Summary of Perion Network (PERI) FY Conference Call - August 13, 2025 Company Overview - Perion Network has transitioned from focusing on the supply side of advertising to becoming a centralized platform for marketers, particularly Chief Marketing Officers (CMOs), to manage their digital advertising spend in a fragmented industry [4][12][14]. Core Business Strategy - The company is now primarily focused on the demand side of advertising, aiming to streamline the orchestration of digital marketing budgets, which amount to approximately $1 trillion annually [4][12]. - Perion One is the company's strategy to unify various technologies and processes, allowing for a more efficient and cost-effective approach to digital marketing [12][14]. - The platform is designed to be channel agnostic, optimizing media investments without replacing existing Demand-Side Platforms (DSPs) [14][15]. Market Position and Target Audience - Perion targets advertisers using multiple DSPs, particularly those spending on platforms like YouTube and Meta, while also catering to the middle market [20][22]. - The company is not focused on small businesses but rather on medium to large advertisers who require more sophisticated solutions [21][22]. Product Offerings and Innovations - The company has introduced new features, including an algorithm for Connected TV (CTV) advertising, which is expected to grow significantly [5][34]. - Perion's CTV solutions are projected to outperform market growth, with expectations of over 20% annual growth [34][36]. - The introduction of AI-driven solutions aims to enhance efficiency in both managed and self-service advertising [25][32]. Financial Performance and Projections - Gross margins peaked at around 90% in 2022 but are projected to decline to approximately 74% due to the shift towards a platform model and increased CTV focus [72]. - The company anticipates becoming more efficient as it moves towards a self-service model, reducing the need for manual work and allowing for scaling without proportional increases in headcount [72][75]. Macro Economic Impact - There was initial nervousness in Q2 regarding advertising budgets, particularly in CTV, but confidence has returned, with expectations of increased spending in premium channels [67][70]. - The company has observed a ramp-up in digital ad spending as the year progresses, indicating a recovery in market confidence [69][70]. Cash Management and Shareholder Returns - Perion is maintaining a significant cash reserve while also accelerating share buybacks, believing that the stock is undervalued [88][90]. - The company plans to continue investing in growth opportunities while returning value to shareholders through buybacks [90]. Conclusion - Perion Network is strategically positioning itself as a leader in the ad tech space by focusing on unifying digital marketing efforts through its Perion One platform, leveraging AI, and targeting medium to large advertisers. The company is optimistic about future growth, particularly in CTV, while managing its financial resources effectively to support ongoing innovation and shareholder returns.

Summary of Perion Network (PERI) FY Conference Call - August 12, 2025 Company Overview - **Company**: Perion Network (PERI) - **Industry**: Digital Advertising Key Points and Arguments Transformation and Positioning - Perion has undergone a significant transformation, shifting focus from supply-side advertising technology to demand-side solutions for Chief Marketing Officers (CMOs) [3][4] - The company aims to create a unified platform for CMOs to manage their media investments across various channels, likening its platform to a "Salesforce for CMOs" [4][5] Business Momentum - The company reported strong momentum in its digital out-of-home (DOOH) advertising segment, which is growing rapidly, especially in the APAC and EMEA regions [6][7] - Perion's performance in Connected TV (CTV) is also promising, with the launch of a new performance CTV solution [7][26] Market Inefficiencies - A major inefficiency identified in the market is the frequent turnover of CMOs, which complicates budget management and performance tracking [10][12] - The lack of a centralized platform for data and metrics makes it difficult for CMOs to demonstrate ROI to CFOs [12][13] Product Offerings - Perion One is designed to address market inefficiencies by consolidating data and utilizing AI for optimization across various advertising channels [15][16] - The acquisition of Greenbids enhances Perion's optimization capabilities, allowing for customized AI bidding across multiple platforms [20][25] Growth Projections - The company expects to outpace the market growth rate of 13% for CTV, projecting growth above 20% [34][36] - Digital out-of-home advertising is projected to grow at 8% in the US, with programmatic DOOH growing at 15% [40][42] Financial Outlook - For the current year, Perion anticipates revenues of approximately $440 million and EBITDA between $44 million and $46 million [52][53] - The company expects continued double-digit growth in its core business segments, excluding search [52][53] Strategic Focus - Perion is focusing on larger brands initially, with plans to expand to small and medium-sized businesses (SMBs) and eventually self-serve options for small businesses [18] - The company aims to be a leader in AI-driven advertising solutions, positioning itself as a key player in managing a trillion-dollar market [55] Additional Important Insights - The digital out-of-home market in APAC is expected to reach $21 billion next year, highlighting significant growth potential [43] - Perion's partnerships in Japan and China are facilitating cross-border advertising opportunities, enhancing its market presence [45][46] - The search business is expected to decline, with an estimated revenue of $20 million per quarter, as consumer behavior shifts away from web search [48][49] This summary encapsulates the key insights from the Perion Network conference call, highlighting the company's strategic direction, market opportunities, and financial outlook.

