Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $89.3 million, exceeding initial expectations due to strong performance in CTV and digital out of home channels [17][18] - Adjusted EBITDA for Q1 2025 was $1.8 million, also higher than expectations, reflecting operational control and margin discipline [18][20] - Net loss on a GAAP basis was $8.3 million, compared to a net income of $11.8 million in Q1 2024 [21] - Non-GAAP net income was $5.4 million, down from $22.6 million in Q1 2024 [21] Business Line Data and Key Metrics Changes - Digital out of home revenue increased by 80% year over year, now representing 19% of total revenue, up from 6% last year [19] - CTV revenue grew by 31% year over year, accounting for 12% of total revenue compared to 5% last year [19] - Retail media vertical grew by 33% year over year, outperforming the broader market [16] - Web revenue declined by 28% year over year, now representing 46% of total revenue, down from 37% in the same quarter last year [19] Market Data and Key Metrics Changes - The company reported a strong performance in its core growth channels, with digital out of home and CTV continuing to outperform the market [16][19] - The acquisition of GreenBids is expected to significantly enhance the company's total addressable market and performance capabilities [24][25] Company Strategy and Development Direction - The company is focused on building Perion One as an outcome-driven platform for modern digital advertising, integrating AI-powered optimization and creative insights [6][9] - The acquisition of GreenBids is seen as a strategic move to enhance technology and expand into lower funnel performance opportunities [24][25] - The company is committed to investing in customers, technology, and people to drive long-term value [15][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy pipeline for the rest of 2025, contributing to the raised guidance [31][35] - The company anticipates stabilization in web revenue starting next quarter, with expectations for continued growth in core channels [19][22] - The guidance for full year 2025 has been raised, reflecting improved outlook and stronger market position [26] Other Important Information - The company has a strong cash position of nearly $360 million, providing flexibility for growth and capital allocation [18][23] - The board approved an expansion of the share repurchase program to $125 million, reinforcing long-term confidence in the company's value [23] Q&A Session Summary Question: Guidance and Display Revenue Stabilization - Management raised guidance based on strong Q1 performance and healthy pipeline, expecting web revenue to stabilize [31][32] Question: Impact of GreenBids on Revenue - GreenBids is expected to contribute positively, with synergies already being realized, but full impact will be seen in 2026 [39][40] Question: Timeline for GreenBids Technology Integration - Integration of GreenBids technology into Perion One is immediate, with expected acceleration in customer acquisition over the next few quarters [44][45] Question: Familiarity and Excitement of CMOs with PerionOne - Positive responses from CMOs regarding the unified offering and custom algorithms, indicating strong market demand [51][52] Question: Strategy for Expanding Total Addressable Market (TAM) - The acquisition of GreenBids opens new capabilities in walled gardens, aligning with market shifts towards performance-based campaigns [58][61]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $89.3 million, exceeding initial expectations due to strong performance in CTV and digital out of home channels [18][19] - Adjusted EBITDA for Q1 2025 was $1.8 million, also higher than expected, reflecting operational control and margin discipline [19][21] - Net loss on a GAAP basis was $8.3 million, compared to a net income of $11.8 million in Q1 2024 [22] - Non-GAAP net income was $5.4 million, down from $22.6 million in Q1 2024 [22] Business Line Data and Key Metrics Changes - Digital out of home revenue grew by 80% year over year, now representing 19% of total revenue, up from 6% last year [20] - CTV revenue increased by 31% year over year, accounting for 12% of total revenue compared to 5% last year [20] - Retail media vertical grew by 33% year over year, outperforming the broader market [18] - Web revenue declined by 28% year over year, now representing 46% of total revenue, down from 37% in the same quarter last year [20] Market Data and Key Metrics Changes - The company reported that all growth engines, including digital out of home, CTV, and retail media, are outpacing market growth [9] - The acquisition of GreenBids is expected to significantly enhance the company's total addressable market and performance capabilities [25][26] Company Strategy and Development Direction - The company is focused on building Perion One as an outcome-driven platform for modern digital advertising, integrating AI-powered