|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
|
o |
145% year-over-year increase in Video Platform to 54 publishers
|
o |
52% year-over-year increase in revenue from retained Video Platform publishers
|
In millions,
except per share data
|
Three months ended
|
Six months ended
|
||||||||||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||||||||||
|
2022
|
2021
|
%
|
2022
|
2021
|
%
|
||||||||||||||||||
Display Advertising Revenue
|
$
|
81.6
|
$
|
58.0
|
+41
|
%
|
$
|
150.2
|
$
|
96.2
|
+56
|
%
|
||||||||||||
Search Advertising Revenue
|
$
|
65.1
|
$
|
51.6
|
+26
|
%
|
$
|
121.8
|
$
|
103.3
|
+18
|
%
|
||||||||||||
Total Revenue
|
$
|
146.7
|
$
|
109.7
|
+34
|
%
|
$
|
272.0
|
$
|
199.5
|
+36
|
%
|
||||||||||||
GAAP Net Income
|
$
|
19.5
|
$
|
7.1
|
+175
|
%
|
$
|
35.0
|
$
|
10.4
|
+237
|
%
|
||||||||||||
Non-GAAP Net Income
|
$
|
24.5
|
$
|
12.3
|
+99
|
%
|
$
|
45.2
|
$
|
19.3
|
+134
|
%
|
||||||||||||
Adjusted EBITDA
|
$
|
28.5
|
$
|
14.3
|
+99
|
%
|
$
|
51.1
|
$
|
23.1
|
+122
|
%
|
||||||||||||
Adjusted EBITDA to Revenue Ex-TAC
|
47%
|
|
33%
|
|
+43
|
%
|
44%
|
|
29%
|
|
+51
|
%
|
||||||||||||
Net Cash from Operations
|
$
|
25.7
|
$
|
14.6
|
+76
|
%
|
$
|
49.3
|
$
|
28.1
|
+75
|
%
|
||||||||||||
GAAP Diluted EPS
|
$
|
0.41
|
$
|
0.19
|
+116
|
%
|
$
|
0.74
|
$
|
0.29
|
+155
|
%
|
||||||||||||
Non-GAAP Diluted EPS
|
$
|
0.51
|
$
|
0.33
|
+55
|
%
|
$
|
0.95
|
$
|
0.53
|
+79
|
%
|
($M)
|
2021
|
Prior 2022 Guidance
|
Current 2022 Guidance
|
YoY Growth %
|
Revenue
|
$478.5
|
$620-$640
|
$620-$640
|
32%(1)
|
Adjusted EBITDA
|
$69.6
|
$98-$102
|
$102 +
|
47%
|
Adjusted EBITDA to Revenue Ex-TAC
|
37%
|
40%(1)
|
41%(1)+
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Revenue:
|
||||||||||||||||
Display Advertising
|
$
|
81,551
|
$
|
58,029
|
$
|
150,154
|
$
|
96,166
|
||||||||
Search Advertising
|
65,105
|
51,648
|
121,817
|
103,328
|
||||||||||||
Total Revenue
|
146,656
|
109,677
|
271,971
|
199,494
|
||||||||||||
Costs and Expenses:
|
||||||||||||||||
Cost of revenue
|
6,861
|
6,159
|
13,474
|
11,595
|
||||||||||||
Traffic acquisition costs and media buy
|
85,956
|
66,226
|
156,930
|
121,086
|
||||||||||||
Research and development
|
8,336
|
8,928
|
17,369
|
17,473
|
||||||||||||
Selling and marketing
|
13,955
|
12,879
|
27,293
|
23,484
|
||||||||||||
General and administrative
|
6,468
|
4,629
|
12,134
|
8,760
|
||||||||||||
Depreciation and amortization
|
3,208
|
2,000
|
6,393
|
4,377
|
||||||||||||
Total Costs and Expenses
|
124,784
|
100,821
|
233,593
|
186,775
|
||||||||||||
Income from Operations
|
21,872
|
8,856
|
38,378
|
12,719
|
||||||||||||
Financial expense (income), net
|
(903
|
)
|
298
|
(1,507
|
)
|
105
|
||||||||||
Income before Taxes on income
|
22,775
|
8,558
|
39,885
|
12,614
|
||||||||||||
Taxes on income
|
3,275
|
1,475
|
4,919
|
2,225
|
||||||||||||
Net Income
|
$
|
19,500
|
$
|
7,083
|
$
|
34,966
|
$
|
10,389
|
||||||||
Net Earnings per Share
|
||||||||||||||||
Basic
|
$
|
0.44
|
$
|
