter of 2023, compared with $38.7 million, in the fourth quarter of 2022. GAAP net income in the fourth quarter of 2023 includes $3.3 million acquisition related expenses and $2.1 million fair-value adjustment of the contingent consideration payable in respect to the Vidazoo acquisition.

Non-GAAP Net Income: Non-GAAP net income increased by 19% to $52.9 million, or 23% of revenue, in the fourth quarter of 2023, from $44.7 million, or 21% of revenue, in the fourth quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $53.9 million, or 23% of revenue (and 59% of Contribution ex-TAC) in the fourth quarter of 2023, compared with $48.2 million, or 23% of revenue (and 55% of Contribution ex-TAC) in the fourth quarter of 2022. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in the fourth quarter of 2023 was $50.2 million, a 32% increase from $38.2 million in the fourth quarter of 2022.

Net cash: As of December 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $472.7 million, compared with $429.6 million as of December 31, 2022.

Financial Comparison for the Full-Year of 2023

Revenue: Revenue increased by 16% to $743.2 million in 2023 from $640.3 million in 2022. Display Advertising revenue increased by 10%, accounting for 54% of revenue, mainly driven by 114% increase in Retail Media revenue to $49.7 million and 56% growth in CTV to $33.5 million, partially offset by 7% decrease in Video revenue to $143.2 million due to shifting inventory from video to display to gain higher profit. Search Advertising revenue increased by 23%, accounting for 46% of revenue, primarily due to a 57% increase in Average Daily Searches and 18% increase in the average annual number of publishers to 160.

Traffic Acquisition Costs ("TAC"): TAC amounted to $432.9 million, or 58% of revenue, compared with $372.6 million, or 58% of revenue in 2022. Media margin remained flat year-over-year.

GAAP Net Income: GAAP net income increased by 18% to $117.4 million in 2023 from $99.2 million in 2022. GAAP net income in 2023 includes $4.0 million acquisition related expenses and $18.7 million fair-value adjustment of the contingent consideration payable in respect to the Vidazoo acquisition.

Non-GAAP Net Income: Non-GAAP net income increased by 40% to $167.4 million, or 23% of revenue, from $119.8 million, or 19% of revenue in 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $169.1 million, or 23% of revenue (and 55% of revenue ex-TAC), compared with $132.4 million, or 21% of revenue (and 49% of revenue ex-TAC) in 2022. A reconciliation of GAAP Net Income to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in 2023 was $155.5 million, a 27% increase from $122.1 million in 2022.

Conference Call

Y RU SELLING?? U SHOULD BE BUYING. WE BEAT EARNINGS HAVE A 7 PE. BUY BUY BUY I AM
PLUS WE HAVE ELECTION WHERE MORE ADVERTISING IS GOING ON

PERI...$29... Yes I agree, I'm hoping Perion buys Digital Turbine (APPS) that would add $600 million in revenue and they could sell the unprofitable parts.
Just wishful thinking I guess.
Earnings are out wed before mkt open.

This company really confuses me.
Strong financials, however the stock is severely underperforming the market, wtf??

PERI.... $28
Perion Continues to Deliver Strong Results with 17% Year-Over-Year Increase in Revenue and 29% Growth in Adjusted EBITDA

PERI.TA
-0.36%

PERI
-0.18%
Wed, November 1, 2023 at 4:11 AM PDT
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The company launches WAVE, a generative AI-powered dynamic audio advertising solution

NEW YORK & TEL AVIV, November 01, 2023--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), a global technology company whose synergistic solutions serve all major digital advertising channels - including search, social, display, and video/CTV, today reported its financial results for the third quarter ended September 30, 2023.

"Once again, our business results proved that our strategically diversified model gives us the agility to deliver continued growth," stated Tal Jacobson, Perion’s CEO. "Despite macroeconomic headwinds, our third-quarter year-over-year revenue and adjusted EBITDA increased 17% and 29%, respectively. These results were made possible by the ability to leverage our technological capabilities and focus resources on the strongest industry verticals to achieve top-line profitability and margin expansion. Specifically, our Retail Media solutions are tracking to significantly exceed our annual revenue goal for 2023."

"Our diversification remains a key differentiator for Perion, powered by exceptional execution and ongoing investment in technology," added Mr. Jacobson.

Introducing WAVE

Reaffirming its commitment to technological innovation, Perion expands its advertiser suite of solutions with the introduction of WAVE (Waveform Audio Voice Engine), a generative AI-powered dynamic audio solution that enables advertisers to generate personalized audio advertising messages at scale. The power of the solution is based on advanced algorithmic AI processing which combines first-party data with voice, reaching consumer audiences with tailored audio messages that adapt in real time to parameters such as weather, location, daypart, and many others.

"We are focused on developing technology that creates deeper and more meaningful consumer experiences," explained Mr. Jacobson. "WAVE represents our commitment to changing the game for advertisers, enabling us to tap into lucrative channels and create entirely new categories. We envision a future where every consumer interaction is customized, localized and commerce-enabled."

Albertsons is an early adopter that has seamlessly integrated WAVE into several successful campaigns and is now looking to scale the solution more broadly.

"When Perion introduced us to the AI script and voice, we were blown away. It was very hard to detect that it was an actual AI voice – right down to the nuances of how certain products are pronounced, and the annunciation. To see the machine actually learning those dialogue differences was super important to us," said Tony Colvin, Director – Paid Media, Albertsons Companies.

WAVE is launching into the Retail vertical, adding a richer, multi-dimensional capability to each consumer touchpoint. Perion plans to quickly roll out WAVE to additional verticals, including QSR - Quick-Service Restaurants, automotive, and travel.

