|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
|
●
|
Display Advertising revenue growth of 46% (or 23% on a proforma basis), driven by accelerated adoption of Perion’s video and CTV solutions, leading to an increase in average revenue per client of 29%;
|
●
|
Video and CTV grew by 311% year-over-year, or 87% on a proforma basis, representing 46% of Display Advertising revenue;
|
●
|
Search Advertising revenue growth of 16%, primarily driven by an increased number of commercial searches, as well as a higher percentage of transactional searches;
|
●
|
EBITDA margin from revenue excluding TAC grew to 45% compared to 35% during the fourth quarter of 2020, as a result of our investment in automation and offshoring our operations;
|
●
|
Net cash provided by operating activities of $28.8 million;
|
●
|
Net cash of $321.6 million.
|
|
Three months ended
|
|
Year ended
|
||||||||||||
|
December 31,
|
|
December 31,
|
||||||||||||
|
2021
|
|
2020
|
|
%
|
|
2021
|
|
2020
|
|
%
|
||||
Display Advertising revenue
|
$
|
100.2
|
|
$
|
68.4
|
|
+46%
|
|
$
|
265.3
|
|
$
|
148.7
|
|
+78%
|
Search Advertising revenue
|
$
|
57.8
|
|
$
|
49.9
|
|
+16%
|
|
$
|
213.2
|
|
$
|
179.4
|
|
+19%
|
Total Revenue
|
$
|
158.0
|
|
$
|
118.3
|
|
+34%
|
|
$
|
478.5
|
|
$
|
328.1
|
|
+46%
|
GAAP Net Income
|
$
|
17.7
|
|
$
|
9.0
|
|
+97%
|
|
$
|
38.7
|
|
$
|
10.2
|
|
+279%
|
Non-GAAP Net Income
|
$
|
25.3
|
|
$
|
13.8
|
|
+83%
|
|
$
|
60.0
|
|
$
|
26.6
|
|
+125%
|
Adjusted EBITDA
|
$
|
28.9
|
|
$
|
15.3
|
|
+89%
|
|
$
|
69.6
|
|
$
|
32.8
|
|
+112%
|
Adjusted EBITDA/Revenue Ex TAC
|
|
45%
|
|
|
35%
|
|
+27%
|
|
|
37%
|
|
|
25%
|
|
+45%
|
Net cash provided by operating activities
|
$
|
28.8
|
|
$
|
12.9
|
|
+123%
|
|
$
|
71.1
|
|
$
|
22.2
|
|
+221%
|
GAAP Diluted Earnings Per Share
|
$
|
0.44
|
|
$
|
0.30
|
|
+47%
|
|
$
|
1.02
|
|
$
|
0.36
|
|
+183%
|
Non-GAAP Diluted Earnings Per Share
|
$
|
0.62
|
|
$
|
0.45
|
|
+38%
|
|
$
|
1.57
|
|
$
|
0.91
|
|
+73%
|
($M)
|
2021
|
Previous 2022 Guidance
|
Guidance 2022 *
|
YoY Growth % *
|
Revenue
|
$478.5
|
$590-$610
|
$610-$630
|
30%
|
Adjusted EBITDA
|
$69.6
|
$80-$84
|
$88-$92
|
29%
|
EBITDA to REV Ex-TAC
|
37%
|
35%
|
36%
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Revenues:
|
||||||||||||||||
Display Advertising
|
$
|
100,177
|
$
|
68,400
|
$
|
265,323
|
$
|
148,698
|
||||||||
Search Advertising
|
57,798
|
49,856
|
213,175
|
179,365
|
||||||||||||
Total Revenues
|
157,975
|
118,256
|
478,498
|
328,063
|
||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of revenues
|
7,318
|
6,539
|
25,197
|
22,477
|
||||||||||||
Traffic acquisition costs and media buy
|
93,342
|
74,809
|
288,018
|
197,626
|
||||||||||||
Research and development
|
9,245
|
8,480
|
35,348
|
30,880
|
||||||||||||
Selling and marketing
|
16,799
|
11,717
|
53,209
|
39,085
|
||||||||||||
General and administrative
|
6,878
|
4,060
|
20,933
|
15,819
|
||||||||||||
Depreciation and amortization
|
3,598
|
2,675
|
9,897
|
9,923
|
||||||||||||
Total Costs and Expenses
|
137,180
|
108,280
|
432,602
|
315,810
|
||||||||||||
Income from Operations
|
20,795
|
9,976
|
45,896
|
12,253
|
||||||||||||
Financial expense, net
|
465
|
1,446
|
581
|
2,638
|
||||||||||||
Income before Taxes on income
