Perion Accelerates Its Strong Business Momentum; Raises Full-Year 2021 and 2022 Guidance for Revenue and Adjusted EBITDA
December 08 2021 - 4:32PM
Business Wire
Expects at least $460 million in full-year 2021
revenue and at least $64 million in Adjusted EBITDA, driven by
estimated YoY growth of 115% in Video and CTV Advertising on a
proforma basis
Perion Network Ltd. (NASDAQ: PERI), a global advertising
technology company that delivers a holistic solution across the
three main pillars of digital advertising – ad search, social
media, and display / video / CTV advertising – today announced that
due to continued acceleration in its business momentum, management
raises its full-year 2021 and 2022 guidance.
Doron Gerstel, Perion’s CEO, commented, “We could not be more
pleased by these results confirm our overall diversification
strategy and operational excellence. The revised guidance reflects
the success of our breakthrough high impact creatively led formats,
especially for video and CTV. We are encouraged by the superior ROI
and improved media margin that our innovative iHub platform
provides. Overall – this is the healthiest kind of growth –
superior topline performance, propelled by greater operational
efficiency, together driving increased profitability and cash flow.
Our updated outlook reflects these systemic improvements which we
expect will continue unabated into 2022.”
The continuous improvement of our business leading in turn to
the guidance raise is mainly the result of:
- 115% YoY growth in Video and CTV including Vidazoo, on a
proforma basis (based on the 2021 full-year expected growth
compared to full-year 2020);
- Significant growth in average deal size and revenue
retention;
- 13% YoY growth in the daily average number of monetizable
searches (Based on October and November results);
- The expected improvement in our Adjusted EBITDA margin is
primarily a result of our successful implementation of Perion’s
iHub, which lead to lower Traffic Acquisition Costs.
($ millions)
2020 Actual Results
Revised Guidance FY
2021
Year over year Growth*
Revised Guidance FY
2022
Year over year Growth*
CAGR (2020- 2022)**
Revenue
$328.1
$460-470
42%
$590-610
29%
35%
Adjusted EBITDA
$32.8
$64-65
97%
$80-84
27%
58%
EBITDA to Rev Ex-TAC
25%
35%
35%
* At guidance mid-point
** CAGR (Compound Annual Growth Rate) calculations are derived
and based on the mid-point of 2022 guidance.
About Perion Network Ltd.
Perion is a global technology company that delivers strategic
business solutions that enable brands and advertisers to
efficiently “Capture and Convince” users across multiple platforms
and channels, including interactive connected television – or iCTV.
Perion achieves this through its Synchronized Digital Branding
capabilities, which are focused on high impact creative; content
monetization; its branded search network, in partnership with
Microsoft Bing; and social media management that orchestrates and
optimizes paid advertising. This diversification positions Perion
for growth as budgets shift across categories.
Non-GAAP Measures
Non-GAAP financial measures include Adjusted EBITDA and Revenue
ex-TAC consist of GAAP financial measures adjusted to exclude
certain items.
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.
Revenue ex-TAC is a key measure we use to evaluate our operating
performance. We define revenue ex-TAC as revenue excluding amounts
we pay digital properties to obtain the right to place advertising
on their websites, amounts we pay to our partners in order to drive
users to our properties as well as amounts we pay as revenue share
to our traffic sources. Revenue ex-TAC is calculated as 40% and 39%
of revenues for 2021 and 2022, respectively.
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 of Adjusted EBITDA without unreasonable effort.
Consequently, no reconciliation of the forward-looking Adjusted
EBITDA non-GAAP financial measures is included.
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, 2020 filed with the SEC on March 25, 2021. 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/20211208006067/en/
Perion Network Ltd. Rami Rozen, VP of Investor Relations +972
(52) 5694441 ramir@perion.com
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