|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
|
• |
Media margin increased to 45%, compared with 43% in the first quarter of 2022
|
• |
Video revenue increased by 26% year-over-year, representing 44% of Display Advertising Revenue compared with 41% last year
|
o |
The number of video platform publishers increased by 63% year-over-year to 75 publishers
|
o |
Revenue from retained video platform publishers increased by 71% year-over-year
|
o |
Average revenue per video platform publisher increased by 22% year-over-year
|
• |
CTV revenue increased by 12% year-over-year, representing 8% of Display Advertising Revenue - similar to last year, with the number of CTV customers nearly doubling
|
• |
Retail Media revenue increased by 60% year-over-year, representing 8% of Display Advertising Revenue compared with 6% last year, with the number of retail media customers up 32% over the same period
|
• |
SORT® spending increased by 93% year-over-year, representing 17% of Display Advertising Revenue, driven by a 142% increase in the number of customers
|
•
|
The number of search advertising publishers increased by 29% year-over-year, while the number of average daily searches increased by
49% to 26.3 million over the same period
|
In millions,
except per share data |
Three months ended
|
|||||||||||
|
March 31,
|
|||||||||||
|
2023
|
2022
|
%
|
|||||||||
Display Advertising Revenue
|
$
|
79.9
|
$
|
68.6
|
+16
|
%
|
||||||
Search Advertising Revenue
|
$
|
65.3
|
$
|
56.7
|
+15
|
%
|
||||||
Total Revenue
|
$
|
145.2
|
$
|
125.3
|
+16
|
%
|
||||||
Gross Profit (Revenue ex-TAC)
|
$
|
65.3
|
$
|
54.3
|
+20
|
%
|
||||||
GAAP Net Income
|
$
|
23.8
|
$
|
15.5
|
+54
|
%
|
||||||
Non-GAAP Net Income
|
$
|
29.9
|
$
|
20.7
|
+44
|
%
|
||||||
Adjusted EBITDA
|
$
|
31.3
|
$
|
22.7
|
+38
|
%
|
||||||
Adjusted EBITDA to Revenue ex-TAC
|
48
|
%
|
42
|
%
|
||||||||
Net Cash from Operations
|
$
|
17.8
|
$
|
23.6
|
-25
|
%
|
||||||
GAAP Diluted EPS
|
$
|
0.48
|
$
|
0.33
|
+45
|
%
|
||||||
Non-GAAP Diluted EPS
|
$
|
0.60
|
$
|
0.44
|
+36
|
%
|
In millions
|
2022
|
Prior 2023
Guidance
|
Current 2023
Guidance
|
YoY
Growth %1
|
||||||||
Revenue
|
$640.3
|
$720-$740
|
$725-$745
|
15%1
|
|
|||||||
Adjusted EBITDA
|
$132.4
|
$149-$153
|
$155+
|
|
17%
|
|
||||||
Adjusted EBITDA to Revenue
|
21%
|
|
21%1
|
|
21%1
|
|
||||||
Adjusted EBITDA to Revenue ex-TAC
|
49%
|
|
50%1
|
|
50%1
|
|
● |
Registration link:
|
● |
Toll Free: 1-877-407-0779
|
● |
Toll/International: 1-201-389-0914
|
Three months ended
|
||||||||
March 31,
|
||||||||
2023
|
2022
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Revenue:
|
||||||||
Display Advertising
|
$
|
79,878
|
$
|
68,603
|
||||
Search Advertising
|
65,272
|
56,712
|
||||||
Total Revenue
|
145,150
|
125,315
|
||||||
Costs and Expenses:
|
||||||||
Cost of revenue
|
7,559
|
6,613
|
||||||
Traffic acquisition costs and media buy
|
79,875
|
70,974
|
||||||
Research and development
|
8,353
|
9,033
|
||||||
Selling and marketing
|
14,955
|
13,338
|
||||||
General and administrative
|
6,543
|
5,666
|
||||||
Depreciation and amortization
|
3,361
|
3,185
|
||||||
Total Costs and Expenses
|
120,646
|
108,809
|
||||||
Income from Operations
|
24,504
|
16,506
|
||||||
Financial income, net
|
3,428
|
604
|
||||||
Income before Taxes on income
|
27,932
|
17,110
|
||||||
Taxes on income
|
4,147
|
1,644
|
||||||
Net Income
|
$
|
23,785
|
$
|
15,466
|
||||
Net Earnings per Share
|
||||||||
Basic
|
$
|
0.51
|
$
|
0.35
|
||||
Diluted
|
$
|
0.48
|
$
|
0.33
|
||||
Weighted average number of shares
|
||||||||
Basic
|
46,382,655
|
44,035,576
|
||||||
Diluted
|
49,467,671
|
47,030,727
|
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
133,440
|
$
|
176,226
|
||||
Restricted cash
|
1,304
|
1,295
|
||||||
Short-term bank deposits
|
251,300
|
253,400
|
||||||
Accounts receivable, net
|
133,482
|
160,488
|
||||||
Prepaid expenses and other current assets
|
13,065
|
12,049
|
||||||
Marketable Securities
|
51,583
|
-
|
||||||
Total Current Assets
|
584,174
|
603,458
|
||||||
|
||||||||
Long-Term Assets:
|
||||||||
Property and equipment, net
|
3,435
|
3,611
|
||||||
Operating lease right-of-use assets
