Perion Reports Fourth Quarter and FY 2024 Results
Perion Network (NASDAQ: PERI) reported its Q4 and FY 2024 results, highlighting mixed performance across different channels. The company saw significant growth in Digital Out of Home (DOOH) with a 57% YoY increase and Retail Media revenue up 34% YoY to $27.0 million in Q4. However, total revenue decreased 45% to $129.6 million in Q4 2024, primarily due to a 78% decline in Search Advertising revenue following Microsoft Bing changes.
The company announced its new 'Perion One' strategy, unifying its brands and technologies into a single AI-powered platform. Q4 GAAP net income decreased 87% to $4.9 million, while Adjusted EBITDA was $15.5 million. For 2025, Perion provided guidance of $400-420 million in revenue and $40-42 million in Adjusted EBITDA.
Under its $75 million share repurchase program, Perion bought back 1.6 million shares for $13.4 million in Q4, bringing total repurchases to 5.2 million shares worth $46.9 million.
Perion Network (NASDAQ: PERI) ha riportato i risultati del Q4 e dell'anno fiscale 2024, evidenziando performance miste tra i diversi canali. L'azienda ha registrato una crescita significativa nel Digital Out of Home (DOOH) con un aumento del 57% anno su anno e il fatturato del Retail Media è salito del 34% anno su anno a 27,0 milioni di dollari nel Q4. Tuttavia, il fatturato totale è diminuito del 45% a 129,6 milioni di dollari nel Q4 2024, principalmente a causa di un calo del 78% nel fatturato della pubblicità sui motori di ricerca dopo le modifiche a Microsoft Bing.
L'azienda ha annunciato la sua nuova strategia 'Perion One', che unifica i suoi marchi e tecnologie in una piattaforma unica alimentata dall'IA. L'utile netto GAAP del Q4 è diminuito dell'87% a 4,9 milioni di dollari, mentre l'EBITDA rettificato è stato di 15,5 milioni di dollari. Per il 2025, Perion ha fornito una guida di 400-420 milioni di dollari di fatturato e 40-42 milioni di dollari di EBITDA rettificato.
Nel quadro del suo programma di riacquisto di azioni da 75 milioni di dollari, Perion ha riacquistato 1,6 milioni di azioni per 13,4 milioni di dollari nel Q4, portando il totale dei riacquisti a 5,2 milioni di azioni per un valore di 46,9 milioni di dollari.
Perion Network (NASDAQ: PERI) informó sus resultados del Q4 y del año fiscal 2024, destacando un rendimiento mixto a través de diferentes canales. La empresa vio un crecimiento significativo en Digital Out of Home (DOOH) con un aumento del 57% interanual y los ingresos de Retail Media aumentaron un 34% interanual a 27,0 millones de dólares en el Q4. Sin embargo, los ingresos totales disminuyeron un 45% a 129,6 millones de dólares en el Q4 de 2024, principalmente debido a una caída del 78% en los ingresos por publicidad en buscadores tras los cambios en Microsoft Bing.
La compañía anunció su nueva estrategia 'Perion One', que unifica sus marcas y tecnologías en una única plataforma impulsada por IA. El ingreso neto GAAP del Q4 disminuyó un 87% a 4,9 millones de dólares, mientras que el EBITDA ajustado fue de 15,5 millones de dólares. Para 2025, Perion proporcionó una guía de ingresos de 400-420 millones de dólares y de 40-42 millones de dólares en EBITDA ajustado.
Bajo su programa de recompra de acciones de 75 millones de dólares, Perion recompró 1,6 millones de acciones por 13,4 millones de dólares en el Q4, llevando el total de recompras a 5,2 millones de acciones por un valor de 46,9 millones de dólares.
페리온 네트워크 (NASDAQ: PERI)는 2024년 4분기 및 연간 실적을 발표하며 다양한 채널에서 혼합된 성과를 강조했습니다. 회사는 Digital Out of Home (DOOH) 분야에서 57%의 연간 성장률을 기록했으며, Retail Media 수익은 4분기 동안 34% 증가하여 2,700만 달러에 달했습니다. 그러나 전체 수익은 2024년 4분기 동안 45% 감소하여 1억 2,960만 달러에 그쳤으며, 이는 주로 Microsoft Bing의 변경에 따른 검색 광고 수익의 78% 감소 때문입니다.
