Perion(US:PERI)2025-03-25 20:45Revenue 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]