|
PERION NETWORK LTD.
By: /s/ Maoz Sigron
Name: Maoz Sigron
Title: Chief Financial Officer
|
● |
CTV revenue1 increased by 104% year-over-year to $7.2 million, representing 7% of Display Advertising revenue compared to 4% last year
|
● |
Retail Media2 revenue increased by 63% year-over-year to $10.1 million, representing 10% of Display Advertising revenue compared to 8% last year
|
● |
Video revenue increased by 14% year-over-year, representing 41% of Display Advertising revenue compared to 44% last year
|
● |
The number of Average Daily Searches increased by 68% year-over-year to 28.6 million
|
● |
The number of Search Advertising publishers increased by 28% year-over-year to 159
|
● |
Revenue from Perion’s AI-based cookieless targeting solution, SORT®2, grew by 84% year-over-year, representing 21% of Display Advertising revenue compared to 14% last year.
|
In millions,
except per share data |
Three months ended
|
Six months ended
|
||||||||||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||||||||||
|
2023
|
2022
|
%
|
2023
|
2022
|
%
|
||||||||||||||||||
Display Advertising Revenue
|
$
|
99.4
|
$
|
81.6
|
+22%
|
$
|
179.3
|
$
|
150.2
|
+19%
|
||||||||||||||
Search Advertising Revenue
|
$
|
79.1
|
$
|
65.1
|
+21%
|
$
|
144.4
|
$
|
121.8
|
+19%
|
||||||||||||||
Total Revenue
|
$
|
178.5
|
$
|
146.7
|
+22%
|
$
|
323.6
|
$
|
272.0
|
+19%
|
||||||||||||||
Contribution Ex-TAC (Revenue Ex-TAC)
|
$
|
77.0
|
$
|
60.7
|
+27%
|
$
|
142.3
|
$
|
115.0
|
+24%
|
||||||||||||||
GAAP Net Income
|
$
|
21.4
|
$
|
19.5
|
+10%
|
$
|
45.2
|
$
|
35.0
|
+29%
|
||||||||||||||
Non-GAAP Net Income
|
$
|
42.1
|
$
|
24.5
|
+72%
|
$
|
72.0
|
$
|
45.2
|
+59%
|
||||||||||||||
Adjusted EBITDA
|
$
|
41.2
|
$
|
28.5
|
+45%
|
$
|
72.5
|
$
|
51.1
|
+42%
|
||||||||||||||
Adjusted EBITDA to Contribution Ex-TAC
|
54
|
%
|
47
|
%
|
51
|
%
|
44
|
%
|
||||||||||||||||
Net Cash Provided by Operating Activities
|
$
|
47.4
|
$
|
25.7
|
+84%
|
$
|
65.2
|
$
|
49.3
|
+32%
|
||||||||||||||
GAAP Diluted EPS
|
$
|
0.43
|
$
|
0.41
|
+5%
|
$
|
0.91
|
$
|
0.74
|
+23%
|
||||||||||||||
Non-GAAP Diluted EPS
|
$
|
0.84
|
$
|
0.51
|
+65%
|
$
|
1.45
|
$
|
0.95
|
+53%
|
In millions
|
2022
|
Prior 2023 Guidance
|
Current 2023 Guidance
|
YoY
Growth %1
|
Revenue
|
$640.3
|
$725-$745
|
$730-$750
|
16%
|
Adjusted EBITDA
|
$132.4
|
$155+
|
$167+
|
26%
|
Adjusted EBITDA to Revenue
|
21%
|
21%1
|
23%1
|
|
Adjusted EBITDA to Contribution Ex-TAC
|
49%
|
50%1
|
54%1
|
● |
Registration link:
|
● |
Toll Free: 1-877-407-0779
|
● |
Toll/International: 1-201-389-0914
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||
Revenue
|
||||||||||||||||
Display Advertising
|
$
|
99,379
|
$
|
81,551
|
$
|
179,257
|
$
|
150,154
|
||||||||
Search Advertising
|
79,091
|
65,105
|
144,363
|
121,817
|
||||||||||||
Total Revenue
|
178,470
|
146,656
|
323,620
|
271,971
|
||||||||||||
Costs and Expenses
|
||||||||||||||||
Cost of revenue
|
9,589
|
6,861
|
17,148
|
13,474
|
||||||||||||
Traffic acquisition costs and media buy
|
101,482
|
85,956
|
181,357
|
156,930
|
||||||||||||
Research and development
|
8,236
|
8,336
|
16,589
|
17,369
|
||||||||||||
Selling and marketing
|
13,857
|
13,955
|
28,812
|
27,293
|
||||||||||||
General and administrative
|
7,413
|
6,468
|
13,956
|
12,134
|
||||||||||||
Changes in fair value of contingent consideration
|
14,602
|
-
|
14,602
|
-
|
||||||||||||
Depreciation and amortization
|
3,405
|
3,208
|
6,766
|
6,393
|
||||||||||||
Total Costs and Expenses
|
158,584
|
124,784
|
279,230
|
233,593
|
||||||||||||
Income from Operations
