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Perion(PERI) - 2023 Q2 - Earnings Call Transcript
2023-08-02 17:16
Financial Data and Key Metrics Changes - Revenue for Q2 2023 grew by 22% year-over-year to $178.5 million, reflecting strong continued growth [20][59] - Adjusted EBITDA for the quarter increased by 45% year-over-year to $41.2 million, with an adjusted EBITDA margin rising from 19% to 23% [41][20] - GAAP net income increased by 10% year-over-year to $21.4 million, with non-GAAP diluted EPS growing by 65% year-over-year to $0.84 per diluted share [20][22] - Cash and cash equivalents increased from $436 million at the end of Q1 to $483 million at the end of Q2 2023 [23] Business Line Data and Key Metrics Changes - Search Advertising revenue grew by 21% year-over-year to $79.1 million, accounting for 44% of total revenue, with average daily searches increasing by 68% year-over-year to 28.6 million [9][20] - Retail Media business accelerated, growing 63% year-over-year and accounting for 10% of Display Advertising revenue [21] - Video revenue increased by 14% year-over-year, representing 41% of Display Advertising revenue [21] - CTV revenue more than doubled compared to Q2 2022, representing 7% of Display Advertising revenue [21] Market Data and Key Metrics Changes - The company continues to outperform the digital advertising industry, capturing shifts in advertising budgets while maintaining high margins [8][17] - The contribution excluding TAC for the quarter grew by 27% year-over-year to $77 million, representing 43% of revenue [20][60] Company Strategy and Development Direction - The company aims to maintain agility and capture market share in core activities while exploring new markets [16][35] - A focus on technology and AI is emphasized, with investments in both supply and demand sides of digital advertising [34][35] - The strategic diversification business model is highlighted as a key driver for growth and flexibility in response to market changes [35][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite economic headwinds, raising the 2023 annual guidance for revenue and adjusted EBITDA [23][58] - The company is committed to innovation and efficiency measures to enhance profitability and margin expansion [39][56] Other Important Information - The company has a strong cash position and effective cash management, generating $5.2 million in financial income in Q2 [61] - The company is exploring M&A opportunities to accelerate growth, particularly in CTV and Retail Media [51][93] Q&A Session Summary Question: What are the goals for Search over the next two to three years? - The company aims to grow the number of publishers and searches while continuously seeking strategic partnerships [43][44] Question: What is the incremental value of Retail Media compared to other solutions? - Retail Media is seen as a data-driven solution that is stickier and expected to continue growing [75] Question: How does international market growth compare to North America? - The majority of business remains in the U.S., but there is significant activity in Europe due to new agreements [85] Question: What is the outlook for cash and potential acquisitions? - The company is looking for M&A opportunities to sustain growth, but share buybacks could be considered if suitable targets are not found [50][51] Question: How does the company view the impact of Generative AI? - Generative AI is recognized as a future driver for the internet and advertising, but it is still early to assess its full impact [100]
Perion(PERI) - 2023 Q3 - Quarterly Report
2023-08-01 16:00
[Q2 2023 Earnings Release Overview](index=1&type=section&id=Q2%202023%20Earnings%20Release%20Overview) Perion reported robust Q2 2023 results with significant revenue and Adjusted EBITDA growth, driven by strategic diversification and leading to an upward revision of annual guidance [Q2 2023 Performance Summary](index=1&type=section&id=Q2%202023%20Performance%20Summary) Perion reported strong second-quarter 2023 results, demonstrating consistent outperformance with significant year-over-year growth in revenue and Adjusted EBITDA, driven by a strategic focus on profitability, efficiency, innovation, and diversification in digital advertising - Perion delivered strong results with a **22% year-over-year increase in revenue** and **45% growth in Adjusted EBITDA**[1](index=1&type=chunk)[2](index=2&type=chunk) - The company's performance is attributed to focusing on profitability, margin expansion, efficiency, innovation, and a diversification strategy powered by technology investment[2](index=2&type=chunk) [Q2 2023 Business Highlights](index=1&type=section&id=Q2%202023%20Business%20Highlights) Key business segments experienced substantial year-over-year growth in Q2 2023, with CTV revenue more than doubling, Retail Media and SORT® showing strong double-digit increases, and Search Advertising expanding its reach through increased daily searches and publisher numbers Q2 2023 Business Segment Growth | Metric | Q2 2023 Growth (YoY) | % of Display Ad Revenue (Q2 2023) | % of Display Ad Revenue (Q2 2022) | | :-------------------------- | :------------------- | :-------------------------------- | :-------------------------------- | | CTV revenue | +104% | 7% | 4% | | Retail Media revenue | +63% | 10% | 8% | | Video revenue | +14% | 41% | 44% | | Average Daily Searches | +68% | N/A | N/A | | Search Advertising publishers | +28% | N/A | N/A | | SORT® revenue | +84% | 21% | 14% | - The methodology for measuring CTV activity changed from campaigns to channels, with the growth trend remaining consistent under both approaches[4](index=4&type=chunk) [Q2 2023 Financial Highlights (Summary Table)](index=2&type=section&id=Q2%202023%20Financial%20Highlights%20Table) Perion's Q2 2023 financial performance demonstrated robust growth across key metrics, including total revenue, Contribution Ex-TAC, Non-GAAP Net Income, and Adjusted EBITDA, both for the quarter and the six months ended June 30, 2023 Q2 2023 and Six-Month Financial Performance Summary | Metric (in millions, except per share data) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | % Change (YoY) | Six months ended June 30, 2023 | Six months ended June 30, 2022 | % Change (YoY) | | :---------------------------------------- | :------------------------------- | :------------------------------- | :------------- | :----------------------------- | :----------------------------- | :------------- | | 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 | $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% | +7pp | 51% | 44% | +7pp | | 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% | [2023 Annual Guidance Update](index=2&type=section&id=2023%20Annual%20Guidance) Perion raised its annual revenue and Adjusted EBITDA guidance for 2023, reflecting increased profitability and margin expansion, building on the strong performance achieved in the first half of the year 2023 Annual Guidance Comparison | Metric (in millions) | 2022 Actual | Prior 2023 Guidance | Current 2023 Guidance | YoY Growth % (Current Guidance Midpoint) | | :------------------- | :---------- | :------------------ | :-------------------- | :------------------------------------- | | Revenue | $640.3 | $725-$745 | $730-$750 | 16% | | Adjusted EBITDA | $132.4 | $155+ | $167+ | 26% | | Adjusted EBITDA to Revenue | 21% | 21% | 23% | N/A | | Adjusted EBITDA to Contribution Ex-TAC | 49% | 50% | 54% | N/A | - The company does not provide an outlook for GAAP Income from operations or a reconciliation of Adjusted EBITDA guidance to GAAP Income from operations due to the variability and complexity of certain reconciling items, such as stock-based compensation and amortization from future acquisitions[9](index=9&type=chunk) [Detailed Financial Performance (Q2 2023)](index=3&type=section&id=Financial%20Comparison%20for%20the%20Second%20Quarter%20of%202023) This section provides an in-depth analysis of Perion's Q2 2023 financial results, detailing revenue growth drivers, margin expansion, profitability metrics, and cash flow performance [Revenue Breakdown and Growth Drivers](index=3&type=section&id=Revenue) Total revenue increased by 22% year-over-year, driven by strong growth in both Display Advertising (22% increase, primarily from CTV and video) and Search Advertising (21% increase, fueled by higher average daily searches and publisher expansion) - **Total Revenue increased by 22% to $178.5 million** in Q2 2023 from $146.7 million in Q2 2022[10](index=10&type=chunk) - Display Advertising revenue increased **22% YoY**, accounting for **56% of total revenue**, primarily due to a **14% YoY increase in video revenue ($40.9 million)** and a **104% YoY increase in CTV revenue ($7.2 million)**[10](index=10&type=chunk) - Search Advertising revenue increased **21% YoY**, accounting for **44% of total revenue**, driven by a **68% increase in Average Daily Searches** and a **28% increase in the number of publishers**, with RPM also gradually increasing QoQ[10](index=10&type=chunk) [Traffic Acquisition Costs and Margin Expansion](index=3&type=section&id=Traffic%20Acquisition%20Costs%20and%20Media%20Buy%20(%22TAC%22)) Traffic Acquisition Costs (TAC) as a percentage of revenue decreased, indicating margin expansion, primarily due to an optimized product mix and enhanced media buying strategies leveraging data and buying power Traffic Acquisition Costs (TAC) Overview | Metric | Q2 2023 (in millions) | Q2 2022 (in millions) | | :----- | :-------------------- | :-------------------- | | TAC | $101.5 | $86.0 | | TAC as % of Revenue | 57% | 59% | - The margin expansion was primarily due to an improved product mix and media buying optimization, enabled by leveraging data and buying power[11](index=11&type=chunk) [GAAP and Non-GAAP Profitability](index=3&type=section&id=GAAP%20Net%20Income) GAAP Net Income increased by 10% year-over-year, influenced by a significant fair-value adjustment, while Non-GAAP Net Income and Adjusted EBITDA saw substantial increases of 72% and 45% respectively, highlighting strong operational performance Q2 2023 Profitability Metrics | Metric (in millions) | Q2 2023 | Q2 2022 | YoY Change | | :------------------- | :------ | :------ | :--------- | | GAAP Net Income | $21.4 | $19.5 | +10% | | Non-GAAP Net Income | $42.1 | $24.5 | +72% | | Adjusted EBITDA | $41.2 | $28.5 | +45% | | Adjusted EBITDA as % of Revenue | 23% | 19% | - GAAP net income in Q2 2023 includes a **$14.6 million fair-value adjustment** of contingent consideration payable for the Vidazoo acquisition due to overachievement and an amendment to the share purchase agreement[12](index=12&type=chunk) [Cash Flow and Net Cash Position](index=3&type=section&id=Cash%20Flow%20from%20Operations) Net cash provided by operating activities significantly increased by 84% year-over-year in Q2 2023, with the company's overall net cash position growing to $483.3 million by quarter-end Net Cash Provided by Operating Activities | Metric (in millions) | Q2 2023 | Q2 2022 | YoY Change | | :------------------- | :------ | :------ | :--------- | | Net Cash Provided by Operating Activities | $47.4 | $25.7 | +84% | Cash and Equivalents Position | Metric (in millions) | June 30, 2023 | December 31, 2022 | | :------------------- | :------------ | :---------------- | | Cash and cash equivalents, short-term bank deposits and marketable securities | $483.3 | $429.6 | [Company Overview and Financial Disclosures](index=4&type=section&id=About%20Perion%20and%20Non-GAAP%20Disclosures) This section provides an overview of Perion's business, defines its non-GAAP financial measures, and includes important disclaimers regarding forward-looking statements [Company Profile](index=4&type=section&id=About%20Perion%20Network%20Ltd.) Perion Network Ltd. is a global multi-channel advertising technology company providing synergistic solutions across search, social, display, video, and CTV, integrated through its intelligent HUB (iHUB) for brands and publishers - Perion is a global multi-channel advertising technology company delivering synergistic solutions across search advertising, social media, display, video, and CTV advertising[18](index=18&type=chunk) - These channels converge at Perion's intelligent HUB (iHUB), which connects demand and supply assets, providing significant benefits to brands and publishers[18](index=18&type=chunk) [Explanation of Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Measures) This section defines Perion's non-GAAP financial measures, including Contribution Ex-TAC, Adjusted