Third Quarter 2023 Business Highlights

? Retail Media1 revenue increased 112% year-over-year to $13.0 million, representing 13% of Display Advertising revenue compared to 7% last year

? CTV revenue2 increased 39% year-over-year to $7.9 million, representing 8% of Display Advertising revenue compared to 7% last year

? Video revenue decreased 16% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 32% of Display Advertising revenue, compared to 44% last year

? The number of Average Daily Searches increased by 86% year-over-year to 31.3 million. The number of Search Advertising publishers increased by 16% year-over-year to 164

1 Retail Media revenue includes all media channels, such as CTV, video and others

2 Starting in the previous quarter, we changed our methodology for measuring our CTV activity. We moved from measuring CTV campaigns to measuring CTV channels. The CTV growth trend under both methodologies remains in the same trajectory. Under our updated methodology, revenue generated from CTV in the third quarter of 2022 was $5.7 million vs. $7.4 million under the previous methodology.

Third Quarter 2023 Financial Highlights1

In millions,

Three months ended

Nine months ended

except per share data

September 30,

September 30,

2023

2022

%

2023

2022

%

Display Advertising Revenue

$

99.2

$

86.8

14%

$

278.5

$

236.9

18%

Search Advertising Revenue

$

86.1

$

71.8

20%

$

230.5

$

193.7

19%

Total Revenue

$

185.3

$

158.6

17%

$

509

$

430.6

18%

Contribution ex-TAC (Revenue ex-TAC)1

$

77.3

$

65

19%

$

219.6

$

180

22%

GAAP Net Income

$

32.8

$

25.6

28%

$

78

$

60.5

29%

Non-GAAP Net Income1

$

42.4

$

29.9

42%

$

114.4

$

75.1

52%

Adjusted EBITDA1

$

42.7

$

33

29%

$

115.2

$

84.1

37%

Adjusted EBITDA to Revenue ex-TAC

55%

51%

52%

47%

Net Cash from Operations

$

40.1

$

34.7

16%

$

105.2

$

83.9

25%

GAAP Diluted EPS

$

0.65

$

0.53

23%

$

1.57

$

1.27

24%

Non-GAAP Diluted EPS1

$

0.84

$

0.61

38%

$

2.28

$

1.56

46%

Outlook for 2023 2

With the first three quarters of 2023 behind us, Perion reiterates its annual revenue and adjusted EBITDA guidance.

In millions

2022

2023

Guidance

YoY

Growth %3

Revenue

$640.3

$730-$750

16%

Adjusted EBITDA

$132.4

$167+

26%

Adjusted EBITDA to Revenue

21%

23%3

Adjusted EBITDA to Contribution ex-TAC

49%

54%3

1 Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.

2 We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.

3 Calculated at revenue guidance midpoint. Adjusted EBITDA year-over-year growth calculated based on $167 million.

Financial Comparison for the Third Quarter of 2023

Revenue: Revenue increased 17% to $185.3 million in the third quarter of 2023 from $158.6 million in the third quarter of 2022. Display Advertising revenue increased 14% year-over-year, accounting for 54% of total revenue, primarily due to a 112% year-over-year increase in Retail revenue to $13.0 million and a 39% year-over-year increase in CTV revenue to $7.9 million. Search Advertising revenue increased 20% year-over-year, accounting for 46% of revenue, with 86% increase in Average Daily Searches and 16% increase in the number of publishers.

Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $108.0 million, or 58% of revenue, in the third quarter of 2023, compared with $93.6 million, or 59% of revenue, in the third quarter of 2022. The margin expansion was primarily attributed to favorable product mix and media buying optimization through our platform.

GAAP Net Income: GAAP net income increased by 28% to $32.8 million in the third quarter of 2023 compared with $25.6 million in the third quarter of 2022.

Non-GAAP Net Income: Non-GAAP net income was $42.4 million, or 23% of revenue, in the third quarter of 2023, compared with $29.9 million, or 19% of revenue, in the third quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $42.7 million, or 23% of revenue (and 55% of Contribution ex-TAC) in the third quarter of 2023, compared with $33.0 million, or 21% of revenue (and 51% of Contribution ex-TAC) in the third quarter of 2022. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in the third quarter of 2023 was $40.1 million, compared with $34.7 million in the third quarter of 2022.

Net cash: As of September 30, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $523.6 million, compared with $429.6 million as of December 31, 2022.

Conference Call

Perion’s management will host a conference call to discuss the results at 8:30 a.m. ET today:

? Registration link:

https://incommconferencing.zoom.us/webinar/register/WN_Mwx-qMqNRZKyt3FCZ1XXxQ

? Toll Free: 1-877-407-0779

? Toll/International: 1-201-389-0914

A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.

About Perion Network Ltd.

Perion is a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising. These channels converge at Perion’s intelligent HUB (iHUB), which connects the company’s demand and supply assets, providing significant benefits to brands and publishers.

Perion Delivers Strong Results with 22% Year-Over-Year Increase in Revenue and 45% Growth in Adjusted EBITDA
Wed, August 2, 2023 at 4:00 AM PDT
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Company raises annual guidance – focusing on profitability

TEL AVIV & NEW YORK, August 02, 2023--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ and TASE: PERI), a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising – today reported its financial results for the second quarter ended June 30, 2023.

"Our business results demonstrate, once again, our consistent ability to outperform the industry. We accomplish that through focusing on profitability and margin expansion, driven by efficiency and innovation", stated Tal Jacobson, Perion’s CEO. "Our growth in second-quarter revenue and adjusted EBITDA - up 22% and 45% respectively - highlights our ability to identify and seize lucrative market segments with agility. Our diversification strategy, powered by exceptional execution and investment in technology, has formed the foundation of a business model built for growth."

Second Quarter 2023 Business Highlights

CTV revenue1 increased by 104% year-over-year to $7.2 million, representing 7% of Display Advertising revenue compared to 4% last year

Retail Media2 revenue increased by 63% year-over-year to $10.1 million, representing 10% of Display Advertising revenue compared to 8% last year

Video revenue increased by 14% year-over-year, representing 41% of Display Advertising revenue compared to 44% last year

The number of Average Daily Searches increased by 68% year-over-year to 28.6 million

The number of Search Advertising publishers increased by 28% year-over-year to 159

Revenue from Perion’s AI-based cookieless targeting solution, SORT®2, grew by 84% year-over-year, representing 21% of Display Advertising revenue compared to 14% last year.

