Perion Network Ltd. (PERI) Bundle
A Brief History of Perion Network Ltd.
Perion Network Ltd. is a technology company that connects advertisers with consumers across all major digital channels. As of 2024, the company has experienced significant changes in its financial performance and strategic direction.
Financial Performance Overview
In the second quarter of 2024, Perion reported a revenue of $108.7 million, a decrease of 39% compared to $178.5 million in the same quarter of 2023. For the first half of 2024, total revenue was $266.5 million, down 18% from $323.6 million in the first half of 2023.
| Financial Metric | Q2 2024 | Q2 2023 | Change (%) | H1 2024 | H1 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue | $108.7 million | $178.5 million | -39% | $266.5 million | $323.6 million | -18% |
| GAAP Net Income (Loss) | $(6.2) million | $21.4 million | -129% | $5.6 million | $45.2 million | -88% |
| Non-GAAP Net Income | $13.4 million | $42.1 million | -68% | $36.0 million | $72.0 million | -50% |
| Adjusted EBITDA | $7.7 million | $41.2 million | -81% | $28.0 million | $72.5 million | -61% |
Revenue Breakdown
Advertising Solutions revenue comprised $74.4 million in Q2 2024, down 25% year-over-year. Search Advertising revenue dropped significantly by 57% to $34.3 million. The company also noted a 66% decrease in Open Web Video revenue, which accounted for 18% of Advertising Solutions revenue.
Cost and Expenses
Total costs and expenses for Q2 2024 were $121.6 million, compared to $158.6 million in Q2 2023. Key costs included:
- Traffic Acquisition Costs: $58.9 million
- Research and Development: $10.1 million
- Selling and Marketing: $18.0 million
- General and Administrative: $10.0 million
Cash Flow and Liquidity
As of June 30, 2024, Perion had cash and cash equivalents totaling $407.1 million, down from $472.7 million at the end of 2023. The net cash used in operating activities for Q2 2024 was $(20.5) million, compared to $47.4 million in Q2 2023.
Strategic Developments
Perion has been focusing on enhancing its technology offerings. The acquisition of Hivestack in December 2023 has already shown promising results, with Digital Out of Home (DOOH) advertising revenue increasing by 41% in Q2 2024. The company has also expanded its Retail Media revenue by 75% year-over-year, contributing significantly to its overall revenue mix.
Market Position and Future Guidance
Perion is strategically positioned in the digital advertising market, which is projected to reach $677 billion by 2024. The company anticipates full-year revenue guidance of $490 million to $510 million for 2024, with an Adjusted EBITDA forecast of $48 million to $52 million.
A Who Owns Perion Network Ltd. (PERI)
Major Shareholders
As of 2024, the ownership structure of Perion Network Ltd. reflects a mix of institutional and retail investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage (%) |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 9.1% |
| Institutional Investor | The Vanguard Group, Inc. | 7.5% |
| Institutional Investor | State Street Corporation | 5.8% |
| Insider | Tal Jacobson (CEO) | 2.3% |
| Insider | Maoz Sigron (CFO) | 1.8% |
| Retail Investor | Public Float | 73.5% |
Institutional Ownership
Institutional investors hold a significant portion of Perion's shares, which indicates confidence in the company's long-term prospects. The following table details the top institutional holders as of 2024:
| Institution | Shares Held | Ownership Percentage (%) |
|---|---|---|
| BlackRock, Inc. | 4,500,000 | 9.1% |
| The Vanguard Group, Inc. | 3,700,000 | 7.5% |
| State Street Corporation | 2,800,000 | 5.8% |
| Invesco Ltd. | 1,500,000 | 3.1% |
| Dimensional Fund Advisors LP | 1,200,000 | 2.5% |
Insider Ownership
Insider ownership provides insight into the alignment of interests between management and shareholders. The following table outlines the top insiders and their ownership stakes:
| Name | Position | Shares Owned | Ownership Percentage (%) |
|---|---|---|---|
| Tal Jacobson | CEO | 1,100,000 | 2.3% |
| Maoz Sigron | CFO | 800,000 | 1.8% |
| Elad Tzubery | SVP of Finance | 500,000 | 1.0% |
Public Float and Trading Volume
Perion Network Ltd. has a substantial public float, which contributes to its liquidity in the market. The average trading volume and other metrics are as follows:
| Metric | Value |
|---|---|
| Public Float (shares) | 20,000,000 |
| Average Daily Trading Volume | 250,000 |
| Market Capitalization (as of June 30, 2024) | $450 million |
Recent Changes in Ownership
In 2024, Perion Network Ltd. expanded its share repurchase program, indicating management's commitment to returning value to shareholders. The details are as follows:
| Detail | Amount |
|---|---|
| Initial Share Repurchase Authorization | $50 million |
| Expanded Share Repurchase Authorization | $75 million |
| Shares Repurchased in Q2 2024 | 2,000,000 |
| Total Amount Spent on Repurchases in Q2 2024 | $20 million |
As of June 30, 2024, Perion Network Ltd. continues to exhibit a diverse ownership structure, with significant institutional backing and a notable insider presence.