EBITDA, Non-GAAP net income, and Non-GAAP earnings per share, explaining adjustments and their utility for assessing ongoing business performance - Non-GAAP financial measures include Contribution Ex-TAC, Adjusted EBITDA, Non-GAAP net income, and Non-GAAP earning per share, which are GAAP measures adjusted to exclude certain items[19](index=19&type=chunk) - Contribution Ex-TAC is revenue reduced by traffic acquisition costs and media buy, reflecting core business performance without direct pass-through costs[20](index=20&type=chunk) - Adjusted EBITDA, Non-GAAP net income, and Non-GAAP EPS exclude various non-cash and non-core items such as stock-based compensation, amortization of acquired intangibles, and changes in fair value of contingent consideration, to provide a clearer view of operational results[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) [Forward-Looking Statements Disclaimer](index=5&type=section&id=Forward%20Looking%20Statements) This section provides a standard disclaimer regarding forward-looking statements, emphasizing that actual results may differ materially from projections due to various risks and uncertainties, including those related to acquisitions, market dynamics, competition, and regulatory changes - The press release contains forward-looking statements subject to risks and uncertainties, and actual results, performance, or achievements may differ materially[25](index=25&type=chunk) - Factors that could cause differences include the failure to realize anticipated benefits of acquisitions, integration risks, diversion of resources, potential litigation, intense market changes, loss of key customers, competitive pressures, and changes in laws and regulations[25](index=25&type=chunk) [Investor Relations Contact](index=5&type=section&id=Contact%20Information) Contact information for Perion Network Ltd.'s Investor Relations department is provided for inquiries - Investor Relations contact: Dudi Musler, VP of Investor Relations, dudim@perion.com, +972 (54) 7876785[26](index=26&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents Perion's official consolidated statements, including operations, balance sheets, and cash flows, for the reported periods [Consolidated Statements of Operations](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The consolidated statements of operations detail Perion's revenues, costs, and expenses, leading to net income for the three and six months ended June 30, 2023 and 2022, showing overall growth in total revenue and net income Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenue | $178,470 | $146,656 | $323,620 | $271,971 | | Income from Operations | $19,886 | $21,872 | $44,390 | $38,378 | | Net Income | $21,406 | $19,500 | $45,191 | $34,966 | | Diluted EPS | $0.43 | $0.41 | $0.91 | $0.74 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The condensed consolidated balance sheets present Perion's financial position, including assets, liabilities, and shareholders' equity, as of June 30, 2023, and December 31, 2022, indicating an increase in total assets and shareholders' equity Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2023 | December 31, 2022 | | :-------------------- | :------------ | :---------------- | | Total Current Assets | $644,314 | $603,458 | | Total Assets | $903,514 | $870,218 | | Total Current Liabilities | $250,731 | $234,608 | | Total Liabilities | $267,022 | $287,084 | | Total Shareholders' Equity | $636,492 | $583,134 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The condensed consolidated statements of cash flows illustrate cash generated from operating, investing, and financing activities for the three and six months ended June 30, 2023 and 2022, highlighting strong operating cash flow and a net increase in cash and equivalents Condensed Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $47,372 | $25,721 | $65,151 | $49,275 | | Net cash provided by (used in) investing activities | $4,994 | $(7,347) | $(44,446) | $(43,399) | | Net cash provided by (used in) financing activities | $125 | $(8,745) | $(11,068) | $(7,797) | | Net increase (decrease) in cash and cash equivalents and restricted cash | $52,499 | $9,482 | $9,722 | $(2,098) | [Reconciliation of GAAP to Non-GAAP Results](index=9&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP financial measures to their corresponding non-GAAP counterparts, including Contribution Ex-TAC, Adjusted EBITDA, and Non-GAAP Net Income [Contribution Ex-TAC Reconciliation](index=9&type=section&id=Contribution%20Ex-TAC) This section reconciles total revenue to Contribution Ex-TAC by deducting traffic acquisition costs and media buy, providing a clearer view of revenue generated before direct pass-through costs Contribution Ex-TAC Reconciliation (in thousands) | Metric (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | 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** | [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA) This section reconciles GAAP Income from Operations to Adjusted EBITDA by adding back non-cash and non-core expenses, including stock-based compensation, acquisition-related expenses, fair value changes, amortization, and depreciation Adjusted EBITDA Reconciliation (in thousands) | Metric (in thousands) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :---------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | 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** | [Non-GAAP Net Income and EPS Reconciliation](index=10&type=section&id=Non-GAAP%20Net%20Income) This section reconciles GAAP Net Income to Non-GAAP Net Income and Diluted EPS by adjusting for various non-cash and non-recurring items, including stock-based compensation, amortization, acquisition expenses, fair value changes, and related tax effects Non-GAAP Net Income and EPS Reconciliation (in thousands, except per share data) | Metric (in thousands, except per share data) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :----------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | 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** |
Perion(PERI) - 2023 Q1 - Earnings Call Transcript
2023-05-03 16:55