1 Starting this quarter, we changed our methodology for measuring our CTV activity. We moved from measuring CTV campaigns to measuring CTV channels. The CTV growth trend under both methodologies remains in the same trajectory. Under our updated methodology, revenue generated from CTV in the second quarter of 2022 was $3.5 million vs. $5.1 million under the previous methodology; and in the first quarter of 2023 $3.9 million vs. $6.2 million.
2 Retail Media and SORT® revenue include all media channels, such as, CTV, video and others

Second Quarter 2023 Financial Highlights1

In millions,
except per share data

Three months ended

Six months ended

June 30,

June 30,

2023

2022

%

2023

2022

%

Display Advertising Revenue

$

99.4

$

81.6

+22%

$

179.3

$

150.2

+19%

Search Advertising Revenue

$

79.1

$

65.1

+21%

$

144.4

$

121.8

+19%

Total Revenue

$

178.5

$

146.7

+22%

$

323.6

$

272.0

+19%

Contribution Ex-TAC (Revenue Ex-TAC)

$

77.0

$

60.7

+27%

$

142.3

$

115.0

+24%

GAAP Net Income

$

21.4

$

19.5

+10%

$

45.2

$

35.0

+29%

Non-GAAP Net Income

$

42.1

$

24.5

+72%

$

72.0

$

45.2

+59%

Adjusted EBITDA

$

41.2

$

28.5

+45%

$

72.5

$

51.1

+42%

Adjusted EBITDA to Contribution Ex-TAC

54%

47%

51%

44%

Net Cash Provided by Operating Activities

$

47.4

$

25.7

+84%

$

65.2

$

49.3

+32%

GAAP Diluted EPS

$

0.43

$

0.41

+5%

$

0.91

$

0.74

+23%

Non-GAAP Diluted EPS

$

0.84

$

0.51

+65%

$

1.45

$

0.95

+53%

1 Contribution Ex-TAC, Non-GAAP Net Income, Adjusted EBITDA and Non-GAAP diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.

Outlook for 20232

"We are encouraged by the strong results we achieved in the first half of 2023", commented Tal Jacobson, Perion’s CEO. "Consequently, we are raising our annual revenue and adjusted EBITDA guidance to reflect increased profitability and margin expansion".

In millions

2022

Prior 2023 Guidance

Current 2023 Guidance

YoY

Growth %1

Revenue

$640.3

$725-$745

$730-$750

16%

Adjusted EBITDA

$132.4

$155+

$167+

26%

Adjusted EBITDA to Revenue

21%

21%1

23%1

Adjusted EBITDA to Contribution Ex-TAC

49%

50%1

54%1

1 Calculated at revenue guidance midpoint. Adjusted EBITDA year-over-year growth calculated based on $167 million.
2 We have not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because we do not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.

Financial Comparison for the Second Quarter of 2023

Revenue: Revenue increased by 22% to $178.5 million in the second quarter of 2023 from $146.7 million in the second quarter of 2022. Display Advertising revenue increased 22% year-over-year, accounting for 56% of total revenue, primarily due to a 14% year-over-year increase in video revenue to $40.9 million and 104% year-over-year increase in CTV revenue to $7.2 million. Search Advertising revenue increased by 21% year-over-year, accounting for 44% of revenue, primarily due to a 68% increase in Average Daily Searches and a 28% increase in the number of publishers. RPM gradually increased in the second quarter compared to the first quarter of 2023.

Traffic Acquisition Costs and Media Buy ("TAC"): TAC amounted to $101.5 million, or 57% of revenue, in the second quarter of 2023, compared with $86.0 million, or 59% of revenue, in the second quarter of 2022. The margin expansion was primarily due to improved product mix in addition to media buying optimization, enabled by leveraging data and buying power.

GAAP Net Income: GAAP net income increased by 10% to $21.4 million in the second quarter of 2023 from $19.5 million in the second quarter of 2022. GAAP net income in the second quarter of 2023 includes a $14.6 million fair-value adjustment of the contingent consideration payable in respect to the Vidazoo acquisition due to overachievement and an amendment to the share purchase agreement entered into effect this quarter as a result of their outstanding performance.

Non-GAAP Net Income: Non-GAAP net income was $42.1 million, or 24% of revenue, in the second quarter of 2023, compared with $24.5 million, or 17% of revenue, in the second quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $41.2 million, or 23% of revenue (and 54% of Contribution Ex-TAC) in the second quarter of 2023, compared with $28.5 million, or 19% of revenue (and 47% of Contribution Ex-TAC) in the second quarter of 2022. A reconciliation of GAAP income from operations to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in the second quarter of 2023 was $47.4 million, compared with $25.7 million in the second quarter of 2022.

Net cash: As of June 30, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $483.3 million, compared with $429.6 million as of December 31, 2022.

Conference Call

Perion’s management will host a conference call to discuss the results at 8:30 a.m. ET today:

Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_xMvsgXNoSAyrwYE3yNKUcA#/registration

Toll Free: 1-877-407-0779

Toll/International: 1-201-389-0914

A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.

About Perion Network Ltd.
Perion is a global multi-channel advertising technology company that delivers synergistic solutions across all major channels of digital advertising – including search advertising, social media, display, video and CTV advertising. These channels converge at Perion’s intelligent HUB (iHUB), which connects the company’s demand and supply assets, providing significant benefits to brands and publishers.

For more information, visit Perion's website at www.perion.com.

Non-GAAP Measures
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This press release includes certain non-GAAP measures, including Contribution Ex-TAC, Adjusted EBITDA, Non-GAAP net income and Non-GAAP earning per share.

Contribution Ex-TAC presents revenue reduced by traffic acquisition costs and media buy, reflecting a portion of our revenue that must be directly passed to publishers or advertisers and presents our revenue excluding such items. We believe Contribution Ex-TAC is a useful measure in assessing the performance of the Company because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs and media buy related to revenue reported on a gross basis.