optimization and creative insights [6][9] - The acquisition of GreenBids is seen as a strategic move to enhance technology and expand into lower funnel performance opportunities [25][26] - The company is committed to investing in customers, technology, and people to drive long-term value [15][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the healthy pipeline for the rest of 2025, contributing to the raised guidance [32][36] - The company anticipates stabilization in web revenue starting next quarter, with expectations for continued growth in core channels [20][32] - The guidance for full year 2025 has been raised, reflecting improved outlook and stronger market position [27] Other Important Information - The company has a strong cash position of nearly $360 million, allowing for flexibility in executing growth strategies [19][24] - A share repurchase program has been expanded to $125 million, reinforcing long-term confidence in the company's value [24] Q&A Session Summary Question: Guidance and Display Revenue Stabilization - Management indicated that the guidance was raised due to strong Q1 performance and a healthy pipeline, with expectations for web revenue to stabilize [32][33] Question: Impact of Acquisition on Revenue Guidance - Management noted that the GreenBids acquisition will contribute to both revenue and EBITDA, with more significant impacts expected in 2026 [40][41] Question: Integration Timeline for GreenBids Technology - Management clarified that integration of GreenBids technology into Perion One will happen immediately, with expected acceleration in customer acquisition over the next few quarters [45][46] Question: Familiarity and Excitement of CMOs with PerionOne - Management reported positive responses from CMOs regarding the unified offering of PerionOne and the custom algorithm from GreenBids [51][53] Question: Strategy to Capitalize on Expanded TAM - Management explained that the acquisition of GreenBids opens new capabilities in walled gardens and aligns with the shift towards performance-based campaigns [58][62]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $89.3 million, exceeding initial expectations due to strong performance in CTV and digital out of home channels [18] - Adjusted EBITDA for Q1 2025 was $1.8 million, also higher than expectations, reflecting operational control and margin discipline [19] - On a GAAP basis, the net loss for Q1 2025 was $8.3 million, compared to a net income of $11.8 million in Q1 2024 [23] - Non-GAAP net income for Q1 2025 was $5.4 million, down from $22.6 million in Q1 2024 [23] - Cash position remains strong with nearly $360 million in net cash [19] Business Line Data and Key Metrics Changes - Digital out of home revenue grew by 80% year over year, now representing 19% of total revenue, up from 6% last year [21] - CTV revenue increased by 31% year over year, representing 12% of total revenue compared to 5% last year [21] - Retail media vertical grew by 33% year over year, outperforming the broader market [17] - Web revenue declined by 28% year over year, now representing 46% of total revenue compared to 37% in the same quarter last year [21] Market Data and Key Metrics Changes - The company noted a healthy pipeline going into the rest of 2025, contributing to the stabilization of web revenue [34] - The acquisition of GreenBids is expected to expand the total addressable market into new lower funnel performance opportunities [26] Company Strategy and Development Direction - The company is focused on building Perion One as an outcome-driven platform to create long-term value for CMOs and shareholders [6] - The acquisition of GreenBids is seen as a significant leap forward, enhancing technology and expanding capabilities in walled garden platforms [12][26] - The company is committed to investing in customers, people, and technology to drive long-term value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to return to a high cash flow conversion rate and maintain a strong financial position [24] - The guidance for full year 2025 has been raised, reflecting improved outlook and stronger market position [28] - Management highlighted the importance of performance-based campaigns in the current market environment [63] Other Important Information - The company has expanded its share repurchase program to $125 million, reinforcing long-term confidence in its value [25] - The integration of GreenBids technology into Perion One is expected to happen immediately, with significant contributions anticipated in 2026 [45] Q&A Session Summary Question: What factors contributed to the increased guidance? - Management indicated that strong Q1 performance and the acquisition of GreenBids allowed for the increase in guidance, with a healthy pipeline contributing to future growth [34] Question: What is the expected impact of the GreenBids acquisition on revenue? - Management stated that while GreenBids is already profitable, the full impact of the acquisition will be seen in 2026, with synergies contributing to growth [40][41] Question: How is the message of the PerionOne platform being received by CMOs? - Management reported positive responses from CMOs regarding the unified offering and the custom algorithm through AI, indicating a strong market need [52] Question: What is the strategy to capitalize on the expanded total addressable market? - Management emphasized the importance of performance-based campaigns and the ability to reduce waste in advertising spend, which aligns with current market trends [59][63]