회사는 브랜드와 기술을 통합하여 AI 기반의 단일 플랫폼으로 만드는 새로운 'Perion One' 전략을 발표했습니다. 4분기 GAAP 순이익은 87% 감소하여 490만 달러에 이르렀고, 조정 EBITDA는 1,550만 달러였습니다. 2025년을 위해 Perion은 4억~4억 2천만 달러의 수익과 4천만~4천 2백만 달러의 조정 EBITDA를 가이던스했습니다.
7500만 달러 규모의 자사주 매입 프로그램에 따라 Perion은 4분기 동안 1.6백만 주를 1,340만 달러에 매입하여, 총 매입 주식 수는 520만 주에 달하며, 그 가치는 4,690만 달러에 이릅니다.
Perion Network (NASDAQ: PERI) a publié ses résultats pour le quatrième trimestre et l'année fiscale 2024, mettant en évidence des performances mixtes à travers différents canaux. L'entreprise a connu une croissance significative dans le secteur du Digital Out of Home (DOOH) avec une augmentation de 57% d'une année sur l'autre, tandis que les revenus du Retail Media ont augmenté de 34% d'une année sur l'autre pour atteindre 27,0 millions de dollars au Q4. Cependant, les revenus totaux ont diminué de 45% pour atteindre 129,6 millions de dollars au Q4 2024, principalement en raison d'une baisse de 78% des revenus de la publicité de recherche suite aux modifications apportées à Microsoft Bing.
L'entreprise a annoncé sa nouvelle stratégie 'Perion One', qui unifie ses marques et technologies dans une plateforme unique alimentée par l'IA. Le revenu net GAAP du Q4 a diminué de 87% pour atteindre 4,9 millions de dollars, tandis que l'EBITDA ajusté était de 15,5 millions de dollars. Pour 2025, Perion a fourni des prévisions de revenus de 400 à 420 millions de dollars et un EBITDA ajusté de 40 à 42 millions de dollars.
Perion Network (NASDAQ: PERI) hat seine Ergebnisse für das Q4 und das Geschäftsjahr 2024 veröffentlicht und dabei eine gemischte Leistung in verschiedenen Kanälen hervorgehoben. Das Unternehmen verzeichnete ein signifikantes Wachstum im Bereich Digital Out of Home (DOOH) mit einem Anstieg von 57% im Jahresvergleich, während die Einnahmen aus Retail Media im Q4 um 34% im Jahresvergleich auf 27,0 Millionen Dollar stiegen. Allerdings sank der Gesamtumsatz im Q4 2024 um 45% auf 129,6 Millionen Dollar, was hauptsächlich auf einen Rückgang der Einnahmen aus Suchmaschinenwerbung um 78% nach Änderungen bei Microsoft Bing zurückzuführen ist.
Das Unternehmen kündigte seine neue 'Perion One'-Strategie an, die seine Marken und Technologien in einer einzigen KI-gesteuerten Plattform vereint. Der GAAP-Nettoertrag im Q4 sank um 87% auf 4,9 Millionen Dollar, während das bereinigte EBITDA 15,5 Millionen Dollar betrug. Für 2025 gab Perion eine Umsatzprognose von 400-420 Millionen Dollar und ein bereinigtes EBITDA von 40-42 Millionen Dollar heraus.
Im Rahmen seines Aktienrückkaufprogramms über 75 Millionen Dollar kaufte Perion im Q4 1,6 Millionen Aktien für 13,4 Millionen Dollar zurück, wodurch die Gesamtzahl der Rückkäufe auf 5,2 Millionen Aktien im Wert von 46,9 Millionen Dollar anstieg.
- DOOH revenue grew 57% YoY in Q4 2024
- Retail Media revenue increased 34% YoY to $27.0 million in Q4
- CTV revenue grew 10% YoY to $15.8 million in Q4
- TAC margin improved from 61% to 58% due to focus on profitable solutions
- Strong balance sheet with $373.3 million in cash and equivalents
- Total revenue declined 45% YoY to $129.6 million in Q4 2024
- Search Advertising revenue dropped 78% YoY in Q4
- GAAP net income decreased 87% to $4.9 million in Q4
- Adjusted EBITDA fell 71% to $15.5 million in Q4
- Operating cash flow declined 91% to $4.3 million in Q4
- 2025 revenue guidance of $400-420M indicates continued decline
Insights
The Q4 and FY2024 results reveal a company in strategic transition, facing both significant headwinds and emerging opportunities. The 45% revenue decline in Q4 masks a more nuanced story of strategic repositioning toward higher-margin channels.
The transformation is evident in the margin dynamics - TAC improved to 58% of revenue in Q4 2024 from 61% in Q4 2023, indicating a successful pivot toward more profitable revenue streams. The 57% growth in DOOH and 34% growth in Retail Media represent bright spots, but these haven't yet reached sufficient scale to offset declines in traditional segments.
