SORT™, Perion’s Cookieless Targeting solution,
and Vidazoo Video monetization platform contribute incremental
revenues, expected to drive substantial display advertising
growth
Perion Network Ltd. (NASDAQ: PERI), a global advertising
technology company that delivers holistic solutions across the
three main pillars of digital advertising – ad search, social media
and display / video / CTV advertising – today announced preliminary
results for the first quarter of 2022.
($m)
Q1 2021
Q1 2022 (preliminary)
YoY Growth
Revenue
89.8
125.0
39%
Adjusted EBITDA
8.8
22.0
150%
EBITDA to Rev Ex-TAC
25%
42%
* Reconciliation of GAAP to Non-GAAP
measures follows
Doron Gerstel, Perion’s CEO, commented, “Perion is building an
increasingly predictable and sustainable financial model, with our
strong revenue ramp continuing into 2022 performance. Our results
are driven by our strategic diversity of revenue streams, giving us
the ability to deliver growth where the opportunities are. In the
first quarter of 2022, the opportunities were clearly in our SORT
innovation – and its proprietary cookieless technology – which has
been used in more than 100 campaigns since launched in October
2021!”
“We also benefited from the growing market acceptance for the
solutions of Vidazoo, our most recent acquisition, which validates
our continued ability to identify and integrate accretive M&A,”
added Mr. Gerstel. “In addition, the economic value of our iHUB
continues to prove itself, as our innovative AdTech assets connect
to this centralized AI-led digital control center, leading to both
reduced operational expenses and improved media margin."
Mr. Gerstel added, “As a result of our strong start of 2022 and
increased visibility, we plan to update full-year guidance when we
report our first quarter results, on Thursday, April 28. I invite
all interested parties to read the attached White Paper, which
details the innovative technology framework and deployment which
enables SORT to deliver superior results to cookie-based targets,
while respecting privacy."
https://www.perion.com/solutions/cookieless-targeting/
Conference Call Details Perion will release its financial
results for the first quarter of 2022, on Thursday, April 28, 2022,
prior to the opening of the financial markets. Doron Gerstel, CEO
and Maoz Sigron, CFO will host a conference call to discuss the
results at 8:30 a.m. ET that day. Call details:
- Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_Z1TozBmxSm61qACRPmPgrA
- Toll Free: 1-877-407-0779
- Toll/International: 1-201-389-0914
About Perion Network Ltd. Perion is a global technology
company delivering holistic 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 We have presented certain non-GAAP
financial measures, including Adjusted Earnings Before Interest,
Taxes, Depreciation and Amortization ("Adjusted EBITDA") and
Revenue after Traffic Acquisition Costs (“Revenue ex-TAC”).
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 presents revenue reduced by traffic acquisition costs,
reflecting that a portion of our revenue must be directly passed to
publishers or advertisers and presents our revenue excluding such
items. 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.
The following table reconciles GAAP Income from Operations to
Adjusted EBITDA
(in thousands) (estimated and
unaudited):
Three Months Ended March 31,
2022
GAAP Income from Operations
$
15,822
Share based compensation
2,382
Retention and other related to M&A
related expenses
562
Amortization of acquired intangible
assets
2,819
Depreciation
415
Adjusted EBITDA
$
22,000
Preliminary Results; Forward Looking Statements The
information in this press release is based preliminary unaudited
estimated results because our financial closing procedures for the
three months ended March 31, 2022 are not yet completed. Actual
results are subject to change as we finalize our financial
results.
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, and our preliminary results also constitute 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, 2021 filed with the SEC on March 16, 2022. 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/20220404005281/en/
Perion Network Ltd. Rami Rozen, VP of Investor Relations
+972 (52) 5694441 ramir@perion.com
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