分组1 - Perion Network reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, but down from $0.44 per share a year ago, representing an earnings surprise of 22.22% [1] - The company posted revenues of $89.34 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.53%, but down from $157.82 million year-over-year [2] - Perion Network has outperformed the S&P 500, with shares increasing about 13% since the beginning of the year, while the S&P 500 declined by -0.6% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.19 on revenues of $91.83 million, and for the current fiscal year, it is $1.01 on revenues of $410.17 million [7] - The Zacks Industry Rank for Internet - Content is in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - PodcastOne, Inc., another company in the same industry, is expected to report a quarterly loss of $0.04 per share, with revenues projected at $12.96 million, reflecting a year-over-year increase of 10.7% [9]

Group 1 - The focus has shifted towards offshore drilling, supply industry, and shipping, including tankers, containers, and dry bulk [1] - The fuel cell industry is being monitored as it is still in its early stages of development [1] Group 2 - The individual has extensive experience in auditing and trading, having navigated significant market events such as the dotcom bubble and the subprime crisis [2] - The research provided aims to maintain high quality despite language barriers [2]

Core Viewpoint - The article highlights Perion Network (PERI) as a strong value stock, emphasizing its attractive valuation metrics compared to industry averages and its positive earnings outlook [4][7]. Valuation Metrics - Perion Network currently has a P/E ratio of 8.73, significantly lower than the industry average of 23.47 [4]. - The company has a P/S ratio of 0.8, compared to the industry's average P/S of 1.02, indicating it may be undervalued [5]. - PERI's P/CF ratio stands at 14.79, which is appealing when compared to the industry's average P/CF of 49.42 [6]. Earnings Outlook - The stock's forward P/E has fluctuated between 4.66 and 9.48 over the past year, with a median of 6.97, suggesting potential for growth [4]. - The P/CF ratio has varied from 3.49 to 16.59, with a median of 6.35, further supporting the notion of PERI being undervalued [6]. - Overall, the combination of these metrics indicates a strong earnings outlook for Perion Network [7].

Group 1: Perion Network Overview - Perion Network (PERI) shares increased by 6.9% to $8.68 in the last trading session, contrasting with a 2.5% loss over the past four weeks [1] - The company is experiencing rapid growth in its Digital out-of-Home, CTV, and Retail Media advertising segments, supported by its AI-powered Perion One platform [1] Group 2: Earnings Expectations - Perion Network is expected to report quarterly earnings of $0.09 per share, reflecting a year-over-year decline of 79.6%, with revenues projected at $85.4 million, down 45.9% from the previous year [2] - The consensus EPS estimate for Perion has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 3: Industry Context - Perion Network is part of the Zacks Internet - Content industry, where another company, Yelp (YELP), has a consensus EPS estimate of $0.31, representing a year-over-year increase of 55% [3][4] - Yelp's stock closed 1% lower at $33.55, with a return of -3.2% over the past month, and currently holds a Zacks Rank of 3 (Hold) [4]

Core Insights - Investors are evaluating Perion Network (PERI) and RELX PLC (RELX) for potential value opportunities in the Internet - Content sector [1] Valuation Metrics - PERI has a forward P/E ratio of 8.02, significantly lower than RELX's forward P/E of 30.01, indicating PERI may be undervalued [5] - PERI's PEG ratio stands at 0.36, while RELX's PEG ratio is 2.93, suggesting PERI has a better growth-to-price ratio [5] - PERI's P/B ratio is 0.54, compared to RELX's P/B of 20.95, further supporting the notion that PERI is undervalued [6] Earnings Outlook - Both PERI and RELX have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3][6] - PERI's Value grade is B, while RELX's Value grade is D, highlighting PERI as the superior value option based on current metrics [6]