The dramatic 78% decline in Search Advertising revenue following Microsoft Bing changes has accelerated the company's strategic pivot. While painful in the short term, this forced diversification could prove beneficial long-term as it pushes Perion toward faster-growing digital advertising segments.
The 'Perion One' strategy appears well-timed, addressing critical operational inefficiencies. The focus on AI integration isn't merely trendy - it's essential for competing in programmatic advertising where algorithmic optimization drives margins. However, the FY2025 guidance of $400-420M revenue suggests a conservative outlook during this transition.
Cash flow metrics warrant attention - operating cash flow dropped to $6.9M in 2024 from $155.5M in 2023. While the $373.3M cash position provides a substantial buffer, the rapid cash flow deterioration needs monitoring. The ongoing share repurchase program, while supporting shareholder value, must be balanced against investment needs in the Perion One platform.
The decline in Adjusted EBITDA margin to 28% of Contribution ex-TAC from 59% year-over-year suggests significant near-term pressure on profitability during this transition. However, the focus on higher-margin channels and operational efficiency through AI could drive margin recovery in the medium term.
Continued Momentum in Key Growth Engines Led by
Recently Announced Transformational ‘Perion One’ Unification Strategy and Platform - focusing on AI for scaled growth and operational efficiency
“I am encouraged by our fourth quarter results as we delivered continued growth in our DOOH and CTV channels, as well as in our Retail Media vertical, showing continued adoption of our technologies with retailers,” commented Tal Jacobson, Perion’s CEO. “All our growth engines have consistently outpaced the market on an annual basis, according to eMarketer2, and we believe they will continue to be the drivers of our future success”.
“Earlier this month, we announced our transformational ‘Perion One’ strategy and platform. This strategy will unify our brands and technologies into one advanced platform named ‘Perion One’, which will support our position as the partner of choice for brands, agencies, and retailers navigating the complexities of modern advertising. Perion One will harness advanced AI algorithms to help solve these challenges for our customers while aiming to optimize our cost structure and enhance our ability to scale in a more profitable way.”
“With the introduction of our Perion One strategy, we enhanced our leadership team, forming a strong and experienced management,” added Mr. Jacobson. “I am pleased to have Stephen Yap join our team as Perion’s Chief Revenue Officer to lead our global sales. Along with Kenny Lau, who was promoted to Perion’s Chief Product Officer, and Mina Naguib, who was promoted to Perion’s Chief Technology Officer, I am confident our entire talented leadership team will achieve our goals to become the technology partner for brands, retailers, and agencies.”
"As part of the new Perion One strategy, we are focusing on the more profitable solutions that align with our strategy. With a solid foundation backed by a robust balance sheet, we are well-positioned to pursue our growth ambitions. Our investments are laser-focused on expanding the Perion One platform, enriching it with technological solutions to drive future growth,” concluded Mr. Jacobson.
1 On a proforma basis
2 Market data according to eMarketer: Digital out of Home, CTV and omnichannel Retail Media ad spending, US
Fourth Quarter and Full Year 2024 Business Highlights
As part of the Company’s Perion One strategy and the new unified structure, Perion will modify the way it presents its KPIs and will start to provide a breakdown of its revenue by channels and their year-over-year growth, as well as the Retail Media vertical.
Revenue and Trends by Channel
Channels |
Q4 2024 |
FY 2024 |
||||
Revenue
|
% of
|
YoY
|
Revenue
|
% of
|
YoY
|
|
DOOH |
27.9 |
|
|
69.7 |
|
|
CTV |
15.8 |
|
|
43.6 |
|
|
Web |
59.9 |
|
- |
220.6 |
|
- |
Search |
25.5 |
|
- |
162.7 |
|
- |
Other |
0.4 |
|
- |
1.6 |
|
- |
Vertical - Retail Media2
-
Q4: Revenue increased
34% year-over-year to$27.0 million 26% of Advertising Solutions revenue compared to17% last year. -
FY 2024: Revenue increased
62% year-over-year to$80.6 million 24% of Advertising Solutions revenue compared to12% last year.
Formats - Open Web Video3
-
Q4: Revenue decreased
61% year-over-year, representing13% of Advertising Solutions revenue, compared to29% last year. -
FY 2024: Revenue decreased
61% year-over-year, representing17% of Advertising Solutions revenue, compared to36% last year.
