Perion Reports Third Quarter 2024 Results
Perion Network reported Q3 2024 financial results showing mixed performance across segments. Total revenue decreased 45% to $102.2 million, with Digital Out of Home growing 63% to $19.1 million, Retail Media up 62% to $21.0 million, and CTV increasing 19% to $9.5 million. However, Search Advertising revenue declined 76% to $20.9 million. The company's GAAP net income fell 94% to $2.1 million, while Adjusted EBITDA decreased 83% to $7.4 million. Perion maintained its full-year 2024 guidance of $490-510 million in revenue and $48-52 million in Adjusted EBITDA.
Perion Network ha riportato i risultati finanziari del terzo trimestre 2024 mostrando prestazioni miste tra i vari segmenti. Il fatturato totale è diminuito del 45% arrivando a 102,2 milioni di dollari, con un incremento del Digital Out of Home del 63% a 19,1 milioni di dollari, un aumento del Retail Media del 62% a 21,0 milioni di dollari e un incremento del CTV del 19% a 9,5 milioni di dollari. Tuttavia, il fatturato della pubblicità su ricerca è calato del 76% a 20,9 milioni di dollari. L'utile netto GAAP dell'azienda è sceso del 94% a 2,1 milioni di dollari, mentre l'EBITDA rettificato è diminuito dell'83% a 7,4 milioni di dollari. Perion ha mantenuto le previsioni per l'intero anno 2024, con un fatturato previsto compreso tra 490 e 510 milioni di dollari e un EBITDA rettificato tra 48 e 52 milioni di dollari.
Perion Network reportó los resultados financieros del tercer trimestre de 2024 mostrando un rendimiento mixto en los segmentos. Los ingresos totales disminuyeron un 45% a 102,2 millones de dólares, con un aumento del Digital Out of Home del 63% a 19,1 millones, un incremento del Retail Media del 62% a 21,0 millones y un aumento del CTV del 19% a 9,5 millones. Sin embargo, los ingresos de la publicidad en búsqueda cayeron un 76% a 20,9 millones de dólares. La ganancia neta GAAP de la compañía cayó un 94% a 2,1 millones de dólares, mientras que el EBITDA ajustado disminuyó un 83% a 7,4 millones de dólares. Perion mantuvo su guía para el año completo 2024 de ingresos de 490 a 510 millones de dólares y EBITDA ajustado de 48 a 52 millones de dólares.
페리온 네트워크는 2024년 3분기 재무 결과를 보고하며 각 세그먼트에서 혼합된 성과를 나타냈습니다. 총 수익은 45% 감소한 1억 220만 달러에 도달했으며, 디지털 아웃 오브 홈은 63% 증가한 1천910만 달러, 소매 미디어는 62% 상승한 2천100만 달러, 그리고 CTV는 19% 증가한 950만 달러를 기록했습니다. 그러나 검색 광고 수익은 76% 감소한 2천90만 달러로 나타났습니다. 회사의 GAAP 순이익은 94% 감소한 210만 달러로, 조정된 EBITDA는 83% 감소한 740만 달러로 나타났습니다. 페리온은 2024년 전체 수익 예상을 4억 9000만에서 5억 1000만 달러, 조정된 EBITDA는 4800만에서 5200만 달러로 유지했습니다.
Perion Network a publié les résultats financiers du troisième trimestre 2024, montrant des performances variées selon les segments. Le chiffre d'affaires total a diminué de 45% pour atteindre 102,2 millions de dollars, avec une croissance de Digital Out of Home de 63% à 19,1 millions de dollars, une augmentation du Retail Media de 62% à 21,0 millions de dollars et une hausse du CTV de 19% à 9,5 millions de dollars. Cependant, les revenus de la publicité de recherche ont chuté de 76% à 20,9 millions de dollars. Le résultat net selon les normes GAAP de l'entreprise a chuté de 94% à 2,1 millions de dollars, tandis que l'EBITDA ajusté a diminué de 83% à 7,4 millions de dollars. Perion maintient son estimation de chiffre d'affaires pour l'ensemble de l'année 2024 entre 490 et 510 millions de dollars et un EBITDA ajusté entre 48 et 52 millions de dollars.
