|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
|
● |
Retail Media1 revenue increased 196% year-over-year to $20.2 million, representing 17% of Display Advertising revenue compared to 6% last year
|
● |
CTV revenue2 increased 69% year-over-year to $14.4 million, representing 12% of Display Advertising revenue compared to 7% last year
|
● |
Video revenue decreased 33% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 29% of Display Advertising revenue, compared to 42% last year
|
● |
The number of Average Daily Searches increased by 37% year-over-year to 30.2 million. The number of Search Advertising publishers increased by 4% year-over-year to 162
|
● |
Retail Media1 revenue increased 114% year-over-year to $49.7 million, representing 12% of Display Advertising revenue
compared to 6% last year
|
● |
CTV revenue2 increased 56% year-over-year to $33.5 million, representing 8% of Display Advertising revenue compared to 6%
last year
|
● |
Video revenue decreased 7% year-over-year, driven by shifting inventory from video to display to gain higher profit, representing 36% of Display Advertising revenue, compared to 43% last year
|
● |
The number of Average Daily Searches increased by 57% year-over-year to 29.1 million. The annual average number of Search Advertising publishers increased by 18% year-over-year to 160
|
In millions,
except per share data |
Three months ended
|
Year ended
|
||||||||||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||||||||||
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
||||||||||||||||||
Display Advertising Revenue
|
$
|
119.8
|
$
|
123.8
|
-3
|
%
|
$
|
398.2
|
$
|
360.7
|
+10
|
%
|
||||||||||||
Search Advertising Revenue
|
$
|
114.4
|
$
|
85.9
|
+33
|
%
|
$
|
344.9
|
$
|
279.6
|
+23
|
%
|
||||||||||||
Total Revenue
|
$
|
234.2
|
$
|
209.7
|
+12
|
%
|
$
|
743.2
|
$
|
640.3
|
+16
|
%
|
||||||||||||
Contribution ex-TAC1
|
$
|
90.6
|
$
|
87.6
|
+3
|
%
|
$
|
310.2
|
$
|
267.7
|
+16
|
%
|
||||||||||||
GAAP Net Income
|
$
|
39.4
|
$
|
38.7
|
+2
|
%
|
$
|
117.4
|
$
|
99.2
|
+18
|
%
|
||||||||||||
Non-GAAP Net Income1
|
$
|
52.9
|
$
|
44.7
|
+19
|
%
|
$
|
167.4
|
$
|
119.8
|
+40
|
%
|
||||||||||||
Adjusted EBITDA1
|
$
|
53.9
|
$
|
48.2
|
+12
|
%
|
$
|
169.1
|
$
|
132.4
|
+28
|
%
|
||||||||||||
Adjusted EBITDA to Contribution ex-TAC1
|
59
|
%
|
55
|
%
|
55
|
%
|
49
|
%
|
||||||||||||||||
Net Cash from Operations
|
$
|
50.2
|
$
|
38.2
|
+32
|
%
|
$
|
155.5
|
$
|
122.1
|
+27
|
%
|
||||||||||||
GAAP Diluted EPS
|
$
|
0.78
|
$
|
0.79
|
-1
|
%
|
$
|
2.34
|
$
|
2.06
|
+14
|
%
|
||||||||||||
Non-GAAP Diluted EPS1
|
$
|
1.04
|
$
|
0.90
|
+16
|
%
|
$
|
3.33
|
$
|
2.47
|
+35
|
%
|
In millions
|
2023
|
2024 Guidance
|
YoY Growth %3
|
YoY proforma Growth %3
|
Revenue
|
$743.2
|
$860-$880
|
17%
|
10%
|
Adjusted EBITDA1
|
$169.1
|
$178-$182
|
6%
|
10%
|
Adjusted EBITDA to Revenue1
|
23%
|
21%3
|
||
Adjusted EBITDA to Contribution ex-TAC1
|
55%
|
51%3
|
● |
Registration link:
|
● |
Toll Free: 1-877-407-0779
|
● |
Toll/International: 1-201-389-0914
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
|||||||||||||
Revenue
|
||||||||||||||||
Display Advertising
|
$
|
119,795
|
$
|
123,757
|
$
|
398,244
|
$
|
360,690
|
||||||||
Search Advertising
|
114,435
|
85,913
|
344,911
|
279,566
|
||||||||||||
Total Revenue
|
234,230
|
209,670
|
743,155
|
640,256
|
||||||||||||
Costs and Expenses
|
||||||||||||||||
Cost of revenue
|
10,877
|
9,390
|
37,830
|
30,404
|
||||||||||||
Traffic acquisition costs and media buy
|
143,605
|
122,046
|
432,943
|
372,601
|
||||||||||||
Research and development
|
8,714
|
9,289
|
33,066
|
34,424
|
||||||||||||
Selling and marketing
|
15,008
|
16,130
|
57,991
|
56,014
|
||||||||||||
