Perion Network Ltd. Q4 2025 Earnings Call Summary - Moby Strategic Pivot and Operational Integration Management defines 2025 as 'Year 1' of a total transformation, unifying technology, organizational structure, and mission under the Perion One strategy. Performance was driven by double-digit growth in CTV, Digital Out-of-Home, and Retail Media, which significantly outpaced broader market trends. The company transitioned from a channel-specific sales approach to a holistic, AI-driven execution model ...

Core Insights - Perion Network reported a significant business reset and early results from its "Perion One" strategy, positioning itself as an AI-native execution infrastructure for digital advertising [5] Financial Performance - For Q4, GAAP net income was $8 million, or $0.19 per diluted share, while non-GAAP net income was $21.4 million, or $0.49 per diluted share [1] - Full-year 2025 revenue reached $439.9 million, with Contribution ex-TAC at $203.4 million and Adjusted EBITDA of $45.2 million, reflecting a 22% margin [6] - The company generated $41.9 million in cash from operations for 2025, a 504% year-over-year increase, and Adjusted free cash flow was $40.2 million, up 142% [7] Strategic Initiatives - CEO Tal Jacobson emphasized 2025 as a defining year for Perion, focusing on building Perion One as a centralized platform for marketers through technology integration and strategic partnerships [4] - The company launched new partnerships with Amazon, Walmart, and Mastercard to enhance its advertising capabilities [8][9] Revenue Mix and Growth Engines - Advertising Solutions revenue increased by 7% year-over-year in Q4, while web revenue declined by 17% year-over-year in Q4 and 13% for the full year [7] - CTV revenue grew by 59% in Q4 and 42% for the full year, reaching $62.1 million, while digital out-of-home revenue increased by 28% in Q4 and 36% for the full year, totaling $94.9 million [8] Future Guidance and Targets - For full-year 2026, Perion guided to Contribution ex-TAC of $215 million to $235 million and Adjusted EBITDA of $50 million to $54 million, factoring in a gradual decline in search and legacy activities [12] - Management set ambitious targets for 2028, including a performance spend CAGR of at least 25%, Contribution ex-TAC CAGR of at least 20%, and Adjusted EBITDA margins reaching 28% of Contribution ex-TAC [14]

Market Performance Recap - The Dow Jones Industrial Average (DJI) surged 0.7%, or approximately 327 points, closing at a record 48,254.82 points, marking its second consecutive record close [2] - The S&P 500 (SPX) gained 0.1%, remaining close to its all-time high [2] - The Nasdaq Composite (IXIC) slipped 0.3%, or 58.87 points, primarily due to weakness in major technology stocks [3] Driving Factors: Shutdown Relief and Economic Signals - Anticipation of a resolution to the 43-day U.S. government shutdown was the primary catalyst for market movements, with the House expected to vote on a spending bill [4] - The ADP employment report indicated an average of 11,250 jobs cut per week through late October, suggesting a cooling job market and increasing expectations for Federal Reserve interest rate cuts [5] Major Stock News and Movements - Advanced Micro Devices (AMD) surged 9% after projecting robust revenue growth of 35% over the next three to five years [6] - International Business Machines (IBM) rose 0.5%, reaching an all-time high of $324.90, following announcements of breakthroughs in quantum computing [6] - Palantir Technologies (PLTR) fell approximately 5%, impacting the Nasdaq's performance [6] - Major airlines saw gains of 4% to 5% due to hopes of government shutdown resolution, with smaller regional airlines also posting increases [6] - Paramount Skydance (PSKY) was among the biggest decliners, dropping 7% [6] Upcoming Market Events and Earnings - Investors are focused on the final resolution of the government shutdown and the release of U.S. inflation data on November 13, which will influence Federal Reserve policy [7] - Nvidia (NVDA) is set to report earnings on November 19, with retail company performances expected to provide insights into consumer spending [8] Additional Stock Movements - Financial stocks showed strength, with Goldman Sachs Group (GS) up 3.5%, JPMorgan Chase & Co. (JPM) gaining 1.4%, and Morgan Stanley (MS) increasing 2% [11] - On Holdings (ONON) shares surged 24% after reporting strong quarterly results, while Perion Network (PERI) jumped 14% after beating Q3 earnings estimates [11] - Stereotaxis (STXS) tumbled 15% after missing Q3 expectations, and Circle Internet Group, Inc. (CRCL) fell 7% despite better-than-expected Q3 results [11]

Core Viewpoint - Angi reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.33 per share, and showing a decline from $0.70 per share a year ago, indicating a significant earnings surprise of -30.30% [1][2] Financial Performance - The company posted revenues of $265.63 million for the quarter ended September 2025, which was 1.29% below the Zacks Consensus Estimate and a decrease from $296.72 million in the same quarter last year [2] - Over the last four quarters, Angi has surpassed consensus EPS estimates only once, while it has topped consensus revenue estimates three times [2] Stock Performance - Angi shares have declined approximately 21.4% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] - The current Zacks Rank for Angi is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $249.68 million, and for the current fiscal year, it is $1.34 on revenues of $1.04 billion [7] - The trend of estimate revisions for Angi was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Internet - Content industry, to which Angi belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Group 1 - Perion Network Ltd. has been identified as a small-cap tech stock that hedge funds were purchasing in Q2, with a recent Buy rating initiated by Craig-Hallum analyst Jason Kreyer, setting a price target of $14, indicating nearly 50% upside potential from current levels [1][3] - On September 25, Perion announced a strategic partnership with Albertsons Media Collective, granting access to first-party purchase data from over 2,200 stores and 100 million+ shoppers, allowing advertisers to target retail audiences more effectively [2][3] - The partnership with Albertsons signifies Perion's ambition in the retail media space, which is experiencing growth as brands seek alternatives to traditional advertising platforms, enhancing Perion's value proposition in omnichannel advertising [3] Group 2 - Perion Network Ltd. is based in Tel Aviv and New York, providing advertising solutions across various channels including search, social, display, and digital out-of-home (DOOH), serving clients such as brands, agencies, and publishers [4]