Perion Network hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, die eine gemischte Leistung in den Segmenten zeigen. Der Gesamtumsatz sank um 45% auf 102,2 Millionen Dollar, während Digital Out of Home um 63% auf 19,1 Millionen Dollar wuchs, Retail Media um 62% auf 21,0 Millionen Dollar zunahm und CTV um 19% auf 9,5 Millionen Dollar anstieg. Im Gegensatz dazu fiel der Umsatz aus Suchmaschinenwerbung um 76% auf 20,9 Millionen Dollar. Der GAAP-Reingewinn des Unternehmens sank um 94% auf 2,1 Millionen Dollar, während das bereinigte EBITDA um 83% auf 7,4 Millionen Dollar zurückging. Perion hält an der Prognose für das Gesamtjahr 2024 von 490 bis 510 Millionen Dollar Umsatz und 48 bis 52 Millionen Dollar bereinigtem EBITDA fest.
- DOOH revenue grew 63% YoY to $19.1 million
- Retail Media revenue increased 62% YoY to $21.0 million
- CTV revenue grew 19% YoY to $9.5 million
- Maintained full-year 2024 guidance
- Repurchased 1.6 million shares worth $13.5 million in Q3
- Total revenue declined 45% YoY to $102.2 million
- GAAP net income decreased 94% YoY to $2.1 million
- Search Advertising revenue fell 76% YoY
- Adjusted EBITDA dropped 83% YoY to $7.4 million
- Microsoft Bing contract not renewing after 2024
Insights
The Q3 2024 results reveal significant challenges for Perion Network. Total revenue declined
Net income dropped dramatically by
Despite headwinds, management reiterated full-year guidance of
The advertising landscape shift is evident in Perion's results. While traditional search and open web video revenues declined sharply, next-generation advertising channels show robust growth. DOOH now represents
The company's strategic pivot toward omni-channel advertising solutions aligns with industry trends, but the transition period is creating significant near-term pressure on financials. The margin profile is evolving, with TAC improving to
Growth engines continue to excel: Digital Out of Home (DOOH), Retail media and CTV grew
“Third-quarter results were in line with our expectations as we continue to capitalize on the strength of DOOH, Retail Media, and CTV,” commented Tal Jacobson, Perion’s CEO. “All three growth engines delivered strong results in the quarter, signaling that our multi-channel strategy is gaining traction with advertisers who trust us to activate their messages across all screens and formats. DOOH, Retail Media and CTV are leading today’s industry trends, and we are committed to developing and introducing new innovative omni-channel solutions that position Perion at the forefront of these high-growth areas.”
“Perion strives to serve its customers at the highest level while profitably growing the business and delivering value to shareholders. We will continue to accomplish this by combining internally developed and integrated technology solutions and adding more successful and synergetic growth engines organically and inorganically. We expect to generate positive operating cash flow in 2024, as we have consistently done since 2014.” concluded Mr. Jacobson.
1 On a proforma basis
Third Quarter 2024 Business Highlights
-
On a proforma basis, DOOH revenue increased
63% year-over-year to$19.1 million 23% of Advertising Solutions revenue compared to11% last year. -
Retail Media1 revenue increased
62% year-over-year to$21.0 million 26% of Advertising Solutions revenue compared to13% last year. -
CTV revenue increased
19% year-over-year to$9.5 million 12% of Advertising Solutions revenue compared to8% last year. -
Open Web2 Video revenue decreased
63% year-over-year, representing14% of Advertising Solutions revenue, compared to32% last year. -
Search Advertising revenue decreased
76% year-over-year to$20.9 million 20% of total company revenue. Our contract with Microsoft Bing, which, as we previously reported, represents less than5% of our overall revenue run rate both currently and going forward, will not be renewed at its conclusion at the end of 2024. As per the terms of the contract, there is a tail period that is expected to generate revenue in 2025.