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as income from operations excluding stock-based compensation expenses, depreciation, amortization of acquired intangible assets, retention and other acquisition-related expenses and gains and losses recognized with respect to changes in the fair value of contingent consideration.

Non-GAAP net income and Non-GAAP earnings per share are defined as net income and net earnings per share excluding stock-based compensation expenses, retention and other acquisition-related expenses, revaluation of acquisition-related contingent consideration, amortization of acquired intangible assets and the related taxes thereon, non-recurring expenses, foreign exchange gains and losses associated with ASC-842, as well as gains and losses recognized with respect to changes in fair value of contingent consideration.

The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Consequently, no reconciliation of the forward-looking non-GAAP financial measures is included in this press release. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release.

Forward Looking Statements
This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, potential litigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive pressures, market acceptance of new products, changes in applicable laws and regulations as well as industry self-regulation, data breaches, cyber-attacks and other similar incidents, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. Various other risks and uncertainties may affect Perion and its results of operations, as described in reports filed by Perion with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended December 31, 2022 filed with the SEC on March 15, 2023. Perion does not assume any obligation to update these forward-looking statements.

PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
In thousands (except share and per share data)

Three months ended

Six months ended

June 30,

June 30,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenue

Display Advertising

$ 99,379

$ 81,551

$ 179,257

$ 150,154

Search Advertising

79,091

65,105

144,363

121,817

Total Revenue

178,470

146,656

323,620

271,971

Costs and Expenses

Cost of revenue

9,589

6,861

17,148

13,474

Traffic acquisition costs and media buy

101,482

85,956

181,357

156,930

Research and development

8,236

8,336

16,589

17,369

Selling and marketing

13,857

13,955

28,812

27,293

General and administrative

7,413

6,468

13,956

12,134

Changes in fair value of contingent consideration

14,602

-

14,602

-

Depreciation and amortization

3,405

3,208

6,766

6,393

Total Costs and Expenses

158,584

124,784

279,230

233,593

Income from Operations

19,886

21,872

44,390

38,378

Financial income, net

5,158

903

8,586

1,507

Income before Taxes on income

25,044

22,775

52,976

39,885

Taxes on income

3,638

3,275

7,785

4,919

Net Income

$ 21,406

$ 19,500

$ 45,191

$ 34,966

Net Earnings per Share

Basic

$ 0.46

$ 0.44

$ 0.97

$ 0.79

Diluted

$ 0.43

$ 0.41

$ 0.91

$ 0.74

Weighted average number of shares

Basic

46,961,028

44,439,023

46,673,439

44,238,414

Diluted

49,637,258

47,292,249

49,551,061

47,210,769

PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
In thousands

June 30,

December 31,

2023

2022

(Unaudited)

(Audited)

ASSETS

Current Assets

Cash and cash equivalents

$ 185,928

$ 176,226

Restricted cash

1,315

1,295

Short-term bank deposits

225,300

253,400

Accounts receivable, net

140,734

160,488

Prepaid expenses and other current assets

18,947

12,049

Marketable Securities

72,090

-

Total Current Assets

644,314

603,458

Long-Term Assets

Property and equipment, net

3,181

3,611

Operating lease right-of-use assets

8,318

10,130

Goodwill and intangible assets, net

241,235

247,191

Deferred taxes

6,414

5,779

Other assets

52

49

Total Long-Term Assets

259,200

266,760

Total Assets

$ 903,514

$ 870,218

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

Accounts payable

$ 145,639

$ 155,854

Accrued expenses and other liabilities

29,861

37,869

Short-term operating lease liability

3,920

3,900

Deferred revenue

1,978

2,377

Short-term payment obligation related to acquisitions

69,333

34,608

Total Current Liabilities

250,731

234,608

Long-Term Liabilities

Payment obligation related to acquisition

-

33,113

Long-term operating lease liability

5,480

7,580

Other long-term liabilities

10,811

11,783

Total Long-Term Liabilities

16,291

52,476

Total Liabilities

267,022

287,084

Shareholders' equity

Ordinary shares

405

398

Additional paid-in capital

522,217

513,534

Treasury shares at cost

(1,002)

(1,002)

Accumulated other comprehensive loss

(1,105)

(582)

Retained earnings

115,977

70,786

Total Shareholders' Equity

636,492

583,134

Total Liabilities and Shareholders' Equity

$ 903,514

$ 870,218

PERION NETWORK LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
In thousands

Three months ended

Six months ended

June 30,

June 30,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from operating activities

Net Income

$ 21,406

$ 19,500

$ 45,191

$ 34,966

Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

3,405

3,208

6,766

6,393

Stock-based compensation expenses

3,100

2,701

6,502

5,129

Foreign currency translation

(11)

(128)

(13)

(174)

Accrued interest, net

2,150

(639)

(2,031)

(1,181)

Deferred taxes, net

(554)

(44)

(476)

(248)

Accrued severance pay, net

(1,873)

409

(275)

503

Gain from sale of property and equipment

(5)

(6)

(17)

(6)

Net change in operating assets and liabilities

19,754

720

9,504

3,893

Net cash provided by operating activities

$ 47,372

$ 25,721

$ 65,151

$ 49,275

Cash flows from investing activities

Purchases of property and equipment, net of sales

(217)

(177)

(351)

(429)

Marketable securities, net

(20,789)

-

(72,195)

-

Short-term deposits, net

26,000

(1,000)

28,100

(33,400)

Cash paid in connection with acquisitions, net of cash acquired

-

(6,170)

-

(9,570)

Net cash provided by (used in) investing activities

$ 4,994

$ (7,347)

$ (44,446)

$ (43,399)

Cash flows from financing activities

Proceeds from exercise of stock-based compensation

125

346

2,188

1,294

Payments of contingent consideration

-

(9,091)

(13,256)

(9,091)

Net cash provided by (used in) financing activities

$ 125

$ (8,745)

$ (11,068)

$ (7,797)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

8

(147)

85

(177)

Net increase (decrease) in cash and cash equivalents and restricted cash

52,499

9,482

9,722

(2,098)