|
19,886
|
21,872
|
44,390
|
38,378
|
||||||||||||
Financial income, net
|
5,158
|
903
|
8,586
|
1,507
|
||||||||||||
Income before Taxes on income
|
25,044
|
22,775
|
52,976
|
39,885
|
||||||||||||
Taxes on income
|
3,638
|
3,275
|
7,785
|
4,919
|
||||||||||||
Net Income
|
$
|
21,406
|
$
|
19,500
|
$
|
45,191
|
$
|
34,966
|
||||||||
Net Earnings per Share
|
||||||||||||||||
Basic
|
$
|
0.46
|
$
|
0.44
|
$
|
0.97
|
$
|
0.79
|
||||||||
Diluted
|
$
|
0.43
|
$
|
0.41
|
$
|
0.91
|
$
|
0.74
|
||||||||
Weighted average number of shares
|
||||||||||||||||
Basic
|
46,961,028
|
44,439,023
|
46,673,439
|
44,238,414
|
||||||||||||
Diluted
|
49,637,258
|
47,292,249
|
49,551,061
|
47,210,769
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
(Unaudited)
|
(Audited)
|
||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
185,928
|
$
|
176,226
|
||||
Restricted cash
|
1,315
|
1,295
|
||||||
Short-term bank deposits
|
225,300
|
253,400
|
||||||
Accounts receivable, net
|
140,734
|
160,488
|
||||||
Prepaid expenses and other current assets
|
18,947
|
12,049
|
||||||
Marketable Securities
|
72,090
|
-
|
||||||
Total Current Assets
|
644,314
|
603,458
|
||||||
|
||||||||
Long-Term Assets
|
||||||||
Property and equipment, net
|
3,181
|
3,611
|
||||||
Operating lease right-of-use assets
|
8,318
|
10,130
|
||||||
Goodwill and intangible assets, net
|
241,235
|
247,191
|
||||||
Deferred taxes
|
6,414
|
5,779
|
||||||
Other assets
|
52
|
49
|
||||||
Total Long-Term Assets
|
259,200
|
266,760
|
||||||
Total Assets
|
$
|
903,514
|
$
|
870,218
|
||||
|
||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
145,639
|
$
|
155,854
|
||||
Accrued expenses and other liabilities
|
29,861
|
37,869
|
||||||
Short-term operating lease liability
|
3,920
|
3,900
|
||||||
Deferred revenue
|
1,978
|
2,377
|
||||||
Short-term payment obligation related to acquisitions
|
69,333
|
34,608
|
||||||
Total Current Liabilities
|
250,731
|
234,608
|
||||||
|
||||||||
Long-Term Liabilities
|
||||||||
Payment obligation related to acquisition
|
-
|
33,113
|
||||||
Long-term operating lease liability
|
5,480
|
7,580
|
||||||
Other long-term liabilities
|
10,811
|
11,783
|
||||||
Total Long-Term Liabilities
|
16,291
|
52,476
|
||||||
Total Liabilities
|
267,022
|
287,084
|
||||||
|
||||||||
Shareholders' equity
|
||||||||
Ordinary shares
|
405
|
398
|
||||||
Additional paid-in capital
|
522,217
|
513,534
|
||||||
Treasury shares at cost
|
(1,002
|
)
|
(1,002
|
)
|
||||
Accumulated other comprehensive loss
|
(1,105
|
)
|
(582
|
)
|
||||
Retained earnings
|
115,977
|
70,786
|
||||||
Total Shareholders' Equity
|
636,492
|
583,134
|
||||||
Total Liabilities and Shareholders' Equity
|
$
|
903,514
|
$
|
870,218
|
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||
|
||||||||||||||||
Cash flows from operating activities
|
||||||||||||||||
Net Income
|
$
|
21,406
|
$
|
19,500
|
$
|
45,191
|
$
|
34,966
|
||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
3,405
|
3,208
|
6,766
|
6,393
|
||||||||||||
Stock-based compensation expenses
|
3,100
|
2,701
|
6,502
|
5,129
|
||||||||||||
Foreign currency translation
|
(11
|
)
|
(128
|
)
|
(13
|
)
|
(174
|
)
|
||||||||
Accrued interest, net
|
2,150
|
(639
|
)
|
(2,031
|
)
|
(1,181
|
)
|
|||||||||
Deferred taxes, net
|
(554
|
)
|
(44
|
)
|
(476
|
)
|
(248
|
)
|
||||||||
Accrued severance pay, net
|
(1,873
|
)
|
409
|
(275
|
)
|
503
|
||||||||||
Gain from sale of property and equipment
|
(5
|
)
|
(6
|
)
|
(17
|
)
|
(6
|
)
|
||||||||
Net change in operating assets and liabilities
|
19,754