1 Retail Media revenue include all media channels, such as CTV, DOOH, video and others
2 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
Third Quarter 2024 Financial Highlights2
In millions,
|
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||||||||||||
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September 30, |
|
September 30, |
|
||||||||||||
|
2024 |
|
2023 |
|
% |
|
2024 |
|
2023 |
|
% |
|
||||
Advertising Solutions Revenue |
$ |
81.3 |
|
$ |
99.2 |
|
- |
|
$ |
231.4 |
|
$ |
278.5 |
|
- |
|
Search Advertising Revenue |
$ |
20.9 |
|
$ |
86.1 |
|
- |
|
$ |
137.3 |
|
$ |
230.5 |
|
- |
|
Total Revenue |
$ |
102.2 |
|
$ |
185.3 |
|
- |
|
$ |
368.7 |
|
$ |
508.9 |
|
- |
|
Contribution ex-TAC (Revenue ex-TAC) |
$ |
47.6 |
|
$ |
77.3 |
|
- |
|
$ |
157.6 |
|
$ |
219.6 |
|
- |
|
GAAP Net Income |
$ |
2.1 |
|
$ |
32.8 |
|
- |
|
$ |
7.7 |
|
$ |
78.0 |
|
- |
|
Non-GAAP Net Income |
$ |
11.9 |
|
$ |
42.4 |
|
- |
|
$ |
47.8 |
|
$ |
114.4 |
|
- |
|
Adjusted EBITDA |
$ |
7.4 |
|
$ |
42.7 |
|
- |
|
$ |
35.4 |
|
$ |
115.2 |
|
- |
|
Adjusted EBITDA to Contribution ex-TAC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash from Operations |
$ |
16.2 |
|
$ |
40.1 |
|
- |
|
$ |
2.6 |
|
$ |
105.2 |
|
- |
|
Adjusted Free cash flow |
$ |
17.2 |
|
$ |
39.9 |
|
- |
|
$ |
12.3 |
|
$ |
104.7 |
|
- |
|
GAAP Diluted EPS |
$ |
0.04 |
|
$ |
0.65 |
|
- |
|
$ |
0.15 |
|
$ |
1.57 |
|
- |
|
Non-GAAP Diluted EPS |
$ |
0.23 |
|
$ |
0.84 |
|
- |
|
$ |
0.94 |
|
$ |
2.28 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Outlook 1
The company is reiterating its previously issued full-year 2024 guidance based on current expectations.
FY 2024 Guidance
-
Revenue of
$490 $510 million -
Adjusted EBITDA2 of
$48 $52 million -
Adjusted EBITDA2 to contribution ex-TAC2 of
23% at the midpoint
Share Repurchase program
As part of the company’s
1 We have 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 we do 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 our stock-based compensation expenses directly impacted by unpredictable fluctuation in our share price and amortization in connection with future acquisitions. Hence, we are unable to quantify these amounts without unreasonable efforts.
2 Contribution ex-TAC, non-GAAP Net Income, Adjusted EBITDA and non-GAAP Diluted EPS are non-GAAP measures. See below reconciliation of GAAP to non-GAAP measures.
Financial Comparison for the Third 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 third quarter of 2024 was
Net cash: As of September 30, 2024, cash and cash equivalents, short-term bank deposits and marketable securities amounted to
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-q3-earnings-call-2024.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 connects advertisers with consumers through technology across all major digital channels. Our cross-channel creative and technological strategies enable brands to maintain a powerful presence across the entire consumer journey, online and offline. Perion is dedicated to building an advertiser-centric universe, providing significant benefits to brands and publishers.
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 and non-GAAP diluted earning per share.
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, 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.
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, retention and other acquisition-related expenses, revaluation of acquisition-related contingent consideration, amortization of acquired intangible assets and the related taxes thereon, non-recurring expenses, 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 failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that such transactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, potential litigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in the markets in which the businesses operate and in general economic and business conditions, loss of key customers, data breaches, cyber-attacks and other similar incidents, unpredictable sales cycles, competitive pressures, market acceptance of new products, changes in applicable laws and regulations as well as industry self-regulation, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whether referenced or not referenced in this press release. Various other risks and uncertainties may affect Perion and its results of operations, as described in reports filed by Perion with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended December 31, 2023 filed with the SEC on April 8, 2024. Perion does not assume any obligation to update these forward-looking statements.