Core Insights - Perion Network Ltd. is identified as a promising investment opportunity in the AI sector, particularly following its strategic partnership with Albertsons Media Collective [1][2]. Group 1: Partnership and Market Access - The partnership with Albertsons Media Collective allows advertisers to access purchase-based audience data, reaching over 100 million verified shoppers across Albertsons' store locations [2][3]. - This collaboration enhances targeted advertising capabilities through Perion's display and digital out-of-home advertising formats, providing access to first-party data [2][3]. Group 2: Technological Advancements - Perion's CEO, Tal Jacobson, emphasized the partnership's role in unifying retail data and high-impact media, unlocking new revenue streams [3]. - The deal includes features such as incremental sales measurement for digital out-of-home campaigns and closed-loop measuring capabilities for display advertising, with AI-driven optimizations for advertisers [3][4]. Group 3: AI-Driven Solutions - Perion utilizes AI to enhance its digital advertising and marketing solutions, focusing on personalization, targeting, and campaign optimization across various channels, including web, social, audio, and CTV [4]. - The AI-driven platforms analyze large datasets to identify optimal moments for delivering personalized ads, improving engagement, and providing efficiency gains for brands and agencies [4].

Group 1: Company Overview - Genius Sports Limited (GENI) shares increased by 8.4% to close at $10.47, supported by high trading volume, contrasting with a 4.4% loss over the past four weeks [1] - The company is leveraging advanced technology solutions and partnerships with NCAA and the English Premier League, along with innovative products like GeniusIQ, BetVision, and SAOT, to drive revenue growth [2] Group 2: Financial Performance - Genius Sports is expected to report quarterly earnings of $0.01 per share, reflecting a year-over-year increase of 111.1% [2] - Revenue projections for the upcoming quarter are $118.96 million, which is a 24.6% increase compared to the same quarter last year [2] Group 3: Market Trends and Stock Performance - Trends in earnings estimate revisions are closely linked to short-term stock price movements, indicating potential strength in the stock [3] - The consensus EPS estimate for Genius Sports has remained unchanged over the last 30 days, suggesting that the stock's price may not continue to rise without earnings estimate revisions [4] - Genius Sports currently holds a Zacks Rank of 3 (Hold), while another company in the same industry, Perion Network, has a Zacks Rank of 4 (Sell) [4]

Group 1: Company Performance - Opera Limited's shares have declined by 15.3% over the past three months, underperforming the Zacks Computer and Technology sector's decline of 6% and the Internet–Content industry's increase of 0.8% [1] - The company has faced challenges due to rising cost pressures, with first-quarter operating expenses increasing by 47% year over year [1] - A significant 49% decline in operating cash flow year over year raises concerns about near-term liquidity and capital efficiency [1][6] Group 2: User Growth and Market Position - Opera's management has indicated stagnation in its monthly active user (MAU) base, which is hovering around 300 million, suggesting potential market saturation [3] - The stagnation in MAU growth could adversely affect Opera's monetization strategies, particularly in high-margin areas like advertising and search revenues that depend on user engagement [3] - Despite efforts to innovate with products like Opera Air and updates to Opera One and GX, the effectiveness of these initiatives in driving sustainable user growth remains uncertain [4] Group 3: Financial Challenges - The surge in operating expenses, driven by increased investments in personnel, infrastructure, and product development, is exerting downward pressure on operating margins and overall profitability [5] - The decline in operating cash flow and rising share-based compensation further complicate Opera's financial outlook, raising concerns about funding future initiatives [7] - To stabilize its financial position and create long-term value for shareholders, Opera must successfully drive user growth and manage costs effectively [7]

Company Overview - Intellinetics, Inc. (INLX) shares increased by 11% to close at $14.47, with notable trading volume compared to typical sessions, contrasting with a 1.4% loss over the past four weeks [1] - The company is experiencing strong growth in its Payables Automation Solution and is expanding into new markets such as K-12, while also investing in sales and marketing for future revenue growth [1] Financial Performance - Intellinetics is expected to report a quarterly loss of $0.07 per share, reflecting a year-over-year decline of 75%, with revenues projected at $4.6 million, a 2% increase from the previous year [2] - The consensus EPS estimate for Intellinetics has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Intellinetics operates within the Zacks Internet - Content industry, where Perion Network (PERI) is another player, having closed at $9.22 with a 0.1% decrease in the last trading session and a 30.4% return over the past month [3] - Perion Network's consensus EPS estimate has also remained unchanged at $0.09, representing a 79.6% decline from the previous year, and it holds a Zacks Rank of 3 (Hold) [4]

Core Viewpoint - Shutterstock reported quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.26 per share, and down from $1.13 per share a year ago [1][2] Financial Performance - The earnings surprise was -18.25%, and the company had a previous quarter surprise of -27.17% with actual earnings of $0.67 per share against an expectation of $0.92 [2] - Revenues for the quarter were $242.62 million, missing the Zacks Consensus Estimate by 8%, compared to $214.32 million in the same quarter last year [3] - Over the last four quarters, the company has surpassed consensus revenue estimates twice [3] Stock Performance - Shutterstock shares have declined approximately 45.9% since the beginning of the year, while the S&P 500 has decreased by 4.7% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $274.77 million, and for the current fiscal year, it is $5.39 on revenues of $1.07 billion [8] - The outlook for the industry, specifically the Internet - Content sector, is in the bottom 31% of over 250 Zacks industries, which may impact stock performance [9]