Cash and cash equivalents and restricted cash at beginning of period

134,744

93,955

177,521

105,535

Cash and cash equivalents and restricted cash at end of period

$ 187,243

$ 103,437

$ 187,243

$ 103,437

PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
In thousands

Three months ended

Six months ended

June 30,

June 30,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

Total Revenue

$ 178,470

$ 146,656

$ 323,620

$ 271,971

Traffic acquisition costs and media buy

101,482

85,956

181,357

156,930

Contribution Ex-TAC

$ 76,988

$ 60,700

$ 142,263

$ 115,041

Three months ended

Six months ended

June 30,

June 30,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

GAAP Income from Operations

$ 19,886

$ 21,872

$ 44,390

$ 38,378

Stock-based compensation expenses

3,100

2,701

6,502

5,129

Retention and other acquisition-related expenses

250

679

257

1,230

Changes in fair value of contingent consideration

14,602

-

14,602

-

Amortization of acquired intangible assets

2,992

2,812

5,955

5,601

Depreciation

413

396

811

792

Adjusted EBITDA

$ 41,243

$ 28,460

$ 72,517

$ 51,130

PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
In thousands (except share and per share data)

Three months ended

Six months ended

June 30,

June 30,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

GAAP Net Income

$ 21,406

$ 19,500

$ 45,191

$ 34,966

Stock-based compensation expenses

3,100

2,701

6,502

5,129

Amortization of acquired intangible assets

2,992

2,812

5,955

5,601

Retention and other acquisition-related expenses

250

679

257

1,230

Changes in fair value of contingent consideration

14,602

-

14,602

-

Foreign exchange losses (gains) associated with ASC-842

(81)

(548)

(198)

(745)

Revaluation of acquisition-related contingent consideration

147

129

292

261

Taxes on the above items

(289)

(771)

(574)

(1,212)

Non-GAAP Net Income

$ 42,127

$ 24,502

$ 72,027

$ 45,230

Non-GAAP diluted earnings per share

$ 0.84

$ 0.51

$ 1.45

$ 0.95

Shares used in computing non-GAAP diluted earnings per share

49,922,156

47,906,671

49,832,074

47,744,781

View source version on businesswire.com: https://www.businesswire.com/news/home/20230802202555/en/

Contacts

Perion Network Ltd.
Dudi Musler, VP of Investor Relations
+972 (54) 7876785
dudim@perion.com

Perion Network Positioned for Growth in Search Advertising with Enhanced Bing Offering, Says Analyst
3:06 pm ET July 10, 2023 (Benzinga) Print
Needham analyst Laura Martin reiterates Perion Network Ltd (NASDAQ: PERI) with a Buy and a $42 price target.

Perion (PERI) reports gross revenues in two categories each quarter: 1) Display Advertising; and 2) Search Advertising. In 1Q23, the Search Advertising segment represented 45% of PERI's total gross revenues, similar to Search's 44% for FY22.

In this report, the analyst did a deep dive into how PERI makes money in Search and why she expects this revenue stream to grow.

Historically, the primary reason customers chose Microsoft Corp (NASDAQ: MSFT) Bing was a higher share of ad revenues, the analyst believes.

ChatGPT has added a compelling new selling point for Bing, and PERI is having an easier time getting new clients to switch to Bing, which should drive faster growth, she believes.

PERI's next CEO, Tal Jacobson, has led the Search segment since 2018 and has overseen its rapid revenue growth.

PERI is a distributor for Bing globally. Microsoft has given PERI the right to put Bing on browsers, devices, and websites globally for a share of the ad dollars on Bing's results pages.

If a consumer uses the Firefox browser, Bing is the default search engine. That is, every time a consumer enters a keyword into the search box, Bing delivers results with ads. If Firefox is PERI's client, PERI gets a revenue share of every Bing ad dollar earned on Firefox until the contract ends.

Lenovo's laptops use Bing as their default search engine. If Lenovo is a client of PERI's, then every time a consumer searches using Bing, PERI gets a rev share of the ad revs on each search results page.

Of every $100 an advertiser pays MSFT for Bing, Martin estimates that MSFT keeps 15%-25% and pays out 75%-85% to PERI. She estimates that PERI typically keeps 25%-30% and pays out 45%-60% to the publisher.

Once PERI launches Bing for a new client, 100% of the ad units on Bing's search results are exclusive to PERI. Said another way, PERI gets paid a revenue share of every ad on all Bing search results on that publisher/device/ browser, etc. (i.e., client) until the contract ends.

Today, PERI sells Bing to enterprises in 62 countries where MSFT has a critical mass of advertisers.

After PERI convinces a new client to use Bing as its default search engine, it must get MSFT's approval before launch. Approvals and tech integration typically take 1 to 3 months, depending on the new client. Both represent material barriers to entry.

There are a total of about a dozen total distributors for Bing globally, Martin estimates. She believes PERI is among the largest, especially since Microsoft's Advertising division awarded PERI's Search subsidiary (called CodeFuel) top honors as its 2021 Supply Partner of the Year for EMEA.

A key positive of PERI's Search revenues is the positive working capital aspects of the Bing deal.

PERI.... $36.50 .. After much thought about Spruce point, I kept all my shares, My fingers are crossed.

Perion Network Expects 20% YoY Revenue Growth and 40% YoY Increase in Adjusted EBITDA in Second Quarter 2023
July 6, 2023

Company to announce second quarter 2023 financial results and updated annual outlook on August 2, 2023

TEL AVIV & NEW YORK, July 06, 2023--(BUSINESS WIRE)--Perion Network Ltd. (Nasdaq & TASE: PERI), a global advertising technology company whose synergistic solutions are delivered across the three primary channels of digital advertising – search, social media and display/video/CTV advertising, today announced preliminary results for the second quarter of 2023.