Financial Data and Key Metrics Changes - Revenue for Q1 2023 grew by 16% year-over-year to $145.2 million, with gross profit increasing by 20% to $65.3 million, resulting in a gross margin of 45% compared to 43% last year [28][30] - Adjusted EBITDA rose by 38% to $31.3 million, with an adjusted EBITDA margin of 22% compared to 18% last year [28][31] - Net income increased by 54% year-over-year to $23.8 million, with non-GAAP diluted earnings per share rising by 36% to $0.60 [28][54] Business Line Data and Key Metrics Changes - Search advertising revenue increased by 15% year-over-year to $65.3 million, accounting for 45% of total revenue, driven by consumer interest in ChatGPT [28][128] - Retail media revenue surged by 60% year-over-year, representing 8% of display advertising revenue, with the number of retail media customers increasing by 32% [78][80] - Video revenue grew by 26% year-over-year, making up 44% of display advertising revenue, while the number of video platform publishers increased by 63% [51][78] Market Data and Key Metrics Changes - CTV revenue increased by 12% year-over-year, representing 8% of total display advertising revenue, indicating a slower growth compared to overall video revenue [78][60] - The number of SORT customers rose by 142% year-over-year to 157, with customer spending increasing by 93%, now accounting for 17% of display advertising revenue compared to 7% last year [29][30] Company Strategy and Development Direction - The company is focused on integrating AI technology into its solutions, positioning itself as a leader in the tech-driven software sector [18][35] - The strategy emphasizes a "land and expand" approach, where initial traction with clients leads to increased service consumption over time [25][132] - The company aims to maintain high margins in CTV by focusing on unique verticals rather than broad market engagement [87][104] Management's Comments on Operating Environment and Future Outlook - Management described the current economic environment as "rocky and bumpy," affecting advertising budgets and strategies [14][35] - The company is increasing its revenue guidance to $735 million for the year, representing a 15% year-over-year growth, and expects EBITDA to reach at least $155 million, a 17% increase [32][83] - Management expressed confidence in the company's ability to adapt to market changes and capitalize on emerging opportunities, particularly in AI and retail media [35][45] Other Important Information - The company has a strong cash position, with cash and cash equivalents amounting to $436 million as of March 31, 2023 [110] - The company is investing in technology to enhance operational efficiency and improve margins, with OPEX+COGS accounting for 26% of revenue, down from 28% in the previous year [80][81] Q&A Session Summary Question: Why is video revenue growing faster than CTV revenue? - Management indicated that the focus is on maintaining margins in CTV, which has become more commoditized, leading to slower growth compared to overall video revenue [60][123] Question: What is the outlook for search and SORT monetization? - Management noted that new search publishers are coming online, and while monetization plans for SORT are still being defined, there is optimism about its future contributions [69][97] Question: How does the company view competition in the SORT market? - Management expressed skepticism about competitors finding effective alternatives to cookies that protect user privacy without impacting revenue [116][117] Question: What is the strategy regarding SSP and DSP capabilities? - The company prefers to focus on demand-side capabilities and is not currently looking to acquire SSPs, as they are seen as commoditized [93][92]
Perion(PERI) - 2023 Q1 - Earnings Call Presentation
2023-05-03 14:57
Display Advertising revenue Search Advertising revenue Continued Improvement in Media Margin Media Margin 45% TAC 61% Media Margin 39% Media Margin 43% Product mix optimization | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------------------------------------------------------------------| | | | | | | continues to improve \nMedia buying optimization | | Q1-21 | | Q1-22 | | Q1-23 | of our supply and demand assets through iHUB Incremental revenue | | | TAC | | TAC | | with lo ...
Perion(PERI) - 2023 Q2 - Quarterly Report
2023-05-02 16:00
[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Perion's Q1 2023 results exceeded expectations with strong revenue and net income growth, driven by tech innovations and search, raising full-year guidance - Perion's outperformance is attributed to market share gains and increased efficiencies enabled by its innovative technology and the iHUB's centralized bidding system[2](index=2&type=chunk)[4](index=4&type=chunk) - Growth was concentrated in high-tech areas, including video, retail media, the SORT® targeting solution, and search advertising, with search advertising experiencing **49% YoY growth** in daily searches, partly due to heightened user interest in Bing following AI integrations like ChatGPT[3](index=3&type=chunk) Q1 2023 Key Business Highlights (YoY) | Metric | YoY Growth / Status | | :--- | :--- | | **Media Margin** | Increased to 45% (from 43%) | | **Video Revenue** | +26% | | **CTV Revenue** | +12% | | **Retail Media Revenue** | +60% | | **SORT® Spending** | +93% | | **Search Ad Publishers** | +29% | | **Avg. Daily Searches** | +49% (to 26.3 million) | [Financial Performance](index=2&type=section&id=Financial%20Performance) Perion achieved 16% revenue growth and 54% GAAP Net Income increase, with Adjusted EBITDA up 38%, raising full-year guidance [Q1 2023 Financial Highlights](index=2&type=section&id=Q1%202023%20Financial%20Highlights) Perion's Q1 2023 revenue grew 16% to $145.2 million, GAAP Net Income surged 54% to $23.8 million, and Adjusted EBITDA rose 38% to $31.3 million Q1 2023 Financial Highlights (in millions, except per share data) | Metric | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $145.2 | $125.3 | +16% | | GAAP Net Income | $23.8 | $15.5 | +54% | | Non-GAAP Net Income | $29.9 | $20.7 | +44% | | Adjusted EBITDA | $31.3 | $22.7 | +38% | | GAAP Diluted EPS | $0.48 | $0.33 | +45% | | Non-GAAP Diluted EPS | $0.60 | $0.44 | +36% | | Net Cash from Operations | $17.8 | $23.6 | -25% | [Full Year 2023 Outlook](index=2&type=section&id=Full%20Year%202023%20Outlook) Perion raised its full-year 2023 guidance, now