Revenue Performance - Fourth quarter revenue decreased by 45% to $129.6 million from $234.2 million year-over-year, with Advertising Solutions revenue down 13%[12] - Digital Out of Home (DOOH) revenue grew 57% year-over-year to $27.9 million in Q4 2024, contributing 22% of total revenue[6] - Connected TV (CTV) revenue increased by 10% year-over-year to $15.8 million in Q4 2024, representing 12% of total revenue[6] - Total revenue for Q4 2024 was $129.577 million, a decrease of 44.6% compared to $234.230 million in Q4 2023[32] - Advertising solutions revenue decreased to $104.101 million in Q4 2024 from $119.795 million in Q4 2023, a decline of 12.5%[32] - Search advertising revenue dropped significantly to $25.476 million in Q4 2024 from $114.435 million in Q4 2023, a decrease of 77.7%[32] - Revenue for Q4 2024 was $129,577,000, a decrease of 44.6% compared to $234,230,000 in Q4 2023[35] Profitability Metrics - GAAP net income fell by 87% to $4.9 million in Q4 2024 compared to $39.4 million in Q4 2023[13] - Non-GAAP net income was $16.1 million, or 12% of revenue, in Q4 2024, down from $52.9 million, or 23% of revenue, in Q4 2023[14] - Adjusted EBITDA decreased by 71% to $15.5 million, or 12% of revenue, in Q4 2024 compared to $53.9 million, or 23% of revenue, in Q4 2023[15] - GAAP Net Income for the year ended December 31, 2024, was $12,614,000, down 89.3% from $117,413,000 in 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was $50,851,000, a decline of 70.0% from $169,116,000 in 2023[35] - Free cash flow for Q4 2024 was $2,981,000, significantly lower than $49,936,000 in Q4 2023[37] - Non-GAAP diluted earnings per share for the year ended December 31, 2024, was $1.27, down 61.9% from $3.33 in 2023[36] Cost and Expense Management - Total costs and expenses for Q4 2024 were $125.401 million, down from $194.346 million in Q4 2023, reflecting a reduction of 35.5%[32] - Traffic Acquisition Costs (TAC) decreased to $74.8 million, or 58% of revenue, in Q4 2024, down from 61% in Q4 2023, indicating improved margin[13] - Traffic acquisition costs and media buy for Q4 2024 totaled $74,838,000, a decrease of 47.9% from $143,605,000 in Q4 2023[35] - Stock-based compensation expenses for the year ended December 31, 2024, increased to $24,029,000 from $15,590,000 in 2023, representing a 54.0% increase[36] Cash Flow and Liquidity - Cash and cash equivalents decreased to $156.228 million as of December 31, 2024, compared to $187.609 million at the end of 2023[33] - The company reported a net cash provided by operating activities of $4.340 million for Q4 2024, a significant decrease from $50.216 million in Q4 2023[34] - Net cash provided by operating activities for the year ended December 31, 2024, was $6,939,000, a decrease of 95.5% from $155,463,000 in 2023[37] - Adjusted free cash flow for the year ended December 31, 2024, was $16,602,000, down from $154,679,000 in 2023[37] Shareholder Returns and Guidance - Perion announced a share repurchase program totaling $75 million, with $46.9 million spent as of the end of Q4 2024[9] - The company provided full-year 2025 revenue guidance of $400 to $420 million and adjusted EBITDA guidance of $40 to $42 million[11] Asset and Liability Overview - Total assets decreased to $916.451 million as of December 31, 2024, down from $1,077.266 million at the end of 2023[33] - The company’s total liabilities decreased to $196.695 million as of December 31, 2024, from $359.119 million at the end of 2023[33] - The weighted average number of diluted shares outstanding was 46,325,857 for Q4 2024, compared to 50,600,750 for Q4 2023[32] Strategic Initiatives - The company is focusing on expanding the Perion One platform, which integrates advanced AI technologies for operational efficiency and growth[3]

Revenue Sources and Agreements - In 2024, 23% of the company's revenue was generated from its agreement with Microsoft, while 10% came from another search provider[45]. - The Microsoft Agreement accounted for 35%, 34%, and 23% of the company's revenue in 2022, 2023, and 2024, respectively[44]. - The expiration of the Microsoft Agreement on December 31, 2024, places the company in a tail period, potentially affecting revenue generation[49]. - In 2023 and 2024, the top five publishers accounted for approximately 11% and 15% of the company's revenue, respectively[47]. Advertising Activity and Market Competition - The company experienced a decline in search advertising activity in Q1 2024 due to changes in advertising pricing and mechanisms implemented by Microsoft[44]. - In Q2 2024, the company faced an additional decline in search advertising activity due to Microsoft's exclusion of several publishers from its search distribution marketplace[44]. - The advertising industry is highly competitive, and failure to compete effectively could lead to a decline in revenue[28]. - The company relies heavily on third-party publishers for its search offerings, making it vulnerable to changes in their policies and the competitive landscape[48]. - The discretionary nature of relationships