$ million

Actual
Q2 2022

Preliminary
Q2 2023

YoY

Revenue

146.7

176.0

20%

Adjusted EBITDA(1)

28.5

40.0

40%

Adjusted EBITDA to Revenue(1)

19%

23%

(1) Adjusted EBITDA is a non-GAAP measure. See a reconciliation table below

"The strength of our second quarter results reflects continued momentum of the business," said Tal Jacobson, Perion’s incoming CEO. "Both the second quarter and first six months highlight the power of our executional agility, underlying technological innovation and market fit. Our diversified and scalable business model has allowed us to capitalize on recent positive market indications, resulting in improved margins and market share gains. Based on preliminary data suggesting stronger than initially anticipated growth, we will provide an update to our annual outlook when we report our financial results on August 2."

Conference Call Details

Perion will release its financial results for the second quarter of 2023 on Wednesday, August 2, 2023, prior to the opening of the financial markets. Incoming CEO Tal Jaconson and CFO Maoz Sigron will host a conference call to discuss the results at 8:30

Spruce Point shorts ad-tech firm Perion Network
Tue, May 23, 2023 at 6:21 AM PDT
In this article:

PERI
-1.15%

(Reuters) -Spruce Point Capital Management said on Tuesday it was short on ad technology firm Perion Network, as it had concerns about the accuracy of the company's "financial reporting, efficacy of its product suite, and the sustainability of its growth."

Shares of the company fell 4.9% in trading before the bell.

"Perion has a history of business model pivots that spark unsustainable improvements in performance and share price," said the New York-based short-seller, which issued a "strong sell" rating on Perion.

"We believe this time is no different and will end poorly for investors."

Perion did not immediately respond to a request for comment.

Spruce Point said it sees a 25% to 40% long-term downside risk to Perion’s share price and it was concerned about the company's "extreme dependency" on its partnership with Microsoft.

The investment firm said in its report that in 2021 and 2022, Perion reported that 37% and 35% of the company's revenue came from Microsoft.

(Reporting by Chavi Mehta in Bengaluru; Editing by Maju Samuel)

PERI.... $32 Buy the dip, Sell the rip ????

From the CC...

"Our first quarter reflected search numbers were boosted by a significant increase of 29% in the number of publishers, they sense the potential and want to be part of it. As a result, average daily traffic increased dramatically by nearly 50% year-over-year and are now close to a 30 million monetized search a day on an average basis.

We believe that the massive media attention to ChatGPT 4 has driven a material portion of this and that will continue to see growth that exceeds our normative project. Microsoft being has a real competitive advantage now and that cascade immediately to our business." - Doron, CC

"Our first quarter reflected search numbers were boosted by a significant increase of 29% in the number of publishers, they sense the potential and want to be part of it. As a result, average daily traffic increased dramatically by nearly 50% year-over-year and are now close to a 30 million monetized search a day on an average basis.

We believe that the massive media attention to ChatGPT 4 has driven a material portion of this and that will continue to see growth that exceeds our normative project. Microsoft being has a real competitive advantage now and that cascade immediately to our business." - Doron, CC

PERI... $34 ... Earnings Today..

Perion’s Momentum Continues, Delivering 16% Revenue Growth and 54% Increase in Net Income

Wed, May 3, 2023 at 6:39 AM EDT
In this article:

PERI.TA
-1.62%
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Perison Reports Qtrly GAAP Diluted EPS $0.48
PERI
-3.06%

Company raises Annual Guidance, Reflecting Continued Media Margin Expansion and Strong Growth Drivers

TEL AVIV, Israel & NEW YORK, May 03, 2023--(BUSINESS WIRE)--Perion Network Ltd. (NASDAQ & TASE: PERI), a global advertising technology company whose synergistic solutions are delivered across the three primary channels of digital advertising – ad search, social media, and display/video/CTV advertising – today reported its financial results for the first quarter ended March 31, 2023.

Doron Gerstel, Perion’s CEO, stated, "We continue to outperform the adtech industry despite the challenging macro environment, as reflected in our ongoing market share gains and increased efficiencies, which are made possible by our innovative technology. All of these collectively, are driving top-line growth and margin expansion".

"We are growing in the areas where technology matters most," added Mr. Gerstel. "These include video – which continues to represent an increasing portion of our display revenue; our fast-growing retail media channel; our privacy-first targeting solution SORT®, and our search advertising solution. The rapid emergence of ChatGPT in the market and Microsoft’s mission to further expand the role of AI within search, has elevated user interest in Bing. As a result, we experienced a 49% year-over-year growth in average daily searches, as well as a lift in new publishers".

"Our ongoing margin and top-line growth are the result of our ability to consolidate cross channel data signals in a central place – Perion’s iHUB. Advanced proprietary AI technology powers a centralized bidding system that maximizes unit revenue (CPM), while reducing media cost and simultaneously meeting our customer ROAS (Return on Ad Spend) expectations," added Mr. Gerstel.

First Quarter 2023 Business Highlights

Media margin increased to 45%, compared with 43% in the first quarter of 2022

Video revenue increased by 26% year-over-year, representing 44% of Display Advertising Revenue compared with 41% last year

The number of video platform publishers increased by 63% year-over-year to 75 publishers

Revenue from retained video platform publishers increased by 71% year-over-year

Average revenue per video platform publisher increased by 22% year-over-year

CTV revenue increased by 12% year-over-year, representing 8% of Display Advertising Revenue - similar to last year, with the number of CTV customers nearly doubling

Retail Media revenue increased by 60% year-over-year, representing 8% of Display Advertising Revenue compared with 6% last year, with the number of retail media customers up 32% over the same period

SORT® spending increased by 93% year-over-year, representing 17% of Display Advertising Revenue, driven by a 142% increase in the number of customers

The number of search advertising publishers increased by 29% year-over-year, while the number of average daily searches increased by 49% to 26.3 million over the same period

First Quarter 2023 Financial Highlights(1)

In millions,
except per share data


Three months ended



March 31,



2023


2022


%


Display Advertising Revenue


$


79.9


$


68.6


+16%


Search Advertising Revenue


$


65.3


$


56.7


+15%


Total Revenue


$


145.2


$


125.3


+16%


Gross Profit (Revenue ex-TAC)


$


65.3


$


54.3


+20%


GAAP Net Income


$


23.8


$


15.5


+54%


Non-GAAP Net Income


$


29.9


$


20.7


+44%


Adjusted EBITDA


$


31.3


$


22.7


+38%


Adjusted EBITDA to Revenue ex-TAC


48%


42%


Net Cash from Operations


$


17.8


$


23.6


-25%


GAAP Diluted EPS


$


0.48


$


0.33


+45%


Non-GAAP Diluted EPS


$


0.60


$


0.44


+36%


(1) See below reconciliation of GAAP to Non-GAAP measures.