| PERION NETWORK LTD. AND ITS SUBSIDIARIES | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| In thousands (except share and per share data) | ||||||||||||
Three months ended |
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|
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||
Revenue |
||||||||||||
Advertising Solutions |
$ |
81,289 |
$ |
99,193 |
$ |
231,449 |
$ |
278,450 |
||||
Search Advertising |
|
20,909 |
|
86,112 |
|
137,260 |
|
230,475 |
||||
Total Revenue |
|
102,198 |
|
185,305 |
|
368,709 |
|
508,925 |
||||
Costs and Expenses |
||||||||||||
Cost of revenue |
|
11,525 |
|
9,805 |
|
34,309 |
|
26,953 |
||||
Traffic acquisition costs and media buy |
|
54,572 |
|
107,981 |
|
211,124 |
|
289,338 |
||||
Research and development |
|
8,271 |
|
7,763 |
|
28,194 |
|
24,352 |
||||
Selling and marketing |
|
17,861 |
|
14,171 |
|
51,995 |
|
42,983 |
||||
General and administrative |
|
9,200 |
|
7,712 |
|
28,955 |
|
21,668 |
||||
Change in fair value of contingent consideration |
|
- |
|
1,982 |
|
1,541 |
|
16,584 |
||||
Depreciation and amortization |
|
3,579 |
|
3,425 |
|
12,910 |
|
10,191 |
||||
Restructuring costs and other charges |
|
- |
|
- |
|
6,895 |
|
- |
||||
Total Costs and Expenses |
|
105,008 |
|
152,839 |
|
375,923 |
|
432,069 |
||||
Income (loss) from Operations |
|
(2,810) |
|
32,466 |
|
(7,214) |
|
76,856 |
||||
Financial income, net |
|
5,399 |
|
6,103 |
|
16,588 |
|
14,689 |
||||
Income before Taxes on income |
|
2,589 |
|
38,569 |
|
9,374 |
|
91,545 |
||||
Taxes on income |
|
475 |
|
5,748 |
|
1,701 |
|
13,533 |
||||
Net Income |
$ |
2,114 |
$ |
32,821 |
$ |
7,673 |
$ |
78,012 |
||||
Net Earnings per Share |
||||||||||||
Basic |
$ |
0.05 |
$ |
0.69 |
$ |
0.16 |
$ |
1.66 |
||||
Diluted |
$ |
0.04 |
$ |
0.65 |
$ |
0.15 |
$ |
1.57 |
||||
Weighted average number of shares |
||||||||||||
Basic |
|
46,935,927 |
|
47,392,072 |
|
47,971,595 |
|
46,915,616 |
||||
Diluted |
|
48,360,345 |
|
50,270,296 |
|
49,794,459 |
|
49,831,190 |
||||
| PERION NETWORK LTD. AND ITS SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| In thousands | ||||||
|
September 30, |
|
December 31, |
|||
|
2024 |
|
2023 |
|||
|
(Unaudited) |
|
(Audited) |
|||
ASSETS |
|
|
|
|||
Current Assets |
|
|
|
|||
Cash and cash equivalents |
$ |
154,730 |
|
$ |
187,609 |
|
|
Restricted cash |
|
1,124 |
|
|
1,339 |
|
Short-term bank deposits |
|
149,339 |
|
|
207,450 |
|
Marketable securities |
|
79,788 |
|
|
77,616 |
|
Accounts receivable, net |
|
132,294 |
|
|
231,539 |
|
Prepaid expenses and other current assets |
|
20,181 |
|
|
21,033 |
Total Current Assets |
|
537,456 |
|
|
726,586 |
|
|
|
|
|
|||
Long-Term Assets |
|
|
|
|||
|
Property and equipment, net |
|
7,142 |
|
|
3,179 |
|
Operating lease right-of-use assets |
|
21,667 |
|
|
6,609 |
|
Goodwill and intangible assets, net |
|
319,902 |
|
|
336,627 |
|
Deferred taxes |
|
5,892 |
|
|
4,180 |
|
Other assets |
|
407 |
|
|
85 |
|
Total Long-Term Assets |
|
355,010 |
|
|
350,680 |
Total Assets |
$ |
892,466 |
|
$ |
1,077,266 |
|
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|||
Current Liabilities |
|
|
|
|||
Accounts payable |
$ |
101,454 |
|
$ |
217,181 |
|
|
Accrued expenses and other liabilities |
|
27,122 |
|
|
42,636 |
|
Short-term operating lease liability |
|
4,230 |
|
|
4,198 |
|
Deferred revenue |
|
1,999 |
|
|
2,297 |
|
Short-term payment obligation related to acquisitions |
|
3,803 |
|
|
73,716 |
Total Current Liabilities |
|
138,608 |
|
|
340,028 |
|
|
|
|
|
|||
Long-Term Liabilities |
|
|
|
|||
|
Long-term operating lease liability |