expecting revenue of $725-$745 million and Adjusted EBITDA of $155 million+, citing strong business predictability Updated 2023 Guidance (in millions) | Metric | 2022 Actual | Prior 2023 Guidance | Current 2023 Guidance | | :--- | :--- | :--- | :--- | | Revenue | $640.3 | $720 - $740 | $725 - $745 | | Adjusted EBITDA | $132.4 | $149 - $153 | $155+ | - Management expressed confidence in raising the annual guidance due to the sustainability and predictability of the business model[7](index=7&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) Revenue growth was balanced across Display and Search, driven by video, SORT®, retail media, and increased daily searches. Media margin improved, but net cash from operations decreased due to collection timing - Display Advertising revenue growth (**+16%**) was primarily driven by a **26%** increase in video revenue, a **12%** increase in CTV revenue, a **93%** increase in SORT® customer spending, and a **60%** increase in Retail media revenue[8](index=8&type=chunk) - Search Advertising revenue increased by **15%** due to a **29%** rise in publishers and a **49%** increase in average daily searches, which offset a **22%** decrease in RPM[8](index=8&type=chunk) - Traffic Acquisition Costs (TAC) as a percentage of revenue improved to **55%** from **57%** in Q1 2022, primarily due to the proprietary iHUB technology optimizing media buying[9](index=9&type=chunk) - Net cash from operating activities was **$17.8 million**, compared to **$23.6 million** in Q1 2022, with the decrease affected by a shift of approximately **$8 million** in customer collections from March to April 2023[12](index=12&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2023, including Statements of Income, Balance Sheets, and Cash Flows, offering a detailed GAAP-based financial view [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q1 2023, total revenues reached $145.15 million and net income was $23.79 million, significantly increasing from Q1 2022 Statement of Income Summary (in thousands) | Account | Three months ended March 31, 2023 | Three months ended March 31, 2022 | | :--- | :--- | :--- | | Total Revenue | $145,150 | $125,315 | | Total Costs and Expenses | $120,646 | $108,809 | | Income from Operations | $24,504 | $16,506 | | **Net Income** | **$23,785** | **$15,466** | | Diluted Earnings per Share | $0.48 | $0.33 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2023, total assets were $846.8 million, shareholders' equity increased to $612.3 million, and liquidity remained strong at $436.3 million Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Current Assets | $584,174 | $603,458 | | Total Assets | $846,826 | $870,218 | | Total Current Liabilities | $214,299 | $234,608 | | Total Liabilities | $234,501 | $287,084 | | Total Shareholders' Equity | $612,325 | $583,134 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 net cash from operations was $17.8 million, with $49.4 million used in investing and $11.2 million in financing, resulting in a $42.8 million net decrease in cash Statement of Cash Flows Summary (in thousands) | Cash Flow Activity | Three months ended March 31, 2023 | Three months ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $17,779 | $23,554 | | Net cash used in investing activities | $(49,440) | $(36,052) | | Net cash provided by (used in) financing activities | $(11,193) | $948 | | **Net decrease in cash and cash equivalents** | **$(42,777)** | **$(11,580)** | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) This section defines non-GAAP measures like Adjusted EBITDA and Revenue ex-TAC, reconciles GAAP to non-GAAP results, and includes standard forward-looking statement disclaimers regarding business risks [Reconciliation of GAAP to Non-GAAP Results](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) Q1 2023 GAAP Net Income of $23.8 million was reconciled to Non-GAAP Net Income of $29.9 million and Adjusted EBITDA of $31.3 million, primarily by adjusting for stock-based compensation and amortization Reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EBITDA (Q1 2023, in thousands) | Reconciliation Item | Q1 2023 Amount | | :--- | :--- | | **GAAP Net Income** | **$23,785** | | Stock-based compensation | $3,402 | | Amortization of acquired intangible assets | $2,963 | | Other adjustments | $(150) | | **Non-GAAP Net Income** | **$29,900** | | *Plus: Taxes, Financial Income (net), Depreciation* | *...* | | **Adjusted EBITDA** | **$31,274** | [Non-GAAP Measures and Forward-Looking Statements](index=4&type=section&id=Non-GAAP%20Measures%20and%20Forward-Looking%20Statements) The company defines non-GAAP measures like Adjusted EBITDA and Revenue ex-TAC for clearer core operating results, and includes a standard safe harbor statement regarding forward-looking statements and associated risks - Non-GAAP measures are used to provide an indication of performance exclusive of non-cash charges and other items considered outside of core operating results[18](index=18&type=chunk)[19](index=19&type=chunk) - The report contains forward-looking statements that are subject to various risks and uncertainties, and Perion does not assume any obligation to update them[20](index=20&type=chunk)
Perion(PERI) - 2022 Q4 - Annual Report
2023-03-14 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date o ...
Perion(PERI) - 2022 Q4 - Annual Report
2023-03-14 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 For the month of March 2023 Commission File Number: 000-51694 Perion Network Ltd. (Translation of registrant's name into English) 1 Azrieli Center, Building A, 4th Floor 26 HaRokmim Street, Holon, Israel 5885849 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annu ...
Perion(PERI) - 2022 Q4 - Earnings Call Transcript
2023-02-08 17:52
Perion Network Ltd. (NASDAQ:PERI) Q4 2022 Earnings Conference Call February 8, 2023 8:30 AM ET Company Participants Doron Gerstel - Chief Executive Officer Maoz Sigron - Chief Financial Officer Tal Jacobson - General Manager, CodeFuel Conference Call Participants Jason Helfstein - Oppenheimer Laura Martin - Needham Andrew Marok - Raymond James Mark Kelley - Stifel Eric Martinuzzi - Lake Street Capital Jeff Martin - Roth Capital Operator Welcome to the Perion Network fourth quarter and full year 2022 Earnin ...