1 On a proforma basis
2 Retail Media revenue includes all media channels, such as CTV, DOOH, video and others
3 Open Web video refers to standard digital video ad units running on the open web (Websites), and does not include CTV, digital video on social platforms and short-form video. Formats will not be a part of Perion’s reported KPIs going forward
Fourth Quarter 2024 Financial Highlights
In millions,
|
Three months ended |
|
Year ended |
|
||||||||||||
|
December 31, |
|
December 31, |
|
||||||||||||
|
2024 |
|
2023 |
|
% |
|
2024 |
|
2023 |
|
% |
|
||||
Advertising Solutions Revenue |
$ |
104.1 |
|
$ |
119.8 |
|
- |
|
$ |
335.6 |
|
$ |
398.2 |
|
- |
|
Search Advertising Revenue |
$ |
25.5 |
|
$ |
114.4 |
|
- |
|
$ |
162.7 |
|
$ |
344.9 |
|
- |
|
Total Revenue |
$ |
129.6 |
|
$ |
234.2 |
|
- |
|
$ |
498.3 |
|
$ |
743.2 |
|
- |
|
Contribution ex-TAC (Revenue ex-TAC)1 |
$ |
54.7 |
|
$ |
90.6 |
|
- |
|
$ |
212.3 |
|
$ |
310.2 |
|
- |
|
GAAP Net Income |
$ |
4.9 |
|
$ |
39.4 |
|
- |
|
$ |
12.6 |
|
$ |
117.4 |
|
- |
|
Non-GAAP Net Income1 |
$ |
16.1 |
|
$ |
52.9 |
|
- |
|
$ |
64.0 |
|
$ |
167.4 |
|
- |
|
Adjusted EBITDA1 |
$ |
15.5 |
|
$ |
53.9 |
|
- |
|
$ |
50.9 |
|
$ |
169.1 |
|
- |
|
Adjusted EBITDA to Contribution ex-TAC1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash from Operations |
$ |
4.3 |
|
$ |
50.2 |
|
- |
|
$ |
6.9 |
|
$ |
155.5 |
|
- |
|
Adjusted Free Cash Flow1 |
$ |
4.3 |
|
$ |
49.9 |
|
- |
|
$ |
16.6 |
|
$ |
154.7 |
|
- |
|
GAAP Diluted EPS |
$ |
0.11 |
|
$ |
0.78 |
|
- |
|
$ |
0.25 |
|
$ |
2.34 |
|
- |
|
Non-GAAP Diluted EPS1 |
$ |
0.33 |
|
$ |
1.04 |
|
- |
|
$ |
1.27 |
|
$ |
3.33 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Outlook for Full-Year 20252
2025 guidance reflects our commitment to continue building our Perion One platform while focusing on more profitable technologies and solutions that align with our strategy.
The Company is providing the following full-year 2025 guidance ranges based on current expectations:
-
Revenue of
$400 $420 million -
Adjusted EBITDA1 of
$40 $42 million -
Adjusted EBITDA1 to contribution ex-TAC1 of
22% at the midpoint
Share Repurchase program
As part of the company’s
1 Contribution ex-TAC, non-GAAP Net Income, adjusted EBITDA, adjusted Free Cash Flow and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures
2 Perion has not provided an outlook for GAAP Income from operations or reconciliation of Adjusted EBITDA guidance to GAAP Income from operations, the closest corresponding GAAP measure, because it does not provide guidance for certain of the reconciling items on a consistent basis due to the variability and complexity of these items, including but not limited to the measures and effects of stock-based compensation expenses directly impacted by unpredictable fluctuation in the share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.
Financial Comparison for the Fourth Quarter of 2024
Revenue: Revenue decreased by
Traffic Acquisition Costs and Media Buy (“TAC”): TAC amounted to
GAAP Net Income: GAAP net income decreased by
Non-GAAP Net Income: Non-GAAP net income was
Adjusted EBITDA: Adjusted EBITDA was
Cash Flow from Operations: Net cash provided by operating activities in the fourth quarter of 2024 was
Net cash: As of December 31, 2024, cash and cash equivalents, short-term bank deposits and marketable securities amounted to
Financial Comparison for the Full Year of 2024
Revenue: Revenue decreased by
Traffic Acquisition Costs and Media Buy (“TAC”): TAC amounted to
GAAP Net Income: GAAP net income decreased by
Non-GAAP Net Income: Non-GAAP net income was
Adjusted EBITDA: Adjusted EBITDA was
Cash Flow from Operations: Net cash provided by operating activities in 2024 was
Conference Call
Perion’s management will host a conference call to discuss the results at 8:30 a.m. ET today:
Registration link: https://perion-q4-24-earnings-call.open-exchange.net/
A replay of the call and a transcript will be available within approximately 24 hours of the live event on Perion’s website.