0.21
|
$
|
0.79
|
$
|
0.31
|
||||||||
Diluted
|
$
|
0.41
|
$
|
0.19
|
$
|
0.74
|
$
|
0.29
|
||||||||
Weighted average number of shares
|
||||||||||||||||
Basic
|
44,439,023
|
34,074,321
|
44,238,414
|
33,116,072
|
||||||||||||
Diluted
|
47,292,249
|
37,085,265
|
47,210,769
|
36,289,802
|
|
June 30,
|
December 31,
|
||||||
|
2022
|
2021
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
102,398
|
$
|
104,446
|
||||
Restricted cash
|
1,039
|
1,089
|
||||||
Short-term bank deposits
|
250,600
|
217,200
|
||||||
Accounts receivable, net
|
86,251
|
115,361
|
||||||
Prepaid expenses and other current assets
|
11,809
|
8,075
|
||||||
Total Current Assets
|
452,097
|
446,171
|
||||||
|
||||||||
Long-Term Assets:
|
||||||||
Property and equipment, net
|
3,935
|
4,211
|
||||||
Operating lease right-of-use assets
|
9,961
|
11,578
|
||||||
Goodwill and intangible assets, net
|
240,364
|
245,965
|
||||||
Deferred taxes
|
5,398
|
5,228
|
||||||
Other assets
|
70
|
79
|
||||||
Total Long-Term Assets
|
259,728
|
267,061
|
||||||
Total Assets
|
$
|
711,825
|
$
|
713,232
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
96,687
|
$
|
107,730
|
||||
Accrued expenses and other liabilities
|
25,314
|
40,331
|
||||||
Short-term operating lease liability
|
3,251
|
3,615
|
||||||
Deferred revenue
|
2,560
|
3,852
|
||||||
Short-term payment obligation related to acquisitions
|
37,724
|
38,179
|
||||||
Total Current Liabilities
|
165,536
|
193,707
|
||||||
|
||||||||
Long-Term Liabilities:
|
||||||||
Payment obligation related to acquisition
|
21,491
|
33,250
|
||||||
Long-term operating lease liability
|
7,663
|
9,774
|
||||||
Other long-term liabilities
|
9,935
|
9,541
|
||||||
Total Long-Term Liabilities
|
39,089
|
52,565
|
||||||
Total Liabilities
|
204,625
|
246,272
|
||||||
|
||||||||
Shareholders' equity:
|
||||||||
Ordinary shares
|
379
|
375
|
||||||
Additional paid-in capital
|
502,573
|
496,154
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive loss
|
(1,277
|
)
|
(128
|
)
|
||||
Retained earnings (accumulated deficit)
|
6,527
|
(28,439
|
)
|
|||||
Total Shareholders' Equity
|
507,200
|
466,960
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
711,825
|
$
|
713,232
|
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
||||||||||||||||
Cash flows from operating activities:
|
||||||||||||||||
Net Income
|
$
|
19,500
|
$
|
7,083
|
$
|
34,966
|
$
|
10,389
|
||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
3,208
|
2,000
|
6,393
|
4,377
|
||||||||||||
Stock-based compensation expense
|
2,701
|
1,234
|
5,129
|
1,989
|
||||||||||||
Foreign currency translation
|
(128
|
)
|
31
|
(174
|
)
|
(89
|
)
|
|||||||||
Accrued interest, net
|
(639
|
)
|
(92
|
)
|
(1,181
|
)
|
(167
|
)
|
||||||||
Deferred taxes, net
|
(44
|
)
|
59
|
(248
|
)
|
295
|
||||||||||
Accrued severance pay, net
|
409
|
89
|
503
|
198
|
||||||||||||
Gain from sale of property and equipment
|
(6
|
)
|
(10
|
)
|
(6
|
)
|
(11
|
)
|
||||||||