General and administrative
|
10,131
|
7,886
|
31,799
|
1 27,629
|
|
|||||||||||
Change in fair value of contingent consideration
|
2,110
|
-
|
18,694
|
1 (3,816)
|
|
|||||||||||
Depreciation and amortization
|
3,901
|
3,741
|
14,092
|
13,838
|
||||||||||||
Total Costs and Expenses
|
194,346
|
168,482
|
626,415
|
531,094
|
||||||||||||
Income from Operations
|
39,884
|
41,188
|
116,740
|
109,162
|
||||||||||||
Financial income, net
|
6,262
|
1,976
|
20,951
|
4,502
|
||||||||||||
Income before Taxes on income
|
46,146
|
43,164
|
137,691
|
113,664
|
||||||||||||
Taxes on income
|
6,745
|
4,487
|
20,278
|
14,439
|
||||||||||||
Net Income
|
$
|
39,401
|
$
|
38,677
|
$
|
117,413
|
$
|
99,225
|
||||||||
Net Earnings per Share
|
||||||||||||||||
Basic
|
$
|
0.83
|
$
|
0.84
|
$
|
2.49
|
$
|
2.21
|
||||||||
Diluted
|
$
|
0.78
|
$
|
0.79
|
$
|
2.34
|
$
|
2.06
|
||||||||
Weighted average number of shares
|
||||||||||||||||
Basic
|
47,756,953
|
45,842,833
|
47,128,232
|
44,871,149
|
||||||||||||
Diluted
|
50,600,750
|
48,872,169
|
50,073,985
|
48,071,638
|
|
December 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
187,609
|
$
|
176,226
|
||||
Restricted cash
|
1,339
|
1,295
|
||||||
Short-term bank deposits
|
207,450
|
253,400
|
||||||
Marketable securities
|
77,616
|
-
|
||||||
Accounts receivable, net
|
231,539
|
160,488
|
||||||
Prepaid expenses and other current assets
|
21,033
|
12,049
|
||||||
Total Current Assets
|
726,586
|
603,458
|
||||||
|
||||||||
Long-Term Assets
|
||||||||
Property and equipment, net
|
3,179
|
3,611
|
||||||
Operating lease right-of-use assets
|
6,609
|
10,130
|
||||||
Goodwill and intangible assets, net
|
337,990
|
247,191
|
||||||
Deferred taxes
|
2,817
|
5,779
|
||||||
Other assets
|
85
|
49
|
||||||
Total Long-Term Assets
|
350,680
|
266,760
|
||||||
Total Assets
|
$
|
1,077,266
|
$
|
870,218
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
217,181
|
$
|
155,854
|
||||
Accrued expenses and other liabilities
|
42,636
|
37,869
|
||||||
Short-term operating lease liability
|
4,198
|
3,900
|
||||||
Deferred revenue
|
2,297
|
2,377
|
||||||
Short-term payment obligation related to acquisitions
|
73,716
|
34,608
|
||||||
Total Current Liabilities
|
340,028
|
234,608
|
||||||
|
||||||||
Long-Term Liabilities
|
||||||||
Payment obligation related to acquisition
|
-
|
33,113
|
||||||
Long-term operating lease liability
|
3,448
|
7,580
|
||||||
Other long-term liabilities
|
15,643
|
11,783
|
||||||
Total Long-Term Liabilities
|
19,091
|
52,476
|
||||||
Total Liabilities
|
359,119
|
287,084
|
||||||
|
||||||||
Shareholders' equity
|
||||||||
Ordinary shares
|
413
|
398
|
||||||
Additional paid-in capital
|
530,620
|
513,534
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive loss
|
(83
|
)
|
(582
|
)
|
||||
Retained earnings
|
188,199
|
70,786
|
||||||
Total Shareholders' Equity
|
718,147
|
583,134
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,077,266
|
$
|
870,218
|
|
Three months ended
|
Year ended
|
||||||||||||||
|
December 31,
|
December 31,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
||||||||||||
|
||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net Income
|
$
|
39,401
|
$
|
38,677
|
$
|
117,413
|
$
|
99,225
|
||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
3,901
|
3,741
|
14,092
|
13,838
|
||||||||||||
Stock-based compensation expense
|
4,663
|
3,205
|
15,590
|
11,570
|
||||||||||||
Foreign currency translation
|
(36
|
)
|
258
|
(27
|
)
|
20
|
||||||||||
Accrued interest, net
|
(1,308
|
)
|
(1,639
|
)
|
(5,547
|
)
|
(3,646
|
)
|
||||||||
Deferred taxes, net
|
1,079
|
(2,755
|
)
|
(654
|
)
|
(1,428
|
)
|
|||||||||
Accrued severance pay, net
|
188
|
222
|
(274
|
)
|
(106