|
20,330
|
8,530
|
45,315
|
9,615
|
||||||||||||
Taxes on income (benefit)
|
2,635
|
(472
|
)
|
6,609
|
(610
|
)
|
||||||||||
Net Income
|
$
|
17,695
|
$
|
9,002
|
$
|
38,706
|
$
|
10,225
|
||||||||
Net Earnings per Share
|
||||||||||||||||
Basic
|
$
|
0.48
|
$
|
0.33
|
$
|
1.13
|
$
|
0.38
|
||||||||
Diluted
|
$
|
0.44
|
$
|
0.30
|
$
|
1.02
|
$
|
0.36
|
||||||||
Weighted average number of shares
|
||||||||||||||||
Basic
|
36,768,367
|
26,946,060
|
34,397,134
|
26,687,145
|
||||||||||||
Diluted
|
40,349,416
|
29,961,648
|
37,829,725
|
28,797,747
|
|
December 31,
|
December 31,
|
||||||
|
2021
|
2020
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
104,446
|
$
|
47,656
|
||||
Restricted cash
|
1,089
|
1,222
|
||||||
Short-term bank deposits
|
217,200
|
12,700
|
||||||
Accounts receivable, net
|
115,361
|
81,221
|
||||||
Prepaid expenses and other current assets
|
8,075
|
4,560
|
||||||
Total Current Assets
|
446,171
|
147,359
|
||||||
|
||||||||
Long-Term Assets:
|
||||||||
Property and equipment, net
|
4,211
|
6,770
|
||||||
Operating lease right-of-use assets
|
11,578
|
20,266
|
||||||
Goodwill and intangible assets, net
|
245,965
|
176,679
|
||||||
Deferred taxes
|
5,228
|
7,111
|
||||||
Other assets
|
79
|
496
|
||||||
Total Long-Term Assets
|
267,061
|
211,322
|
||||||
Total Assets
|
$
|
713,232
|
$
|
358,681
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
107,730
|
$
|
72,498
|
||||
Accrued expenses and other liabilities
|
40,331
|
21,188
|
||||||
Short-term operating lease liability
|
3,615
|
4,514
|
||||||
Short-term loans and current maturities of long-term loans
|
-
|
8,333
|
||||||
Deferred revenues
|
3,852
|
5,711
|
||||||
Short-term payment obligation related to acquisitions
|
38,179
|
7,869
|
||||||
Total Current Liabilities
|
193,707
|
120,113
|
||||||
|
||||||||
Long-Term Liabilities:
|
||||||||
Payment obligation related to acquisition
|
33,250
|
30,035
|
||||||
Long-term operating lease liability
|
9,774
|
17,698
|
||||||
Other long-term liabilities
|
9,541
|
6,713
|
||||||
Total Long-Term Liabilities
|
52,565
|
54,446
|
||||||
Total Liabilities
|
246,272
|
174,559
|
||||||
|
||||||||
Shareholders' equity:
|
||||||||
Ordinary shares
|
375
|
224
|
||||||
Additional paid-in capital
|
496,154
|
251,933
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive gain
|
(128
|
)
|
112
|
|||||
Accumulated deficit
|
(28,439
|
)
|
(67,145
|
)
|
||||
Total Shareholders' Equity
|
466,960
|
184,122
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
713,232
|
$
|
358,681
|
|
Three months ended
|
Year ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2021
|
2020
|
2021
|
2020
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net Income
|
$
|
17,695
|
$
|
9,002
|
$
|
38,706
|
$
|
10,225
|
||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
3,598
|
2,675
|
9,897
|
9,923
|
||||||||||||
Stock-based compensation expense
|
3,252
|
1,534
|
6,985
|
4,447
|
||||||||||||
Foreign currency translation
|
(116
|
)
|
108
|
(223
|
)
|
19
|
||||||||||
Accrued interest, net
|
(80
|
)
|
(138
|
)
|
(300
|
)
|
(125
|
)
|
||||||||
Deferred taxes, net
|
(2,572
|
)
|
(754
|
)
|
(2,755
|
)
|
(3,093
|
)
|
||||||||
Accrued severance pay, net
|
330
|
(228
|
)
|
663
|
(23
