|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
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● |
Display Advertising revenue grew 80% (or 52% on pro forma basis), driven by accelerating adoption of Perion’s video and CTV solutions, leading to an increase of average client spend by 42% and a 3% increase in number of clients;
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● |
Video and CTV revenue grew by 341% year-over-year, (or 123% on a proforma basis), representing 46% of Display advertising revenue;
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● |
Search advertising revenue grew 10%, primarily driven by an increased number of commercial searches, as well as in the percentage of transactional searches;
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● |
Adjusted EBITDA margin expanded to 42% of revenue excluding traffic acquisitions costs compared to 25% during the first quarter of 2021, as a result of continuous improvement of iHub;
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● |
Net cash provided by operating activities of $23.6 million; Perion had $342.5 million in cash and zero debt as of March 31, 2022.
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Three months ended
|
|||||||||||
|
March 31,
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|||||||||||
|
2022
|
2021
|
%
|
|||||||||
Display Advertising revenue
|
$
|
68.6
|
$
|
38.1
|
+80
|
%
|
||||||
Search Advertising revenue
|
$
|
56.7
|
$
|
51.7
|
+10
|
%
|
||||||
Total Revenue
|
$
|
125.3
|
$
|
89.8
|
+40
|
%
|
||||||
GAAP Net Income
|
$
|
15.5
|
$
|
3.3
|
+368
|
%
|
||||||
Non-GAAP Net Income
|
$
|
20.7
|
$
|
7.0
|
+196
|
%
|
||||||
Adjusted EBITDA
|
$
|
22.7
|
$
|
8.8
|
+158
|
%
|
||||||
Adjusted EBITDA/Revenue Ex TAC
|
42%
|
|
25%
|
|
+66
|
%
|
||||||
Net cash provided by operating activities
|
$
|
23.6
|
$
|
13.5
|
+75
|
%
|
||||||
GAAP Diluted Earnings Per Share
|
$
|
0.33
|
$
|
0.09
|
+267
|
%
|
||||||
Non-GAAP Diluted Earnings Per Share
|
$
|
0.44
|
$
|
0.19
|
+132
|
%
|
($M)
|
2021
|
Previous 2022 Guidance
|
Guidance 2022 *
|
YoY Growth % *
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Revenue
|
$478.5
|
$610-$630
|
$620-$640
|
32%
|
Adjusted EBITDA
|
$69.6
|
$88-$92
|
$98-$102
|
44%
|
EBITDA to REV Ex-TAC
|
37%
|
36%
|
40%
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Three months ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Revenue:
|
||||||||
Display Advertising
|
$
|
68,603
|
$
|
38,137
|
||||
Search Advertising
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56,712
|
51,680
|
||||||
Total Revenue
|
125,315
|
89,817
|
||||||
Costs and Expenses:
|
||||||||
Cost of revenue
|
6,613
|
5,436
|
||||||
Traffic acquisition costs and media buy
|
70,974
|
54,860
|
||||||
Research and development
|
9,033
|
8,545
|
||||||
Selling and marketing
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13,338
|
10,605
|
||||||
General and administrative
|
5,666
|
4,131
|
||||||
Depreciation and amortization
|
3,185
|
2,377
|
||||||
Total Costs and Expenses
|
108,809
|
85,954
|
||||||
Income from Operations
|
16,506
|
3,863
|
||||||
Financial income, net
|
604
|
193
|
||||||
Income before Taxes on income
|
17,110
|
4,056
|
||||||
Taxes on income
|
1,644
|
750
|
||||||
Net Income
|
$
|
15,466
|
$
|
3,306
|
||||
Net Earnings per Share
|
||||||||
Basic
|
$
|
0.35
|
$
|
0.10
|
||||
Diluted
|
$
|
0.33
|
$
|
0.09
|
||||
Weighted average number of shares
|
||||||||
Basic
|
44,035,576
|
32,147,176
|
||||||
Diluted
|
47,030,727
|
35,820,634
|
|
March 31,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
92,892
|
$
|
104,446
|
||||
Restricted cash
|
1,063
|
1,089
|
||||||
Short-term bank deposits
|
249,600
|
217,200
|
||||||
Accounts receivable, net
|
84,542
|
115,361
|
||||||
Prepaid expenses and other current assets
|
8,553
|
8,075
|
||||||
Total Current Assets
|
436,650
|
446,171
|
||||||
|
||||||||
Long-Term Assets:
|
||||||||
Property and equipment, net
|
4,034
|
4,211
|
||||||
Operating lease right-of-use assets