|
720
|
9,504
|
3,893
|
||||||||||||
Net cash provided by operating activities
|
$
|
47,372
|
$
|
25,721
|
$
|
65,151
|
$
|
49,275
|
||||||||
|
||||||||||||||||
Cash flows from investing activities
|
||||||||||||||||
Purchases of property and equipment, net of sales
|
(217
|
)
|
(177
|
)
|
(351
|
)
|
(429
|
)
|
||||||||
Marketable securities, net
|
(20,789
|
)
|
-
|
(72,195
|
)
|
-
|
||||||||||
Short-term deposits, net
|
26,000
|
(1,000
|
)
|
28,100
|
(33,400
|
)
|
||||||||||
Cash paid in connection with acquisitions, net of cash acquired
|
-
|
(6,170
|
)
|
-
|
(9,570
|
)
|
||||||||||
Net cash provided by (used in) investing activities
|
$
|
4,994
|
$
|
(7,347
|
)
|
$
|
(44,446
|
)
|
$
|
(43,399
|
)
|
|||||
|
||||||||||||||||
Cash flows from financing activities
|
||||||||||||||||
Proceeds from exercise of stock-based compensation
|
125
|
346
|
2,188
|
1,294
|
||||||||||||
Payments of contingent consideration
|
-
|
(9,091
|
)
|
(13,256
|
)
|
(9,091
|
)
|
|||||||||
Net cash provided by (used in) financing activities
|
$
|
125
|
$
|
(8,745
|
)
|
$
|
(11,068
|
)
|
$
|
(7,797
|
)
|
|||||
|
||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash
|
8
|
(147
|
)
|
85
|
(177
|
)
|
||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
52,499
|
9,482
|
9,722
|
(2,098
|
)
|
|||||||||||
Cash and cash equivalents and restricted cash at beginning of period
|
134,744
|
93,955
|
177,521
|
105,535
|
||||||||||||
Cash and cash equivalents and restricted cash at end of period
|
$
|
187,243
|
$
|
103,437
|
$
|
187,243
|
$
|
103,437
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Total Revenue
|
$
|
178,470
|
$
|
146,656
|
$
|
323,620
|
$
|
271,971
|
||||||||
Traffic acquisition costs and media buy
|
101,482
|
85,956
|
181,357
|
156,930
|
||||||||||||
Contribution Ex-TAC
|
$
|
76,988
|
$
|
60,700
|
$
|
142,263
|
$
|
115,041
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Income from Operations
|
$
|
19,886
|
$
|
21,872
|
$
|
44,390
|
$
|
38,378
|
||||||||
Stock-based compensation expenses
|
3,100
|
2,701
|
6,502
|
5,129
|
||||||||||||
Retention and other acquisition-related expenses
|
250
|
679
|
257
|
1,230
|
||||||||||||
Changes in fair value of contingent consideration
|
14,602
|
-
|
14,602
|
-
|
||||||||||||
Amortization of acquired intangible assets
|
2,992
|
2,812
|
5,955
|
5,601
|
||||||||||||
Depreciation
|
413
|
396
|
811
|
792
|
||||||||||||
Adjusted EBITDA
|
$
|
41,243
|
$
|
28,460
|
$
|
72,517
|
$
|
51,130
|
Three months ended
|
Six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
GAAP Net Income
|
$
|
21,406
|
$
|
19,500
|
$
|
45,191
|
$
|
34,966
|
||||||||
Stock-based compensation expenses
|
3,100
|
2,701
|
6,502
|
5,129
|
||||||||||||
Amortization of acquired intangible assets
|
2,992
|
2,812
|
5,955
|
5,601
|
||||||||||||
Retention and other acquisition-related expenses
|
250
|
679
|
257
|
1,230
|
||||||||||||
Changes in fair value of contingent consideration
|
14,602
|
-
|
14,602
|
-
|
||||||||||||
Foreign exchange losses (gains) associated with ASC-842
|
(81
|
)
|
(548
|
)
|
(198
|
)
|
(745
|
)
|
||||||||
Revaluation of acquisition-related contingent consideration
|
147
|
129
|
292
|
261
|
||||||||||||
Taxes on the above items
|
(289
|
)
|
(771
|
)
|
(574
|
)
|
(1,212
|
)
|
||||||||
Non-GAAP Net Income
|
$
|
42,127
|
$
|
24,502
|
$
|
72,027
|
$
|
45,230
|
||||||||
Non-GAAP diluted earnings per share
|
$
|
0.84
|
$
|
0.51
|
$
|
1.45
|
$
|
0.95
|
||||||||
Shares used in computing Non-GAAP diluted earnings per share
|
49,922,156
|
47,906,671
|
49,832,074
|
47,744,781
|