Outlook for 2023

"Given our current visibility, and the sustainability and predictability of our business model, we feel confident in raising annual guidance for the full year 2023. The management transition announced in February is on track and I am confident that Perion will continue to thrive under Tal Jacobson’s leadership," concluded Mr. Gerstel.

In millions


2022


Prior 2023 Guidance


Current 2023 Guidance


YoY

Growth %1


Revenue


$640.3


$720-$740


$725-$745


15%1


Adjusted EBITDA


$132.4


$149-153


$155+


17%


Adjusted EBITDA to Revenue


21%


21%1


21%1


Adjusted EBITDA to Revenue ex-TAC


49%


50%1


50%1


(1) Calculated at revenue guidance midpoint

Financial Comparison for the First Quarter of 2023

Revenue: Revenue increased by 16% to $145.2 million in the first quarter of 2023 from $125.3 million in the first quarter of 2022. Display Advertising Revenue increased by 16% year-over-year, accounting for 55% of total revenue. Growth was primarily due to a 26% increase in video revenue, 12% increase in CTV revenue, 93% increase in SORT® customer spending and a 60% year-over-year increase in Retail media revenue. Search Advertising Revenue increased by 15% year-over-year, accounting for 45% of revenue, primarily due to a 29% increase in the number of publishers and a 49% increase in average daily searches, offsetting a 22% decrease in RPM.

Traffic Acquisition Costs ("TAC"): TAC amounted to $79.9 million, or 55% of revenue, in the first quarter of 2023, compared with $71.0 million, or 57% of revenue, in the first quarter of 2022. The improvement in media margin was primarily due to our proprietary iHUB technology which optimizes media buying and reduces our media cost, as well as Search and Display advertising product mix.

Net Income: On a GAAP basis, net income increased by 54% to $23.8 million in the first quarter of 2023 from $15.5 million in the first quarter of 2022. Non-GAAP net income was $29.9 million, or 21% of revenue, in the first quarter of 2023, compared with $20.7 million, or 17% of revenue, in the first quarter of 2022. A reconciliation of GAAP to non-GAAP net income is included in this press release.

Adjusted EBITDA: Adjusted EBITDA was $31.3 million, or 22% of revenue and 48% of revenue ex-TAC, in the first quarter of 2023, compared with $22.7 million, or 18% of revenue and 42% of revenue ex-TAC, in the first quarter of 2022. A reconciliation of GAAP Net Income to Adjusted EBITDA is included in this press release.

Cash Flow from Operations: Net cash provided by operating activities in the first quarter of 2023 was $17.8 million, compared with $23.6 million in the first quarter of 2022. Operating cash flow was affected by the shift of approximately $8 million in customer collection from March 2023 to April 2023 and a one-time change in working capital needs.

Cash, cash equivalents, short-term bank deposits and marketable securities: As of March 31, 2023, cash and cash equivalents, short-term bank deposits and marketable securities amounted to $436.3 million, compared with $429.6 million as of December 31, 2022. The $6.7 million increase is primarily a result of $17.8 million in cash from operations, partially offset by $13.3 million cash paid in connection with acquisitions.

Conference Call

Perion management will host a conference call to discuss the results at 8:30 a.m. ET today. Call details:

Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_Uje6WNcQSpmH5CcsC3x4pg

Toll Free: 1-877-407-0779

Toll/International: 1-201-389-0914

A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.

About Perion Network Ltd.

PERI... Bought during the pandemic at an avg of $16. See what Bing brings, should know soon.

NEWS: $PERI Undertone and Integral Ad Science (IAS) Introduce Viewable-to-Complete Video Buying Metric

Undertone , the leader in Intelligent High Impact who creates the most memorable digital experiences for brands, has officially released its new video Key Performance Indicator (KPI) and buying model with IAS, called Viewable-to-Complete Video (VTC). Now top-tier brands who partner ...

Read the whole news PERI - Undertone and Integral Ad Science (IAS) Introduce Viewable-to-Complete Video Buying Metric

News; $PERI Perion Network Increases Second Half 2020 Financial Guidance and Announces Third Quarter Reporting Date

Improved Outlook Driven by Faster Recovery of Advertising Business; Company to Announce Third Quarter Financial Results on October 28, 2020 Perion Network Ltd. (NASDAQ: PERI), a global technology company that delivers its Synchronized Digital Branding solution across...

Read the whole news PERI - Perion Network Increases Second Half 2020 Financial Guidance and Announces Third Quarter Reporting Date

News: $PERI Perion to Acquire Pub Ocean, an Innovative Publisher Technology Platform, for up to $22 Million

Accretive and Synergistic Acquisition Expected to Generate an Incremental $25 Million in Revenues and $5 Million in Adjusted EBITDA over the Next 12 Months Perion Network Ltd., (NASDAQ: PERI), a global technology company that delivers its Synchronized Digital Branding solution across t...

Find out more PERI - Perion to Acquire Pub Ocean, an Innovative Publisher Technology Platform, for up to $22 Million

Is this good to buy?

News: $PERI Perion Network to Announce Second Quarter 2020 Financial Results on August 5, 2020

Perion Network Ltd. (NASDAQ: PERI), a global technology company that delivers Synchronized Digital Branding solutions across the three main pillars of digital advertising - Ad Search, Social media and Display / Video, announced today that it will release its financial results for the second q...

Read the whole news PERI - Perion Network to Announce Second Quarter 2020 Financial Results on August 5, 2020

Whos here in 2020?