|
)
|
||||||||||
Gain from sale of property and equipment
|
(6
|
)
|
(2
|
)
|
(27
|
)
|
(12
|
)
|
||||||||
Net changes in operating assets and liabilities
|
2,334
|
(3,536
|
)
|
14,897
|
2,658
|
|||||||||||
Net cash provided by operating activities
|
$
|
50,216
|
$
|
38,171
|
$
|
155,463
|
$
|
122,119
|
||||||||
|
||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Purchases of property and equipment, net of sales
|
(280
|
)
|
(267
|
)
|
(784
|
)
|
(1,046
|
)
|
||||||||
Investment in marketable securities, net of sales
|
(5,001
|
)
|
-
|
(76,599
|
)
|
-
|
||||||||||
Short-term deposits, net
|
46,500
|
(34,400
|
)
|
45,950
|
(36,200
|
)
|
||||||||||
Cash paid in connection with acquisitions, net of cash acquired
|
(101,921
|
)
|
-
|
(101,921
|
)
|
(9,570
|
)
|
|||||||||
Net cash used in investing activities
|
$
|
(60,702
|
)
|
$
|
(34,667
|
)
|
$
|
(133,354
|
)
|
$
|
(46,816
|
)
|
||||
|
||||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Proceeds from exercise of stock-based compensation
|
95
|
1,392
|
2,433
|
5,833
|
||||||||||||
Payments of contingent consideration
|
-
|
-
|
(13,256
|
)
|
(9,091
|
)
|
||||||||||
Net cash provided by (used in) financing activities
|
$
|
95
|
$
|
1,392
|
$
|
(10,823
|
)
|
$
|
(3,258
|
)
|
||||||
|
||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
159
|
228
|
141
|
(59
|
)
|
|||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
(10,232
|
)
|
5,124
|
11,427
|
71,986
|
|||||||||||
Cash and cash equivalents and restricted cash at beginning of period
|
199,180
|
172,397
|
177,521
|
105,535
|
||||||||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
188,948
|
$
|
177,521
|
$
|
188,948
|
$
|
177,521
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenue
|
$
|
234,230
|
$
|
209,670
|
$
|
743,155
|
$
|
640,256
|
||||||||
Traffic acquisition costs and media buy
|
143,605
|
122,046
|
432,943
|
372,601
|
||||||||||||
Contribution ex-TAC
|
$
|
90,625
|
$
|
87,624
|
$
|
310,212
|
$
|
267,655
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Income from Operations
|
$
|
39,884
|
$
|
41,188
|
$
|
116,740
|
$
|
109,162
|
||||||||
Stock-based compensation expenses
|
4,663
|
3,205
|
15,590
|
11,570
|
||||||||||||
Retention and other acquisition related expenses
|
3,342
|
100
|
4,000
|
1,618
|
||||||||||||
Change in fair value of contingent consideration
|
2,110
|
-
|
18,694
|
(3,816
|
)
|
|||||||||||
Amortization of acquired intangible assets
|
3,476
|
2,988
|
12,448
|
11,884
|
||||||||||||
Depreciation
|
425
|
753
|
1,644
|
1,954
|
||||||||||||
Adjusted EBITDA
|
$
|
53,900
|
$
|
48,234
|
$
|
169,116
|
$
|
132,372
|
Three months ended
|
Year ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Net Income
|
$
|
39,401
|
$
|
38,677
|
$
|
117,413
|
$
|
99,225
|
||||||||
Stock-based compensation expenses
|
4,663
|
3,205
|
15,590
|
11,570
|
||||||||||||
Amortization of acquired intangible assets
|
3,476
|
2,988
|
12,448
|
11,884
|
||||||||||||
Retention and other acquisition related expenses
|
3,342
|
100
|
4,000
|
1,618
|
||||||||||||
Change in fair value of contingent consideration
|
2,110
|
-
|
18,694
|
(3,816
|
)
|
|||||||||||
Foreign exchange losses (gains) associated with ASC-842
|
114
|
3
|
(166
|
)
|
(821
|
)
|
||||||||||
Revaluation of acquisition related contingent consideration
|
142
|
184
|
583
|
786
|
||||||||||||
Taxes on the above items
|
(301
|
)
|
(506
|
)
|
(1,166
|
)
|
(651
|
)
|
||||||||
Non-GAAP Net Income
|
$
|
52,947
|
$
|
44,651
|
$
|
167,396
|
$
|
119,795
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
1.04
|
$
|
0.90
|
$
|
3.33
|
$
|
2.47
|
||||||||
Shares used in computing non-GAAP diluted earnings per share
|
50,862,007
|
49,511,914
|
50,311,682
|
48,496,154
|