About Perion Network Ltd.
Perion is helping agencies, brands and retailers get better results with their marketing investments by providing advanced technology across digital channels. Through the Perion One platform, we are making digital advertising more effective by building solutions that continuously adapt to connect the dots between data, creative and channels.
For more information, visit Perion's website at www.perion.com.
Non-GAAP Measures
Non-GAAP financial measures consist of GAAP financial measures adjusted to exclude certain items. This press release includes certain non-GAAP measures, including Contribution ex-TAC, Adjusted EBITDA, non-GAAP net income, non-GAAP diluted earning per share and adjusted free cash flow.
Contribution ex-TAC presents revenue reduced by traffic acquisition costs and media buy, reflecting a portion of our revenue that must be directly passed to publishers or advertisers and presents our revenue excluding such items. We believe Contribution ex-TAC is a useful measure in assessing the performance of the Company because it facilitates a consistent comparison against our core business without considering the impact of traffic acquisition costs and media buy related to revenue reported on a gross basis.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined as income from operations excluding stock-based compensation expenses, restructuring costs, unusual legal costs, depreciation, amortization of acquired intangible assets, retention and other acquisition-related expenses and gains and losses recognized with respect to changes in the fair value of contingent consideration.
Adjusted free cash flow is defined as net cash provided by (or used in) operating activities less cash used for the purchase of property and equipment, but excluding the purchase of property and equipment related to our new corporate headquarter office and the portion of the cash payment of contingent consideration in excess of the acquisition date fair value, as we do not view either of those expenses as reflective of our normal on-going expenses. It is important to note that these expenses are in fact cash expenditures.
Non-GAAP net income and non-GAAP diluted earnings per share are defined as net income and net earnings per share excluding stock-based compensation expenses, restructuring costs, unusual legal costs, retention and other acquisition-related expenses, revaluation of acquisition-related contingent consideration, amortization of acquired intangible assets and the related taxes thereon, foreign exchange gains and losses associated with ASC-842, as well as gains and losses recognized with respect to changes in fair value of contingent consideration.
The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies. Due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from these projected measures, together with some of the excluded information not being ascertainable or accessible, we are unable to quantify certain amounts that would be required for such presentation without unreasonable effort. Consequently, no reconciliation of the forward-looking non-GAAP financial measures is included in this press release. A reconciliation between results on a GAAP and non-GAAP basis is provided in the last table of this press release.
Forward Looking Statements
This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words “will,” “believe,” “expect,” “intend,” “plan,” “should,” “estimate” and similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Perion to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financial information, including, but not limited to, the current war between
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
||||||||||||
