|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
|
• |
Retail Media1 revenue increased 134% year-over-year to $14.9 million, representing 20% of Advertising Solutions2 revenue compared to 8% last year
|
• |
CTV revenue increased 108% year-over-year to $8.2 million, representing 11% of Advertising Solutions2 revenue compared to 5% last year
|
• |
Video revenue decreased 52% year-over-year, representing 22% of Advertising Solutions2 revenue, compared to 44% last year
|
• |
The number of Average Daily Searches increased by 20% year-over-year reaching 31.6 million and the number of Search Advertising publishers increased by 8% year-over-year to 168. During the quarter, RPM, Average Daily Searches and the
number of Search Advertising publishers started to decline, a trend that is expected to be fully reflected in the second quarter results and onwards
|
In millions,
except per share data |
Three months ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2024
|
2023
|
%
|
|||||||||
Advertising Solutions Revenue
|
$
|
75.8
|
$
|
79.9
|
-5
|
%
|
||||||
Search Advertising Revenue
|
$
|
82.0
|
$
|
65.3
|
+26
|
%
|
||||||
Total Revenue
|
$
|
157.8
|
$
|
145.2
|
+9
|
%
|
||||||
Contribution ex-TAC (Revenue ex-TAC)
|
$
|
60.2
|
$
|
65.3
|
-8
|
%
|
||||||
GAAP Net Income
|
$
|
11.8
|
$
|
23.8
|
-51
|
%
|
||||||
Non-GAAP Net Income
|
$
|
22.6
|
$
|
29.9
|
-25
|
%
|
||||||
Adjusted EBITDA
|
$
|
20.3
|
$
|
31.3
|
-35
|
%
|
||||||
Adjusted EBITDA to Contribution ex-TAC
|
34
|
%
|
48
|
%
|
||||||||
Net Cash from Operations
|
$
|
6.9
|
$
|
17.8
|
-61
|
%
|
||||||
GAAP Diluted EPS
|
$
|
0.24
|
$
|
0.48
|
-50
|
%
|
||||||
Non-GAAP Diluted EPS
|
$
|
0.44
|
$
|
0.60
|
-27
|
%
|
• |
Revenue of $118 to $122 million
|
• |
Adjusted EBITDA1 of $10 to $12 million
|
• |
Adjusted EBITDA1 to contribution ex-TAC1 of 20% at the midpoint
|
• |
Revenue of $590 to $610 million
|
• |
Adjusted EBITDA1 of $78 to $82 million
|
• |
Adjusted EBITDA1 to contribution ex-TAC1 of 30% at the midpoint
|
• |
Registration link:
|
• |
Toll Free: 1-877-407-0779
|
• |
Toll/International: 1-201-389-0914
|
Three months ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Revenue
|
||||||||
Advertising Solutions
|
$
|
75,786
|
$
|
79,878
|
||||
Search Advertising
|
82,034
|
65,272
|
||||||
Total Revenue
|
157,820
|
145,150
|
||||||
Costs and Expenses
|
||||||||
Cost of revenue
|
11,485
|
7,559
|
||||||
Traffic acquisition costs and media buy
|
97,619
|
79,875
|
||||||
Research and development
|
9,811
|
8,353
|
||||||
Selling and marketing
|
16,090
|
14,955
|
||||||
General and administrative
|
9,752
|
6,543
|
||||||
Depreciation and amortization
|
4,558
|
3,361
|
||||||
Total Costs and Expenses
|
149,315
|
120,646
|
||||||
Income from Operations
|
8,505
|
24,504
|
||||||
Financial income, net
|
5,486
|
3,428
|
||||||
Income before Taxes on income
|
13,991
|
27,932
|
||||||
Taxes on income
|
2,223
|
4,147
|
||||||
Net Income
|
$
|
11,768
|
$
|
23,785
|
||||
Net Earnings per Share
|
||||||||
Basic
|
$
|
0.24
|
$
|
0.51
|
||||
Diluted
|
$
|
0.24
|
$
|
0.48
|
||||
Weighted average number of shares
|
||||||||
Basic
|
48,256,697
|
46,382,655
|
||||||
Diluted
|
49,541,695
|
49,467,671
|
|
March 31,
|
December 31,
|
||||||
|
2024
|
2023
|
||||||
(Unaudited)
|
(Unaudited)
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
174,858
|
$
|
187,609
|
||||
Restricted cash
|
1,104
|
1,339
|
||||||
Short-term bank deposits
|
225,139
|
207,450
|
||||||
Marketable securities
|
79,707
|
77,616
|
||||||
Accounts receivable, net
|
156,293
|
231,539
|
||||||
Prepaid expenses and other current assets
|
23,286
|
21,033
|
||||||
Total Current Assets
|
660,387
|
726,586
|
||||||
|
||||||||
Long-Term Assets
|
||||||||
Property and equipment, net
|
3,171
|
3,179
|
||||||
Operating lease right-of-use assets
|
5,666
|
6,609
|
||||||
Goodwill and intangible assets, net
|
332,539
|
336,627
|
||||||
Deferred taxes
|
4,591
|
4,180
|
||||||
Other assets
|
97
|
85
|
||||||
Total Long-Term Assets
|
346,064
|
350,680
|
||||||
Total Assets
|
$
|
1,006,451
|
$
|
1,077,266
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
146,080
|
$
|
217,181
|
||||
Accrued expenses and other liabilities