News: $PERI MakeMeReach - Leading Global Digital Ad Platform - Announces Pinterest Partnership

Pinterest joins Facebook, Instagram, Google, Twitter and Snapchat, enabling MakeMeReach to offer full-stack capabilities for media purchase, optimization and reporting Perion Network Ltd. (NASDAQ: PERI) announced today that MakeMeReach , its innovative digital ad tech subsidiary tha...

Find out more PERI - MakeMeReach - Leading Global Digital Ad Platform - Announces Pinterest Partnership

News: $PERI Perion Reports EPS of $0.11 for the Second Quarter of 2019

Revenues of $63.6 million, increased 1% year-over-year, representing the first quarter of growth in the last three years; GAAP Net Income of $2.9 million, increased 194% year-over-year; GAAP Earnings Per Share of $0.11, increased 267% year-over-year; Net cash provided from oper...

Got this from Perion Reports EPS of $0.11 for the Second Quarter of 2019

PERI - Hot Stock - Can It Break Up Higher?

Huge momentum over the last few days with good technicals respected making it easier to see a clear direction. We expect this to form an Elliot Wave Cycle, currently in wave 3. Could retrace into 4 then a 5.

About:

Perion Network Ltd is an Israel-based global technology company. It delivers online advertising solutions and search monetization to brands and publishers. It provides data-driven execution, from high-impact ad formats to branded search and a unified social and mobile programmatic platform. Its business solutions include Undertone, Codefuel, MakeMeReach and Smilebox. Undertone’s synchronized digital branding solution delivers creative experiences through cohesive stories to the portfolio of Websites, mobile applications, touchpoints, screens, and platforms. CodeFuel is search solution platform, which allows publishers to create new revenue streams and search experience by bringing monetization to content and application developers. MakeMeReach platform helps advertisers and agencies create, manage and optimize their marketing campaigns on multiple social channels. Smilebox enables people to tell the stories of their lives with customizable eCards, slideshows and invitations.

SHORT INTEREST
58.42K 06/28/19

P/E Ratio (with extraordinary items)
11.25

Analyst Recommendation: BUY

Analyst Price Target: $5.50

News: $PERI Perion Network to Announce Second Quarter 2019 Financial Results on August 7, 2019

Perion Network Ltd. (NASDAQ:PERI), today announced that it will release its financial results for the second quarter ended June 30, 2019, on Wednesday, August 7, 2019, prior to the opening of the financial markets. Perion management will host a conference call to discuss the results at ...

Find out more Perion Network to Announce Second Quarter 2019 Financial Results on August 7, 2019

News: $PERI Undertone Expands its Synchronized Digital Branding Offering to Connected Television with Alphonso Partnership

Cross-screen Synchronized Digital Branding now possible through connection of Alphonso's Video AI-driven user-level TV viewing data and Undertone's publisher platform and breakthrough digital ad creative Perion Network Ltd. (NASDAQ:PERI) announced today that Undertone , a leader in ...

Find out more Undertone Expands its Synchronized Digital Branding Offering to Connected Television with Alphonso Partnership

Anyone have a clue as to why two Form T trades (presumably the same person selling at the same moment) went through after hours at $3.42?

I assume it's someone who came back from their summer vacation, briefly checked their stock holdings, and didn't notice there's been a reverse split earlier this week....

I noticed it because S.Alpha had PERI among the biggest after-hours gainers/losers in a notice sent to my email inbox.

Or a few days....

PERI got out an hour or so too early )

Will check it out,saw a big wall @1.10 Profit is a Profit
Tks

There's a very bullish article just released mid-morning over at S.Alpha so this may run higher when more people see it in their email inbox tomorrow.

PERI all out today for a 10% gain

Wrong. Earnings were 6 cents, vs 5 cents in the year ago period.

PERI Perion Network Q2 EPS $0.06 Down From $0.08 YoY, Sales $62.797M Miss $68.01M Estimate
9:41 am ET August 9, 2018 (Benzinga) Print
Perion Network (NASDAQ:PERI) reported quarterly earnings of $0.06 per share. This is a 25 percent decrease over earnings of $0.08 per share from the same period last year. The company reported quarterly sales of $62.797 million which missed the analyst consensus estimate of $68.01 million by 7.67 percent. This is a 19.49 percent decrease over sales of $78.003 million the same period last year.

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Moves to expensive digs......always thought it cost more to ramp up and hire like mad, and falls to bottom line only years later?

https://www.bizjournals.com/newyork/news/2018/07/31/undertone-has-new-fidi-headquarters.html?ana=yahoo&yptr=yahoo


Still waiting for BLIN to pay for overheaqd 8 years later.

* * $PERI Video Chart 05-10-18 * *

Link to Video - click here to watch the technical chart video

Could I suggest a different monetary strategy than investing in PERI?

1. Go outside
2. Set money on fire
3. ???

I agree with those possibilities and I've been adding shares, grew my position here by about 65% -- buying 2500 more shares on Friday at .93, 2500 more shares yesterday at 0.85-87, and today another 3k shares at 0.84-85. Have my overall cost-basis down from 0.98 to just under $0.94/share.

With management currently in a restructure mode going forward and new rules couldn't PERI actually come out much stronger? IMO, obviously less competition. Also with Q4 notoriously the strongest could this actually be a buying opportunity. Or just follow the herd?

It may involve the GDPR regulatory matter -- you'll have to go over to the Ihub SavvyTrades board to read some discussion about this-- especially Researcher59's lengthy citation from PERI about this....

It's always something. If it's not one thing it's another.

It appears their is an earnings leak and it is not good. Based on volume and drop in PPS today.

I think so.

That makes sense, Thanks! I suppose they are trying to create a smart platform for getting the best value for a company's advertising dollars when the don't have specific targetting requirements.

I think what it means is their customers have budgets that include scheduled ongoing spending with advertising companies(as part of an ongoing contract) and separate funds(discretionary) to spend on what they consider the best option for advertising campaigns and their goal is to get more of this discretionary campaign money.

That is what I take from it.