Net changes in operating assets and liabilities
|
720
|
4,231
|
3,893
|
11,115
|
||||||||||||
Net cash provided by operating activities
|
$
|
25,721
|
$
|
14,625
|
$
|
49,275
|
$
|
28,096
|
||||||||
|
||||||||||||||||
Cash flows from investing activities:
|
||||||||||||||||
Purchases of property and equipment, net of sales
|
(177
|
)
|
(211
|
)
|
(429
|
)
|
(355
|
)
|
||||||||
Short-term deposits, net
|
(1,000
|
)
|
(27,000
|
)
|
(33,400
|
)
|
(70,300
|
)
|
||||||||
Cash paid in connection with acquisitions, net of cash acquired
|
(6,170
|
)
|
(3,438
|
)
|
(9,570
|
)
|
(3,438
|
)
|
||||||||
Net cash used in investing activities
|
$
|
(7,347
|
)
|
$
|
(30,649
|
)
|
$
|
(43,399
|
)
|
$
|
(74,093
|
)
|
||||
|
||||||||||||||||
Cash flows from financing activities:
|
||||||||||||||||
Issuance of shares in private placement, net
|
-
|
-
|
-
|
60,960
|
||||||||||||
Proceeds from exercise of stock-based compensation
|
346
|
2,170
|
1,294
|
3,871
|
||||||||||||
Payment made in connection with acquisition
|
(9,091
|
)
|
-
|
(9,091
|
)
|
-
|
||||||||||
Repayment of long-term loans
|
-
|
-
|
-
|
(8,333
|
)
|
|||||||||||
Net cash provided by (used in) financing activities
|
$
|
(8,745
|
)
|
$
|
2,170
|
$
|
(7,797
|
)
|
$
|
56,498
|
||||||
|
||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(147
|
)
|
9
|
(177
|
)
|
(3
|
)
|
|||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
9,482
|
(13,845
|
)
|
(2,098
|
)
|
10,498
|
||||||||||
Cash and cash equivalents and restricted cash at beginning of period
|
93,955
|
73,221
|
105,535
|
48,878
|
||||||||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
103,437
|
$
|
59,376
|
$
|
103,437
|
$
|
59,376
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Net Income
|
$
|
19,500
|
$
|
7,083
|
$
|
34,966
|
$
|
10,389
|
||||||||
Stock-based compensation
|
2,701
|
1,234
|
5,129
|
1,989
|
||||||||||||
Amortization of acquired intangible assets
|
2,812
|
1,356
|
5,601
|
2,698
|
||||||||||||
Retention and other related to M&A related expenses
|
679
|
2,178
|
1,230
|
3,966
|
||||||||||||
Foreign exchange losses (gains) associated with ASC-842
|
(548
|
)
|
105
|
(745
|
)
|
(213
|
)
|
|||||||||
Revaluation of acquisition related contingent consideration
|
129
|
170
|
261
|
339
|
||||||||||||
Taxes on the above items
|
(771
|
)
|
197
|
(1,212
|
)
|
146
|
||||||||||
Non-GAAP Net Income
|
$
|
24,502
|
$
|
12,323
|
$
|
45,230
|
$
|
19,314
|
||||||||
Non-GAAP Net Income
|
$
|
24,502
|
$
|
12,323
|
$
|
45,230
|
$
|
19,314
|
||||||||
Taxes on income
|
4,046
|
1,278
|
6,131
|
2,079
|
||||||||||||
Financial expense (income), net
|
(484
|
)
|
23
|
(1,023
|
)
|
(21
|
)
|
|||||||||
Depreciation
|
396
|
644
|
792
|
1,679
|
||||||||||||
Adjusted EBITDA
|
$
|
28,460
|
$
|
14,268
|
$
|
51,130
|
$
|
23,051
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
0.51
|
$
|
0.33
|
$
|
0.95
|
$
|
0.53
|
||||||||
Shares used in computing non-GAAP diluted earnings per share
|
47,906,671
|
37,429,049
|
47,744,781
|
36,576,534
|