|
25,455
|
42,636
|
||||||
Short-term operating lease liability
|
3,977
|
4,198
|
||||||
Deferred revenue
|
2,135
|
2,297
|
||||||
Short-term payment obligation related to acquisitions
|
73,716
|
73,716
|
||||||
Total Current Liabilities
|
251,363
|
340,028
|
||||||
|
||||||||
Long-Term Liabilities
|
||||||||
Payment obligation related to acquisition
|
1,716
|
-
|
||||||
Long-term operating lease liability
|
2,665
|
3,448
|
||||||
Other long-term liabilities
|
16,013
|
15,643
|
||||||
Total Long-Term Liabilities
|
20,394
|
19,091
|
||||||
Total Liabilities
|
271,757
|
359,119
|
||||||
|
||||||||
Shareholders' equity
|
||||||||
Ordinary shares
|
416
|
413
|
||||||
Additional paid-in capital
|
535,767
|
530,620
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive loss
|
(454
|
)
|
(83
|
)
|
||||
Retained earnings
|
199,967
|
188,199
|
||||||
Total Shareholders' Equity
|
734,694
|
718,147
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
1,006,451
|
$
|
1,077,266
|
|
Three months ended
|
|||||||
|
March 31,
|
|||||||
|
2024
|
2023
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
Cash flows from operating activities
|
||||||||
Net Income
|
$
|
11,768
|
$
|
23,785
|
||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
4,558
|
3,361
|
||||||
Stock-based compensation expense
|
5,419
|
3,402
|
||||||
Foreign currency translation
|
22
|
(2
|
)
|
|||||
Accrued interest, net
|
1,738
|
(4,181
|
)
|
|||||
Deferred taxes, net
|
(432
|
)
|
78
|
|||||
Accrued severance pay, net
|
(158
|
)
|
1,598
|
|||||
Gain from sale of property and equipment
|
(8
|
)
|
(12
|
)
|
||||
Net changes in operating assets and liabilities
|
(16,010
|
)
|
(10,250
|
)
|
||||
Net cash provided by operating activities
|
$
|
6,897
|
$
|
17,779
|
||||
|
||||||||
Cash flows from investing activities
|
||||||||
Purchases of property and equipment, net of sales
|
(439
|
)
|
(134
|
)
|
||||
Investment in marketable securities, net of sales
|
(1,935
|
)
|
(51,406
|
)
|
||||
Short-term deposits, net
|
(17,689
|
)
|
2,100
|
|||||
Net cash used in investing activities
|
$
|
(20,063
|
)
|
$
|
(49,440
|
)
|
||
|
||||||||
Cash flows from financing activities
|
||||||||
Proceeds from exercise of stock-based compensation
|
259
|
2,063
|
||||||
Payments of contingent consideration
|
-
|
(13,256
|
)
|
|||||
Net cash provided by (used in) financing activities
|
$
|
259
|
$
|
(11,193
|
)
|
|||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
(79
|
)
|
77
|
|||||
Net decrease in cash and cash equivalents and restricted cash
|
(12,986
|
)
|
(42,777
|
)
|
||||
Cash and cash equivalents and restricted cash at beginning of period
|
188,948
|
177,521
|
||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
175,962
|
$
|
134,744
|
Three months ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
(Unaudited)
|
||||||||
Revenue
|
$
|
157,820
|
$
|
145,150
|
||||
Traffic acquisition costs and media buy
|
97,619
|
79,875
|
||||||
Contribution ex-TAC
|
$
|
60,201
|
$
|
65,275
|
Three months ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
(Unaudited)
|
||||||||
GAAP Income from Operations
|
$
|
8,505
|
$
|
24,504
|
||||
Stock-based compensation expenses
|
5,419
|
3,402
|
||||||
Retention and other acquisition related expenses
|
1,796
|
7
|
||||||
Amortization of acquired intangible assets
|
4,086
|
2,963
|
||||||
Depreciation
|
472
|
398
|
||||||
Adjusted EBITDA
|
$
|
20,278
|
$
|
31,274
|
Three months ended
|
||||||||
March 31,
|
||||||||
2024
|
2023
|
|||||||
(Unaudited)
|
||||||||
GAAP Net Income
|
$
|
11,768
|
$
|
23,785
|
||||
Stock-based compensation expenses
|
5,419
|
3,402
|
||||||
Amortization of acquired intangible assets
|
4,086
|
2,963
|
||||||
Retention and other acquisition related expenses
|
1,796
|
7
|
||||||
Foreign exchange gains associated with ASC-842
|
(11
|
)
|
(116
|
)
|
||||
Revaluation of acquisition related contingent consideration
|
-
|
144
|
||||||
Taxes on the above items
|
(498
|
)
|
(285
|
)
|
||||
Non-GAAP Net Income
|
$
|
22,560
|
$
|
29,900
|
||||
Non-GAAP diluted earnings per share
|
$
|
0.44
|
$
|
0.60
|
||||
Shares used in computing non-GAAP diluted earnings per share
|
50,981,658
|
49,738,514
|