|
9,228
|
10,130
|
||||||
Goodwill and intangible assets, net
|
244,226
|
247,191
|
||||||
Deferred taxes
|
5,719
|
5,779
|
||||||
Other assets
|
44
|
49
|
||||||
Total Long-Term Assets
|
262,652
|
266,760
|
||||||
Total Assets
|
$
|
846,826
|
$
|
870,218
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
131,154
|
$
|
155,854
|
||||
Accrued expenses and other liabilities
|
22,752
|
37,869
|
||||||
Short-term operating lease liability
|
3,894
|
3,900
|
||||||
Deferred revenue
|
1,914
|
2,377
|
||||||
Short-term payment obligation related to acquisitions
|
54,585
|
34,608
|
||||||
Total Current Liabilities
|
214,299
|
234,608
|
||||||
|
||||||||
Long-Term Liabilities:
|
||||||||
Payment obligation related to acquisition
|
-
|
33,113
|
||||||
Long-term operating lease liability
|
6,534
|
7,580
|
||||||
Other long-term liabilities
|
13,668
|
11,783
|
||||||
Total Long-Term Liabilities
|
20,202
|
52,476
|
||||||
Total Liabilities
|
234,501
|
287,084
|
||||||
|
||||||||
Shareholders' equity:
|
||||||||
Ordinary shares
|
403
|
398
|
||||||
Additional paid-in capital
|
518,994
|
513,534
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive loss
|
(641
|
)
|
(582
|
)
|
||||
Retained earnings
|
94,571
|
70,786
|
||||||
Total Shareholders' Equity
|
612,325
|
583,134
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
846,826
|
$
|
870,218
|
|
Three months ended
|
|||||||
|
March 31,
|
|||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
(Unaudited)
|
||||||
|
||||||||
Cash flows from operating activities:
|
||||||||
Net Income
|
$
|
23,785
|
$
|
15,466
|
||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
3,361
|
3,185
|
||||||
Stock-based compensation expense
|
3,402
|
2,428
|
||||||
Foreign currency translation
|
(2
|
)
|
(46
|
)
|
||||
Accrued interest, net
|
(4,181
|
)
|
(542
|
)
|
||||
Deferred taxes, net
|
78
|
(204
|
)
|
|||||
Accrued severance pay, net
|
1,598
|
94
|
||||||
Gain from sale of property and equipment
|
(12
|
)
|
-
|
|||||
Net changes in operating assets and liabilities
|
(10,250
|
)
|
3,173
|
|||||
Net cash provided by operating activities
|
$
|
17,779
|
$
|
23,554
|
||||
|
||||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment, net of sales
|
(134
|
)
|
(252
|
)
|
||||
Purchase of marketable securities, net of sales
|
(51,406
|
)
|
-
|
|||||
Short-term deposits, net
|
2,100
|
(32,400
|
)
|
|||||
Cash paid in connection with acquisitions, net of cash acquired
|
-
|
(3,400
|
)
|
|||||
Net cash used in investing activities
|
$
|
(49,440
|
)
|
$
|
(36,052
|
)
|
||
|
||||||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock-based compensation
|
2,063
|
948
|
||||||
Payments of contingent consideration
|
(13,256
|
)
|
-
|
|||||
Net cash provided by (used in) financing activities
|
$
|
(11,193
|
)
|
$
|
948
|
|||
|
||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
77
|
(30
|
)
|
|||||
Net decrease in cash and cash equivalents and restricted cash
|
(42,777
|
)
|
(11,580
|
)
|
||||
Cash and cash equivalents and restricted cash at beginning of period
|
177,521
|
105,535
|
||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
134,744
|
$
|
93,955
|
Three months ended
|
||||||||
March 31,
|
||||||||
2023
|
2022
|
|||||||
(Unaudited)
|
||||||||
GAAP Net Income
|
$
|
23,785
|
$
|
15,466
|
||||
Stock-based compensation
|
3,402
|
2,428
|
||||||
Amortization of acquired intangible assets
|
2,963
|
2,789
|
||||||
Retention and other related to M&A related expenses
|
7
|
551
|
||||||
Foreign exchange gains associated with ASC-842
|
(116
|
)
|
(197
|
)
|
||||
Revaluation of acquisition related contingent consideration
|
144
|
132
|
||||||
Taxes on the above items
|
(285
|
)
|
(441
|
)
|
||||
Non-GAAP Net Income
|
$
|
29,900
|
$
|
20,728
|
||||
Non-GAAP Net Income
|
$
|
29,900
|
$
|
20,728
|
||||
Taxes on income
|
4,432
|
2,085
|
||||||
Financial income, net
|
(3,456
|
)
|
(539
|
)
|
||||
Depreciation
|
398
|
396
|
||||||
Adjusted EBITDA
|
$
|
31,274
|
$
|
22,670
|
||||
Non-GAAP diluted earnings per share
|
$
|
0.60
|
$
|
0.44
|
||||
Shares used in computing non-GAAP diluted earnings per share
|
49,738,514
|
47,620,874
|