|
18,697 |
|
|
3,448 |
|
Other long-term liabilities |
|
13,345 |
|
|
15,643 |
Total Long-Term Liabilities |
|
32,042 |
|
|
19,091 |
|
Total Liabilities |
|
170,650 |
|
|
359,119 |
|
|
|
|
|
|||
Shareholders' equity |
|
|
|
|||
|
Ordinary shares |
|
427 |
|
|
413 |
|
Additional paid-in capital |
|
559,869 |
|
|
530,620 |
|
Treasury shares at cost |
|
(34,533) |
|
|
(1,002) |
|
Accumulated other comprehensive gain (loss) |
|
181 |
|
|
(83) |
|
Retained earnings |
|
195,872 |
|
|
188,199 |
Total Shareholders' Equity |
|
721,816 |
|
|
718,147 |
|
Total Liabilities and Shareholders' Equity |
$ |
892,466 |
|
$ |
1,077,266 |
|
| PERION NETWORK LTD. AND ITS SUBSIDIARIES | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| In thousands | ||||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
||||
|
||||||||||||
Cash flows from operating activities |
||||||||||||
Net Income |
$ |
2,114 |
$ |
32,821 |
$ |
7,673 |
$ |
78,012 |
||||
Adjustments required to reconcile net income to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization |
|
3,579 |
|
3,425 |
|
12,910 |
|
10,191 |
||||
Stock-based compensation expense |
|
6,220 |
|
4,425 |
|
17,325 |
|
10,927 |
||||
Foreign currency translation |
|
(36) |
|
22 |
|
(7) |
|
9 |
||||
Accrued interest, net |
|
1,089 |
|
(2,208) |
|
3,869 |
|
(4,239) |
||||
Deferred taxes, net |
|
134 |
|
(1,257) |
|
(1,701) |
|
(1,733) |
||||
Accrued severance pay, net |
|
108 |
|
(187) |
|
(296) |
|
(462) |
||||
Restructuring costs |
|
- |
|
- |
|
6,895 |
|
- |
||||
Gain from sale of property and equipment |
|
(29) |
|
(5) |
|
(37) |
|
(22) |
||||
Net changes in operating assets and liabilities |
|
3,059 |
|
3,059 |
|
(44,031) |
|
12,563 |
||||
Net cash provided by operating activities |
$ |
16,238 |
$ |
40,095 |
$ |
2,600 |
$ |
105,246 |
||||
|
||||||||||||
Cash flows from investing activities |
||||||||||||
Purchases of property and equipment, net of sales |
|
(4,336) |
|
(152) |
|
(5,467) |
|
(503) |
||||
Investment in marketable securities, net of sales |
|
(2,530) |
|
597 |
|
(821) |
|
(71,598) |
||||
Short-term deposits, net |
|
35,399 |
|
(28,650) |
|
58,111 |
|
(550) |
||||
Net cash provided by (used in) investing activities |
$ |
28,533 |
$ |
(28,205) |
$ |
51,823 |
$ |
(72,651) |
||||
|
||||||||||||
Cash flows from financing activities |
||||||||||||
Proceeds from exercise of stock-based compensation |
|
99 |
|
150 |
|
465 |
|
2,338 |
||||
Payments of contingent consideration |
|
(22,838) |
|
- |
|
(54,540) |
|
(13,256) |
||||
Purchase of treasury stock |
|
(13,479) |
|
- |
|
(33,531) |
|
- |
||||
Net cash provided by (used in) financing activities |
$ |
(36,218) |
$ |
150 |
$ |
(87,606) |
$ |
(10,918) |
||||
|
||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
202 |
|
(103) |
|
89 |
|
(18) |
||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
|
8,755 |
|
11,937 |
|
(33,094) |
|
21,659 |
||||
Cash and cash equivalents and restricted cash at beginning of period |
|
147,099 |
|
187,243 |
|
188,948 |
|
177,521 |
||||
Cash and cash equivalents and restricted cash at end of period |
$ |
155,854 |
$ |
199,180 |
$ |
155,854 |
$ |
199,180 |
||||
| PERION NETWORK LTD. AND ITS SUBSIDIARIES | ||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||||||
| In thousands (except share and per share data) | ||||||||||||
|
|
Three months ended |
|
Nine months ended |
||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||
Revenue |
$ |
102,198 |
$ |
185,305 |
$ |
368,709 |
$ |
508,925 |
||||
Traffic acquisition costs and media buy |