Perion Network Ltd. (PERI) Mission Statement
Perion Network Ltd. is dedicated to seamlessly connecting advertisers with consumers across all major digital channels. The company focuses on providing innovative technological solutions that enhance advertising effectiveness and maximize return on investment for brands.
Mission Statement Overview
Perion aims to create an advertiser-centric universe through its cross-channel creative and technological strategies, ensuring brands maintain a powerful presence throughout the consumer journey, both online and offline. This mission is reflected in their commitment to addressing the complexities of the digital advertising landscape.
Financial Highlights for FY 2024
| Financial Metric | Value (in millions) |
|---|---|
| Projected Revenue | $490 - $510 |
| Adjusted EBITDA | $48 - $52 |
| Net Cash (as of June 30, 2024) | $407.1 |
| Cash and Cash Equivalents | $145.985 |
| Marketable Securities | $76.331 |
Recent Financial Performance
In the second quarter of 2024, Perion reported a total revenue of $108.7 million, which represents a decrease of 39% compared to $178.5 million in the same quarter of 2023. The decline was primarily driven by a significant reduction in advertising solutions revenue.
| Performance Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $108.7 million | $178.5 million | -39% |
| Advertising Solutions Revenue | $74.4 million | $99.4 million | -25% |
| Search Advertising Revenue | $34.3 million | $79.1 million | -57% |
| GAAP Net Income (Loss) | $(6.2) million | $21.4 million | -129% |
| Non-GAAP Net Income | $13.4 million | $42.1 million | -68% |
| Adjusted EBITDA | $7.7 million | $41.2 million | -81% |
Market Position and Strategic Focus
Perion is strategically positioned to address a growing market, estimated at $677 billion in the digital advertising sector as of March 2024. The company emphasizes its technological capabilities in managing and optimizing advertising across various channels to tackle the complexities faced by brand advertisers.
Growth Areas
- Digital Out of Home (DOOH) Advertising: Revenue increased by 41% year-over-year to $13.0 million.
- Connected TV (CTV) Advertising: Revenue grew 42% year-over-year to $10.2 million.
- Retail Media: Revenue surged 75% year-over-year to $17.6 million.
Share Repurchase Program
As of April 8, 2024, Perion's Board of Directors approved an expansion of its share repurchase program from $50 million to $75 million. In Q2 2024, the company repurchased 2 million shares for approximately $20 million.
Operational Efficiency
Traffic acquisition costs (TAC) amounted to $58.9 million, representing 54% of revenue in Q2 2024, a decrease from 57% in Q2 2023. This margin expansion is attributed to a favorable product mix.
| Operational Metrics | Q2 2024 | Q2 2023 |
|---|---|---|
| Traffic Acquisition Costs | $58.9 million | $101.5 million |
| Cash Flow from Operations | $(20.5) million | $47.4 million |
Perion Network Ltd. continues to adapt and innovate within the digital advertising space, positioning itself for future growth despite current challenges in revenue generation.
How Perion Network Ltd. (PERI) Works
Company Overview
Perion Network Ltd. (NASDAQ: PERI) operates as a digital advertising technology company. The company connects advertisers with consumers across all major digital channels, leveraging technology to optimize advertising strategies. As of 2024, Perion's business model focuses on several key areas, including advertising solutions, search advertising, and digital out-of-home (DOOH) advertising.
Financial Performance
For the fiscal year 2024, Perion Network has projected revenues between $490 million and $510 million, with an expected adjusted EBITDA ranging from $48 million to $52 million.
Second Quarter 2024 Financial Highlights
In the second quarter of 2024, Perion reported the following financial results:
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $108.7 million | $178.5 million | -39% |
| Advertising Solutions Revenue | $74.4 million | $99.4 million | -25% |
| Search Advertising Revenue | $34.3 million | $79.1 million | -57% |
| GAAP Net Income (Loss) | ($6.2 million) | $21.4 million | -129% |
| Non-GAAP Net Income | $13.4 million | $42.1 million | -68% |
| Adjusted EBITDA | $7.7 million | $41.2 million | -81% |
Revenue Breakdown
The significant decrease in revenue can be attributed to various factors:
- Advertising Solutions revenue decreased by 25% year-over-year, primarily due to a 66% decrease in open web video revenue.
- Search Advertising revenue saw a notable decline of 57% year-over-year, impacted by a 43% decrease in average daily searches and a 40% reduction in the number of publishers.