|
10,776
|
11,578
|
||||||
Goodwill and intangible assets, net
|
243,177
|
245,965
|
||||||
Deferred taxes
|
5,413
|
5,228
|
||||||
Other assets
|
110
|
79
|
||||||
Total Long-Term Assets
|
263,510
|
267,061
|
||||||
Total Assets
|
$
|
700,160
|
$
|
713,232
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
94,056
|
$
|
107,730
|
||||
Accrued expenses and other liabilities
|
27,081
|
40,331
|
||||||
Short-term operating lease liability
|
3,504
|
3,615
|
||||||
Deferred revenue
|
3,199
|
3,852
|
||||||
Short-term payment obligation related to acquisitions
|
34,651
|
38,179
|
||||||
Total Current Liabilities
|
162,491
|
193,707
|
||||||
|
||||||||
Long-Term Liabilities:
|
||||||||
Payment obligation related to acquisition
|
33,377
|
33,250
|
||||||
Long-term operating lease liability
|
8,835
|
9,774
|
||||||
Other long-term liabilities
|
9,647
|
9,541
|
||||||
Total Long-Term Liabilities
|
51,859
|
52,565
|
||||||
Total Liabilities
|
214,350
|
246,272
|
||||||
|
||||||||
Shareholders' equity:
|
||||||||
Ordinary shares
|
378
|
375
|
||||||
Additional paid-in capital
|
499,527
|
496,154
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive gain
|
(120
|
)
|
(128
|
)
|
||||
Accumulated deficit
|
(12,973
|
)
|
(28,439
|
)
|
||||
Total Shareholders' Equity
|
485,810
|
466,960
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
700,160
|
$
|
713,232
|
|
Three months ended
|
|||||||
|
March 31,
|
|||||||
|
2022
|
2021
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
|
||||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
$
|
15,466
|
$
|
3,306
|
||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
3,185
|
2,377
|
||||||
Stock-based compensation expense
|
2,428
|
755
|
||||||
Foreign currency translation
|
(46
|
)
|
(120
|
)
|
||||
Accrued interest, net
|
(542
|
)
|
(75
|
)
|
||||
Deferred taxes, net
|
(204
|
)
|
236
|
|||||
Accrued severance pay, net
|
94
|
109
|
||||||
Net changes in operating assets and liabilities
|
3,173
|
6,883
|
||||||
Net cash provided by operating activities
|
$
|
23,554
|
$
|
13,471
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment, net of sales
|
(252
|
)
|
(144
|
)
|
||||
Short-term deposits, net
|
(32,400
|
)
|
(43,300
|
)
|
||||
Cash paid in connection with acquisitions, net of cash acquired
|
(3,400
|
)
|
-
|
|||||
Net cash used in investing activities
|
$
|
(36,052
|
)
|
$
|
(43,444
|
)
|
||
|
||||||||
Cash flows from financing activities:
|
||||||||
Issuance of shares in private placement, net
|
-
|
60,960
|
||||||
Proceeds from exercise of stock-based compensation
|
948
|
1,701
|
||||||
Repayment of long-term loans
|
-
|
(8,333
|
)
|
|||||
Net cash provided by financing activities
|
$
|
948
|
$
|
54,328
|
||||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(30
|
)
|
(12
|
)
|
||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
(11,580
|
)
|
24,343
|
|||||
Cash and cash equivalents and restricted cash at beginning of period
|
105,535
|
48,878
|
||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
93,955
|
$
|
73,221
|
Three months ended
|
||||||||
March 31,
|
||||||||
2022
|
2021
|
|||||||
(Unaudited)
|
||||||||
GAAP Net Income
|
$
|
15,466
|
$
|
3,306
|
||||
Stock-based compensation
|
2,428
|
755
|
||||||
Amortization of acquired intangible assets
|
2,789
|
1,342
|
||||||
Retention and other related to M&A related expenses
|
551
|
1,788
|
||||||
Foreign exchange gains associated with ASC-842
|
(197
|
)
|
(318
|
)
|
||||
Revaluation of acquisition related contingent consideration
|
132
|
169
|
||||||
Taxes on the above items
|
(441
|
)
|
(51
|
)
|
||||
Non-GAAP Net Income
|
$
|
20,728
|
$
|
6,991
|
||||
Non-GAAP Net Income
|
$
|
20,728
|
$
|
6,991
|
||||
Taxes on income
|
2,085
|
801
|
||||||
Financial income, net
|
(539
|
)
|
(44
|
)
|
||||
Depreciation
|
396
|
1,035
|
||||||
Adjusted EBITDA
|
$
|
22,670
|
$
|
8,783
|
||||
Non-GAAP diluted earnings per share
|
$
|
0.44
|
$
|
0.19
|
||||
Shares used in computing non-GAAP diluted earnings per share
|
47,620,874
|
36,122,783
|