PERION NETWORK LTD.
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By:
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/s/ Maoz Sigron | |
Name: | Maoz Sigron | ||
Title: | Chief Financial Officer | ||
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• |
CTV solution served as a key factor for new customer acquisition and primary contributor to 11% increase in average deal size;
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Average daily searches increased 45% year-over-year from 12.2 million in the first quarter of 2020 to a record 17.7 million this quarter;
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Perion’s Actionable Performance Monitoring (APM) SaaS system for social advertisement has already been chosen by 7 new customers since launched in January 2021;
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Net cash was $128.0 million compared to $52.0 million on December 31, 2020; and
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Outstanding debt was fully repaid during the first quarter of 2021.
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Three months ended
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March 31,
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2021
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2020
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%
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|||||||||
Display and Social Advertising revenues
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$
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38.1
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$
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23.7
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+61
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%
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||||||
Search Advertising and other revenues
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$
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51.7
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$
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42.3
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+22
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%
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Total Revenues
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$
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89.8
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$
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66.1
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+36
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%
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||||||
GAAP Net Income
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$
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3.3
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$
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1.3
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+148
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%
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||||||
Non-GAAP Net Income
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$
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7.0
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$
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5.0
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+41
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%
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Adjusted EBITDA
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$
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8.8
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$
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6.2
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+41
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%
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Net cash provided by operating activities
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$
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13.5
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$
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2.5
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+440
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%
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GAAP Diluted Earnings Per Share
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$
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0.09
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$
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0.05
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+80
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%
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Non-GAAP Diluted Earnings Per Share
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$
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0.19
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$
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0.17
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+12
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%
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Conference ID: 1398309
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Dial-in number from within the United States: 1-800-289-0438
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Dial-in number from Israel: 1809 212 883
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Dial-in number (other international): 1-323-794-2423
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Playback available until May 11, 2021 by calling 1-844-512-2921 (United States) or 1-412-317-6671 (international). Please use PIN code 1398309 for the replay.
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Link to the live and archived webcast accessible at https://www.perion.com/investors/
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Three months ended
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March 31,
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2021
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2020
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(Unaudited)
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(Unaudited)
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Revenues:
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Display and Social Advertising
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$
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38,137
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$
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23,733
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Search Advertising and other
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51,680
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42,320
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Total Revenues
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89,817
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66,053
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Costs and Expenses:
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Cost of revenues
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5,436
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5,766
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Customer acquisition costs and media buy
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54,860
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36,138
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Research and development
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8,545
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7,207
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Selling and marketing
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10,605
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9,701
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General and administrative
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4,131
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3,939
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Depreciation and amortization
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2,377
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2,302
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Total Costs and Expenses
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85,954
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65,053
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Income from Operations
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3,863
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1,000
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||||||
Financial income, net
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193
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8
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Income before Taxes on income
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4,056
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1,008
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Taxes on income (benefit)
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750
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(326
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)
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Net Income
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$
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3,306
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$
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1,334
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Net Earnings per Share
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||||||||
Basic
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$
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0.10
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$
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0.05
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Diluted
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$
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0.09
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$
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0.05
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Weighted average number of shares
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||||||||
Basic
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32,147,176
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26,287,515
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Diluted
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35,820,634
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28,212,685
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March 31,
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December 31,
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2021
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2020
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(Unaudited)
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(Audited)
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$
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71,999
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$
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47,656
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Restricted cash
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1,222
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1,222
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Short-term bank deposits
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56,000
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12,700
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Accounts receivable, net
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55,644
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81,221
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Prepaid expenses and other current assets
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5,906
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4,560
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Total Current Assets
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190,771
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147,359
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Long-Term Assets:
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Property and equipment, net
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5,873
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6,770
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Operating lease right-of-use assets
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18,907
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20,266
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Goodwill and intangible assets, net
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175,337
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176,679
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Deferred taxes
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6,840
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7,111
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Other assets
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461
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496
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Total Long-Term Assets
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207,418
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211,322
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Total Assets
