Q1 2025 Financial Performance - Revenue reached $89.3 million[48] - Adjusted EBITDA was $1.8 million, representing a 2% margin[48] - Non-GAAP net income amounted to $5.4 million, with a 5% ex-TAC margin[48] - Diluted non-GAAP EPS stood at $0.11[48] - Net cash reached $358.5 million[48] Revenue Breakdown by Channel - DOOH revenue increased by 80% year-over-year to $17.4 million, accounting for 19% of total revenue[53] - CTV revenue increased by 31% year-over-year to $10.7 million, accounting for 12% of total revenue[53] - Web revenue decreased by 28% year-over-year to $41.3 million, accounting for 46% of total revenue[53] - Search revenue decreased significantly by 76% year-over-year to $19.6 million, accounting for 22% of total revenue[53] Growth Engines - Digital Out-of-Home (DOOH) experienced 80% year-over-year revenue growth[23] - CTV saw a 31% year-over-year revenue growth[23] - Retail Media achieved a 33% year-over-year revenue growth[23] Greenbids Acquisition - The company acquired Greenbids for a total consideration of $50 million, including $27.5 million in cash upon closing and a $22.5 million two-year cash earnout[82] - An additional $15 million was allocated for a three-year employee retention plan involving cash and equity[82] 2025 Financial Outlook - The company raised its full-year 2025 revenue guidance from $400-$420 million to $430-$450 million[85] - Adjusted EBITDA guidance was also raised from $40-$42 million to $44-$46 million, maintaining an Adjusted EBITDA/Revenue margin of 10% and an Adjusted EBITDA/Contribution ex-TAC margin of 22%[85]

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]