Financial Data and Key Metrics Changes - Revenue for the second quarter was $103 million, marking an 8% year-over-year increase in advertising solutions revenue [24] - Adjusted EBITDA was $7.1 million, resulting in a 7% adjusted EBITDA margin and a 15% ex TAC margin [24][29] - Non-GAAP net income was $12 million, resulting in non-GAAP diluted earnings per share of 26 cents [24][30] - Operating cash flow generated was $21.3 million, reflecting the strength of the business model [31] Business Line Data and Key Metrics Changes - Advertising solutions business returned to year-over-year growth for the first time since 2023, driven by strong performance in digital out of home, retail media, and web [20] - Digital out of home revenue increased by 35% year-over-year, now accounting for 17% of total revenue, up from 12% last year [25] - Retail media generated $22.3 million in the second quarter, representing a 27% year-over-year increase [22] - CTV revenue declined by 5% year-over-year, representing 9% of total revenue, attributed to budget shifts to the second half of the year [25][30] Market Data and Key Metrics Changes - The company expanded its programmatic digital out of home footprint in APAC and EMEA, with new partnerships in Korea, Germany, and Italy [11] - The U.S. market for CTV is projected to exceed $36 billion in ad spend by 2026, with the company expecting to capture a greater share [13] Company Strategy and Development Direction - The company is focused on becoming a centralized platform for CMOs, with the Perion One strategy aimed at integrating all technologies and brands under one unified platform [5][8] - The strategic shift towards Perion One has been in planning since late 2023, involving long-term transformation and product evolution [6] - The company aims to improve speed and efficiency while deepening global adoption across brands, agencies, and retailers, unlocking long-term growth and margin leverage [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about CTV growth despite a slight decline, expecting a strong annual performance as budgets shift back [21][49] - The company is confident in its ability to execute and drive long-term shareholder value, operating in a high-growth industry with proven innovation culture [18] - The full-year revenue guidance remains in the range of $430 million to $450 million, with adjusted EBITDA expected between $44 million and $46 million [33] Other Important Information - The company acquired Greenbids, an AI-first company, to enhance its offerings and optimize performance [7][22] - A new performance CTV solution was launched, integrating high-impact technology with performance metrics [12][13] - The company has a strong cash balance of $318.5 million, providing financial flexibility for growth opportunities and capital returns to shareholders [31][33] Q&A Session Summary Question: Regarding the 5% decline in CTV - Management attributed the decline to budget shifts rather than an industry-wide issue, noting that CTV budgets are expected to shift back in the second half of the year [36][39] Question: Changes in campaign lengths among marketers - Management has not observed any major changes in campaign lengths, indicating that business continues as usual despite economic concerns [42] Question: Confidence in CTV growth in the back half of the year - Management expressed confidence in CTV growth, expecting to outpace the market growth of approximately 13% [49] Question: Sales organization alignment with Perion One - Management indicated that the sales organization is being optimized for efficiency, with potential headcount growth expected but not on a large scale [50] Question: Use of cash over the next six months - Management plans to continue share buybacks and is evaluating M&A opportunities while maintaining a balance between growth and capital returns [51][52] Question: Impact of AI search on web revenue - Management acknowledged potential risks from AI search but emphasized a focus on delivering outcomes for advertisers regardless of channel [61][64] Question: Targeting mid-market customers with performance CTV - Management clarified that there are no immediate plans for self-serve features for mid-market customers, focusing instead on larger agencies and holding companies [68]

Investor Presentation Q2 2025 August 11, 2025 Forward Looking Statements This presentation contains historical information and forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the safe- harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words "will," "believe," "expect," "intend," "plan," "should," "esti ...

Summary of Perion Network (PERI) FY Conference Call - May 13, 2025 Company Overview - Perion Network has transitioned into a full-stack platform for Chief Marketing Officers (CMOs), similar to how other roles have dedicated platforms like Salesforce for CROs and Jira for CTOs [1][3] - The company aims to connect various technologies rather than replace them, recently announcing an integration partnership with Trade Desk [2] Key Points Business Strategy and Market Position - Perion is focusing on enhancing its platform to provide a unified solution for CMOs, allowing them to manage campaigns from planning to execution and reporting [3][20] - The company has acquired an AI-first company to improve its capabilities in closed gardens like YouTube and Facebook, significantly expanding its total addressable market [4][18] - The shift in advertising budgets from brand awareness to performance is a critical focus, with 80% of agency budgets now coming from social media [8][9] Financial Performance - Perion reported a significant improvement in its open web numbers, which were down 26-28% previously but are expected to grow again [5][49] - The company has seen increased spending from existing customers and is attracting new clients, aided by the acquisition of GreenBits, which has enhanced their performance capabilities [50][51] Technology and Innovation - The company emphasizes the need for a unified platform that integrates various advertising channels, including CTV and digital out-of-home (DOOH) [20][59] - Perion's SORT technology, which started as a unique ID solution, has evolved to focus on outcomes rather than just user identification, providing a competitive advantage [96][102] Competitive Landscape - Perion differentiates itself from competitors like Trade Desk by focusing on creative optimization through Dynamic Creative Optimization (DCO) and integrating various data sources [110][113] - The company believes that being closer to advertisers who control budgets is more advantageous than merely managing inventory [132] Future Outlook - The management team is optimistic about the future, with a strong pipeline and backlog of potential business opportunities [51][52] - The focus on AI and technology advancements is expected to drive efficiency and growth, with no immediate plans to increase employee numbers [134] Additional Insights - The conversation highlighted the importance of bridging the gap between CMOs and CFOs, emphasizing that CMOs need to demonstrate the ROI of their campaigns in terms that CFOs understand [16][24] - The discussion also touched on the evolving landscape of digital advertising, where traditional metrics like CTR and viewability are being replaced with more meaningful business outcomes [15][20] This summary encapsulates the key discussions and insights from the Perion Network FY Conference Call, reflecting the company's strategic direction, financial performance, and competitive positioning in the advertising technology landscape.

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]