In thousands (except share and per share data) |
||||||||||||
Three months ended |
|
Year ended |
||||||||||
December 31, |
|
December 31, |
||||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
(Unaudited) |
(Unaudited) |
|
(Unaudited) |
(Audited) |
||||||||
Revenue |
||||||||||||
| Advertising Solutions | $ |
104,101 |
$ |
119,795 |
$ |
335,550 |
|
$ |
398,244 |
|||
| Search Advertising |
|
25,476 |
|
114,435 |
|
162,736 |
|
|
344,911 |
|||
Total Revenue |
|
129,577 |
|
234,230 |
|
498,286 |
|
|
743,155 |
|||
Costs and Expenses |
||||||||||||
| Cost of revenue |
|
12,564 |
|
10,877 |
|
46,873 |
|
|
37,830 |
|||
| Traffic acquisition costs and media buy |
|
74,838 |
|
143,605 |
|
285,962 |
|
|
432,943 |
|||
| Research and development |
|
8,638 |
|
8,714 |
|
36,832 |
|
|
33,066 |
|||
| Selling and marketing |
|
16,255 |
|
15,008 |
|
68,250 |
|
|
57,991 |
|||
| General and administrative |
|
9,582 |
|
10,131 |
|
38,537 |
|
|
31,799 |
|||
| Change in fair value of contingent consideration |
|
- |
|
2,110 |
|
1,541 |
|
|
18,694 |
|||
| Depreciation and amortization |
|
3,524 |
|
3,901 |
|
16,434 |
|
|
14,092 |
|||
| Restructuring costs and other charges |
|
- |
|
- |
|
6,895 |
|
|
- |
|||
Total Costs and Expenses |
|
125,401 |
|
194,346 |
|
501,324 |
|
|
626,415 |
|||
Income (loss) from Operations |
|
4,176 |
|
39,884 |
|
(3,038 |
) |
|
116,740 |
|||
| Financial income, net |
|
1,932 |
|
6,262 |
|
18,520 |
|
|
20,951 |
|||
Income before Taxes on income |
|
6,108 |
|
46,146 |
|
15,482 |
|
|
137,691 |
|||
| Taxes on income |
|
1,167 |
|
6,745 |
|
2,868 |
|
|
20,278 |
|||
Net Income |
$ |
4,941 |
$ |
39,401 |
$ |
12,614 |
|
$ |
117,413 |
|||
Net Earnings per Share |
||||||||||||
| Basic | $ |
0.11 |
$ |
0.83 |
$ |
0.27 |
|
$ |
2.49 |
|||
| Diluted | $ |
0.11 |
$ |
0.78 |
$ |
0.25 |
|
$ |
2.34 |
|||
Weighted average number of shares |
||||||||||||
| Basic |
|
45,215,999 |
|
47,756,953 |
|
47,281,588 |
|
|
47,128,232 |
|||
| Diluted |
|
46,325,857 |
|
50,600,750 |
|
49,555,777 |
|
|
50,073,985 |
|||
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
|||||||
In thousands |
|||||||
December 31, |
|
December 31, |
|||||
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
(Audited) |
|||||
ASSETS |
|
|
|
||||
Current Assets |
|
|
|
||||
| Cash and cash equivalents | $ |
156,228 |
|
|
$ |
187,609 |
|
Restricted cash |
|
1,134 |
|
|
|
1,339 |
|
Short-term bank deposits |
|
139,333 |
|
|
|
207,450 |
|
Marketable securities |
|
77,774 |
|
|
|
77,616 |
|
Accounts receivable, net |
|
164,119 |
|
|
|
231,539 |
|
Prepaid expenses and other current assets |
|
22,638 |
|
|
|
21,033 |
|
| Total Current Assets |
|
561,226 |
|
|
|
726,586 |
|
|
|
|
|||||
Long-Term Assets |
|
|
|
||||
Property and equipment, net |
|
8,916 |
|
|
|
3,179 |
|
Operating lease right-of-use assets |
|
20,209 |
|
|
|
6,609 |
|
Goodwill and intangible assets, net |
|
316,003 |
|
|
|
336,627 |
|
Deferred taxes |
|
9,681 |
|
|
|
4,180 |
|
Other assets |
|
416 |
|
|
|
85 |
|
Total Long-Term Assets |
|
355,225 |
|
|
|
350,680 |
|
Total Assets |
$ |
916,451 |
|
|
$ |
1,077,266 |
|
|
|
|
|||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
||||
Current Liabilities |
|
|
|
||||
| Accounts payable | $ |
122,005 |
|
|
$ |
217,181 |
|
Accrued expenses and other liabilities |
|
32,983 |
|
|
|
42,636 |
|
Short-term operating lease liability |
|
3,648 |
|
|
|
4,198 |
|
Deferred revenue |
|
2,049 |
|
|
|
2,297 |
|
Short-term payment obligation related to acquisitions |
|
4,110 |
|
|
|
73,716 |
|
| Total Current Liabilities |
|
164,795 |
|
|
|
340,028 |
|
|
|
|
|||||
Long-Term Liabilities |
|
|
|
||||
Long-term operating lease liability |
|
18,654 |
|
|
|
3,448 |
|
Other long-term liabilities |
|
13,246 |
|
|
|
15,643 |
|