Perion(PERI) - 2023 Q1 - Quarterly Report
2023-02-07 16:00
Executive Summary & Highlights [Overall Performance (Q4 & FY 2022)](index=1&type=section&id=Overall%20Performance%20(Q4%20%26%20FY%202022)) Perion Network Ltd. reported record financial results for Q4 and full-year 2022, demonstrating significant year-over-year growth in revenue, net income, diluted EPS, and Adjusted EBITDA, driven by its diversified and profitability-biased strategy in the dynamic digital advertising market - Perion achieved a **3-year EBITDA CAGR of 101%** and **revenue CAGR of 40%**, indicating high predictability and sustainability of its business model[2](index=2&type=chunk) Key Financial Highlights (Q4 & FY 2022) | Metric | Q4 2022 (Millions) | Q4 2021 (Millions) | YoY Change | FY 2022 (Millions) | FY 2021 (Millions) | YoY Change | | :----------------------- | :----------------- | :----------------- | :--------- | :----------------- | :----------------- | :--------- | | Total Revenue | $209.7 | $158.0 | +33% | $640.3 | $478.5 | +34% | | GAAP Net Income | $38.7 | $17.7 | +119% | $99.2 | $38.7 | +156% | | Adjusted EBITDA | $48.2 | $28.9 | +67% | $132.4 | $69.6 | +90% | | GAAP Diluted EPS | $0.79 | $0.44 | +80% | $2.06 | $1.02 | +102% | [Key Business Achievements (FY 2022 & Q4 2022)](index=1&type=section&id=Key%20Business%20Achievements%20(FY%202022%20%26%20Q4%202022)) Perion achieved strong operational growth in both full-year and Q4 2022, particularly in video and CTV revenue, increased adoption of its SORT™ solution, and improved media margins, reflecting effective strategy execution and market adaptation - **Full-Year 2022 Business Highlights** - Video revenue increased by **129%**, representing **43%** of Display Advertising revenue[5](index=5&type=chunk) - CTV revenue increased by **108%** year-over-year[5](index=5&type=chunk) - **59%** of agencies and brand customers adopted SORT™ solution, generating **$59.4 million**[5](index=5&type=chunk) - Customer retention rate of **115%**[5](index=5&type=chunk) - Media margin increased to **42%** compared with **40%** in 2021[5](index=5&type=chunk) - Number of publishers increased by **27%** year-over-year to **265**[5](index=5&type=chunk) - Average daily searches increased by **11%** and average RPM increased by **21%** year-over-year[5](index=5&type=chunk) - **Fourth Quarter 2022 Business Highlights** - Video revenue increased by **33%** year-over-year, representing **42%** of Display Advertising revenue[5](index=5&type=chunk) - CTV revenue increased by **42%** year-over-year[5](index=5&type=chunk) - Increased adoption of the holistic Video Platform solution, with a **72%** year-over-year increase in publishers and a **78%** year-over-year increase in revenue from existing publishers[5](index=5&type=chunk) - Media margin increased to **42%** compared with **41%** in the fourth quarter of 2021[5](index=5&type=chunk) - Average daily searches increased by **26%** and average RPM increased by **13%** year-over-year[5](index=5&type=chunk) [CEO Commentary & Strategic Focus](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Focus) CEO Doron Gerstel highlighted Perion's ability to adapt to market shifts, attributing consistent strong performance to its diversified, profitability-biased strategy and the intelligent central hub (iHUB) that connects data assets across media channels for rapid analysis and optimized ad spending - Perion's strong financial performance is a clear indication of its unique capability to identify shifts in ad spending and deliver the right solutions at the right time[2](index=2&type=chunk) - The business model is underpinned by diversification and a profitability-biased strategy[2](index=2&type=chunk) - The intelligent central hub (iHUB) connects all data assets across media channels, enabling rapid analysis of consumer behavior changes and shifting business to trending media budgets, while delivering superior return on advertising spend and increasing profit margins[2](index=2&type=chunk) [CEO Transition Announcement](index=1&type=section&id=CEO%20Transition%20Announcement) Perion announced that Tal Jacobson will succeed Doron Gerstel as Chief Executive Officer, effective August 1, 2023 - Tal Jacobson named Chief Executive Officer, effective **August 1, 2023**[1](index=1&type=chunk)[17](index=17&type=chunk) - Tal Jacobson will succeed Doron Gerstel as CEO[1](index=1&type=chunk)[17](index=17&type=chunk) Financial Performance Analysis [Full-Year 2022 Financial Results](index=3&type=section&id=Full-Year%202022%20Financial%20Results) Perion delivered robust full-year 2022 financial results, with significant revenue growth driven by both Display and Search Advertising, substantial increases in net income and Adjusted EBITDA, and strong cash flow generation, reflecting improved operational efficiency and a favorable product mix [Revenue Breakdown](index=3&type=section&id=Revenue%20Breakdown%20FY2022) Full-year 2022 revenue grew **34%** to **$640.3 million**, with Display Advertising contributing **56%** of total revenue, driven by strong video and CTV growth, and Search Advertising accounting for **44%**, boosted by increased RPM and daily searches Full-Year 2022 Revenue Breakdown | Revenue Type | Amount (Millions) | YoY Change | | :-------------------- | :---------------- | :--------- | | Total Revenue | $640.3 | +34% | | Display Advertising | $360.7 | +36% | | Search Advertising | $279.6 | +31% | - Display Advertising revenue accounted for **56%** of total revenue, mainly driven by **129%** growth in video revenue and **108%** growth in CTV revenue[8](index=8&type=chunk) - Search Advertising revenue accounted for **44%** of total revenue, primarily due to a **21%** increase in RPM and an **11%** increase in average daily searches[8](index=8&type=chunk) [Profitability & Efficiency](index=3&type=section&id=Profitability%20%26%20Efficiency%20FY2022) Perion significantly improved its profitability in FY2022, with GAAP net income increasing by **156%** and Adjusted EBITDA by **90%**, supported by a favorable product mix and efficiencies in traffic acquisition costs, leading to higher margins Full-Year 2022 Profitability Metrics | Metric | Amount (Millions) | YoY Change | | :-------------------- | :---------------- | :--------- | | GAAP Net Income | $99.2 | +156% | | Non-GAAP Net Income | $119.8 | +100% | | Adjusted EBITDA | $132.4 | +90% | - Non-GAAP net income was **19%** of revenue in 2022, up from **13%** in 2021[10](index=10&type=chunk) - Adjusted EBITDA was **21%** of revenue (**49%** of revenue ex-TAC) in 2022, compared to **15%** of revenue (**37%** of revenue ex-TAC) in 2021, driven by improved media margin due to a favorable product mix and marketplace efficiencies[9](index=9&type=chunk)[11](index=11&type=chunk) [Cash Flow and Liquidity](index=4&type=section&id=Cash%20Flow%20and%20Liquidity%20FY2022) As of December 31, 2022, Perion maintained a strong liquidity position with **$429.6 million** in cash and equivalents, and generated substantial net cash from operations, increasing by **72%** year-over-year - Cash and cash equivalents and short-term bank deposits amounted to **$429.6 million** as of December 31, 2022[12](index=12&type=chunk) Full-Year 2022 Cash Flow from Operations | Metric | Amount (Millions) | YoY Change | | :-------------------- | :---------------- | :--------- | | Net Cash from Operations | $122.1 | +72% | [Fourth Quarter 2022 Financial Results](index=3&type=section&id=Fourth%20Quarter%202022%20Financial%20Results) Perion's Q4 2022 performance continued its strong momentum, with total revenue increasing by **33%**, and significant growth in both GAAP net income and Adjusted EBITDA, reflecting robust demand in Display and Search Advertising and improved operational leverage [Revenue Breakdown](index=4&type=section&id=Revenue%20Breakdown%20Q4%202022) Q4 2022 revenue increased **33%** to **$209.7 million**, with Display Advertising growing **24%** and comprising **59%** of total revenue, driven by video and CTV, while Search Advertising surged **49%** and accounted for **41%** of revenue due to higher RPM and daily searches Fourth Quarter 2022 Revenue Breakdown | Revenue Type | Amount (Millions) | YoY Change | | :-------------------- | :---------------- | :--------- | | Total Revenue | $209.7 | +33% | | Display Advertising | $123.8 | +24% | | Search Advertising | $85.9 | +49% | - Display Advertising revenue accounted for **59%** of total revenue, mainly driven by **33%** growth in video revenue and **42%** growth in CTV revenue[13](index=13&type=chunk) - Search Advertising revenue accounted for **41%** of total revenue, primarily due to a **13%** increase in RPM and a **26%** increase in average daily searches[13](index=13&type=chunk) [Profitability & Efficiency](index=4&type=section&id=Profitability%20%26%20Efficiency%20Q4%202022) In Q4 2022, Perion achieved a **119%** increase in GAAP net income and a **67%** rise in Adjusted EBITDA, with improved media margins, demonstrating enhanced profitability and efficient management of traffic acquisition costs Fourth Quarter 2022 Profitability Metrics | Metric | Amount (Millions) | YoY Change | | :-------------------- | :---------------- | :--------- | | GAAP Net Income | $38.7 | +119% | | Non-GAAP Net Income | $44.7 | +77% | | Adjusted EBITDA | $48.2 | +67% | - Non-GAAP net income was **21%** of revenue in Q4 2022, up from **16%** in Q4 2021[15](index=15&type=chunk) - Adjusted EBITDA was **23%** of revenue (**55%** of revenue ex-TAC) in Q4 2022, compared to **18%** of revenue (**45%** of revenue ex-TAC) in Q4 2021, driven by improved media margin due to a favorable product mix and marketplace efficiencies[14](index=14&type=chunk)[16](index=16&type=chunk) [Cash Flow](index=4&type=section&id=Cash%20Flow%20Q4%202022) Net cash provided by operating activities in Q4 2022 increased by **32%** year-over-year to **$38.2 million**, reflecting strong operational cash generation Fourth Quarter 2022 Cash Flow from Operations | Metric | Amount (Millions) | YoY Change | | :-------------------- | :---------------- | :--------- | | Net Cash from Operations | $38.2 | +32% | [2023 Financial Outlook](index=3&type=section&id=2023%20Financial%20Outlook) Perion anticipates continued strong business momentum into 2023, projecting revenue between **$720-$740 million** and Adjusted EBITDA between **$149-$153 million**, both representing approximately **14%** year-over-year growth at the midpoint, with an expected Adjusted EBITDA to Revenue ex-TAC margin of **50%** - Perion expects strong business momentum to continue in 2023, driven by innovative capabilities and efficiency measures[7](index=7&type=chunk) 2023 Financial Guidance (at midpoint) | Metric | 2022 Actual (Millions) | 2023 Guidance (Millions) | YoY Growth % | | :----------------------- | :--------------------- | :----------------------- | :----------- | | Revenue | $640.3 | $720-$740 | 14% | | Adjusted EBITDA | $132.4 | $149-$153 | 14% | | Adjusted EBITDA to Revenue | 21% | 21% | - | | Adjusted EBITDA to Revenue ex-TAC | 49% | 50% | - | Company Information & Events [About Perion Network Ltd.](index=4&type=section&id=About%20Perion%20Network%20Ltd.) Perion Network Ltd. is a global advertising technology company that provides synergistic solutions across ad search, social media, and display/video/CTV advertising channels, integrated through its intelligent Hub (iHUB) to benefit brands and publishers - Perion is a global advertising technology company[18](index=18&type=chunk) - Solutions are delivered across three primary channels of digital advertising: ad search, social media, and display/video/CTV advertising[18](index=18&type=chunk) - The company's intelligent Hub (iHUB) integrates business assets from both sides of the open Web, providing significant benefits to brands and publisher customers[18](index=18&type=chunk) [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) Perion hosted a conference call on February 8, 2023, at 8:30 a.m. ET to discuss the results, with a replay and transcript available on its website - A conference call was hosted on **February 8, 2023**, at **8:30 a.m. ET**[17](index=17&type=chunk) - A replay and transcript will be available within approximately **24 hours** of the live event on Perion's website[17](index=17&type=chunk) - Registration link and call details were provided for participants[20](index=20&type=chunk) Non-GAAP Measures & Legal Disclosures [Non-GAAP Measures Explanation](index=5&type=section&id=Non-GAAP%20Measures%20Explanation) Perion uses non-GAAP financial measures, such as Non-GAAP Net Income, Adjusted EBITDA, and Revenue ex-TAC, to provide insights into core operating performance by excluding non-cash charges and other items management considers