Perion Raises Financial Outlook, Expects 31% Year over Year Revenue Growth in the Fourth Quarter of 2020
December 07 2020 - 6:00AM
Business Wire
Customers Momentum for Connected TV and
“Full-Funnel” Solution Propel Advertising Business
Perion Network Ltd. (NASDAQ: PERI), a global technology company
that delivers its Synchronized Digital Branding solution across the
three main pillars of digital advertising - ad search, social media
and display / video advertising – today increased its revenue and
Adjusted EBITDA guidance for the full year and fourth quarter
2020.
“The acceleration of Perion’s advertising revenue growth is
being driven by higher-than-expected revenue synergies from recent
acquisitions, as well as higher demand across our CTV and video
offerings,” commented Doron Gerstel, Perion’s CEO. “Additionally,
following the four-year renewal of our partnership with Microsoft,
announced earlier this quarter, we see an increased number of
publishers who wish to engage with Perion’s search business unit.
These achievements underscore the success of our diversification
strategy and are expected to contribute to double digit revenue
growth rates over the coming years for Perion.”
($M)
Prior Guidance*
Revised Guidance
Expected YoY
Growth
Revised Guidance
Q4 2020
Q4 2020
Full Year 2020
Revenue
$81-$91
$100-$105
31%
$310-$315
Adjusted EBITDA
$8-$10
$13-$14
11%
$30-$31
* The revised guidance for Q4 2020, implies that for the second
half of 2020, revenue and Adjusted EBITDA ranges are $183-$188 and
$22-$23 million, respectively, compared to the previously provided
second half outlook of revenue and Adjusted EBITDA ranges of
$164-$174 and $16-$18 million, respectively.
About Perion Network Ltd. Perion is a global technology
company that provides agencies, brands and publishers with
innovative solutions that cover the three main pillars of digital
advertising. From its data-driven Synchronized Digital Branding
platform and high-impact ad formats in the display domain; to its
powerful social media platform; to its branded search network,
Perion is well-positioned to capitalize on any changes in
marketers’ allocation of digital advertising spend. More
information about Perion can be found at www.perion.com.
Non-GAAP measures Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization ("Adjusted EBITDA") is defined
as operating income excluding stock-based compensation expenses,
depreciation, restructuring costs, acquisition related items
consisting of amortization of intangible assets and goodwill and
intangible asset impairments, acquisition related expenses, gains
and losses recognized on changes in the fair value of contingent
consideration arrangements and certain accounting entries under the
business combination accounting rules that require us to recognize
a legal performance obligation related to revenue arrangements of
an acquired entity based on its fair value at the date of
acquisition. 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. A reconciliation of guidance from a GAAP
to Non-GAAP basis is not available due to the unpredictability and
uncertainty associated with future events that would be reported in
GAAP results and would require adjustments between GAAP and
Non-GAAP financial measures. Accordingly, a reconciliation of the
guidance based on Non-GAAP financial measures to corresponding GAAP
financial measures for future periods is not available without
unreasonable effort.
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” 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, among others, 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,
unpredictable sales cycles, competitive pressures, market
acceptance of new products, 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, 2019 filed with the SEC on March 16, 2020. Perion does
not assume any obligation to update these forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20201207005380/en/
Perion Network Ltd. Rami Rozen, VP of Investor Relations
+972 (52) 5694441 ramir@perion.com Source: Perion Network Ltd.
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