| Total Long-Term Liabilities |
|
31,900 |
|
|
|
19,091 |
|
Total Liabilities |
|
196,695 |
|
|
|
359,119 |
|
|
|
|
|||||
Shareholders' equity |
|
|
|
||||
Ordinary shares |
|
429 |
|
|
|
413 |
|
Additional paid-in capital |
|
566,652 |
|
|
|
530,620 |
|
Treasury shares at cost |
|
(47,923 |
) |
|
|
(1,002 |
) |
Accumulated other comprehensive loss |
|
(215 |
) |
|
|
(83 |
) |
Retained earnings |
|
200,813 |
|
|
|
188,199 |
|
Total Shareholders' Equity |
|
719,756 |
|
|
|
718,147 |
|
Total Liabilities and Shareholders' Equity |
$ |
916,451 |
|
|
$ |
1,077,266 |
|
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
|||||||||||||||
In thousands |
|||||||||||||||
Three months ended |
Year ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
||||||||||||
Cash flows from operating activities |
|||||||||||||||
Net Income |
$ |
4,941 |
|
$ |
39,401 |
|
$ |
12,614 |
|
$ |
117,413 |
|
|||
Adjustments required to reconcile net income to net cash provided by operating activities: |
|||||||||||||||
| Depreciation and amortization |
|
3,524 |
|
|
3,901 |
|
|
16,434 |
|
|
14,092 |
|
|||
| Stock-based compensation expense |
|
6,704 |
|
|
4,663 |
|
|
24,029 |
|
|
15,590 |
|
|||
| Foreign currency translation |
|
59 |
|
|
(36 |
) |
|
52 |
|
|
(27 |
) |
|||
| Accrued interest, net |
|
(514 |
) |
|
(1,308 |
) |
|
3,355 |
|
|
(5,547 |
) |
|||
| Deferred taxes, net |
|
(1,572 |
) |
|
1,079 |
|
|
(3,273 |
) |
|
(654 |
) |
|||
| Accrued severance pay, net |
|
591 |
|
|
188 |
|
|
295 |
|
|
(274 |
) |
|||
| Restructuring costs |
|
- |
|
|
- |
|
|
6,895 |
|
|
- |
|
|||
| Gain from sale of property and equipment |
|
(9 |
) |
|
(6 |
) |
|
(46 |
) |
|
(27 |
) |
|||
| Net changes in operating assets and liabilities |
|
(9,384 |
) |
|
2,334 |
|
|
(53,416 |
) |
|
14,897 |
|
|||
Net cash provided by operating activities |
$ |
4,340 |
|
$ |
50,216 |
|
$ |
6,939 |
|
$ |
155,463 |
|
|||
Cash flows from investing activities |
|||||||||||||||
| Purchases of property and equipment, net of sales |
|
(1,359 |
) |
|
(280 |
) |
|
(6,826 |
) |
|
(784 |
) |
|||
| Investment in marketable securities, net of sales |
|
2,132 |
|
|
(5,001 |
) |
|
1,311 |
|
|
(76,599 |
) |
|||
| Short-term deposits, net |
|
10,006 |
|
|
46,500 |
|
|
68,117 |
|
|
45,950 |
|
|||
| Cash paid in connection with acquisitions, net of cash acquired |
|
- |
|
|
(101,921 |
) |
|
- |
|
|
(101,921 |
) |
|||
Net cash provided by (used in) investing activities |
$ |
10,779 |
|
$ |
(60,702 |
) |
$ |
62,602 |
|
$ |
(133,354 |
) |
|||
Cash flows from financing activities |
|||||||||||||||
| Proceeds from exercise of stock-based compensation |
|
82 |
|
|
95 |
|
|
547 |
|
|
2,433 |
|
|||
| Payments of contingent consideration |
|
- |
|
|
- |
|
|
(54,540 |
) |
|
(13,256 |
) |
|||
| Purchase of treasury stock |
|
(13,390 |
) |
|
- |
|
|
(46,921 |
) |
|
- |
|
|||
Net cash provided by (used in) financing activities |
$ |
(13,308 |
) |
$ |
95 |
|
$ |
(100,914 |
) |
$ |
(10,823 |
) |
|||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
(303 |
) |
|
159 |
|
|
(213 |
) |
|
141 |
|
|||
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
1,508 |
|
|
(10,232 |
) |
|
(31,586 |
) |
|
11,427 |
|
|||
Cash and cash equivalents and restricted cash at beginning of period |
|
155,854 |
|
|
199,180 |
|
|
188,948 |
|
|
177,521 |
|
|||
Cash and cash equivalents and restricted cash at end of period |
$ |
157,362 |
|
$ |
188,948 |
|
$ |
157,362 |
|
$ |
188,948 |
|
|||
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
|||||||||||
In thousands |
Three months ended |
|
Year ended |
||||||||
December 31, |
|
December 31, |
|||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|||||||||
Revenue |
$ |
129,577 |
$ |
234,230 |
$ |
498,286 |
$ |
743,155 |
|||
