Perion Network Expects 20% YoY Revenue Growth and 40% YoY Increase in Adjusted EBITDA in Second Quarter 2023
06 July 2023 - 5:00PM
Business Wire
Company to announce second quarter 2023
financial results and updated annual outlook on August 2, 2023
Perion Network Ltd. (Nasdaq & TASE: PERI), a global
advertising technology company whose synergistic solutions are
delivered across the three primary channels of digital advertising
– search, social media and display/video/CTV advertising, today
announced preliminary results for the second quarter of 2023.
$ million
Actual Q2 2022
Preliminary Q2 2023
YoY
Revenue
146.7
176.0
20%
Adjusted EBITDA(1)
28.5
40.0
40%
Adjusted EBITDA to Revenue(1)
19%
23%
(1) Adjusted EBITDA is a non-GAAP measure.
See a reconciliation table below
“The strength of our second quarter results reflects continued
momentum of the business,” said Tal Jacobson, Perion’s incoming
CEO. “Both the second quarter and first six months highlight the
power of our executional agility, underlying technological
innovation and market fit. Our diversified and scalable business
model has allowed us to capitalize on recent positive market
indications, resulting in improved margins and market share gains.
Based on preliminary data suggesting stronger than initially
anticipated growth, we will provide an update to our annual outlook
when we report our financial results on August 2.”
Conference Call Details
Perion will release its financial results for the second quarter
of 2023 on Wednesday, August 2, 2023, prior to the opening of the
financial markets. Incoming CEO Tal Jaconson and CFO Maoz Sigron
will host a conference call to discuss the results at 8:30 a.m. ET
on the same day.
- Registration link:
https://incommconferencing.zoom.us/webinar/register/WN_xMvsgXNoSAyrwYE3yNKUcA#/registration
- Toll Free: 1-877-407-0779
- Toll/International: 1-201-389-0914
A replay of the call and a transcript will be available within
approximately 24 hours of the live event on the investors section
of Perion’s website at www.perion.com/investors.
About Perion Network Ltd.
Perion is a global advertising technology company whose
synergistic solutions are delivered across the three primary
channels of digital advertising – ad search, social media and
display / video / CTV advertising. These channels are brought
together by Perion’s intelligent Hub, which integrates the
company’s business assets from both sides of the open Web,
providing significant benefit to its brands and publisher
customers.
For more information, visit Perion's website at
www.Perion.com.
Non-GAAP Measures
We have presented certain non-GAAP financial measures, including
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA"). Adjusted EBITDA is defined as
operating income excluding stock-based compensation expenses,
depreciation, amortization of acquired intangible assets,
acquisition related expenses and gains and losses recognized on
changes in the fair value of contingent consideration
arrangements.
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 measure 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
June 30, 2023
June 30, 2022
GAAP Income from Operations
$
18,550
$
21,872
Share based compensation
3,200
2,701
Changes in FV of earnout contingent
consideration(2)
14,600
-
Retention and other expenses related to
M&A
250
679
Amortization of acquired intangible
assets
3,000
2,812
Depreciation
400
396
Adjusted EBITDA
$
40,000
$
28,460
(2) Due to over performance under the acquisition agreement of
Vidazoo, as amended.
Forward Looking Statements
The information in this press release is based on preliminary
estimated results because our financial closing procedures for the
three months ended June 30, 2023 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, 2022 filed with the SEC on March 15, 2023. 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/20230706945326/en/
Contact Information: Dudi Musler VP Investor Relations
+972 54 787 6785 dudim@perion.com
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