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$
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398,189
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$
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358,681
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current Liabilities:
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Accounts payable
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$
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60,684
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$
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72,498
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Accrued expenses and other liabilities
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16,600
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21,188
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Short-term operating lease liability
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4,358
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4,514
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Short-term loans and current maturities of long-term loans
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-
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8,333
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Deferred revenues
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5,125
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5,711
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Short-term payment obligation related to acquisitions
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30,986
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7,869
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Total Current Liabilities
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117,753
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120,113
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Long-Term Liabilities:
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Payment obligation related to acquisition
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6,810
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30,035
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Long-term operating lease liability
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16,245
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17,698
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Other long-term liabilities
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6,729
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6,713
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Total Long-Term Liabilities
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29,784
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54,446
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Total Liabilities
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147,537
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174,559
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Shareholders' equity:
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Ordinary shares
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282
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224
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Additional paid-in capital
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315,291
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251,933
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Treasury shares at cost
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(1,002
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)
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(1,002
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)
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Accumulated other comprehensive gain
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(80
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)
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112
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|||||
Accumulated deficit
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(63,839
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)
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(67,145
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)
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Total Shareholders' Equity
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250,652
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184,122
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Total Liabilities and Shareholders' Equity
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$
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398,189
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$
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358,681
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Three months ended
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March 31,
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|||||||
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2021
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2020
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||||||
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(Unaudited)
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(Unaudited)
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||||||
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Cash flows from operating activities:
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||||||||
Net Income
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$
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3,306
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$
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1,334
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||||
Adjustments required to reconcile net income to net cash provided by operating activities:
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||||||||
Depreciation and amortization
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2,377
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2,302
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Stock based compensation expense
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755
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1,100
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||||||
Foreign currency translation
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(120
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)
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(29
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)
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Accrued interest, net
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(75
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)
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-
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Deferred taxes, net
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236
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(315
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)
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Accrued severance pay, net
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109
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25
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||||||
Net changes in operating assets and liabilities
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6,883
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(1,921
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)
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Net cash provided by operating activities
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$
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13,471
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$
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2,496
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Cash flows from investing activities:
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Purchases of property and equipment
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(144
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)
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(71
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)
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Short-term deposits, net
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(43,300
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)
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15,486
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Cash paid in connection with acquisitions, net of cash acquired
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-
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(15,100
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)
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Obligation in connection with acquisitions
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-
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5,777
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Net cash provided by (used in) investing activities
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$
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(43,444
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)
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$
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6,092
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Cash flows from financing activities:
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||||||||
Issuance of shares in private placement, net
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60,960
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-
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Exercise of stock options and restricted share units
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1,701
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1,557
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||||||
Repayment of short-term loans
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(8,333
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)
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(2,083
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)
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Net cash provided by (used in) financing activities
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$
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54,328
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$
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(526
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)
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||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
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(12
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)
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(73
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)
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Net increase in cash and cash equivalents and restricted cash
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24,343
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7,989
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Cash and cash equivalents and restricted cash at beginning of period
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48,878
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39,605
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||||||
Cash and cash equivalents and restricted cash at end of period
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$
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73,221
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$
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47,594
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Three months ended
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||||||||
March 31,
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||||||||
2021
|
2020
|
|||||||
(Unaudited)
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||||||||
GAAP Net Income
|
$
|
3,306
|
$
|
1,334
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||||
Share based compensation
|
755
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1,100
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||||||
Amortization of acquired intangible assets
|
1,342
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1,065
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||||||
Retention and other related to M&A related expenses
|
1,788
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1,836
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||||||
Foreign exchange income associated with ASC-842
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(318
|
)
|
(280
|
)
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Revaluation of acquisition related contingent consideration
|
169
|
-
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||||||
Taxes on the above items
|
(51
|
)
|
(90
|
)
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||||
Non-GAAP Net Income
|
$
|
6,991
|
$
|
4,965
|
||||
Non-GAAP Net Income
|
$
|
6,991
|
$
|
4,965
|
||||
Taxes on income
|
801
|
(236
|
)
|
|||||
Financial expense, net
|
(44
|
)
|
272
|
|||||
Depreciation
|
1,035
|
1,237
|
||||||
Adjusted EBITDA
|
$
|
8,783
|
$
|
6,238
|
||||
Non-GAAP diluted earnings per share
|
$
|
0.19
|
$
|
0.17
|
||||
Shares used in computing non-GAAP diluted earnings per share
|
36,122,783
|
28,749,160
|