outside core results, emphasizing that these should be read in conjunction with GAAP statements - Non-GAAP financial measures adjust GAAP measures to exclude stock-based compensation, acquisition-related expenses, revaluation of contingent consideration, amortization of acquired intangible assets, non-recurring expenses, foreign exchange gains/losses associated with ASC-842, and changes in fair value of earnout contingent consideration[21](index=21&type=chunk) - Adjusted EBITDA is defined as operating income excluding stock-based compensation expenses, depreciation, and acquisition-related items[21](index=21&type=chunk) - Revenue excluding Traffic Acquisition Costs ('Revenue ex-TAC') presents revenue reduced by traffic acquisition costs, reflecting the portion of revenue directly passed to publishers or advertisers[21](index=21&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements subject to various risks and uncertainties, including those related to acquisitions, market changes, competition, and regulatory factors, and Perion disclaims any obligation to update these statements - The press release contains forward-looking statements identified by words such as 'will,' 'believe,' 'expect,' 'intend,' 'plan,' 'should,' 'estimate' and similar expressions[23](index=23&type=chunk) - Such statements are subject to risks and uncertainties, including failure to realize anticipated benefits of acquisitions, integration risks, market changes, competitive pressures, regulatory changes, data breaches, and inability to meet efficiency objectives[23](index=23&type=chunk) - Perion does not assume any obligation to update these forward-looking statements[23](index=23&type=chunk) [Contact Information](index=5&type=section&id=Contact%20Information) Investor relations contact information for Perion Network Ltd. is provided for inquiries - Contact for investor relations: Dudi Musler, VP of Investor Relations[24](index=24&type=chunk) - Email: dudim@perion.com, Phone: **+972 (54) 7876785**[24](index=24&type=chunk) Consolidated Financial Statements [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations detail Perion's revenues, costs, and expenses, leading to net income for Q4 and full-year 2022 and 2021, showing significant growth in both Display and Search Advertising revenue and a substantial increase in net income Consolidated Statements of Operations (in thousands) | Metric | Q4 2022 (Thousands) | Q4 2021 (Thousands) | FY 2022 (Thousands) | FY 2021 (Thousands) | | :-------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Display Advertising Revenue | $123,757 | $100,177 | $360,690 | $265,323 | | Search Advertising Revenue | $85,913 | $57,798 | $279,566 | $213,175 | | Total Revenue | $209,670 | $157,975 | $640,256 | $478,498 | | Total Costs and Expenses | $168,482 | $137,180 | $531,094 | $432,602 | | Income from Operations | $41,188 | $20,795 | $109,162 | $45,896 | | Net Income | $38,677 | $17,695 | $99,225 | $38,706 | | Diluted EPS | $0.79 | $0.44 | $2.06 | $1.02 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The Condensed Consolidated Balance Sheets as of December 31, 2022, and 2021, show an increase in total assets, primarily driven by higher cash and cash equivalents, short-term bank deposits, and accounts receivable, alongside an increase in total liabilities and shareholders' equity Condensed Consolidated Balance Sheets (in thousands) | Metric | Dec 31, 2022 (Thousands) | Dec 31, 2021 (Thousands) | | :-------------------- | :----------------------- | :----------------------- | | Total Current Assets | $603,458 | $446,171 | | Total Long-Term Assets | $266,760 | $267,061 | | Total Assets | $870,218 | $713,232 | | Total Current Liabilities | $234,608 | $193,707 | | Total Long-Term Liabilities | $52,476 | $52,565 | | Total Liabilities | $287,084 | $246,272 | | Total Shareholders' Equity | $583,134 | $466,960 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows highlight a substantial increase in net cash provided by operating activities for both Q4 and full-year 2022, while investing activities show a net cash outflow, and financing activities resulted in a net cash outflow for the full year 2022 Condensed Consolidated Statements of Cash Flows (in thousands) | Metric | Q4 2022 (Thousands) | Q4 2021 (Thousands) | FY 2022 (Thousands) | FY 2021 (Thousands) | | :-------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Net cash provided by operating activities | $38,171 | $28,836 | $122,119 | $71,106 | | Net cash used in investing activities | $(34,667) | $(192,237) | $(46,816) | $(243,470) | | Net cash provided by (used in) financing activities | $1,392 | $171,487 | $(3,258) | $229,054 | | Net increase in cash and cash equivalents and restricted cash | $5,124 | $8,102 | $71,986 | $56,657 | [Reconciliation of GAAP to Non-GAAP Results](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) This section provides a detailed reconciliation of GAAP Net Income to Non-GAAP Net Income and Adjusted EBITDA for Q4 and full-year 2022 and 2021, outlining specific adjustments for stock-based compensation, amortization of acquired intangibles, M&A related expenses, and other non-recurring items Reconciliation of GAAP to Non-GAAP Results (in thousands) | Metric | Q4 2022 (Thousands) | Q4 2021 (Thousands) | FY 2022 (Thousands) | FY 2021 (Thousands) | | :-------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | GAAP Net Income | $38,677 | $17,695 | $99,225 | $38,706 | | Stock-based compensation | $3,205 | $3,252 | $11,570 | $6,985 | | Amortization of acquired intangible assets | $2,988 | $2,807 | $11,884 | $6,875 | | Non-GAAP Net Income | $44,651 | $25,288 | $119,795 | $59,987 | | Adjusted EBITDA | $48,234 | $28,946 | $132,372 | $69,606 | | Non-GAAP diluted earnings per share | $0.90 | $0.62 | $2.47 | $1.57 |
Perion(PERI) - 2022 Q3 - Earnings Call Presentation
2022-11-16 17:28
Q3 / 2022 Presentation Nov 09th, 2022 1 1 FORWARD LOOKING STATEMENTS 2 This presentation and our remarks contain forward-looking statements (within the meaning of The Private Securities Litigation Reform Act of 1995) that involve substantial risks and uncertainties, including statements regarding our expectations and beliefs about our business, strategy, and future operating performance. The words "will", "believe," "expect," "intend," "plan," "should" and similar expressions are intended to identify forwar ...