with advertising customers exposes the company to increased pricing pressure and potential revenue loss[60]. - The competitive landscape in the advertising industry is intense, with the need for continuous innovation to maintain market share[80]. Data Collection and Processing - The company depends on its ability to collect and process data, and any limitations could significantly diminish the value of its solutions[33]. - The ability to collect and process data, including personal data, is crucial for the company's advertising solutions, and any limitations could significantly diminish its value and lead to loss of customers and revenue[86]. - The company relies on third-party search engine results, primarily from Microsoft Bing and Yahoo, exposing it to competition from emerging AI technologies like OpenAI's ChatGPT and Google's Gemini[92]. Economic and Political Risks - Political and economic instability in the Middle East, particularly in Israel, may adversely affect the company's operations and revenue[33]. - The ongoing military conflict between Russia and Ukraine has contributed to global economic volatility, impacting the company's business environment[108]. - The ongoing military conflict in Israel has led to a deterioration in economic indicators, including a downgrade in Israel's credit rating by agencies such as Moody's, S&P Global, and Fitch[216]. - The company faces risks from political, economic, and military instability in the Middle East, which could adversely affect operations and revenue generation[211]. Regulatory and Compliance Challenges - The company is subject to ongoing costs associated with compliance with corporate governance and disclosure requirements, which could adversely affect financial results[136]. - The evolving legal and regulatory landscape surrounding AI, including new laws in the U.S. and EU, may impose additional compliance costs and affect the company's operations[95][96]. - The company is subject to stringent data protection laws, including the GDPR, which impose significant compliance costs and potential fines for violations[174]. - Non-compliance with data privacy regulations could lead to legal liability and adversely affect business operations[173]. Financial Performance and Market Conditions - The company has recognized impairments in goodwill and intangible assets in the past, which could negatively affect future results of operations[120]. - Global economic conditions, including inflationary pressures and rising interest rates, could adversely affect the company's revenue and financial condition[110]. - The company may face substantial tax liabilities if required to collect sales, use, or other taxes on its services, which could adversely affect future sales revenue[189]. - Legislative changes in various states and countries regarding digital advertising taxation could materially impact the company's revenue[191]. Innovation and Technology - The company announced a strategic transformation in February 2025, unifying its business units under the Perion brand and launching the Perion One platform[69]. - In 2023, the company launched WAVE, a generative AI-powered dynamic audio solution, and SORT®, a pre-bid technology that uses proprietary AI to optimize ad delivery[91]. - The company must continue to innovate and invest in AI technologies to remain competitive, as failure to do so could materially adversely affect its business[89]. Shareholder and Market Dynamics - As of March 5, 2025, three shareholders beneficially held more than 5% of the outstanding shares, which may allow them to control shareholder vote outcomes[122]. - The company has authorized a share repurchase program totaling $125 million, with $46.9 million spent to repurchase 5.2 million shares as of December 31, 2024[131]. - The company's ordinary shares are traded on both Nasdaq and TASE, leading to potential price variations due to different currencies and trading times[149]. Cybersecurity and Data Protection - The company may face significant legal, reputational, or financial exposure due to cybersecurity threats and data breaches[155]. - The company relies on third-party service providers for information technology, which poses risks related to cybersecurity and data breaches[156]. - Significant failures in data protection measures could materially adversely affect the company's business and reputation, leading to claims from customers and data subjects[159]. Operational Challenges - The company faces margin pressure due to the commoditization of digital advertising services, impacting its profitability[99]. - The company faces significant competition for qualified personnel, particularly in the high-tech industry, which may lead to increased wage inflation and impact profitability[117]. - The company must comply with Nasdaq's continued listing requirements, or it risks delisting, which could negatively affect the price of its ordinary shares[148].