|
)
|
||||||||||
Loss (gain) from sale of property and equipment
|
132
|
(78
|
)
|
121
|
10
|
|||||||||||
Net changes in operating assets and liabilities
|
6,597
|
799
|
18,012
|
776
|
||||||||||||
Net cash provided by operating activities
|
$
|
28,836
|
$
|
12,920
|
$
|
71,106
|
$
|
22,159
|
||||||||
|
||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchases of property and equipment, net of sales
|
(37
|
)
|
(67
|
)
|
(532
|
)
|
(454
|
)
|
||||||||
Short-term deposits, net
|
(157,200
|
)
|
(4,400
|
)
|
(204,500
|
)
|
10,534
|
|||||||||
Cash paid in connection with acquisitions, net of cash acquired
|
(35,000
|
)
|
1,186
|
(38,438
|
)
|
(19,000
|
)
|
|||||||||
Obligation in connection with acquisitions
|
-
|
(1,347
|
)
|
-
|
-
|
|||||||||||
Net cash used in investing activities
|
$
|
(192,237
|
)
|
$
|
(4,628
|
)
|
$
|
(243,470
|
)
|
$
|
(8,920
|
)
|
||||
|
||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Issuance of shares in private placement, net
|
169,529
|
-
|
230,489
|
-
|
||||||||||||
Proceeds from exercise of stock-based compensation
|
1,958
|
2,200
|
6,898
|
4,286
|
||||||||||||
Proceeds from short-term loans
|
-
|
(12,500
|
)
|
-
|
-
|
|||||||||||
Repayment of long-term loans
|
-
|
(2,084
|
)
|
(8,333
|
)
|
(8,333
|
)
|
|||||||||
Net cash provided by (used in) financing activities
|
$
|
171,487
|
$
|
(12,384
|
)
|
$
|
229,054
|
$
|
(4,047
|
)
|
||||||
|
||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
16
|
89
|
(33
|
)
|
81
|
|||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
8,102
|
(4,003
|
)
|
56,657
|
9,273
|
|||||||||||
Cash and cash equivalents and restricted cash at beginning of period
|
97,433
|
52,881
|
48,878
|
39,605
|
||||||||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
105,535
|
$
|
48,878
|
$
|
105,535
|
$
|
48,878
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Net Income
|
$
|
17,695
|
$
|
9,002
|
$
|
38,706
|
$
|
10,225
|
||||||||
Stock-based compensation
|
3,252
|
1,534
|
6,985
|
4,447
|
||||||||||||
Amortization of acquired intangible assets
|
2,807
|
1,611
|
6,875
|
5,261
|
||||||||||||
Retention and other related to M&A related expenses
|
3,547
|
2,147
|
9,074
|
7,159
|
||||||||||||
Changes in FV of Earnout contingent consideration
|
(2,246
|
)
|
(998
|
)
|
(2,246
|
)
|
(998
|
)
|
||||||||
Foreign exchange losses (gains) associated with ASC-842
|
169
|
475
|
(38
|
)
|
422
|
|||||||||||
Revaluation of acquisition related contingent consideration
|
286
|
175
|
761
|
620
|
||||||||||||
Taxes on the above items
|
(222
|
)
|
(159
|
)
|
(130
|
)
|
(503
|
)
|
||||||||
Non-GAAP Net Income
|
$
|
25,288
|
$
|
13,787
|
$
|
59,987
|
$
|
26,633
|
||||||||
Non-GAAP Net Income
|
$
|
25,288
|
$
|
13,787
|
$
|
59,987
|
$
|
26,633
|
||||||||
Taxes on income
|
2,857
|
(313
|
)
|
6,739
|
(107
|
)
|
||||||||||
Financial expense (income), net
|
10
|
796
|
(142
|
)
|
1,596
|
|||||||||||
Depreciation
|
791
|
1,064
|
3,022
|
4,662
|
||||||||||||
Adjusted EBITDA
|
$
|
28,946
|
$
|
15,334
|
$
|
69,606
|
$
|
32,784
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
0.62
|
$
|
0.45
|
$
|
1.57
|
$
|
0.91
|
||||||||
Shares used in computing non-GAAP diluted earnings per share
|
40,613,055
|
30,395,478
|
38,176,470
|
29,268,098
|