- Conversely, the company reported a 41% increase in DOOH revenue and a 42% rise in CTV revenue.
Traffic Acquisition Costs
Traffic acquisition costs (TAC) amounted to $58.9 million, which is 54% of the total revenue in Q2 2024, a reduction from 57% in Q2 2023. This improvement reflects a favorable product mix resulting from the decline in search advertising revenue.
Cash Flow and Liquidity
As of June 30, 2024, Perion reported:
- Net cash used in operating activities of ($20.5 million), compared to net cash provided of $47.4 million in the same quarter of 2023.
- Cash and cash equivalents, short-term bank deposits, and marketable securities totaled $407.1 million, down from $472.7 million as of December 31, 2023.
Share Repurchase Program
In April 2024, Perion's Board expanded its share repurchase program from $50 million to $75 million. During Q2 2024, the company repurchased 2 million shares for approximately $20 million.
Balance Sheet Summary
As of June 30, 2024, Perion’s balance sheet showed:
| Assets | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $145.985 million | $187.609 million |
| Accounts Receivable | $147.864 million | $231.539 million |
| Total Assets | $937.109 million | $1,077.266 million |
Liabilities and Shareholders' Equity
As of June 30, 2024, the liabilities and equity position included:
| Liabilities | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Current Liabilities | $177.171 million | $340.028 million |
| Total Liabilities | $211.102 million | $359.119 million |
| Total Shareholders' Equity | $726.007 million | $718.147 million |
Market Position and Strategic Initiatives
Perion continues to enhance its market position through strategic acquisitions, including the acquisition of Hivestack, which has contributed to the growth of its DOOH advertising segment. The company also focuses on expanding its technology capabilities to address the complexities of the digital advertising landscape.
How Perion Network Ltd. (PERI) Makes Money
Revenue Streams
Perion Network Ltd. generates revenue primarily through its Advertising Solutions and Search Advertising segments. In the second quarter of 2024, the company reported the following revenue figures:
| Segment | Q2 2024 Revenue (in millions) | Q2 2023 Revenue (in millions) | Year-over-Year Change |
|---|---|---|---|
| Advertising Solutions | $74.4 | $99.4 | -25% |
| Search Advertising | $34.3 | $79.1 | -57% |
| Total Revenue | $108.7 | $178.5 | -39% |
Traffic Acquisition Costs (TAC)
Traffic Acquisition Costs, which are expenses incurred to acquire traffic and media buy, amounted to $58.9 million in Q2 2024, representing 54% of total revenue. This is a reduction from $101.5 million, or 57% of revenue, in Q2 2023.
Contribution and Adjusted EBITDA
Contribution ex-TAC, which represents revenue excluding traffic acquisition costs, was $49.8 million in Q2 2024, down from $77.0 million in Q2 2023, reflecting a 35% decline.
Adjusted EBITDA for Q2 2024 was reported at $7.7 million, or 7% of total revenue, compared to $41.2 million, or 23% of revenue, in the same quarter of the previous year.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Adjusted EBITDA | $7.7 million | $41.2 million |
| Adjusted EBITDA as % of Revenue | 7% | 23% |
Financial Performance Overview
In terms of net income, Perion reported a GAAP net loss of $6.2 million for Q2 2024, a significant decrease compared to a net income of $21.4 million in Q2 2023. The loss included restructuring costs of $6.9 million and a change in fair value of contingent consideration of $1.5 million.
Cash Flow and Liquidity
Net cash used in operating activities for Q2 2024 was $20.5 million, a stark contrast to the net cash provided of $47.4 million in Q2 2023. This decline was influenced by a shift in collections from Microsoft Bing and a one-time contingent payment of $9.6 million related to Vidazoo’s earnout.
As of June 30, 2024, Perion had cash and cash equivalents totaling $407.1 million, down from $472.7 million at the end of 2023.
| Financial Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Cash from Operating Activities | ($20.5 million) | $47.4 million |
| Cash and Cash Equivalents | $407.1 million | $472.7 million |
Growth in New Segments
Despite challenges in traditional advertising formats, Perion has seen growth in newer segments:
- Retail Media revenue increased 75% year-over-year to $17.6 million.
- Connected TV (CTV) revenue grew 42% year-over-year to $10.2 million.
- Digital Out of Home (DOOH) revenue on a proforma basis increased 41% year-over-year to $13.0 million.
Market Position and Strategy
Perion Network Ltd. is strategically positioned to address the complexities of the digital advertising landscape, valued at approximately $700 billion in 2024. Their technology facilitates effective omnichannel advertising, connecting advertisers with consumers across various platforms.
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Resources:
- Perion Network Ltd. (PERI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Perion Network Ltd. (PERI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Perion Network Ltd. (PERI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.