|
54,572 |
|
107,981 |
|
211,124 |
|
289,338 |
||||
Contribution ex-TAC |
$ |
47,626 |
$ |
77,324 |
$ |
157,585 |
$ |
219,587 |
||||
Three months ended |
|
Nine months ended |
||||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||
GAAP Income (loss) from Operations |
$ |
(2,810) |
$ |
32,466 |
$ |
(7,214) |
$ |
76,856 |
||||
Stock-based compensation expenses |
|
6,220 |
|
4,425 |
|
17,325 |
|
10,927 |
||||
Retention and other acquisition related expenses |
|
427 |
|
401 |
|
3,936 |
|
658 |
||||
Change in fair value of contingent consideration |
|
- |
|
1,982 |
|
1,541 |
|
16,584 |
||||
Amortization of acquired intangible assets |
|
3,009 |
|
3,017 |
|
11,354 |
|
8,972 |
||||
Restructuring costs |
|
- |
|
- |
|
6,895 |
|
- |
||||
Depreciation |
|
570 |
|
408 |
|
1,556 |
|
1,219 |
||||
Adjusted EBITDA |
$ |
7,416 |
$ |
42,699 |
$ |
35,393 |
$ |
115,216 |
||||
| PERION NETWORK LTD. AND ITS SUBSIDIARIES | ||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||||||
| In thousands (except share and per share data) | ||||||||||||
Three months ended |
|
Nine months ended |
||||||||||
September 30, |
|
September 30, |
||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
(Unaudited) |
|
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
||||||
GAAP Net Income |
$ |
2,114 |
$ |
32,821 |
$ |
7,673 |
$ |
78,012 |
||||
Stock-based compensation expenses |
|
6,220 |
|
4,425 |
|
17,325 |
|
10,927 |
||||
Amortization of acquired intangible assets |
|
3,009 |
|
3,017 |
|
11,354 |
|
8,972 |
||||
Retention and other acquisition related expenses |
|
427 |
|
401 |
|
3,936 |
|
658 |
||||
Change in fair value of contingent consideration |
|
- |
|
1,982 |
|
1,541 |
|
16,584 |
||||
Restructuring costs |
|
- |
|
- |
|
6,895 |
|
- |
||||
Foreign exchange losses (gains) associated with ASC-842 |
|
255 |
|
(83) |
|
90 |
|
(280) |
||||
Revaluation of acquisition related contingent consideration |
|
- |
|
149 |
|
- |
|
441 |
||||
Taxes on the above items |
|
(168) |
|
(291) |
|
(969) |
|
(865) |
||||
Non-GAAP Net Income |
$ |
11,857 |
$ |
42,421 |
$ |
47,845 |
$ |
114,449 |
||||
Non-GAAP diluted earnings per share |
$ |
0.23 |
$ |
0.84 |
$ |
0.94 |
$ |
2.28 |
||||
Shares used in computing non-GAAP diluted earnings per share |
|
50,504,041 |
|
50,543,534 |
|
50,859,984 |
|
50,106,425 |
||||
| PERION NETWORK LTD. AND ITS SUBSIDIARIES | ||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP RESULTS | ||||||||||||
| In thousands (except share and per share data) | ||||||||||||
Three months ended |
|
Nine months ended |
||||||||||
September 30, |
|
September 30, |
||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
|
(Unaudited) |
|
(Unaudited) |
||||||||
Net cash provided by operating activities |
$ |
16,238 |
$ |
40,095 |
$ |
2,600 |
$ |
105,246 |
||||
Purchases of property and equipment, net of sales |
|
(4,336) |
|
(152) |
|
(5,467) |
|
(503) |
||||
Free cash flow |
$ |
11,902 |
$ |
39,943 |
$ |
(2,867) |
$ |
104,743 |
||||
Purchase of property and equipment related to our new corporate headquarter office |
|
4,142 |
|
- |
|
4,323 |
|
- |
||||
Portion of the cash payment of contingent consideration in excess of the acquisition date fair value |
|
1,182 |
|
- |
|
10,824 |
|
- |
||||
Adjusted free cash flow |
$ |
17,226 |
$ |
39,943 |
$ |
12,280 |
$ |
104,743 |
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106975891/en/
Perion Network Ltd.
Dudi Musler, VP of Investor Relations
+972 (54) 7876785
dudim@perion.com
Source: Perion Network Ltd.
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