| Traffic acquisition costs and media buy |
|
74,838 |
|
143,605 |
|
285,962 |
|
432,943 |
|||
Contribution ex-TAC |
$ |
54,739 |
$ |
90,625 |
$ |
212,324 |
$ |
310,212 |
|||
Three months ended |
|
Year ended |
|||||||||
December 31, |
|
December 31, |
|||||||||
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|||||||||
GAAP Income (loss) from Operations |
$ |
4,176 |
$ |
39,884 |
$ |
(3,038 |
) |
$ |
116,740 |
||
| Stock-based compensation expenses |
|
6,704 |
|
4,663 |
|
24,029 |
|
|
15,590 |
||
| Retention and other acquisition related expenses |
|
914 |
|
3,342 |
|
4,850 |
|
|
4,000 |
||
Unusual legal costs |
|
140 |
|
|
- |
|
|
140 |
|
|
- |
| Change in fair value of contingent consideration |
|
- |
|
2,110 |
|
1,541 |
|
|
18,694 |
||
| Amortization of acquired intangible assets |
|
3,010 |
|
3,476 |
|
14,364 |
|
|
12,448 |
||
| Restructuring costs |
|
- |
|
- |
|
6,895 |
|
|
- |
||
| Depreciation |
|
514 |
|
425 |
|
2,070 |
|
|
1,644 |
||
Adjusted EBITDA |
$ |
15,458 |
$ |
53,900 |
$ |
50,851 |
|
$ |
169,116 |
||
PERION NETWORK LTD. AND ITS SUBSIDIARIES
|
||||||||||||||
In thousands (except share and per share data) |
||||||||||||||
Three months ended |
|
Year ended |
||||||||||||
December 31, |
|
December 31, |
||||||||||||
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
|
|
|
|
|
|
|
||||||||
GAAP Net Income |
$ |
4,941 |
$ |
39,401 |
|
$ |
12,614 |
|
$ |
117,413 |
|
|||
| Stock-based compensation expenses |
|
6,704 |
|
4,663 |
|
|
24,029 |
|
|
15,590 |
|
|||
| Amortization of acquired intangible assets |
|
3,010 |
|
3,476 |
|
|
14,364 |
|
|
12,448 |
|
|||
| Retention and other acquisition related expenses |
|
914 |
|
3,342 |
|
|
4,850 |
|
|
4,000 |
|
|||
Unusual legal costs |
|
140 |
|
|
- |
|
|
|
140 |
|
|
|
- |
|
| Change in fair value of contingent consideration |
|
- |
|
2,110 |
|
|
1,541 |
|
|
18,694 |
|
|||
| Restructuring costs |
|
- |
|
- |
|
|
6,895 |
|
|
- |
|
|||
| Foreign exchange losses (gains) associated with ASC-842 |
|
316 |
|
114 |
|
|
405 |
|
|
(166 |
) |
|||
| Revaluation of acquisition related contingent consideration |
|
- |
|
142 |
|
|
- |
|
|
583 |
|
|||
| Taxes on the above items |
|
112 |
|
(301 |
) |
|
(857 |
) |
|
(1,166 |
) |
|||
Non-GAAP Net Income |
$ |
16,137 |
$ |
52,947 |
|
$ |
63,981 |
|
$ |
167,396 |
|
|||
Non-GAAP diluted earnings per share |
$ |
0.33 |
$ |
1.04 |
|
$ |
1.27 |
|
$ |
3.33 |
|
|||
Shares used in computing non-GAAP diluted earnings per share |
|
49,458,861 |
|
50,862,007 |
|
|
50,576,619 |
|
|
50,311,682 |
|
|||
PERION NETWORK LTD. AND ITS SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP RESULTS |
|||||||||||||||
In thousands |
|||||||||||||||
Three months ended |
|
Year ended |
|||||||||||||
December 31, |
|
December 31, |
|||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
(Unaudited) |
|||||||||||||
Net cash provided by operating activities |
$ |
4,340 |
|
$ |
50,216 |
|
$ |
6,939 |
|
$ |
155,463 |
|
|||
| Purchases of property and equipment, net of sales |
|
(1,359 |
) |
|
(280 |
) |
|
(6,826 |
) |
|
(784 |
) |
|||
Free cash flow |
$ |
2,981 |
|
$ |
49,936 |
|
$ |
113 |
|
$ |
154,679 |
|
|||
| Purchase of property and equipment related to our new corporate headquarter office |
|
1,342 |
|
|
- |
|
|
5,665 |
|
|
- |
|
|||
| Portion of the cash payment of contingent consideration in excess of the acquisition date fair value |
|
- |
|
|
- |
|
|
10,824 |
|
|
- |
|
|||
Adjusted free cash flow |
$ |
4,323 |
|
$ |
49,936 |
|
$ |
16,602 |
|
$ |
154,679 |
|
|||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219573742/en/
Perion Network Ltd.
Dudi Musler, VP of Investor Relations
+972 (54) 7876785
dudim@perion.com
Source: Perion Network Ltd.
FAQ
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